Money Beat

This was a very STUPID family who squandered the opportunity of a lifetime. It's just like the lottery winners who blow everything and wind up broke...I feel no sympathy for them.

Why did people help them in the first place? Why did they get a 450,000 loan for a constuction company? Hello, whether the business suceeds or fails one must still pay the bills. I would not have risked so much on a really nice, free, new house. I do not have sympathy for idiots who can not open their eyes to the real world.

My sympathy goes to the volunteers who tried to do right by a family who needed help. It just underscores the fact that giving people something isn't necessarily helping them. And How in the world would a family need $450,000 after getting a mortgage-free home and (apparently) $100,000 in cash as well? It's a good thing they didn't publish the family's name, even though it would be easy enough to research it, because they would be national or even international pariahs forever.

I have often wondered how the extreme makeover works as far as home mortgages still existing etc-do they pay off each mortgage and give the home scott free or are there conditions to the rebuild?

I HOPE AND PRAY THAT ONE DAY MY FAMILY AND I WILL HAVE SOMEONE TO COME TO OUR HOUSE AND HELP US. THERE IS NO WAY THAT I WOULD DO ANYTHING LIKE THIS IT IS A BLESSING TO HAVE THE HELP IN THE FIRST PLACE.

I watch the show a lot & I don't understand why they build these huge mansions for people. It must've been nice for someone to build you something so great & get a free vacation. It really upsets me that these people did this. My husband & I have worked really hard for what we have. We started out in a really small home & worked our way up. We are still paying for it. I wish someone would come pay my mortgage. We wouldn't be so stupid to get a loan against it. I need some new appliances also. Do you think Sear's is just going to donate those to me? Not!

IT was stupid for the bank that gave them the loan for $450,000 in the first place...Hello the people that make it on to the shows can't afford to even put food on the table most of the time..or else they would have nice/safe homes to live in....but they don't!!! THE BANK SHOULD HAVE NEVER OF LOANED THEM THIS MONEY!!!

Just goes to prove that no amount of help is enough for some people. When they start out in a hole financially they will always end up in the same hole. These personalities have what I call the "live for today and don't ever worry or plan for tomorrow" mentality. Unfortunately, it is the mentality of a lot of people in this country. If you give them $1 they will spend $2. Sad but a reality.

Stupid Americans, climb out of a hole just to climb right back in, some people never learn.

Shows how our tax dollars will be used to bail out idiots.

People who did not read their contract.

People who lived above their means and should of never received a loan in the first place.

People who just stopped paying their mortgage.

People who want someone else to pay for them.

I can see going after the bad mortgage companies that Scammed people. Make them do right by people or offer new mortgages.

Or Helping or assisting people who were caught up in the lose of employment with the economy over the past year.

The rest who just were caught up in dump and stupid. Should not be bailed out, Unless you plan on paying something on everyones mortage.

Some people are so ungrateful and not the brightest bulbs in the lamp. To have put the house up as collateral for a loan worth almost 1/2 a million shows how little this family was thinking ahead. No wonder the family needed a home in the first place. I know families that need homes and would jump at the opportunity to have something nice without jeopardizing their future security.

Just proves my point that people are generally poor because they make poor decisions in life. Giving people stuff they didn't earn doesn't help them. They have no respect for themselves when they don't work for what they want in life.

Easy come, easy go!

People are given the chance of a lifetime and lucky enough to be brought up out of a hole. Like so many before them, "Greed" has dug them a hole many times deeper.

Maybe the reality show needs to consider having the property's "Deed" in the name of the show and lease the homes to the dwellers for the amount of property tax and insurance for 20 years. Of course, you would have to have them sign a waiver of liability also because these type of people would sue if they got hurt on the property. Then the people can't get a mortgage against the house.

And the taxpayers will bail out the lender. Thanks Washington!

Wow, you people are all so bitter. Yes, obviously this family made a bad decision, but it's not like the mortgaged the house to go on some vacation or buy fancy cars. They did this to invest in a business to have a chance at creating something. Unfortunately construction companies have been really hard it by the economy. For all of you who are being so cruel, I only hope that you never find yourself in the same situation.

Wendy

Why would any sane person put themselves into this position?

Greed knows no income or educational level. I live near Raleigh, NC and just today the News & Observer paper has an article about financial problems with the family in Raleigh that received a make over home recently.

The report states that this family is now "one of the latest victims of the nation's foreclosure crisis." That couldn't be farther from the truth. This family stole $450,000...plain and simple.

I truly believe that if we had some basic financial planning in our schools (High Schools) that was a mandatory class, we could possibly cut down on the amount of ignorance that goes along with the uneducated.

Those poor people. They we taken advantage of by the bank that gave them the construction loan! Predatory lending I tell you. Another example of Bush screwing the little guy! LOL, I'm sorry I just had to! I just shake my head!

LMAO.....

If you remember, these are the same people who got into a fight and then SUED THE SHOW!!! What a bunch of trash. I hope they lose the home - they don't deserve it.

Harpers, PLEASE tell me that construction company was to help other unfortunate people rebuilt their homes -- and they didn't pay you back, RIGHT? Yeah, I guess that was too much to hope for. Geez, maybe Ty and his crew should consider downsizing their projects, fix what is needed, and keep the home within the means of the family. They could help more families that way -- but probably not so great for TV.

I am from Ga. and am very embarrassed about this as I am sure Ty is as well, Ga being his home state. I hope ABC doesn't stop considering Ga. residents for this opportunity because of one greedy, selfish family.

Just to tick you off a little more....during an interview in Atlanta the wife said she was going to just keep the money and quit paying her mortgage because she thought she was being harrassed too much about the bills. Some people think you owe them everything!

This family is disgusting. They need to be locked up for STUPIDITY. It is sad we have people like this in this country. It goes to show how IMPORTANT EDUCATION IS. All of our puplic schools should start an "Fiscal Responsibility" every year through high school. Then we might elect fiscally responsible presidents.

JoG-

actually, these are not the same people who sued the show. 5 siblings were taken into a home in California, received the extreme makeover, and were later evicted by the home owners, and it was those five siblings who sued. Completely unrelated case.

Stupdity was on both parties- the homeowner and the bank. But the bank should've had the knowledge to understand this family's position and steered them in a better direction. Shame on the bank!

These people are not a victim of the stated "National Foreclosure Crisis", they are victims of their own greed and poor business sense.

Is there a "National Foreclosure Crisis", or are people who signed contracts that they should not have signed simply paying the price?

Better question is why should I have to bail out other people's mistakes?

This is just pure GREED!

I love the way ABC positions this in the headline as this being the result of the "housing crisis". Of course, the only story here is pure stupidity on the part of the homeowners. Let's think about this...someone comes in and builds you a new house, gives you $100,000 in cash and pays off your mortgage...how do you possibly screw this up in a matter of three years? Guess what, they deserve to rent for the rest of your lives! Sadly, this is the case across the country. People over-extend themselves when times are good and as soon as the economic cycle takes a dip, all of a sudden we have a "housing crisis" that's the government's fault. Government shouldn't bail out anybody. Let the market play out. Those who made bad decisions should have to live withy the results instead of having those of us who made wise decisions pay for their stupidity.

The utter STUPIDITY of this family is almost as bad as the utter DISREGARD they showed for the people who volunteered to help build that home for them! I'm positive there are families in Georgia and the US reading this story that are in need of a new home such as this and would NEVER have done something as asinine as use their new home as collateral for a BUSINESS loan!

An earlier poster had it right, this family was in dire straights due to their irresponsible financial decisions and they now find themselves in the same situation once again due to their own poor decision makeing abilities.

Nincompoops!

Sounds like a lot of jealous people commenting on this. Condemning this family is probably the last thing they need. I'm sure they realize they made a mistake and feel horrible they can't fix it. I'm also guessing they had good intentions when took the risk by trying to start a construction business. Maybe it wasn't the smartest idea, but also take into account that it was possibly aided in its failure due to our horrible economy. No one knows, and it's just not fair to criticize others when you don't know their circumstances. Many families are struggling and losing everything, and many people, maybe even you, have taken risks with investments that didn't pay off, or where you lost your shirt. Why not have a little understanding instead of just condemnation?

I agree that schools should start teaching this in highschool. People need to learn how to manage money at a young age, and the fact that having a credit card when you don't have a consistent paycheck is stupid!

First of all, you cant fault the bank in this situation. The house was paid for, thats all equity! There is not a bank in America that wouldnt have given them the loan. The issue is the greediness of some people. You have a new huge house, no mortgage, and 100,000 dollars, and its still not enough! I hope they lose their house and end up homeless, welcome to reality! The show they were on is certaintly not reality. If i was going to lose my home, do you think it would end up on cnn? No one would care, therefore we shouldnt care!!

Greed at its finest. I'm sure there are many other deserving families that wouldn't have taken advantage of a situation where your house is completely rebuilt and your mortgage is paid off. I sure wouldn't. But you will always have greedy people and in the end they get what they deserve

I believe it is the show's fault that this occurred... The show is basically a forum to help needy people and basically this family needed help in other ways than they received. They should have wrote a contract with the family and deed holder to possibly keep the property held for say 10yrs.

The show in it's current format doesn't promote responsibility.

I admit that show makes me bitter seeing people given a new house...especially when their old house is better than the house I'm currently working like a dog for. I'm ok with the selfless foster parent type people that really need the extra rooms and are providing a benefit to society, but so what if you have a sick kid...or that convicted felony who lost his arm. Shortly after the show started they began paying off the people's mortgages too. I'd suspect a few people were given houses that they had trouble handling the tax implications and house payments.

Mr. Drysdale

Exactly what did Bush have to do with this?

James, you have GOT to be kidding me with that post! You've got a TV show which is basically giving these people a "get out of jail free" card and chance to start over...plus more... and you're blaming them? What ever happened to taking responsibility for your own actions?

Just like a lot of lotto winners who wind up with nothing. Some people can't even manage a gift-horse - the chance of a lifetime!

They won't have to worry about being homeless. We taxpayers that know how to pay our mortgage on time will bail them out thanks to our elected officials.

IDIOTS!

How dare they do this, they were lucky to be choosen. Your construction business was a bust that's why you couldn't do the house yourself.

I hope they lose the home they don't deserve it.

No where did I see if any of these people were employed. I just can't believe how stupid they are. They had a free home, scholarships for their children, etc. etc.

What exactly did they spend $550K on? If it was a construction business how come they couldn't sell a backhoe to come up with the mortgage payment for the year?

If someone gave me a brand new house and paid off the mortgage and gave me $100,000 to boot, I'd probably be able to support my family by working at McDonalds. Why would they do someting so risky and stupid? Looks like they never deserved the house in the first place.

Aston:

I was joking! I was expecting someone to blame him since he is blamed for everything else.

Somewhere along the way; we American's have lost the pride of self reliance and have started to blame everyone else for every problem in our lives!

They get no sympathy from me. Idiots.

I think it's incredible that ABC does this show and gifts people new homes in this manner. To have that many people come together in volunteerism, and a well-known local home builder come in and give back to someone, is phenomenal. How can anyone fault that? Why isn't it okay for people to be gifted soemthing without expecting anything in return? Since when did this country stop giving unconditionally? Again, I believe that you can't condemn others. It's the general old-fashioned concept of let those who've not sinned throw the first stone. I'll bet everyone has had a time or two when they've made bad decisions or bad investments or bad choices with their money. That doesn't mean you stop giving freely and without expectations, to those in need.

Ok, if this makes you sick, look into Hope VI housing. The government builds $200,000 homes and sells them to the poor for $50,000. In Utica, NY, you see boats in the driveways of these houses. The people who pay the taxes that builds these houses struggle to pay their mortgages, their bills, and their kids education. Look, the story of this family getting help from the entertainment industry is nothing to get your shorts all knotted up over. That's entertainment. If you really want to be disgusted, look into Hope VI.

Do you know what the property taxes are on a $450K house a year? Where I live it is $10.3K. Not sure McDonald's would cut it.

The government should not bail out either of the utterly stupid and greedy parties in this case. Let Milton and Patricia Harper go back to living in their van. And let JP Morgan Chase Bank be stuck with a $450,000 debt against a house they greatly over-valued on a street where the average house is worth less than $100K. I do feel sorry for the kids involved though. Hopefully, they will be able to make something of the free college scholarships they were given and crawl out of the stupidity they were raised in.

I feel no sympathy for people who don't take the precautions to secure their homes. There are far too many insurance companies out here that will cover whatever catastrophe would or could befall anyone. You knew better.

I completely agree with those who say they should deal with the consequences of signing for a loan you can't pay. My husband and I did this and we had to sell our home at a loss. We are now renting and paying off other debt. We have totally learned how to manage our money. If you are going to give people such a large amount of money you must make them take a financial planning class. I would recommend Dave Ramsey. He helped change our lives. I also think it is just beyond imagination that someone would put up their paid for home as collatoral on a business when you already have 100,000 dollars in cash. What more do you need. People succeed because of the hardships they learn from, not from getting things free.

These people made a stupid stupid decision, but I'm not sure they deserve to be demonized for it. I doubt they planned to fail. That said though, they deserve absolutly no more help, ever. They had their shot. Hard to believe they would make such a risky decision. If I had no mortgage and didnt have to worry about saving for my kids college....really I could work just about anywhere and we'd be fine, dont think I'd take such a risk.

The people who want to blame the bank though just blow my mind. They had the equity so they made the loan as any bank would do.

I will agree that ABC goes way overboard on the size of the homes, at least for most of the families. The problem is that if they couldn't afford a decent home in the first place, say, the parents are sick, or they have sick family members, or tons of medical bills that continue piling up, then what says that once the show is done and the mortgage is paid, that they're gonna be able to pay the taxes, insurance, maintenance, electric bills, etc., for homes that size? The more square footage they have, the more expensive to heat and cool; the fancier the items within, the more costly the repairs and maintenance will be, especially as the home ages. Another thing I wonder about is the extreme themed bedrooms. Themes grow old quickly. When the kids change their minds or grow up, then what's the family gonna do? Pay for a remodel? With the money they're trying to use to keep the house? Some of those rooms have permanent structures in there that I'm wondering how they'll ever get out, like airplanes and forts, etc. Some of those decisions are great for the show and those of us who watch and ooh and ahh over them, but realistically, what type of problems are they leaving the families to deal with once they're gone? Just seems to me that smarter designing and future bills should be taken into account. I wish they'd do a show on the success or failures of some of these families years later.

Another thought on this.....the house was given to them because the father has seizures and claimed he couldn't work due to this. Then how can he manage to own a construction company (which obviously he can't) with this same condition? My father-in-law has seizures and manages to work as an RN full-time. Some people are always wanting a hand out.

actually, I do have sympathy for the family - it's not like they used the money for drugs, luxuries, or frivoloties - they used it to try to rescue their *business*, for crying out loud!! isn't that the American Dream - to boost the economy by providing a service, a place of employment, and contributing to the betterment of their community? but this economy is so far in the gutter, thanks to people like the large oil companies and their CEOs, that a small business (and yes, a local construction company is a small business) just can't make it. I really empathize with the family, and I'm sorry their story had to end this way.

I think they are smart, the get $100,000.00 free, then they increase it by taking out a loan on a house they were given free and raked in another $450,000.00 !! Over a half a million dollars for a house they didn't put a dime into, sounds like shrewed business thinking to me! (I hear they bought a reeeaaally nice double wide for under 30K).

I think they are smart, the get $100,000.00 free, then they increase it by taking out a loan on a house they were given free and raked in another $450,000.00 !! Over a half a million dollars for a house they didn't put a dime into, sounds like shrewed business thinking to me! (I hear they bought a reeeaaally nice double wide for under 30K).

I have no MERCY on these people. You try to be generous and kind and yet they are taking advantage of peoples genorosity and kindness. That's why I don't give any of my money which is one tenth of my gross income to any charity but to my church only.

They should not get any help from anybody , they got themselves in this predicament and they should be responsible of the consequences.

As fot the mortgage co. they are just as greedy and dumb. Very stupid idea.

I will stop watching this show (Extreme Makeover).I think they should look around and build new schools or a place for the homeless.

Poor people with poorer habits. The Age of Entitlement.

First of all the show needs to be realistic about the types of homes they build for these people considering that alot of these people have little or no income, also the screening process needs to be much more in depth.

Second these people should have been under contract with the show that prevented this type of abuse, Making them sign a contract where they cannot use the equity from the home they were "given" for a minimum amount of years say 10 or 15 years, that way they could not have used the house for something that would put them at risk to lose it.

Third, they should have been required to take some sort of course for responsible finance, so they knew the risks they would be taking if after the time limit they then chose to use the house in this manner.

This is a perfect example of giving a man a fish v teaching him to fish.

Why would a bank give $450,000 to people who don't have the income to make the payments? Why would a bank give $450,000 on a house in a block of $100,000 houses? Stupid bank.

bajacalla, I agree! I emphathize with the family too, and I'm sure they're not the only family struggling to keep their costly new gifted homes. I love the show, and really wish ABC and the designers could come up with a way to design lower costing, smaller, more efficient, easier to maintain homes for these deserving families. I think we'd all rest easier when the shows air, thinking they won't be in over their heads in a year or two trying to handle the maintenance, taxes, insurance, electric bills, etc.

NICE - to be able to have a fully paid for home, get 100k in cash, live knowing that every month the only nut which needs to be cracked is the taxes! OH, but wait, what about the expensive food, clothes, autos, furniture, etc, etc. ALL the while living a dream - REALITY,- NOW they can live it just like the rest of us - trying to do right by not over extending ourselves and relying soley on ourselves to survive!

WELCOME HOME - (ps-don't knock on my front door!)

How stupid! You get a brand new beautiful house fully paid for and $100,000 and you blow it for some dumb loan that you didn't need. Do these stupid people know how many people would love the opportunity to have a home like that and then the added ability to pay the taxes and keep the house in good condition and they just wasted it. I have no sympathy either because this was just a waste. That's like winning the jackpot lottery and losing all the money in a craps game.

"were here", you make it sound like this country is based on capitolism and opportunity and you say it like its a good thing. shame on you. people should not be allowed to manage their own finances, especially if its a gift.

Many of the comments on this article are way over-generalizing. Just because one family blows their opportunity doesn't mean all families are this way. And while I agree that they went way too far in borrowing the equity from their house, it's not uncommon for home equity to fuel entrepreneurial activities. It's not like they took the money and went on a shopping or vacation spree.

This is not the only house that this show buildt. There are always a certain number of people that will never get it!

jitters, what country do you live in? I don't know about you, but I live in America, where last time I checked, it was the home of the free. My forefathers died to give me the freedom to manage my own finances, right or wrong. Gimme a break with the outlandish comments.

By the way, if anyone's worried about your freedom, be very careful about electing a man for president who believes the American flag isn't worthy enough to display.

Bring the original criminal architects to justice. Don’t let them keep the billions they stole from the American public. How can anyone read a contract that has been changed after the fact or behind closed doors? Know the facts people or shut the *%$& up! You keep missing the real point here. Wake up America before it becomes too late.

abrskin

Like none of you sitting on $500k in equity wouldn't dip into it for a want instead of a need. Your all just jealous.

The reason a lot of people dont have anything is because they do not have any responsibility. If you try to help them they blow it. Habitat for humanity is a prime example, the forclosure rate for those homes is very high. A persons past needs to be looked at very closly before any help is given. I dont think charities do a very good vetting process when it comes to the needy.

I never watch that show. It seems to me that the people who get these makeovers are NOT as deserving as millions of other poor Americans. Why not take all that money and resources and build/create something for the really disadvantaged people in this country.

How stupid are people. Why would you take almost a half million dollar loan when you couldn't even afford the to rebuild your house in the first place. This also makes me think of some of the families from the show and should they really have gotten a new house bulit. I mean if you can go and get a loan, you should be able to afford to rebuild or remodel your own house. I am not syaing everyone is out for hand outs but come some of the families could afford the loan and some couldn't. I
t makes me sick how people can make a sob story when they turn around and do something like this. Grow up your life was handed back to you and you wasted a once and a lifetime chance.

Extream Home Make Over is a waste. With all the money spent on one family they could help 100 families. It's insane how much they spend on one family. It's all for the ratings. Ty Penington is anoying. He needs meds.

Kelly, if this family were free to do with that house anything they wanted, that they were owners of free and clear, then why is everyone here SO upset!

Kelly, that's why ABC gives them $100,000 in cash. $100K would take care of the taxes, electric and oil for several years not just 3 years. All of the furnishings and appliances were donated and free and so was the house. They had no mortgage, money for the taxes, electric and heating and they went out and got a loan that very few people would be able to afford let alone a family that didn't have the means to pay for a home that was crumbling prior to the show. ABC didn't leave them high and dry they got greedy and didn't plan ahead. Bad decisions are made day in and day out but placing your future on Vegas by choosing black and spinning the wheel is a conscious choice. They choose extremely poorly! and gave little respect or appreciation for what they had been given and the people that helped them achieve the financial breathing room.

These people were poor to begin with how did they expect them to pay the utilities and maintenance that goes along with home ownership. So, they started up a business with the equity and it failed. It happens everyday in business they took a risk and lost. Get off their backs it's not like they went out and blew in Vegas or something.

Ungrateful parasites. It's always someone else's fault. There is a larger lesson here.

Justeace-- They gave them $100k but guess what the IRS got their 35-40% of that. Plus they had to use it for the appraisal of the house the IRS also took 40% of that also. You get nothing for free. If that house was appraised at $400k they had to get a loan for at least $160k to pay for taxes.

There are classes of people. Those people were a low class people and most of the time, they cannot pull themselves up to a middle or higher class, which is what is required to be able to live in and maintain that standard of living. You can do anything you want and have anything, you just have to want it bad enough. You have to work for it! Look at the people who have had everything handed to them and they threw it away. Oh boy, I can hear the screams now! Wake up people, This is true. Just look at some of the people who were raised in poverty and are multi millionaires.

It's sad to see people make such decisions and dig themselves back into the hole they were pulled out of. I think our nation could benefit greatly from a mandatory financial literacy class in every high school. If parents don't teach their children how to handle money then they are simply left to figure it out themselves. What good is it if we teach people how to earn a living, if they can't live off what they earn?

I wondered if/when we were going to see this happen with an Extreme Makeover house. It's not the responsibility of the show to see that the family continues to be fiscally responsible. For those who think we're bad to condemn this family - read what the poster Chris wrote: the woman doesn't think she should be trying to pay the mortgage loan back because the creditors are harassing her too much! I agree, there are some people who can never be pulled out of their hole.