Extreme Makover meets Extreme Foreclosure

I wonder how many other EM homes have been sold??

Sad that they took out such a huge mortgage on the place.

 Thats really too bad.  I feel bad for the volunteers the most I think.  You would just feel used. 

I wonder what they took the mortgage out for?  Just for life?  Or did they start some business or something that failed?  I can't remember the show.  What was their story?

Candace...

Article said they started some building business that went under. Now I dunno about you...but if I were given a nice, free house...I'd sure try to find something to do that wouldn't involve using that house as collateral LOL. Like I dunno...a job...haha!

I don't watch this show...the houses are not under mortgage right? The whole point is people are scraping to get by and living in squalor and could use a break yes?

Some of the people I think get their mortgages on their old homes paid off. I know they do not reference that every week. I don't believe they "owe" on the new homes.

This story is sad. I feel for the volunteers, but the people were trying to change their lives I guess you can not really fault them for that.

I have to say as I watch this show, they build these BEAUTIFUL BIG homes in sometimes less than desirable areas. How many of these homes fall into disrepair because they can't afford to maintain or pay utilities. Some of these homes have to expensive to heat and cool. I am not taking away from the gesture, I just wonder what happens later when Extreme Home Makeover leaves.  

Maxs Mom

I am not taking away from the gesture, I just wonder what happens later when Extreme Home Makeover leaves.  

Absolutely. The gesture and intent is nice and seems really cool. But you are right...SOMEONE has to pay that $300 electric bill every month, and in some of these neighborhoods it might even make you a target for theft!

If you don't change the basic root of why those folks are in those dire straights...disability, lack of a job, education, money management skills...I do wonder what really changes. Seems almost more useful to sell the home and move someplace affordable...but can you sell it if the neighborhood is not that great even?

quandry!

I was impressed by this part:

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.

ABC said in a statement that it advises each family to consult a financial planner after they get their new home. "Ultimately, financial matters are personal, and we work to respect the privacy of the families," the network said.

Contributions for the family? A home maintenance fund? Sounds pretty sweet to me... wonder if they ever did get that financial planner... 

add this one to the problem list

Seems like the gigantic houses would increase the tax base and if the people were already in a less than ideal position, even paying the taxes on top of the utilities would be a problem.

Like the Oprah show where she gave away a bunch of cars and some of the recipients couldn't afford to pay the sales tax and (I think) didn't get to keep the cars.

It's sad, but the article did say that the people who got these huge, expensive homes are always instructed to see a financial advisor.  I think a lot of people don't realize how important that is or just assume they don't need it, but it's obviously a pretty important step. If they had, they might not have borrowed nearly half a million dollars on the house to start a business in the first place. And it's not like you have to pay for this.  All banks have financial experts that are happy to sit down with their customers and go over everything with them.

Joyce

rwbeagles

Candace...

Article said they started some building business that went under. Now I dunno about you...but if I were given a nice, free house...I'd sure try to find something to do that wouldn't involve using that house as collateral LOL. Like I dunno...a job...haha!

I don't watch this show...the houses are not under mortgage right? The whole point is people are scraping to get by and living in squalor and could use a break yes?

I agree with your first statement!  If I had a brand new huge home like that, plus the extra money for utilities, college funds, and a car (they've been giving away a lot of cars), why use the home as collateral?  Don't most people work to PAY for all those expenses they just got for nothing?  I'd probably work part time to pay other bills, taxes, and such but I can't see needing ANOTHER $450K.

Most of the houses ARE mortgaged, but lately the show has been raising money and paying off the mortgages on the home/property.  I don't know much about how that works, but that's what I've been seeing the last few seasons (they get a new home and typically the show also does some charity gig to raise money, or the building company also pays off the mortgage for the demolished home, and often they also get money for college scholarships and/or utility expenses for maintaining such large homes). 

 Don't forget our national "gift tax"!

I wonder how much that is on a $400,000.00 house. 

From what I understand the homes (materials and labor) are donated and volunteers give of themselves to help get the job done. I'm always amazed at how quickly they get these houses built. I feel bad for the people who put themselves out there to help. I also feel bad for the children involved. It's just sad all the way around!

I haven't watched the show in a couple of years, but the ones I saw were families that had disabled children and the team would come in and make their house liveable, update it etc.  But I always wondered how they would pay for all this once the team left (the one thing I always thought of was the landscaping...some of these setups would take a full time gardener to maintain).  I can understand building a house for a special needs child, family that has lost everything due to disaster, death, etc. but to create these mini mansions that don't fit in to the neighborhood just doesn't make sense to me.

I am sorry, there is no reason for you to borrow $450K when you had to have your neighborhood come in and build a house for you.  That to me stinks like greed.

mrstjohnson

I am sorry, there is no reason for you to borrow $450K when you had to have your neighborhood come in and build a house for you.  That to me stinks like greed.

Amen!!!!