Extreme Home Makeover Gets Foreclosure

[MA-Caver]

'Extreme Makeover' house faces foreclosure

http://tv.yahoo.com/extreme-makeove....org:20080728:tv_extreme_makeover_foreclosure
Mon Jul 28, 11:32 AM PDT More than 1,800 people showed up to help ABC's "Extreme Makeover" team demolish a family's decrepit home and replace it with a sparkling, four-bedroom mini-mansion in 2005.
Three years later, the reality TV show's most ambitious project at the time has become the latest victim of the foreclosure crisis.
After the Harper family used the two-story home as collateral for a $450,000 loan, it's set to go to auction on the steps of the Clayton County Courthouse Aug. 5. The couple did not return phone calls Monday, but told WSB-TV they received the loan for a construction business that failed.

Dunno if this is a kick in a gift horse's mouth or what? But it's sad that they drew out a loan on the value of the house and now cannot pay it back and will soon lose it.
The home was a gift and it's now squandered and will be lost because they wanted to go into business for themselves. Now that's alright I think but for the entire amount? They should've known better to have started small and work their way on up. But it appears they got too ambitious for their britches.
Pretty sad way to muck up a fairytale ending. The house was bought and paid for (minus taxes on the property) and it was one less bill to worry about which with many of today's families is a major one.
Thoughts, feelings, comments? I'm at a loss for anything further.

 

[CuongNhuka]

Don't the people in charge pay for everything? So, why was there a loan needed in the first place?

 

[terryl965]

To me this is just plain stupid

 

[Nomad]

The people in charge do pay for everything, and even put money into a "maintenance" fund to help the family further along.

What happened with this one was that the family took the house they had free and clear and used it to leverage a $450,000 loan to start a new business... which tanked.

Very sad, and pretty stupid overall.

 

[Flying Crane]

Don't the people in charge pay for everything? So, why was there a loan needed in the first place?

Sounds like they wanted to start a business, and so needed to use the house as collateral for the business loan. Then the business was unsuccessful, they couldn't make payments on the buisness loan, so the house was seized to payoff the loan. So there was no mortgage on the house itself, it was paid for by the Home Makeover process. They owned the home free and clear, and only need to pay property taxes and upkeep.

boy howdy, that was a poor decision.

 

[CuongNhuka]

What happened with this one was that the family took the house they had free and clear and used it to leverage a $450,000 loan to start a new business... which tanked.

Well, this is very sad. I tend to think that people shouldn't be punished for long amounts of time for one small mistake or something out of there hands. I have a feeling that the buinsness they opened tanked because the market is bad. They shouldn't lose there house because of something out there control. At the same time, the bank would tank if they tried to be easy on them. I geuss it's true, 'Economics is amoral'.

 

[MA-Caver]

Well, this is very sad. I tend to think that people shouldn't be punished for long amounts of time for one small mistake or something out of there hands. I have a feeling that the business they opened tanked because the market is bad. They shouldn't lose there house because of something out there control. At the same time, the bank would tank if they tried to be easy on them. I guess it's true, 'Economics is amoral'.

Well they put their house up as a promise to pay the loan and apparently they sunk everything into the business and it still tanked. Even selling off the equipment (I can only think of heavy machinery and tools as being the most expensive items... oh and company vehicles)... they still couldn't make up for it. They could declare bankruptcy but they might've already BEEN in bankruptcy when Extreme Makeover came in.
Like I said, they should've started small and gone from there. Heck I could start up a small construction company on $25-50K easy. Dunno what I'd do with one worth 450K sheesh! You'd need million dollar building contracts already signed and approved and ready to go just to make the first year. But doing something small (building decks, storage sheds/garages for private homes, swimming pools, add-on's and stuff like that)... yeah, in a couple of years you'd have the loan paid off and a reputation to go on to bigger stuff.

 

[bluemtn]

It's pretty sad to hear they lost the house. They were pretty ambitious to say the least, perhaps not the smartest thing to do. Perhaps they felt that they could make it work for them- construction is very nearly always in need, even in small towns. However, it depends on what all they were offering- commercial (new businesses), or building homes/ realestate. Unfortunately, with the housing market being down, it's hurting a lot of people in that end of the business.

 

[Sukerkin]

A shining testimony to what is wrong with an economic system that runs on debt rather than tangible resources.

However, also a cautionary tale for those who would gamble with what good fortune had already given them.

 

[DavidCC]

Greedy Morons!

450k to start a business? Sounds more like greed to me. I wonder how many trips to Vegas, Bahamas, V.I etc they took on the 450?

Just another story to classify in the "Lottery winners ruin their lives" file. Except it is worse becasue these people didn't win the lottery, they were given charity and used it to ruin their lvies. It makes you wonder if it is even POSSIBLE to help some people...

 

[MA-Caver]

Greedy Morons!

450k to start a business? Sounds more like greed to me. I wonder how many trips to Vegas, Bahamas, V.I etc they took on the 450?

Just another story to classify in the "Lottery winners ruin their lives" file. Except it is worse because these people didn't win the lottery, they were given charity and used it to ruin their lives. It makes you wonder if it is even POSSIBLE to help some people...

Oh it's possible alright, no question about that. For 5 seasons this show has been a tremendous boom to all involved. The people that the show has helped, the producers, the sponsors and so on down the line.
But focusing on the people. Many of us have been reduced to tears or at least choked up at seeing the faces and tears of the "new" home-owners as their dreams are realized and hopes restored. It's a great show, a worthy show and definitely I hope continues.
However, as you asked is it even "possible to help some people? " or the real question now needs to be asked... because of what these people have done... "if it be possible to help people by those WILLING to do so without fear/suspicion that their gift won't be squandered away foolishly".
Kinda makes one understand why multi-million/gazillionares don't just give money hand over fist to those who truly could use it. They seem to intuitively know the odds that the 1/2 million or 1 million dollars that they so graciously gave away is gonna be blown within a few months. To them it's a waste of money. Frankly I don't blame them for not wanting to play that particular crap shoot.
So will the show go on? Will there be changes? Something like the show's producers holds the house's title for a while to ensure that the next family doesn't do what this one did?
It's like adding 1/4 cup of vinegar to a 5 gallon jug of clean fresh water... it's still drinkable but could still leave a bleah after-taste in your mouth.

 

[jkembry]

If I was one of the folks that helped out with the 'makeover' I would be PO'd.

 

[MA-Caver]

If I was one of the folks that helped out with the 'makeover' I would be PO'd.

Well that's understandable, I suppose I'd be sorely disappointed so question is sir, what would you do to prevent that from happening the next time? If it's preventable?

 

[jkembry]

Well that's understandable, I suppose I'd be sorely disappointed so question is sir, what would you do to prevent that from happening the next time? If it's preventable?

MA...first of all I am not sure it is preventable. However, if it could be prevented, I am sure there would need to be a bunch of lawyers involved with any contracts that may be required for the makeover to happen.

2nd of all if it was my house...come to think of it...I kinda treat my house this way....I have not used it as collateral...taken out a second mortgage or any thing like that. And my Navy retirement is paying the original mortgage.

I just haven't found anything worth risking my home for. I consider it a home...not an investment property.

 

[Sukerkin]

That last there is such a vitally important point. People not feeling that way is one reason for the ludicrously inflated house prices in England these days.

 

[Kacey]

I just haven't found anything worth risking my home for. I consider it a home...not an investment property.

That last there is such a vitally important point. People not feeling that way is one reason for the ludicrously inflated house prices in England these days.

It is, indeed, a great point - I will say, however, that my perspective is slightly different, as I consider my house an investment in my retirement - my goal, and plan, is to pay off the house by the time I retire, which will massively reduce my need for retirement income.

To return to the topic of the thread - these people were given an incredible gift. They attempted to parlay it into something greater... sadly for them, they were unsuccessful, and will now have to pay the price for their failure.

 

[jkembry]

It is, indeed, a great point - I will say, however, that my perspective is slightly different, as I consider my house an investment in my retirement - my goal, and plan, is to pay off the house by the time I retire, which will massively reduce my need for retirement income.

Indeed a different perspective. What I meant by the term investment property was those that expect to sell the house after a couple of years at a huge profit.

To return to the topic of the thread - these people were given an incredible gift. They attempted to parlay it into something greater... sadly for them, they were unsuccessful, and will now have to pay the price for their failure.

Totally agree!!!

 

[MA-Caver]

To return to the topic of the thread - these people were given an incredible gift. They attempted to parlay it into something greater... sadly for them, they were unsuccessful, and will now have to pay the price for their failure.

Agreed here as well. I think that is what is making a lot of people upset or mad or disappointed about this story.
You just don't kick your gift horse in the mouth like that.