Man Wins $3 million Home but can't afford it

[justin]

http://www.wral.com/news/9817927/detail.html

"Man Who Won HGTV Dream Home Says It's Too Costly To Live In It"

"Donald P. Cook, who won HGTV's 5,700-square-foot Dream Home on April 29, plans to sell the house because of the high taxes and maintenance costs."

"[The owner] said the electricity bill is more than 10 times what he now pays."

"The home overlooks Lake Lure in Rutherford County [North Carolina] and has been assessed at slightly more than $3 million with an annual tax bill of $19,396.64."

The tax bill alone is more than my total housing expenses including utilities and maintenance!

[REWahoo]

Originally Posted by justin

http://www.wral.com/news/9817927/detail.html

"Man Who Won HGTV Dream Home Says It's Too Costly To Live In It"

"Donald P. Cook, who won HGTV's 5,700-square-foot Dream Home on April 29, plans to sell the house because of the high taxes and maintenance costs."

Unfortunately this appears to be a very familiar story...

The House that Swallowed Don and Shelly Cruz

"The winners of a TV dream home have seen their giant fantasy house become a financial nightmare. "

[mickeyd]

In addition, he will have to pay federal income tax on the $3,000,000, and probably stae income tax, which would present an even bigger immediate financial problem for Mr. Cook.

[thefed]

i think i could deal with it....and figure something out...like...sell it quick!!!!

[Ed_The_Gypsy]

When presented with a prize like this, can't you simply say, "Thank you very much!", ask for the cash equivalent and pay the taxes?

[Texas Proud]

Originally Posted by Ed_The_Gypsy

When presented with a prize like this, can't you simply say, "Thank you very much!", ask for the cash equivalent and pay the taxes?

Actually no... I have read the rules for a house giveaway here in Houston... you could not take the cash and had to move in within (I think) 90 days...

But, the headlines IMO are crap... there was no way these people would ever be able to 'afford' a house like this... but, they won a lot of money.. you sell the house, pay your income tax and walk away with your 1 to 1.5 mill and SMILE!!! You don't bitch that your tax bill has gone through the roof and now your electricity empties out your checkbook..

People see what they want to see... something bad or something good... it is perception..

[Ed_The_Gypsy]

you sell the house, pay your income tax and walk away with your 1 to 1.5 mill and SMILE!!!*

You would think this would be obvious to people.

[saluki9]

I think HGTV made some changes this year to give cash away with it to help defer some of the taxes. Guess that didn't work

Maybe they could build a more reasonable house that people might actually live in?

Guess that wouldn't have the WOW factor that these monsters do.

[mickeyd]

Maybe they could build a more reasonable house that people might actually live in?

I agree, but where is the sizzle?

Where is the hype?

Who cares about Mr Cook winning a 3/2 rancher in a declining neighborhood?

[saluki9]

Originally Posted by mickeyd

I agree, but where is the sizzle?

Where is the hype?

Who cares about Mr Cook winning a 3/2 rancher in a declining neighborhood?

I disagree somewhat. You could build a top quality home with craftsman quality woodwork, extra nice bathrooms, top quality kitchen etc in 2500- 3000 sq feet, use the extra money to gross up the taxes etc.

[bow-tie]

Originally Posted by saluki9

I disagree somewhat.* You could build a top quality home with craftsman quality woodwork, extra nice bathrooms, top quality kitchen etc in 2500- 3000 sq feet, use the extra money to gross up the taxes etc.

Methinks that would fail to keep the eyeballs of the sheeple glued to the HGTV screen...

[saluki9]

Originally Posted by bow-tie

Methinks that would fail to keep the eyeballs of the sheeple glued to the HGTV screen...

Probably

Maybe they could also give you a high paying network gig along with the house? Then at least people could live there.

[CCdaCE]

The obvious response here is to take out a huge HELOC.



-CC

[Ed_The_Gypsy]

The obvious response here is to take out a huge HELOC.

And then skip town, like the previous owner of my house did.

[CCdaCE]

Originally Posted by Ed_The_Gypsy

And then skip town, like the previous owner of my house did.

Ew!!!! Elaborate with all the juicy details! Did you get your house for fire sale prices or forclosure, etc.?



-CC

[Ed_The_Gypsy]

...Elaborate with all the juicy details!...

We learned the story later. It was vacant for two years before we bought it. It had passed between different agents who had to try twice to get it cleaned up. We were told that the previous owner had taken out a 125% HELOC and skipped town. The lending institution was on the East Coast and the second mortgage holder (also far away) wouldn't budge on price. I think the culprit planned the whole thing very carefully, long in advance.

We got a good price but not a fire sale. We saw the potential and it has been a great investment.

I have toyed with the idea of going after the guy for the reward (if any). A new job in retirement?

[CCdaCE]

Originally Posted by Ed_The_Gypsy

<snip>

I have toyed with the idea of going after the guy for the reward (if any). A new job in retirement?

</snip>

You've been watching too many episodes of 'Dog, the Bounty Hunter', ... but, yeah, that would make for an interesting tale.

I've always wondered how the collection agencies track people down...

I know a kid/guy that works in the "Fraud Dept.", for a credit card company. He had some interesting stories. The particular ones I liked is when they catch people committing fraud with their own cards.

-CC