Extreme Makeover’ house faces foreclosure

[WriteDown]

Source: AP

LAKE CITY, Ga. - 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....



Read more: http://www.msnbc.msn.com/id/25888546/from/ET/

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Words are not sufficient

[Indydem]

1. They put up a house that was free and clear...

to start a business that failed. They took the gamble and lost. Too bad they didn't earn the house, then they might have not been so willing to gamble it away.

[WriteDown]

4. What a stupid gamble though....

Truly amazing.

[hedgehog]

11. It's hard to put up a house that isn't free and clear.

[fl410]

20. No, people get 2nd and 3rd mortgages all the time.

...

[aspergris]

43. and considering

over 80% of businesses fail -

the odds were againt them

[snooper2]

47. Yep, that's the definition of stupid

nt

[Tangerine LaBamba]

2. Greed

Getting all that - the house, the fund, the scholarships -wasn't enough, it seems. They mortgaged a house that had been given to them - unbelievable - and now they're losing it.

It's a whole morality play here.

[enid602]

33. new business

They needed to start the business, so they could buy an even bigger McMansion, and rent out the little McMansion to poor relatives.

[Tangerine LaBamba]

39. Your take on it

is so wonderfully sneaky and cynical, I must give you a great big round of applause:

:applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause: :applause:

[YOY]

3. Hate to say it but they got themselves in their own mess.

A free house and they bit the adjustable rate loan bait.

I feel sorry for them...someone should have been looking out for them.

[WriteDown]

6. They got a free house...

Someone WAS looking out for them. More that 99.9% of people in the world.

[YOY]

8. I was referring to the homebusiness and taking the loan...

but yes, they had it better than most folks.

[proud2BlibKansan]

5. Not surprised

They have done three of those houses here. And there have been follow up articles about the homeowners not able to pay higher property taxes or even routine maintenance. I also read about the neighbors of one of them not being happy about the new makeover mcmansion not fitting in to their block.

[Judi Lynn]

56. A family not making a hefty income WON'T be able to swing the espense of property taxes

and utilities and general upkeep.

It seems so ill advised to load people who are struggling down with expenses far, FAR beyond their ability to afford.

Wouldn't it seem obvious to some people that these folks felt they had to increase their family's income CONSIDERABLY just to be able to afford to live there?

The pressure could destroy a lot of people who have been living in meager circumstances.

Would have been more thoughtful, more humane to have arranged livable houses which are far easier to maintain financially, if you're dealing with people who don't have much money.

Thanks for making that point.

[Name removed]

65. Deleted message

Message removed by moderator. Click here to review the message board rules.

[WriteDown]

67. Hard to say....

You'd have to assume that they were paying taxes and utilities on the original property. Even if these doubled, it is very likely that it was less per month then their original mortgage pmt + their original property expenses.

You can't discount the energy saving of a new house as well. Take it from someone who lives in a house built in 1943. Compared to brand new homes twice the size of mine, my electric and gas costs are triple what the new properties are averaging. So there monthly costs may also have gone done.

Then there is the question as to why they did not just sell the house, but a nice house that was a comfortable upgrade from their original house and pocket 100 or 200K and use this as seed money to start a business.

[intheflow]

60. I've always wondered about the property taxes.

It doesn't surprise me to hear you say that people have struggled to pay them. It seems like a free house, but... the increased utility costs can't be good, either.

I've always thought it would make so much more sense to drop the extreme and just have them build modest homes with modest appliances. Doubtless Sears would sell more mid-range appliances seen on national tv than the high-end stuff, more than enough to make up the cost differences, I'd think. Ditto the Home Depots, etc. If they showed modest homes being built, surely more people would think a new home wouldn't be beyond their grasp. But noooo, they have to be greedy and build a market where only McMansions are acceptable new houses for middle class families, which of course has brought us to a large component of the current housing crisis.

[hedgehog]

7. What were they thinking - trying to start up a business and achieve some

financial independence! They actually believed it was possible to earn a living building houses in a booming region! Why I bet the bank made the loan just to use them to set an example for other people!




How come no one is asking how they bought a house with no decent septic system in the first place? It sounds to me like these people were taken for a ride right from the start!

[WriteDown]

9. ATL

is the leader in mortgage fraud in the US. Also has to be taken into consideration. Sounds more like they were looking to make a even more bucks off the trememdous gift they were given.

[hedgehog]

10. This guy didn't mortgage the house to buy lottery tickets or blow the

money on a sure thing at the track. He saw a chance to run his own business and grabbed it. Why is everyone assuming he was an inept businessman? It wouldn't be the first time a black man was deliberately run out of business.

[stray cat]

12. How many people put up a paid for house to start a business when they have no savings?

No different then investing it all in the stock market and losing it. Hard to be sympathetic... No new business is guaranteed to thrive and banking your house on one is one hell of a gamble.

[hedgehog]

13. They saved up their money to buy a house in the first place and were sold

a house with no operating septic system.

[WriteDown]

15. Why not just sell the house...

Make a tidy profit and downsize to something just a little better than the first house. Then they could just use the profit.

[stray cat]

16. and then they were given a house free and clear and mortgaged it for a business start up!

[fl410]

18. Why did they buy a house with no septic system in the first place?

I don't understand that.

[hedgehog]

21. Maybe the question should be "How" could they buy a home with

no functioning septic system. Unless they paid in full, wasn't a mortgage involved? Of course, coming from the nanny state of New York, they probably expected basic consumer protections to be in place!

[WriteDown]

23. Could have malfunctioned after they bought the home...

Coming from NY, I can tell you that I can't stand septic systems and their problems. Give me a sewer any day of the week. Also ensures that you can use a garbage disposal.

[MattBaggins]

66. Yeah sewers are so much better.

Shitting and pissing in our drinking water and polluting the water ways with excess organic material from disposals is real nifty.

[WriteDown]

68. Where exactly do you think the waste...

from septic tanks go? And when they malfunction, THAT is what I call pollution.

[Mike Daniels]

30. I don't get that either.

If they were told there was a system and there wasn't I would imagine they'd have a legal case.

I would also expect that if you hire an inspector that the inspector would at least check that the system works. If it doesn't work you either have the seller repair it or you don't buy the house.

Even if you pay for the house in full and aren't required to have it inspected wouldn't it make sense to get it inspected regardless just to make sure you're not about to get reamed by a dishonest seller?


I'm not buying any attempt to make this family out to be anything other than victims of their own carelessless or failure to research things out.

[Blue_Tires]

58. yeah, i was living in Atlanta in the 90s

and during those suburb wildfire booms, there were next to ZERO quality/regulatory controls on developers for home building...it seemed like every other week, the local investigative reporter on the news was doing a story about a 1-2 year old dream house that was falling apart (including one that was sinking into the ground)

[WriteDown]

14. I'm in the same boat....

It is rough, I know.

[sentelle]

45. starting a business is one thing

Starting it with no cash except for what you can get out of your home, is another, dumb thing.

[intheflow]

61. Asking about the septic system is interesting.

Because why would someone think they could run a construction business if they were gullible enough to buy a house without a septic system? They obviously have no, or very little, construction experience. Seriously, even if they only bought the house because it was all they could afford, it shows a lack of common sense to buy a house without proper waste disposal.

[sinkingfeeling]

17. It still seems to me that there are lots of Americans who view their homes as banks. These people

want houses to be their endless supply of cash for whatever reason. Many of those facing foreclosure put down little money and then took out huge equity loans during the 'boom'.

[hedgehog]

19. It's an American tradition! Why do you think Jefferson died a bankrupt?

He mortgaged his plantation for ready cash, then proceeded to ruin it by using improper farming methods to maximize his cash crop.

[sinkingfeeling]

25. Not from where I came from. Handing down the family 'homestead' from generation to

generation was the way to go in the farming community. I was pleased that my great, great, great-grandfathers' name was on the title abstract. However, it was I who broke with the tradition (and my dad had no sons) and the land and houses were lost.

[hedgehog]

27. Taking care of the land in order to pass it on is the way it should be, imo.

Selling real estate to make a killing is an American tradition, though. Why do you think George Washington trained as a surveyor? Contrary to the popular myth of the old family home, a lot of Southern plantations were ruined in a generation because of the way the land was used to raise cotton and tobacco. There was a constant pressure to move West to new land.

[yardwork]

22. I don't understand why ABC built them such a luxurious house?

Lots of three-child families live in nice houses that don't cost $450,000. Why did anyone think that this was a good idea?

I see Hedgehog's point about the collateral for the loan to start a business. That doesn't sound unreasonable to me. In fact, it sounds sort of sensible. They got $450,000 dropped in their laps and they needed jobs. Mortgaging the gift home might have been a good decision. The question is - why was this family given a $450,000 home?

The finished product was a four-bedroom house with decorative rock walls and a three-car garage that towered over ranch and split-level homes in their Clayton County neighborhood. The home’s door opened into a lobby that featured four fireplaces, a solarium, a music room and a plush new office.

Materials and labor were donated for the home, which would have cost about $450,000 to build. Beazer Homes’ employees and company partners also raised $250,000 in contributions for the family, including scholarships for the couple’s three children and a home maintenance fund.

[hedgehog]

24. Maybe because ABC gets better ratings the bigger the house?

Does anyone here not realize that ABC makes money on Extreme Makeover - Home Edition? Even the "volunteers" get some return, the chance to see themselves on national television!

[yardwork]

26. I do realize that - my question was mostly rhetorical.

I'm glad that some needy families get decent housing, but it's a drop in the bucket compared to the total need in the country. Instead of passing laws limiting the obscene profits made by predatory lenders and CEOs of corporations who lay people off to drive up their stock prices, we live in a country where for-profit TV builds an occasional mcmansion here and there as entertainment. It's sick.

I feel bad for this family. They've been used every which way by unscrupulous people seeking to make money off them.

[hedgehog]

28. Exactly

[Night_Nurse]

41. Yep. You nailed it. n/t

[Jefferson23]

44. I think that you are correct here, there may be other variables of course

but the attraction seems to be big huge house for people who are in a bad situation.

I watched the show once and wondered the same as some others here, ABC could be building many smart homes instead of these monstrosities, no one needs that much space. Its about offering the wow factor for ratings. From the little info we have here about this family, I pass no judgment.

[Gormy Cuss]

54. It's not about ratings alone. These shows are infomercials for the vendors who donate.

The builder has the opportunity to show its best work in a nationally televised program. That's why the show is Extreme Makeover, not Do Good Makeover. Even the smaller scale makeover shows like Trading Spaces are mostly marketing tools for Home Depot and the like.

I'd like to see a Habitat for Humanity type reality show.

[RamboLiberal]

37. Same thought I had - of course a Habitat for Humanity wouldn't

get such great ratings.

[liberal N proud]

29. Words can not cover my thoughts on this

[NBachers]

31. Don't think the grifts didn't come pouring in

after they took posession of that house. I bet it was a feeding frenzy of phone calls, mail, personal visits, and swindles; every type of hustle and touch you could imagine.

[Kittycat]

32. Has anyone asked about the other $250K Raised for the family?

It was supposed to go toward routine home maintenance and their children's college education. The local builder behind all this worked hard to secure the money from the community to make sure that the couple wouldn't have to worry about caring for the house, or their children's future.

[hadrons]

34. I actually read this story last Friday on PerezHilton of all places ....

This family was dumb ... yeah I understand that he wanted to own a business and move up in the world, but this isn't how to do it.

I also HATE this show, ABC builds these poor people these huge McManisons and not only drive up the families taxes but are $$$$ to heat or cool. There was one show where one of those homes were built where every other home was basically a shack ... ABC could have helped a lot of families for the same $$$ it could to help one.

[Lorien]

35. That's why I hate it too. Build moderate sized eco friendly homes

with solar roofs to cut down on utility bills and inspire others to do the same. The homes are too extravagant and quickly become a burden. Another case of a possession that can quickly TAKE possession of the people that own it.

[Cronus Protagonist]

36. If I owned a "shack", it would be a step up for me, and millions of other renters

I often wonder on here how Democratics ignore the poorest of the poor, us renters, and consider a real estate owner to be "poor". Hey, you on the hill with the house, look down here once in a while, will ya?

[hadrons]

42. Actually I rent ....

here in good old Manhattan, but it isn't too bad since its rent-controlled (not to premo controls that are grandfathered for some who had their apts since 1972, but pretty good protection.)

I saw some of the real estate in this one place they did a show ... YIKES!!! I rather be renting than owning land in Shitburg

[intheflow]

62. They built a medical clinic in Mississippi after Katrina.

The doctors were embarrassed by the executive offices they were given--oak paneled walls, plush carpet, huge spaces--when all they had to do was look out the window and see their city in ruins. They even said that: they appreciated the new facility but wished it could have been more modest with the excess monies going to build houses in the community.

[Vinca]

38. The same thing happened to some people who won the HGTV

dream house a few years ago. I can't imagine winning something like that and then blowing the opportunity.

[dysfunctional press]

46. i think that in that case- they couldn't afford the taxes.

first off- when you win a prize, you have to pay taxes on the $ value- a lot of the people who win cars on game shows end up selling them to pay the taxes.

and then come the annual property taxes...on an expensive home- even if YOU got it for free, they can be a SUBSTANTIAL amount.

[tpsbmam]

63. The HGTV house here was sold back to the developer who now has shuttered...

the development, saying he hopes to keep developing it when the economy improves. Only 3 houses were built -- the dream house and 2 others. It was a developed community so frankly, I have little sympathy -- development has been going crazy around here and I for one am thrilled to see it slow down.

http://www.citizen-times.com/apps/pbcs.dll/article?AID=200880710115

Those HGTV houses are insane -- they started awarding some cash along with the house, but not enough to pay taxes on those kinds of winnings. As far as I know, most of them have been sold because people can't afford them. HGTV even says they don't expect people to actually live in them.
http://www.msnbc.msn.com/id/10654803/

[Chovexani]

40. The equivalent spinning the wheel one last time when you've got $10k

Instead of solving the damn puzzle.

Unbelievable.

[Xenotime]

48. American's are dumb fucks where they even get foreclosed on free homes.

What the fuck is wrong with you people?

[WriteDown]

49. America is big place....

Seems inappropriate to demonize all of us.

[Lance_Boyle]

51. the qualifying "when" renders you personally undemonized

unless you, too, have been given a home for free and then over-mortgaged it to the point of foreclosure. ;-)

[slackmaster]

55. -10 points for apostrophe abuse

A rant accusing others of stupidity should at least be punctuated correctly.

[AlphaCentauri]

50. I though this was the house in the wild hogs movie

[merh]

52. Gawd, some of you sound like the freepers

Guess they should have just sat happy in the house, collected welfare or worked for minimum wage and screw their dreams of bettering themselves and doing for themselves.

They are to blame that the economy sucks and construction businesses are struggling because of the economy - they shouldn't have taken the risk.

we all need to be sheep, complacent in our place and dreams be damned.

[Mike Daniels]

64. I'll blame them for failing to research the house they initially bought

...the one that had no operating septic system.

Sorry, but there's no excuse for not taking the proper steps to have a house and its systems examined/inspected before you buy it.

[davsand]

53. Those "free home" situations are not always a great deal.

I'm not offering any sort of comment on choices people make, but it is not uncommon that people who win a house end up without that house when it is all said and done.

Recently, there was a "win a dream home" raffle locally to benefit a kids' charity, and the winner was a single mom waitress with three kids. She won a house that appraised out at something like $325,000. Sounds like a dream come true for people who really could benefit from the prize--right? Well, not exactly...

There was an immediate liability for Income Tax for the amount $325,000 (the value of the house.) There were also transfer and recording fees due, however that was actually covered by the fundraisers in this case, which made THAT part of the winnings and subject to Income Tax as well. The property taxes were extremely low because the house had a special developer held assessment (a common thing in this state) but that house became subject to full property taxes once that transfer was completed. The property tax liability was just over $8000 and that would be due in two installments in June and September of 09.

That is a pretty healthy chunk of change for a single mom to cough up in a pretty short amount of time--especially if you think about the monthly expenses (electric, water, etc) coming out of that waitress income at the same time.




Anyhow, in the case of the Harper family and the Extreme Makeover house, I dunno how much advice they got or how good it was. Must not have been too good if they are in foreclosure.



Laura

[Blue_Tires]

57. How do you have a construction business fail in Atlanta of all places?

that's almost like failing as a beer vendor in the NFL...

still, tragic nonetheless

[WriteDown]

59. Atlanta

Is the king of all mortgage fraud as well as many other business shenanigans. I am not surprised by the location.