Extreme Makeover Foreclosures

By: Leslie Pandey, Senior Content Writer/Editor | July 30, 2008

Update, October 6, 2008: We’ve received an update from Rachel Byers, the recipient of the Extreme Makeover home in Oregon, who wrote to tell us that the stories that have been reported about her family’s home are not true. They are not in any danger of foreclosure. We’d also like to note that the Byers have set up a foundation in Boey’s memory at BelieveforBoey.org.

Original post:

Remember those Extreme Makeover homes that had been listed for sale? Well, now comes word that not one, but two of the Extreme Makeover homes are now in foreclosure. Sad, but true.

The most recent Extreme Makeover home in foreclosure is an Atlanta-area residence that was featured on the show in February 2005 (pictured above). The family reportedly used the home as collateral for a $450,000 loan to start a construction

business. Some reports say that the house will now be going up for auction, while another story says that the owners may have struck a deal to rescue the home from foreclosure.

Sadly, the second of the show’s homes headed for foreclosure is the result of a death. In October, the show featured the family of an Oregon child, Jenessa “Boey” Byers, who was fighting cancer. The team demolished the family’s old home and built them a brand-new modern home. (Tour the home here.) Unfortunately, Byers lost her fight with cancer in December, and the family is now unable to pay the $250,000 they have left on the mortgage of their old home, plus the high property taxes and utility bills for the new property.

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Comments

29 Comments so far

  1. Thursday: DC Links | Redfin Washington, DC Sweet Digs on July 31, 2008 6:17 pm

    [...] It turns out that a makeover might not really solve all your problems; not one, but two “Extreme Makeover” homes have gone into foreclosure. [Zillowblog.com] [...]

  2. Sharon H. on August 1, 2008 1:22 pm

    The extreme makeover show is to help a family live in a healthy house, not to fix a families financial responsiblities. The house is a gift from the show, the company that built it and the community. Other donatons can be made, but shouldn’t be assumed or expected. Appreciate what you get! A new healthy house you can call home! (Organize your financial obligations accordingly)

  3. Moe on August 1, 2008 2:21 pm

    A gift should be suitable for the recipient. This “gift” was more about how great ABC/Disney/Beazer Homes are than about what the Harper’s “needed”. They needed a new roof and septic system, not

    The finished product was a four-bedroom house with decorative rock walls and a three-car garage that towered over ranch and split-level homes in their Clayton County neighborhood. The home’s door opened into a lobby that featured four fireplaces, a solarium, a music room and a plush new office.

    You can build a healthy house for less than $400K.
    Also, the kitchen is amazingly ugly for the amount of money that went in. I hope that’s the before picture.

  4. Sharon on August 1, 2008 3:20 pm

    While I don’t disagree with you when it comes to the extra stuff that was part of the show, there’s a reason why it’s called the Extreme makeover:home edition. They’re not going to build an 1800 square foot house with the basics. I didn’t see the show regarding the Atlanta house so I don’t know what the kitchen looked like. I saw the show for the corvallis, oregon house. They have to show some of that extra stuff especially if that organization donated money or some other perk. The corvallis house is 4000 sq feet, and it’s a single floor house. I don’t know if they liked everything in it, but I know that a lot of hard work went into that house. From what I understand the Atlanta house was the shows most challenging house to build.

  5. John Anderson on August 4, 2008 5:54 am

    This is really sad to hear, however the first foreclosure is really a product of the homeowner trying to capitalize on the additional equity and failing. It has nothing to do with the show which is, for most, a truly remarkable gift.

    I feel for Byers family considering they lost Janessa in addition to the home situation. I’m not sure how much the makeover increased the Byers’ taxes however their mortgage was no different than before the makeover. I’ve always maintained that property tax is one of the worst taxes this nation ever devised because it is not based on a property owner’s ability to pay. There are many people whose financial situations change during the course of their lifetime and those people should not be penalized as such based on property. Tax their earnings. Tax their spending. Don’t tax that which is already theirs. In the current system, we’re all renters. We rent out property from the government and, if we can’t pay, the government evicts us.

    Irregardless though, I don’t blame this foreclosure on the show. Sure, the network’s ultimate goal is to make money from the show, but it’s almost always a win-win situation. I do think a stipulation of the contract should prevent the homeowner from tapping into the home’s equity for a specified amount of time.

  6. Sharon on August 8, 2008 11:50 am

    While I completely agree on your first statement that they shouldn’t have taken out a loan on a house that was a gift, I disagree on the taxing earnings and spending, but that’s not what this blog is about. Those who are fortunate enough to get a house from the Extreme makeover show should appreciate the gift they receive, if they don’t like something in the house, live with it for a while and then when they save up enough money, they might be able to change it to something they’d like. ‘Beggers’ can’t be choosers. For the 1st house that went into foreclosure, I still can’t believe they took a loan out that large on something they were given. On the 2nd house, from my understanding, they needed to go back to work earlier than they tried….? I don’t know all the details. From my understanding they didn’t have any steady income coming in to continue to pay off their mortgage from the old house. I don’t know what their property taxes were. I hope whatever happens with both families they’ll come out of it okay. They just won’t have the large houses they once enjoyed.

  7. Vic Parise on August 13, 2008 9:51 am

    Vic Parise Comments the headline.
    Sounds like a great TV show for those in need of help or a bail out or maybe some krafty ideas to help them survive and move on.

  8. Mel on August 23, 2008 9:44 pm

    There were clues to stupid before the new house was even built.
    #1-Were neighbors not complaining about the sewer problem ? Why did the health dept not condemn the house? Why did these people not bring legal proceedings if the house was in that shape when they bought it ? Obviously the problem had always been there.
    #2 I would not allow my children to live in a house where crap was laying in the basement on a regular basis.If I had to, I would have moved out, rented an apt and let THAT house go into foreclosure-not the best option but still an option over living in a house of crap.
    #3 In the HM show, it showed very little furniture on the main living floor.. and that they had to throw alot out. Did the sewage rise to the main living area, filling the basement ?

  9. b. davis on August 25, 2008 2:36 pm

    The fact that they lost their home in part due to property taxes shows 2 things.
    1. the PVA (property valuation auditor) regularly raised tax rated due to property values… and their home value skyrocketed.
    2. You cannot own property in the U.S. If you have to make payments (even tax) and if you don’t then the property can be taken, YOU DON’T REALLY OWN IT!!!

  10. New Extreme Makeover Home in Geneva, NY | Zillow® Blog on August 26, 2008 1:31 pm

    [...] the comments generated by Extreme Makeover homes in foreclosure and Extreme Makeover homes on the market, this latest Extreme Makeover home at 148 William [...]

  11. Debbie on September 7, 2008 5:39 pm

    While both of these situations are sad I remember something my mother as always said. “If you can’t give with no strings or attachments don’t give at all”. Once they families were given the homes they were theirs to do with as they pleased. Leave them alone, I’m sure they thought they were doing what was best in the long run for their families. To be honest it isn’t our business what they did.

  12. Extreme Makeover Home in Toledo, OH | Zillow® Blog on September 13, 2008 12:06 pm

    [...] Check out these Extreme Makeover Homes on the market, and some that are in foreclosure. [...]

  13. Mercy on September 21, 2008 9:43 am

    I think people should receive financial counselling in addition to getting a home. Most of these people may have some poor money management skills and this can cause them to make some serious mistakes. Thats the bottomline. In some cases; this may just be too much house for most people. I think the show is a great idea and helps lots of people.

  14. Sharon on September 21, 2008 10:09 am

    The financial counseling might be a good to thing to have as an option, however, one thing to keep in mind is that in the shows 5 years of being on the air, these 2 homes are the only 2 homes that have gone into foreclosure. I’m sure there are reasons on both sides why this has happened to the 2 families that a lot of us don’t know.

  15. Rachel Byers on September 29, 2008 12:32 am

    I thought I would correct you on your information. It was our 8 year old extraordinary precious daughter who NEVER lost her fight to cancer, but had the ultimate victory when Jesus carried her home to heaven where she’s able to finish her work on earth without all the pain and suffering.
    Our home is NOT in foreclosure. God is taking such good care of our family. Our mortgage was never paid off, but we are very proud to say that we are not in any danger of losing our beautiful home that the Lord blessed us with because he is taking care of our family.
    Please respect our family and do not spread stories that are not true.Please pray for all the families affected by this terrible disease and spread the word on Boey’s amazing foundation and continuing her beautiful legacy here on earth.
    Please visit http://www.believeforboey.org and never stop believing and fighting for a cure for our children.
    In Christ’s Love
    The Byers

  16. Sharon on September 29, 2008 8:38 am

    I personally would never dream of spreading rumors about your home being foreclosure. I’m glad to hear your house isn’t in foreclosure. Oddly enough the rumors that your home is in foreclosure have been going around for a while and some people have your family and financial situation confused with the family in Texas who are losing their home. I’m glad you’re still enjoying your home. Thank you for setting the record straight.

  17. Leslie Pandey on September 29, 2008 9:38 am

    Rachel - I apologize for the incorrect information in the post. I have corrected it. Also, I am very glad to hear that your home did not go into foreclosure. Thank you for letting us know. Take care.

  18. Patti Sommer on October 6, 2008 12:28 pm

    To Rachel and her family…I am sorry for your loss, not your daughters because she no longer feels pain and is walking the streets of gold with our beloved LORD. I know the feeling of emptiness of losing a child and the only place to find comfort is in the arms of the Lord. I am very happy that you have a house that is comfortable, safe and a place for your family to retreat from your work day, vicious rumors and people who think their lives are so boring that they have to come up with stories about yours. Congratulations on your home and your walk with the Lord. As I watched the story of your family I remember sitting there with tears falling down my face and thinking about my own family and thanking God. I know that God used your family to remind me how much we have to be thankful for and I hope in others lives also. I pray that God will continue to provide for you family, that you will have peace, happiness and the joy of God Bless you and your family.

  19. Another Extreme Makeover House Owner in Financial Trouble | Zillow® Blog on October 6, 2008 1:17 pm

    [...] while homes around hers are in the $110K-$185K range (see Zindex chart on right). Already one Extreme Makeover home is in foreclosure (that we know of), and you can be sure if the EMH team keeps building outsized homes that [...]

  20. T on October 7, 2008 9:24 am

    In my opinion, whenever Extreme Home Makeover rebuilds a home the should pay off the families mortgage because the new house is definitely going to increase their property tax. If they couldn’t afford to fix their house, then an increase in property tax may push them to the edge of sanity and homelessness.

  21. Aaron on October 26, 2008 10:42 pm

    There’s absolutely no point of taking an unfortunate family, building a kingdom around them for a bank to take away later and give it to a wealthier family. The whole point of the show is to get me and you to cry when you see this sad situation turn into a dream come true. I think that the producers of the show and the backers of the show should make the payments till the family gets back on their feet. They can make it a whole new show called “Make the Payments” everybody can start crying because they don’t have to leave their home and they can still sell soap at the break. It’s just sad to see a family get so much and then having it taken away.

  22. Habidoo It! » Blog Archive » Extreme [Sh]akeover on November 25, 2008 1:35 pm

    [...] recent blog post about Extreme Makeover recipients going into foreclosure sparked a discussion about a healthy topic [...]

  23. Vardon Family’s Extreme Makeover House at Risk of Foreclosure | Zillow® Blog on December 8, 2008 3:29 pm

    [...] of homes are foreclosed on each day, but it just seems that when foreclosure strikes an Extreme Makeover house, the news becomes personal because we have watched these people go from a desperate housing [...]

  24. Debbie on December 8, 2008 9:46 pm

    I have often wondered what happened to these families that have a $300K+ home that could not afford electricity bills, taxes, upkeep on an older home. I am supposing that their old mortgage is not forgiven, but that their new home is paid for. So, now they have to pay for a house no longer there, but taxes, gas/elec/water etc on the new home. I don’t think they should build them such extravagant homes, but modest new homes, how about in the $150K range and not in the $300+ range. When things look to good to be true, they usually are.

  25. jr on January 18, 2009 11:53 am

    i think that if people are idiotic to take out loans on a new home, it is the same as them taking out a loan for the house… if they lose it, too bad.. i think extreme makeover should buy these homes and give to deserving families who can not get a loan for whatever reason but are able to pay for mortage payments which could be used for taxes, bills, etc…

  26. SB on January 23, 2009 3:36 pm

    I am sorry for the Byers family. I always wondered how well people can manage after a home makeover. However, the Harpers are just plain Stupid with a capital S!!!

  27. BG on February 28, 2009 11:30 am

    Just looked up the address on Google maps. In the street view, you can see the house, along with the piled up bags of garbage, uncollected due to non-payment of garbage fees to the city. This story is sad. I agree that there is an obligation to do good by a community that has done good for you. But, I have to believe that they were trying to do good by starting a company and becoming financially self-sustaining. Think of the jobs that this new company might have created for others in the community, had the economic climate not changed so precipitously–nobody would’ve faulted them for taking out a mortgage then, would they? This family is a victim of the Wall Street greedmongers, same as the rest of us. Put the blame where it belongs–not on this poor family, suffering yet again.

  28. Chas.A on July 18, 2009 9:30 pm

    Regarding the program, one must remember that these programs are produced by one of the original three major networks -VERY profit-oriented organizations - not without some altruistic aims from the program’s cast - but overall, profit-movitated nonetheless. A popular reality program, despite spending large sums in “absolute dollars,” can still earn profits at a much higher percentage than many sitcoms or dramas, where several actors earn high-six- or even seven-figure salaries per episode, plus many perks, residuals, etc. Plus, in addition to free stuff, likely other receipts from Sears and others whose products and services are used. It is fair to say that the recipient families must bear their own responsibility to maintain their own financial affairs after the show is over and the cast has departed. And the stark contrast between the beautiful facilities presented to the families, compared with the meager (often virtually horrible) conditions under which they were previously living, provides the “hook” and “drama” of the show. My one caveat would be that they could still accomplish this aim without, say, furnishing a boy’s room with a dozen surfboards or guitars to meet his expressed area of interest. Two or three would be sufficient, and I think this type of excess, seen often on the program, can possibly hurt the recipient family’s focus a bit in maintaining a better semblance of reality amidst the new grandeur presented them. It might also be a good idea if ABC would employ a financial professional to spend some time with the family, organizing a budgetary spread sheet with them, to view their future tax/utility/household expense situation with their more opulent digs, versus their former home. Even where all mortgages and medical bills are paid, and/or the next year’s utilities, these families do face future expenses and budgetary issues. The network could provide some close liaison and guidance from a true professional at relatively moderate added cost, and perhaps little or nothing with a recognition verbally or within the show’s credits.

  29. bernadette on October 11, 2009 6:41 pm

    Even tho the show is nice. I live in a 50.00,00 house and have all the comforts.It is awful to expect people who win these houses to expect to live like the rich When a 150,00.00 home would be a step up.Especially if the family is living in dire straights.it sets a bad example.The community always comes together to help. Where are they in ordinary times? Before extreme makes a appearance. Much is to be said Habitat for Humanity.there are people in every town that are poor and need basic housing .Why not help them instead of all this lavish spending.Just my 2 cents worth.

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