I just read about foreclosing on an Extreme Home Makeover house
By dragon54u
@dragon54u (31633)
United States
July 29, 2008 11:21am CST
how sad! The people took out a $450,000 loan on the house that the show did over for them to start a construction business and it failed. I hope they still have the scholarships for their children. It seems they made some bad decisions.
The show advises people to consult a financial advisor after their house is re-done but doesn't require it. Maybe they should require it. About 18,000 people worked on the house for them and now it's being forclosed upon--man, they had the house and I can't understand why they would jeopardize it with such a high mortgage!
I wish them the best but sure wish they'd used better judgement. A whole lot of people that worked on the house and donated the materials are really ticked off and hurt.
6 people like this
7 responses
@kenzie45230 (3560)
• United States
29 Jul 08
What a shame. They had a beautiful home all paid for, the money for a maintenance fund and money to pay the taxes for 25 years. I wonder if they went through all of that too.
I also wonder why they started a construction company that big? Couldn't they have started small...like most folks? They only needed to make enough money for utilities, food, insurance, and entertainment.
2 people like this
@dragon54u (31633)
• United States
29 Jul 08
I haven't found any reports that tell the whole story. I think it was just over confidence and poor business decisions. As I told someone else, we've been conditioned for years to use our properties to finance our dreams and the banks have been amassing a LOT of property from that one strategy. My bank tells me this all the time but I refuse to take out a home equity loan. I don't intend to fall for that!
@Bethany1202 (3431)
• United States
29 Jul 08
I don' t blame the people for being mad! I think the show ought to require financial consultants after putting so much effort into something for a family. That's a lot of money to risk -- almost half a million! So sad, and to think they lost their house because of one careless risky decision.
2 people like this
@dragon54u (31633)
• United States
29 Jul 08
Well, I know they were trying to improve their situation and admire them for that but they made the wrong decision and borrowed too much on the wrong thing.
The show should require financial advice, I agree. But they maintain that finances are private and they don't require such preventative measures.
@Thoroughrob (11742)
• United States
5 Aug 08
It really was bad judgement. I can understand why people would be really mad and hurt. I would not even be able to stay in that town, I am sure. I would not be able to face any of them. I sure don't understand people.
1 person likes this
@dragon54u (31633)
• United States
5 Aug 08
People have been bombarded over the past few years with commercials and banks encouraging them to "use their equity, don't let it sit there". Those people probably fell for it, thinking they were making a smart move towards financial independence. Part their fault and part media conditioning, I think.
It used to be that people kept their house free of debt if possible, their ace in the hole for desperate times. Recently, that attitude has changed thanks to the banking industry and lack of basic common sense. And the sense of entitlement our society has developed probably didn't even allow for gratitude and a sense of obligation towards the gift they'd been given.
@desertdarlene (8911)
• United States
29 Jul 08
Well, that stinks! I also wonder if the recipient has to pay any taxes on the houses that they rebuilt, too, as you have to pay taxes on gifts. But, that aside, that was pretty bad judgment on their part. I think they should have something in the contract when they give this house to them that says that they can't borrow on or sell the home until a certain length of time passes.
2 people like this
@suspenseful (40192)
• Canada
29 Jul 08
I would be mad too. If I had my house redone, I would not go and take out a large loan for a construction or any kind of business, a small loan, but I would just take enough to get my feet wet and something that I could pay back. Isn't Extreme Makeover supposed to be for those who are in dire straits anyway? In fact, I would pay off the mortgage on the house and work for someone else and put the money nin the bank first.
1 person likes this
@dragon54u (31633)
• United States
29 Jul 08
That's what I would do. Anything but put the house in danger! Some people, though, can't think of any other way to get what they need and for years and years, banks have been encouraging us to "use the equity in your house, why not let it work for you?". We've been conditioned this way and no doubt they were, too. We've been encouraged to stop thinking creatively and use our most valuable assets--that way, someone else ends up with them! 
@spikelives (430)
• United States
5 Aug 08
I hard about that it is sad but thay should have been more careful.
1 person likes this
@dragon54u (31633)
• United States
6 Aug 08
Yes, and maybe the makeover show will begin requiring their recipients to attend financial classes. That would be a great thing!
@jdowens (42)
• United States
29 Jul 08
Why would someone need a home for that amount anyway. It sound like someone got sold on the American dream and could not afford to build. This happen alot around the country. People need to live within your means. By that I means don't buy a house that more 150% of your current income.
I know this is a construction deal however, why would it take so much to rebuild a home? The people who spent their time should be upset.
1 person likes this
