I just read the 'Extreme Makeover' house faces foreclosure article where the owners of the home [who had $450K donated to them to build it] SQUANDERED that money in using the equity in the home for a loan for a new business.
It drives me crazy when people act irresponsibly, especially when it is with money that is not theirs. In my opinion, a person whose house was on the 'Extreme Makover' show obviously showed why their lives were so bad and why horrible things happened to them, blah blah blah. So in an act of kindness, money is spent on their behalf to build them the home of their dreams. Then we cry in happiness when the home is revealed, only to see that they STOLE THAT MONEY SPENT ON THE HOUSE (the equity in the home that was there solely as a result of the improvements) for their own benefit?
You might say to me (among other things, such as "have a heart Zoe") that it was admirable that they decided to start a business with the new equity in their home. While I tend to agree, I don't think that it is smart to use the equity in one's home to start a business. In fact, I think it's risky and irresponsible.
Further, that money was DONATED to them. THEY HAD NO RIGHT TO USE IT FOR ANY OTHER PURPOSE THAN FOR THE PURPOSE THE MONEY WAS INTENDED. ABC should sue them to get the money back.
My message to the homeowners / thieves -- "Poo-poo on you for mishandling your finances. You should have known better."
2 comments:
If it was in the conditions of the show that they were not to borrow on the value of their home then ABC would be justified in getting their money back. If not, then the windfall from the show was much like a lottery win which they are entitled to use in any way they choose. It is a shame that it came to this, and unfortunately not an uncommon outcome with those who receive large windfalls. The fact that their business venture failed does not mean they were necessarily negligent. They are just like thousands of other would be entrepreneurs who use equity release for a business venture. This story raises the issues of responsible lending, and whether home-owners should risk their home for a business or other investment venture?
I agree, Eli. It just drives me nuts when people are irresponsible with their money and then cry poverty. It upsets me even more when people like this cry about how bad their lives are and make a show about how bad life has been for them, sending videos with tears asking for a "hand-out" and then they squander the winnings.
It just seems dishonest to me.
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