Trump to Rescue Ed McMahon …Again
Trump to Rescue Ed McMahon …Again
Ed McMahon can once again breathe a sigh of relief after Donald Trump’s attorney said that the billionaire developer is making another bid for the television host’s property.
Just last week, negotiations with an anonymous bidder fell apart after the refusal of the said bidder to pay the deposit, which was supposedly non-refundable.
On the other hand, billionaire Trump has already expressed his desire to enter into a “lease and buy back” agreement with McMahon last month, when the property entered the initial stage of foreclosure. Unfortunately, another buyer outbid him.
After the agreement with the anonymous buyer expired, McMahon’s agent immediately contacted Trump to ask if he is willing to re-negotiate his initial offer. Fortunately for the television host, Trump was.
The former host of “Star Search” has actually put his Beverly Hills home on the market about two years ago, with an asking price of $4.6 million. But because of an accident that occurred 20 months ago, the 85-year old host had difficulty finding work. With a lot more creditors on his heels, McMahon finally faced the possibility of losing his home to foreclosure. He is currently behind $644,000 in mortgage arrears on a principal loan amount of $4.8 million.
According to Trump’s representative, the billionaire is sincere and committed to buying McMahon’s home. In addition, Trump also wants the host to continue living in his home.
A “lease and buy back” agreement allows the previous owner of the property to stay on as a tenant, paying the new owner a certain amount in rent. After an agreed period, the previous owner has the option to buy back the property for an amount initially agreed in the sales contract.
This particular agreement is an option that distressed homeowners can explore in order to avoid having a foreclosure record on their credit history. Another possible option is a short sale, which has to be approved by the mortgage lender.