According to a lawsuit he filed, the trouble began when a pipe broke and water flooded a den. Mold was later discovered throughout the house. McMahon and his wife, Pamela, blamed faulty cleanup.
"When your family loses its health and your home is a wasteland, that's a colossal disaster," McMahon said at the time.
For The Record
Los Angeles Times Thursday, June 05, 2008 Home Edition Main News Part A Page 2 National Desk 1 inches; 60 words Type of Material: Correction
An article in Business on Wednesday about the possible foreclosure of television personality Ed McMahon's house quoted real estate agent Alex Davis as saying 100 paparazzi had gathered outside the nearby home of Britney Spears. In fact, Davis said the paparazzi had been outside the gate of the community, not an individual house, and he did not estimate their number.
Both the Hyland website and ChristiesGreatestEstates.com list the property, built in 1989, at $5.75 million. Davis said it was still priced at $6.25 million.
McMahon took out two loans on the property totaling $4.5 million and later borrowed an additional $300,000 against the house, according to ForeclosureRadar. The loans were obtained through Countrywide Home Loans Inc.
A Countrywide spokesman declined to comment, citing privacy concerns.
The Wall Street Journal first reported the story. Though McMahon was in negotiations with Countrywide, the paper said it wasn't clear whether McMahon and his wife would be able to remain in the home.
McMahon was about $644,000 in arrears on the loan when the notice of default was filed, the paper said.
Federal regulators have been urging lenders to ease loan terms, but it wasn't clear if that would happen in McMahon's case.
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peter.hong@latimes.com
Times staff writer E. Scott Reckard contributed to this report.
