Extreme Makeover Home Question

nicoleg1982

I was just reading an article re: contributor (the family) fraud, and it claims that many people have to move out/sell due to their inability to afford the increased mortgage and taxes.

The taxes, I understand.  The mortgage?  Aren't these homes gifts?  And wouldn't their mortgage be the same as it always was - on the demolished house?  Or do you think they are inferring that people are taking out mortgages on the new homes to afford the overhead associated with a larger than life house?

The mortgage thing confuses me.

6fsn

I have heard that people will take out HELOCs or more mortgages on the homes and then loose them.  There is significantly more upkeep and utilities on those homes too. 

I stopped watching when I noticed that a lot of homes were not just falling down, but were filthy.  Or able bodied older kids that weren't working. 

I know the show is "extreme" but I wish they would build a modest home that fits the needs and the neighborhood.  Maybe do a neighborhood makeover too.

nicoleg1982

I liked it when they remodeled the existing homes and people weren't given homes they could never afford.  

6fsn

That too nico.

skippylouwho

Often the people still owe on the mortgage on the house that was demolished. I haven't watched for awhile - the houses were ending up being so much more than made sense or was reasonable that I just stopped.  I believe, though, that for most of them now they are also securing donations that will pay off the previous mortgage so that people don't have that issue.  A family in Central Ohio found their taxes grew so much they couldn't afford their tax bill even though the house was paid off and I believe they didn't owe a mortgage.  Their taxes were several hundred, at least, percent higher than it had been previously. I'm not sure what they ended up doing - selling it, figuring out a way to pay it or what.  Their new house was valued at well over $400K and the other houses in the neighborhood were probagly $125. I don't remember the exact amounts but I do remember that their property  taxes raised so astronomically they couldn't pay them.

GBCK

even when they do everything 'right' to pay off the mortgage, people who aren't $ smrt do things badly.

I mean, have you looked at the headache of repos of habitat homes?  Talk about gift homes that you KNOW people can afford...but these people refinance w/o knowing what they're doing (or to pocket the extra, depending on POV) and then get booted.