UPDATE: The Wall Street Journal is reporting the lender may be close to a “work out” with the owners to save the home from foreclosure…
A home showcased on ABC’s popular show “Extreme Makeover” three years ago is facing foreclosure.
1,800 people chipped in sweat equity to raze an existing home and replace it with a “mini-mansion” in 2005.
That very home hits the courthouse steps on Aug 5 after the Harper family used the home as collateral for a $450,000 loan to start a construction business that failed.
The worker bees that built the home are none-too-pleased.
The AP story on the foreclosure is here.
You can see photos of the renovated home and more info here.
UPDATE: Here is a GREAT post by Atlanta area agent Doug Quance — (this home is in the Atlanta area) with much more detail than you’ll find in the mainstream media reports. Read it!
And here is another post by the ever-brilliant Tomat Real Estate Bloggers.
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{ 13 comments… read them below or add one }
Toby 07.28.08 at 5:11 pm
Using the home as the world’s largest ATM. My biggest concern for the future of our country.
We — as Americans — need to step back and realize that the American Dream was financed with blood, sweat, tears, and cash. Not credit cards.
Enough of that from me.
Matt Heaton 07.28.08 at 5:12 pm
Ok, that’s one of those stories that just makes you want to bang your head against the wall. I can see why the people that put in the hard work might be a little tick’d
Tina 07.28.08 at 5:44 pm
Sounds like their brains needed a makeover more than their house. Wonder if they sqandered away the money they received for “home maintenance” and their children’s college funds too.
Jim Dolanch, Pittsburgh Real Estate Expert 07.28.08 at 7:28 pm
What a shame! The community comes together to help out a family and this is how it turns out. It is no wonder that people are angryy over this story.
Eau Claire Real Estate Guy 07.28.08 at 8:00 pm
quote: “I can see why the people that put in the hard work might be a little tick’d”
Oh man, yeah, especially if they are neighbors whose homes have been devalued in part because of the foreclosed home they helped build to strengthen their community. How ironic. As a wise man once said: “D’OH!”
MH 07.29.08 at 7:58 am
Jay’s Note: comment deleted for being nothing but a stupid, asinine racial slur. That kind of crap has no place here. Apologies to anyone who saw it before I could get to it.
Jay - The Phoenix Real Estate Guy 07.29.08 at 9:52 am
For those subscribed to comments by email, sorry that you were subjected to someone’s racial comment on this post. I’ve deleted the offending comment.
Some people are just beyond stupid…
Tucson Michael 07.29.08 at 10:30 am
This is just again a bad move to take out a loan against a property you were given…..Some people just dont get it and never will .
pross 07.30.08 at 5:12 pm
I’ve3 been reading about the EM forclosure. Maybe I’m wrong but I don’t feel one bit sorry for these people. For one thing why was their previous house in such bad shape? Probably because they didn’t bother to do normal maintenance on it. I’m wondering what shape the EM house is in now. I would imagine they took out the $450,000.00 equity loan plus the $250,000.00 college fund and have been living high on the hog on it for the last 3 years. I guess now they are expecting someone else to come along and give them the money to pay off the mortgage. Sounds like to me that EM should have done a little bit more checking on this family before they built this $450,000 house for them. If they had checked up on them they would have probably found that they never worked and expected everything to be given to them. I just feel bad for all the people that worked on the house thinking they were doing some thing good.
Jay - The Phoenix Real Estate Guy 07.30.08 at 5:34 pm
@pross - Reading the comments here and on other blog posts tells me you are not alone in your thoughts…
Hosted Property Management Software 07.31.08 at 4:32 pm
I wish I could feel sorry for what the family must be going through but I just can’t. From what I read the money they pulled out against the house went into a failed business. Even if that’s true I can’t imagine receiving such a gift then using it as collateral to finance such a risky venture. I feel worse for the people who donated their time, effort and resources.
Andrew. Fredericksburg Attorney. 08.01.08 at 10:13 pm
Why do people continue to insist on using home equity loans? Such a horrible mistake!
Give a man a fish, and he’ll lose it.
Cassiano Travarelli 09.25.08 at 11:34 am
This article makes me think a lot about people that really can’t hold on to there money. This was just a great opportunity thrown away.