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Extreme Makeover Home Question

nicoleg1982nicoleg1982 member
5000 Comments
in Wedding Woes
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.
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Re: Extreme Makeover Home Question

  • 6fsn6fsn member
    Knottie Warrior 10000 Comments 500 Love Its Name Dropper
    edited December 2011
    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.
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  • nicoleg1982nicoleg1982 member
    5000 Comments
    edited December 2011
    I liked it when they remodeled the existing homes and people weren't given homes they could never afford.  
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  • 6fsn6fsn member
    Knottie Warrior 10000 Comments 500 Love Its Name Dropper
    edited December 2011
    That too nico.
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  • skippylouwhoskippylouwho member
    1000 Comments
    edited December 2011
    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.
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  • GBCKGBCK member
    Knottie Warrior 5000 Comments 500 Love Its Name Dropper
    edited December 2011
    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.
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