Extreme Makeover Homeowner Files Bankruptcy Petition To Stop Foreclosure
The owner of a Clayton County house built on ABC's Extreme Makeover stopped a foreclosure by filing a Chapter 13 Bankruptcy petition today. The case is In re Milton Moses Harper, Ch. 13 Case No. 09-65611-reb. This is not the first time the house was in foreclosure proceedings (click here for story).
See the Atlanta Journal article by clicking here.
In the bankruptcy filing, Harper said he owes $100,000-$500,000 to creditors including the mortgage company, six credit cards, two pawn shops and Sprint. Harper says he owns the same range amount in assets. He is set to meet with creditors April 21, and states he’s received credit counseling...
The Harper home was given a free makeover when the show’s producers learned the family was having septic tank problems. In addition to the $450,000 remodeling, the show gave the family $200,000 in cash.
The couple borrowed against the house to start a business and ended up with a $450,000 mortgage. After struggling several years with finances, the couple faced foreclosure in August. The house was saved then by a loan modification.
It's sad to see how a family who has a house completely paid for and $200,000 in cash can wind up filing for Chapter 13 twice to prevent foreclosure. I understand wanting to live up to the American Dream of starting and successfully operating one's own business, but try to find an SBA loan secured by something other than the roof over your head. I think one of the problems with shows such as Extreme Makeover: House Edition is that they quadruple or more a family's net worth in a matter of a few days and then say sayonara without some form of counseling offered to help manage this new money.
It's really sad the way people like you write stories about people and don't even have all the information. It's really sad.
Q - You forgot to tell us which part was not correct. I am sure it was just an oversight, right?