McMahon, 85, has been unable to work as a pitchman for various products since he broke his neck 18 months ago, said his spokesman, Howard Bragman.
"There are plenty of people affected by the weak economy, bad housing market or bad health," Bragman said.
McMahon has been in "very fruitful discussions" with the lender to resolve the solution, Bragman said. But it's unclear whether McMahon and his wife, Pamela, will remain in the home.
A spokesman for Countrywide declined comment to the Los Angeles Times.
The six-bedroom, five-bath house is in a hilltop gated community overlooking Mulholland Drive called The Summit and is listed for sale at $6.25 million. It has been on the market two years, according to real estate agent Alex Davis, who has the listing.
The house is near that of pop star Britney Spears, which doesn't always work in its favor.
"When we were trying to sell the house one time, there were about 100 paparazzi there," Davis said.