This just makes me so mad!

[osadg]

I live in Idaho, and about two years ago Extreme Home Makeover came to a small community here and rebuilt this AMAZING house for the family with sick children here. The house was incredible, and the family was so grateful, but not long after the show aired, the family was about to lose the house because they couldn't afford the taxes. Again, the surrounding communities came together and help pay off the taxes the family couldn't afford. But how long is that going to keep going on? They build these amazing houses, but then what really happens to these families who can't afford the new payments?

[Like2Plan]

One question I have is how do the new homeowners afford the income taxes? If they are given a new home worth 450,000 plus a cash amount of 100,000, would they be able to average this out over several years? Even averaging, that would be a lot.

Originally Posted by JanH

I have wondered about those that can't afford to maintain such a home after it is built. I would hope that the people who choose the applicants think about that. Guess you can't always figure out who will make it and who won't.

But in the case of the Atlanta home, weren't they given 100K to help with expenses in addition to the mortgage being paid off (unless it all went to income taxes)?

Originally Posted by osadg

The house was incredible, and the family was so grateful, but not long after the show aired, the family was about to lose the house because they couldn't afford the taxes. Again, the surrounding communities came together and help pay off the taxes the family couldn't afford. But how long is that going to keep going on? They build these amazing houses, but then what really happens to these families who can't afford the new payments?

Again, I don't know about the impact of the income taxes on this family and their home. But, if they only have to come up with utilities and property taxes, I wonder if the family could even afford rent? Nice home or not, it sounds like they would have to struggle.
I have not seen all of the shows, but some of the homes are tailored to the special needs of one or more of the occupants. These accommodations are something they could not get in any other conventional home.

Some homes which are awarded as part of government programs have restrictions on gains until the homeowner has owned the home for quite a few years. I wonder if the show will put similar restrictions on the winners in the future?

I also wonder if they might in future restructure the cash given and set up a trust to fund only property taxes. utilities, home repairs and upkeep?

[Ima saver]

Good question, sounderalla!! They showed the lady in her car leaving the house on tv this morning. She looked fairly young and healthy to me.

[GoodBuyGirl]

I never undserstood why they build these people houses they couldn't even afford the electric bill on.

[gamecock43]

good point sounderella

[MiikeB]

Also to consider is the fact that they are not selling there old homes, so they still have the mortgage to pay on the old house. So a family barely getting by now has to worry about all existing bills plus the new heat, electricity and tax bills.

Although it doesn't excuse this behavior, make no assumption that these makeovers fix people up for life.

[SnoopyCool]

Originally Posted by MiikeB

Also to consider is the fact that they are not selling there old homes, so they still have the mortgage to pay on the old house. life.

I believe the show pays off the old mortgage.

[sounderella]

Originally Posted by MiikeB

Also to consider is the fact that they are not selling there old homes, so they still have the mortgage to pay on the old house. So a family barely getting by now has to worry about all existing bills plus the new heat, electricity and tax bills.

Although it doesn't excuse this behavior, make no assumption that these makeovers fix people up for life.

They usually tear down the old house and build the new house where the old house was

[bjl584]

Having money is no substitute for being educated ABOUT money. You see this sort of thing play out again and again. Sad but true.

[pedersoc]

I just read another article about it here:

Year to Date "Best Bargain Gone Wrong"

Cheryl

[GrimJack]

Originally Posted by cschin4

Some people don't want to learn how to fish. I always thought that Homemakover show was a bad idea. <<snip>> And, again, it proves that people who get something for nothing simply do not place the same value on something that someone does who worked for it by the sweat of their brow.
More proof that socialism/communism will never work and that capitalism even with its warts and flaws is the only real practical economic structure.

Wow, seems a little strange to use a couple of examples (out of how many makeovers) to condemn socialism and praise capitalism. Should I bother pointing to Enron, BeareStern, the 80s S&L failures, the 20 or 30 banks that are failing every month, and the collapse of the real estate bubble being caused by the honest hardworking capitalists.

[GrimJack]

Originally Posted by sounderella

Also, what about the loan here? I wanna know who gave them a loan for $450K without showing proof of ability to pay for it. I mean my God, if you need to have a free house built for you, you must not have enough to afford a $450K loan!

Wasn't this the whole point of the housing bubble collapse and sub-prime mortgage debacle. People were getting ninja loans - I am sure someone saw the free and clear house and drooled over how much they would earn on fees and such. Remember, no one was actually responsible because they all took their cut and passed it along until it was written off by WaMu or Beare Stearns - I suppose we will all pay for it with taxes or add it to the national debt and pass it off to our kids.