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04-07-2010, 08:46 PM
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#2
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Thinks s/he gets paid by the post
Join Date: May 2005
Location: Texas
Posts: 1,038
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Always wondered how they were going to pay operating expenses that were probably greater than what they earned.
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In theory, theory and practice are the same. In practice, they are not.
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04-07-2010, 09:08 PM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,153
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Surprise!
Duh!
Audrey
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Retired since summer 1999.
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04-07-2010, 09:48 PM
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#4
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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Quote:
Originally Posted by Delawaredave5
People get given a house, use it as a piggy-bank with 2nd and 3rd mortgages, and then foreclose.....
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I blame the lenders. As soon as the owners missed a payment, the lenders could've parked Ty Pennington out front with his megaphone chanting " Move that bus! Pay your mortgage! Pay your mortgage!"
The debt would've been brought current before the weekend was over.
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Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."
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04-07-2010, 09:50 PM
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#5
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Full time employment: Posting here.
Join Date: Jul 2008
Posts: 619
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That show annoys the heck out of me, though I've only watched it once. The amount they spend on ONE house could improve the lives of a dozen families. So DUMB. \rant
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04-07-2010, 09:52 PM
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#6
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gone traveling
Join Date: May 2008
Posts: 3,864
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Quote:
Originally Posted by Nords
I blame the lenders. As soon as the owners missed a payment, the lenders could've parked Ty Pennington out front with his megaphone chanting "Move that bus! Pay your mortgage! Pay your mortgage!"
The debt would've been brought current before the weekend was over.
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I blame Ty Pennington, just because he is so phony and annoying...
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04-07-2010, 10:07 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,153
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Quote:
Originally Posted by SarahW
That show annoys the heck out of me, though I've only watched it once. The amount they spend on ONE house could improve the lives of a dozen families. So DUMB. \rant
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Yeah - couldn't stand it. The houses were over the top. Sure - there were some needy families, and some children with special needs. But really extreme housing solutions!
But I think that was the point of the whole show. Over the top house remodeling - that is.
Funny - it did coincide with the housing bubble.
Audrey
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Retired since summer 1999.
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04-08-2010, 07:19 AM
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#8
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Thinks s/he gets paid by the post
Join Date: Mar 2005
Posts: 2,603
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Always said those people would be better off with half the house they get.
Give a man a fish, feed him for a day. Teach a man to fish ...
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FIRE'd since 2005
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04-08-2010, 07:26 AM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Location: No fixed abode
Posts: 8,765
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It's TV, people! The advertisers love it! Where are your priorities?
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"Good judgment comes from experience. Experience comes from bad judgement." - Anonymous (not Will Rogers or Sam Clemens)
DW and I - FIREd at 50 (7/06), living off assets
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04-08-2010, 08:11 AM
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#10
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Full time employment: Posting here.
Join Date: Jan 2005
Posts: 587
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There was one lady that ended up with $27,000 (?) in fines. They ignored easement codes, left piles of debris and no one ever came back to get the porta-potty's. Luckily all the negative publicity "inspired" the show to pay her fines and clean up the mess.
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04-08-2010, 08:36 AM
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#11
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Full time employment: Posting here.
Join Date: Mar 2010
Posts: 889
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I never watched that show. I pretty much stopped watching tv over a decade ago.
If someone built a house like that for me, I would immediately sell it and put the money into stocks.
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04-08-2010, 08:39 AM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
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Some people look at these "home porn" shows and see a dream home they'd love to win, such as in those HGTV "dream home" sweepstakes.
Me? First and foremost, what I see are huge costs for taxes, insurance, utilities and maintenance, requiring an income stream large enough that I will need a j*b for a long, long time to pay for it all. As a result, if I won that, I'd immediately sell it, put 40% of it aside for taxes and pocket the rest.
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"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
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04-08-2010, 09:11 AM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2005
Posts: 17,244
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I have not watched it in many many years... but if some people here remember the first season (maybe two)... they did not do a new home like they do now. They actually would go in and 'fix' the home of the person and make it liveable... but the sponsers were not getting as much bang for their buck as when they started to tear them down... now you have to buy everything new... and people see that and say "I would like that in my house"...
As for the people who use them as piggy banks... well, most of the ones I saw were not very smart to begin with.... so they see 'cha-ching'... and can not resist...
IF you can not pay your utility bills or your gardening bills.... then taking about a $200,000 to $400,000 loan is not going to make thing easier...
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04-08-2010, 09:30 AM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,153
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Yeah - I think I remember those earlier shows which seemed perfectly reasonable. Was that before the "Extreme" moniker?
But then it became this ridiculous "How fancy can we possibly make this Dream House" and I just couldn't stand it. Of course the endless heart string pulling was a total turn off too.
Audrey
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Retired since summer 1999.
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04-08-2010, 11:28 AM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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The local Extreme Home Makeover home a couple miles from my house looks like it is being taken care of pretty well. From news stories, it looks like one owner is disabled and unemployable. The other owner has a debilitating skeletal condition that also prevents her from working. So I guess they are living on 2 disability checks, plus whatever they get for who knows how many kids they have. Their house is worth over 1/2 million (a lot in my city). Taxes are almost $5000 a year. 3300 square feet. I imagine heating, cooling, maintaining, insuring, etc this monstrosity is another $5000-10000 a year.
Interestingly, their 2009 property tax was paid 6 months early. Wonder if the show has stepped in to pay property tax bills so that the homes don't go into foreclosure? I would be shocked if this family had so much excess cash laying around to just pay a $5000 bill as soon as it was mailed, instead of 6 months later when it was actually due.
Also of note is their 2009 vehicle tax bill that was 3 months overdue when they finally paid it in February 2010. Maybe they are having cash flow problems?
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Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (8, 13, and 15).
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04-08-2010, 11:40 AM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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How about:
Extreme Home Makeover: Foreclosure Edition
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Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (8, 13, and 15).
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04-08-2010, 01:18 PM
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#17
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Full time employment: Posting here.
Join Date: Mar 2008
Posts: 800
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Quote:
Originally Posted by Texas Proud
I have not watched it in many many years... but if some people here remember the first season (maybe two)... they did not do a new home like they do now. They actually would go in and 'fix' the home of the person and make it liveable... but the sponsers were not getting as much bang for their buck as when they started to tear them down... now you have to buy everything new... and people see that and say "I would like that in my house"...
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I liked the show better then too. For what they do, I will say that it's harder to remodel than to just tear it down and start over. With remodeling, you have to be more careful with the structure. My current favorite show is Holmes on Homes. He goes overboard too, but what he does is to go beyond minimum code requirements to build a home that will last.
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04-08-2010, 01:21 PM
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#18
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Full time employment: Posting here.
Join Date: Mar 2008
Posts: 800
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Quote:
Originally Posted by FUEGO
Interestingly, their 2009 property tax was paid 6 months early. Wonder if the show has stepped in to pay property tax bills so that the homes don't go into foreclosure? I would be shocked if this family had so much excess cash laying around to just pay a $5000 bill as soon as it was mailed, instead of 6 months later when it was actually due.
Also of note is their 2009 vehicle tax bill that was 3 months overdue when they finally paid it in February 2010. Maybe they are having cash flow problems?
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I've read elsewhere the show sets up a fund to pay taxes and higher utilities for 25 years, probably a trust that pays the bills directly.
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04-08-2010, 01:38 PM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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Quote:
Originally Posted by akck
I've read elsewhere the show sets up a fund to pay taxes and higher utilities for 25 years, probably a trust that pays the bills directly.
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I guess that makes sense, but yowza, that would be multiple hundreds of thousands of dollars for their typical home. I'd hate to see what happens 5-10-20 years down the road when these houses need new carpet, new paint, new hvac, new roof, etc.
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (8, 13, and 15).
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04-08-2010, 01:45 PM
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#20
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Moderator Emeritus
Join Date: Sep 2007
Posts: 17,774
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I had read a couple of years ago that most people in this show never actually moved into the house--they would sell them instead. I wonder if there are so many fewer buyers today that the homeowners can't do that.
It's hard to imagine most of the people featured on the show would be able to get the houses refinanced--most of them don't seem to make enough money to qualify for a big mortgage.
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“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
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