IDIOTS! Foreclosure...

[VaSteve]

Originally Posted by the

Maybe read the post, then?

"The couple did not return phone calls Monday, but told WSB-TV they received the loan for a construction business that failed."

I had seen it a couple of times on teh web today, I didn't actually read teh post since I knew the topic. They have apparently updated it since I saw it before.

[VaSteve]

Originally Posted by cab83_750

Eeehhh! That is nothing in my law-of-relativity! My uncle won the lottery to himself; blew ALL the millions in less than 2 years!

What did he spend it on?

[Hugh R]

Liquor, women, drugs, the rest he wasted.

[Racerbvd]

Naples, FL has the highest foreclosure rate in the country
Sad that some people are so stupid

[Aerkuld]

Lottery mentality

[lendaddy]

I see nothing wrong on the face of it, they believed in themselves and took a gamble to start a business. How much more "American Dream" can you get?

They may have been terrible business owners, caught bad luck, or they're just plain stupid but using an asset for collateral on a business venture is as old an idea as they day is long.

Kudos to them for trying.

[cl8ton]

Does anyone know how taxes are handled on this type of arrangement?

I mean if someone performs a 450k remodeling job gratis, isn’t that like someone gave you 450k cash in the IRS’s eyes????

[cgarr]

Heck yea, what did they have to loose? I would go for it too, Why not!

[berettafan]

common sense. what experience, as inner city dwellers, did they have running a construction company? they couldn't solve a septic problem but they were qualified to borrow nearly 1/2 mil (and Va Steve's question is STILL valid) in an attempt to start a construction co?

you don't need diddly to start a construction company. zero. nada. you go out and work. my guess is the $$ went to a great big fancy truck and some overpriced, spanking new equipment with zero jobs on the books.

i feel sorry for the loss they experienced wrg2 their child but beyond that there is zero pity.

i mean, what, exactly, do you need now that you have a) a free house, b)$$ for r/e taxes and c) college funds for the kids???????????????????????

i get to that point and i'll be darned if i'm going to risk it all to start a business i know nothing about.


idiots.

[lendaddy]

Another point is that the home may not have been direct collateral for the loan either. If they started a business they likely signed a blanket personal guarantee for business loans. So.....when the business fails to perform on the loans the banks say "liquidation time".

And for those that may not know, $450k in business debt is absolutely nothing.

[berettafan]

Originally Posted by lendaddy

And for those that may not know, $450k in business debt is absolutely nothing.

with all due respect that is a ridiculous statement.

[lendaddy]

Originally Posted by berettafan

with all due respect that is a ridiculous statement.

What is your experience? In mine it is nothing, a couple companies screw you over and there you go. Invest six figures in a project that never pans and there you go. Heck, we run a small family business and have been burned twice for six figures.

[vash]

i dont watch the show. that lead host/carpenter dude annoys me. what did the house look like?

[berettafan]

read my post above your statement. i think it explains where i'm coming from on that.

manufacturing co's are a good example of capital intensive businesses. construction co's however have different options available to them. they don't have to buy anything beyond an '83 ford escort to get to and from jobs. they can RENT EQUIPMENT AS NEEDED.

[lendaddy]

Fair enough, but without knowing what type of company they started beyond "construction" it's hard to say what initial capital investment was required.

Say they built four or six spec homes and couldn't move them or pay the monthly juice.....$450k gets eaten up real quick.

[mthomas58]

Cannot stand the show. It's all about ratings and sponsor plugs. Sure people face hard times, but put them in a new house extremely overdone, over-improved for the neignborhood, paid for, plus funds to pay expenses/taxes for 20+ years (in this case) In other episodes: new cars, tricked out shops/garages, college tuition funds - come on! The show absolutely gags me! There is no justification for these over the top over-dramatized makeover's. More non-reality TV

[VaSteve]

Originally Posted by lendaddy

Fair enough, but without knowing what type of company they started beyond "construction" it's hard to say what initial capital investment was required.

Say they built four or six spec homes and couldn't move them or pay the monthly juice.....$450k gets eaten up real quick.

Like Berrettafan said.... if you have no experience, you've got no business borrowing that kinda coin.

Spec houses? I didn't see the show, but these people were so behind the 8 ball that they had someone GIVE them a house. I'm surprised they could figure out how to butter toast let alone start a construction company.

[BGCarrera32]

Originally Posted by lendaddy

Fair enough, but without knowing what type of company they started beyond "construction" it's hard to say what initial capital investment was required.

Say they built four or six spec homes and couldn't move them or pay the monthly juice.....$450k gets eaten up real quick.

While I agree with you in principal it would be different if the family had actually built and paid for that *$450k house themselves*. In this case, they did not. Some ill will fell about them and the show (ala ABC), sponsors, volunteers, etc. put the effort in to improve their life somehow by building the house, with the guise of giving them a fresh start. Perhaps if they actually had the funds to build a $450k house, they would have been smarter and not put it at risk like they did in this case. Foolish with a capital F whatever the reasons they can't repay the loan.

I once had a friend tell me the way to get that business started is to use a home equity loan. Now that his business is bust due to the housing trade falling apart, he almost lost his house due to the additional lien on it. I admire him for hanging it out there to make a go at the business, but there are smarter ways find funding...

The show is getting a bit obnoxious...ever notice how a few of the families just can't manage to pick up their trash or clear their bedrooms of the squalor? Building a new house and thowing all the money at it won't accomplish jack squat to address that mentality. I grew up in some houses that were small and by no means fancy, and was taught to make the best of it and clean up after yourself.

[m21sniper]

Originally Posted by lendaddy

I see nothing wrong on the face of it, they believed in themselves and took a gamble to start a business. How much more "American Dream" can you get?

They may have been terrible business owners, caught bad luck, or they're just plain stupid but using an asset for collateral on a business venture is as old an idea as they day is long.

Kudos to them for trying.

I'm thinking there wasn't really a construction business.

[VincentVega]

You can take the family out of the trailer, but you cant take the trailer out of the family.