Unfortunately, No Good Deed Ever Goes Unpunished

In January 2005, Beazer Homes spearheaded the most intensive makeover in ABC’s Extreme Makeovers history at that time - completely demolishing the Harper family’s modest home in Lake City, GA - and building a 5385 sq. ft. mansion in its stead.

This ambitious project was completed in an unbelievable six days, using the talents of more than 1800 people - and the finished product was a beautiful four bedroom, four and a half bath home that included a home office, solarium and music room.

In addition to the construction of this new home - valued at $450,000 - Beazer Home’s employees and company partners raised an additional $250,000 in other contributions for the family including scholarships for their three children and a home maintenance fund.

That was 2005. Times were good for the Harpers. They were handed a mansion worth hundreds of thousands of dollars more than the home they were paying for… the home they bought for $120,000 back in 1999. Wouldn’t you like to live in a $450,000 home while paying a $120,000 mortgage?

Fast forward to July 2005 - the Harpers refinanced their FHA mortgage, adding another $10,000 to their mortgage balance. Not much of a cash-out refi, there. But in Sep 2006, they did do a cash-out refi for $300,000. Then another cash-out refi in May 2007 for $450,000. The couple reported to WSB-TV that the loan was for a construction business that failed.

Now the home is scheduled for auction on the Clayton County courthouse steps on August 5th - where I predict no one will step up with an offer anywhere near the $450,000 price tag. Why? Because it’s nowhere near a home worth half that price.

Just look at the difference in size with the neighbors.

Now, all the Internet is a buzz about how this family is a victim of the foreclosure crisis. May I submit another take on this? The only victims in this story are all the volunteers who helped with money, sweat and tears giving this family a home they would otherwise never had… JP Morgan Chase who foolishly loaned this much money using this property as collateral… and the U.S. taxpayer - who, one way or another, will wind up paying for this.

The Harpers are NOT the victims, here.

Hat tip to the Phoenix Real Estate Guy for the heads up.