Homeowners from Extreme Makeover in foreclosure

Original article from when the house was fixed up

http://www.ajc.com/living/content/living/homeandgarden/0205/21extreme.html 

Today's News (this $450,000 is in addition to a $300,000 loan they took out in 2006)

From extreme makeover to extreme foreclosure?

remodeling job from the television show "Extreme Makeover: Home Edition" now faces foreclosure, according to television news reports.

 

A foreclosure notice on the home in Lake City appeared last Friday, indicating that a $450,000 second mortgage the owners took out less than 15 months ago was in default, WSB-TV reported.

 

Patricia Harper, the homeowner, told WSB she and her husband had struck a deal with Chase Home Finance to rescue their "extreme" home and that there will be no foreclosure auction. Chase said they couldn't confirm that claim.

 

Harper told WSB they invested the loan proceeds in a construction business and the business hasn't been good. She didn't say how much of the money is left.

 

The home at 5489 Ahyoka Dr. has 5,500 square feet after the 2005 makeover, WGCL CBS46 reported.

 

Lake City mayor Willie Oswalt was among the volunteers who helped build Harper's home 3 1/2 years ago, and Beazer Homes was the main sponsor. The mayor told WSB he is baffled.

 

"Beazer gave them $100,000 cash, paid their mortgage off and they still can't make it," said Oswalt.

Also, on another news site:

 

A foreclosure notice appeared last Friday, a $450,000 second mortgage they took out less than 15 months ago was in default.

 

Patricia Harper, the homeowner, told Channel 2 she and her husband had struck a deal with Chase Home Finance to rescue their "extreme" home. Chase said they couldn't confirm that claim.

“I didn't really know what the circumstances were, I was kind of surprised. I was really surprised to read that,” said neighbor Doris Rhodenizer.

 

Lake City mayor Willie Oswalt was among the 1,800 volunteers helping "Extreme Makeover: Home Edition" build the Harper’s new home 3 ½ years ago. Beazer Homes of Atlanta was the main sponsor. The mayor said he is baffled.

 

“Beazer gave them $100,000 cash, paid their mortgage off and they still can't make it," said Oswalt.

 

Harper told Channel 2 they invested the loan proceeds in a construction business and the business hasn’t been good. She didn’t say how much of the money is left.

 

“What’s going to happen is instead of keep paying my mortgage, I’m going to take my money and not pay my mortgage because I’m being harassed,” said Harper.

 

Atlanta law firm McCalla Raymer represents Chase. They wouldn’t talk about it except to say federal law bars Chase from talking without Harper’s permission. Harper said that if Channel 2 wanted proof the foreclosure is off, we should show up at the courthouse next month to watch it not happen.

I didn't read all of this, but I thought those houses where all paid for by the show.

The house was paid for and furnished. They were also given new cars and at least $100,000 cash -- that was in 2005. There is nothing about a tragedy causing all this to happen.

Do I feel sorry for these people ?  NO WAY !! 

 Anybody who is given a new home, new cars, new furniture and $100,000 in cash and blowes it does NOT deserve to have anybody bale them out.

  These people sounds like they have an IQ of 8 !!  There are many family's now in dire situations that would give their eye teeth to be given the chance these people got.

                                              Cassiebabe

    

No money or brains how tragic.  If somebody gave me a home, and 100,00 cash, I would be ecstatic.  Work would be for meeting insurance and property taxes plus day to day living.  I would NOT take out a mortgage just to have money on hand or to be frivolous and live a champagne lifestyle on a beer income. 

If those people are on the young side, the "Dumbing of America" is well on it's way and showing.

gr_elo:

If those people are on the young side, the "Dumbing of America" is well on it's way and showing.

I absolutely agree gr_elo!!!!

Im sure the property tax on these homes are sky-high.

 Well, that is too bad, but if a person lacks wisdom, it doesn't matter how much they are given, they will find themselves in bad places from bad decisions.  

MOMTLJK:

Im sure the property tax on these homes are sky-high.

This has always been my problem with this show.  You take a house and make it this fabulous showcase and then how do these people, who are usually in financial straits, pay the taxes and upkeep on this house?  Remember the time they put a petting zoo in the back yard??  Feeding those animals is not cheap!!  I just can't help wondering how many of these families end up in financial trouble trying to keep up with their new house.

there a family near hear that got the extreme makeover house three years ago.  Each year there church does this benefit to raise money cause they are behind on bills and mortgage, etc.  This year very little money was made and the church is mad at teh community for not helping them.  They can help themselves.

 

Funny these are same people that got mad when a reporter asked them if they coudl afford the house taxes.  They said the lord wood provide and guess eh wont them to help provide too.

How many things can we count wrong with this story? 1. They got not one but TWO mortgages on a house that was debt free. 2. They invested in a construction business less than 15 months ago? Do they not read the paper or listen to the evening news? Construction (new home construction anyway) has been declining for a lot longer than that. 3. They apparently pissed away the $100K they were given in cash.

I think this show has wonderful intentions, however....how are people supposed to even pay the electric bill on these huge homes when they could not afford the shack they were living in???  I think the show could help out 3 families for every one family they do these extreme makeovers for and make a better difference in lives.  And also, just because you are handed a wad of cash doesn't mean you will know how to manage it well.

Before they hand over any of the "goods" to these people they should make them sit down with a free TRUSTWORTHY financial person and go over EVERYTHING with them:their expenses, their income, their money they received and how to make it last and put toward what it needs to go toward.  Then if they screw up it's in their hands.