'Extreme Makeover' house faces foreclosure

[j1dias]

Interesting discussion... However I am trying to find out how do I get into the program... I could use an Extreme Makeover on my home... :O)

Do you think they would be impressed if I told them that I am a new investor trying to make it big in the real estate business... that I am a really, really, really nice guy... and that a free house would really help me... :O)

After I get the free house I will let you know if I will be able to manage it and don't lose it after few months... :O)

Have a nice evening!

[Roger J]

I see that some people got my point, others didn't.

I'm not defending the family losing their home.  They DO need to be held accountable for their actions.  That wasn't the point.

IF you can look at this objectively, then you can truly see the pure obsurdity of this deal.  It really shows just how stupid lending practices became.

Everyone wants to blame ONLY the people in foreclosure, and they do need their share of the blame.  However, lenders do have (or should) to share a good portion of it, too.

Everyone out this (this case makes my point here) is NOT financially responsible.  IF they are offered money, they will take it, period.  That's what happened in many cases.  Now everyone is paying for it, including those that didn't get sucked in.

This case:  The lender should have never loaned anywhere near that much money against this house.  As stated (although differently), it's a diamond in a mound of coals.  The absolute best price that you'd get for it is for a high grade lump of coal, yet the lender is loaning against the diamond.  That's just plain stupid.  I'll ask, if ANY of you all were the lender, would you have loaned the money?

And no, I'm not making any assumptions on the type of loan given.  All I said was that they had to have qualified for the loan under whatever guidelines the bank gave.  If that was a stated loan program, again, the lender bears some responsibility for the deal, then.  Their guidelines for the loan helped create the problem.

And the appraiser SHOULD be held accountable for this as well.  To get a $450K loan, then the appraiser would have had to value this property at a minimum of $450K to about $575K.  From what I've seen, that's just plain stupid, too.

The homeowner's are to blame, sure.  But there is alot more blame that needs to be handed out, too.

I'll give you a personal example, too.  I purchased a little property back in '03 or so for about $30K.  It had a tax value of $100K.  I went to get my loan for $30K, thought everything was okay until we got to the closing.  The attorney had paperwork from the lender for $80K LOAN.  Of course, I stopped right there and called the lender and asked what the heck he was doing?  His answer:  EVERYONE is getting the max that they loan (80% of tax value), thought I'd like it too.  Just keep the $50K, it'll be alright.

I made him change it.  Not many would have.  They would have taken the $50K and blew it.  In that case, where would the primary blame have been, with the borrower that requested a $30K loan and got handed an $80K, or the lender dumb enough to do it?

Raj

[wallacehobbs]

ABC should take a cue from the Government
and "Bail out the home owners"

To see how messed up the government
is watch the You Tube Video I posted Mon
on the bottom of our My Space forum.

www.TheReiClub.com and see if you agree
with what is said here.

[christopher w]

I would not be surprised at all if there was some "family advisor" or "hanger on" who put them into this deal. It is the same with lottery winner. People come out of the woodwork when someone wins the lottery which is essentially what this family did. Their old house was paid off, their new house was paid off, AND they were given 250K. These people blew threw this money VERY quickly. I am shocked that ABC let this happen. I would have thought that they would put something into the deed of trust preventing this or put the house into a trust.

[BLL]

I've always felt the home and funds should be placed in a trust to avoid mismanagement. These people aren't going to become financially savvy just because they have some money. They will act like they always have.