This morning I read a news item in the Press-Enterprise. Though the words “SHORT SALE” were never mentioned, it appears that Ed McMahon will save his Los Angeles hilltop home from foreclosure with a short sale.

He tried for many months to sell the home, to no avail. He received a Notice of Default (as I understand from news reports) and was at a loss as to what to do.

Comedian Phyllis Diller publicized his plight and asked the entertainment community to bail out the TV icon.

Then Donald Trump offered to buy the McMahon home and rent it back to Ed and his wife. Now I read today that a buyer came forward and the McMahon’s will move out of their home in the gated community at the close of escrow.

This is a Short Sale! There could be many reasons why The Donald’s offer didn’t go through. 1. The defaulting lender must approve any arrangement for the homeowner to remain in possession of the home. 2. If Ed McMahon is financially strapped, it is doubtful that he could pay rent that would come close to covering Trump’s PITI (mortgage, interest, taxes, and insurance payments). If Trump bailed McMahon out with all-cash, it would really be a bad investment for Trump and not one he could write-off.

So…SHORT SALES can happen to the best of us. If you are unsure how to proceed, give us a call or send us an email and we’ll help you make the best decision for you and your family.

with blessings,
Claudia

This entry was posted on Saturday, August 23rd, 2008 at 11:07 pm and is filed under Short Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.