That is what caused their financial woes, not the people of Extreme Makeover or anyone else. They did it to themselves. So sad though. I just don't want the gov't (i.e. the taxpayer) to bail them out of their mess.
Yes they did it to themselves... that is the point. They received a ‘private bailout’ from Extreme Makeover and they still could not resist the urge to financially self-destruct.
With most of the families who are awarded new home at some level of financial distress, ABC would be wise to take a co equal position on the deed for a specified period of time. That way, the contestants can’t go out and obtain a cash out refi on the newly paid off property.
Our local Habitat affiliate has built 300 homes in the past 10 years and we have had a total of 5 get foreclosed. That is an equal performance to prime credit grades, and these people have to pay a mortgage back to Habitat.
Sounds like we may already have done so: "The Harpers were granted a loan modification last summer to avoid foreclosure on their house...". More than likely, that was one of the gov't sponsored mortgage bailouts.
The part that makes me sick is that these people didn't even BUY A HOUSE with the money. They just took the cash.
If the GOP had any sense, they would be demanding that any "mortgage adjustments" be limited ONLY to amounts used to BUY the house...no cash out refi's qualify.
I think it would behoove the Extreme Makeover people to hold a lien on the houses they provide, just to avoid such as this.