Extreme makeover foreclosure

Parent Cafe
1

<p>Seems that someone killed the golden eggs chicken.
Here is the link
[‘Extreme</a> Makeover’ house faces foreclosure - Yahoo! News](<a href=“http://news.yahoo.com/s/ap/20080728/ap_en_tv/tv_extreme_makeover_foreclosure]'Extreme”>http://news.yahoo.com/s/ap/20080728/ap_en_tv/tv_extreme_makeover_foreclosure)</p>

2

<p>Well, you can lead a horse to water, but you can’t make him financially responsible.</p>

<p>That said, it is a tough economy. The article didn’t indicate how much 'at fault" the family really was.</p>

3

<p>I’ve often wondered what happens after the show leaves… huge houses come with huge heating & AC bills, not to mention I would expect the property taxes to rise exponentially with the new (much higher) value of the house. If so many of these Extreme Makeover homeowners couldn’t afford basic maintenance of their old houses, how are they supposed to pay for the taxes and utilities on a much larger house? Often their financial straits are due to medical issues, and having a new house doesn’t make those issues go away or raise someone’s income. It almost seems like the house should come with a trust fund to cover the increased costs of taxes, insurance and utilities.</p>

<p>Although in this particular case it seems the homeowners used the new home as collateral for a loan for a business that failed.</p>

4

<p>The house was paid for, and the taxes and insurance were paid for for several years as well, but the family took a loan out against the house (450k, I believe) to start a construction business. Oops. Bad plan. Poor timing. Very sad. There was also money set aside for the kids education. I hope that is still intact.</p>

5

<p>

</p>

<p>One should also wonder about Uncle Sam’s friendly IRS waiting for its pound of flesh.</p>

6

<p>[A</a> fairy tale foreclosed | ajc.com](<a href=“http://www.ajc.com/search/content/metro/stories/2008/07/26/foreclose.html?cxntlid=inform_artr]A”>http://www.ajc.com/search/content/metro/stories/2008/07/26/foreclose.html?cxntlid=inform_artr)
They had about 250K in education and house maintenance funds donated as well.</p>

7

<p>let’s hope the education money was put somewhere that they couldn’t spend it (except for its intended purpose)</p>

8

<p>barrons started a thread on this yesterday:
<a href=“http://talk.collegeconfidential.com/parent-cafe/544062-mortgage-crisis-nutshell.html[/url]”>http://talk.collegeconfidential.com/parent-cafe/544062-mortgage-crisis-nutshell.html&lt;/a&gt;
Merge?</p>

9

<p>I read about this morning and felt bad for the family. I do believe the education was put in scholarships, typically I recall actual universities step up to tthe table and give them a personal scholarship…let’s hope that was the case</p>

10

<p>Falls into the same category as lottery winners…probably.</p>

<p>Math lesson: A lot is not equal to infinite.</p>