Many of you are familiar with the show 'Extreme Makeover - Home Edition'. I personally hate the show but found this story about one lucky couple that received the gratuity of this show. Their 5500 square foot remodeled home is now facing foreclosure. Hmm? The show remodels and from what I understand pays off your house. That begs the question: how can a paid-for home be facing foreclosure? Ah, stupidity would be the answer to that question.
Your mortgage was paid off, your home remodeled, and you were given $100,000 in cash. Yet, somewhere along the line, you needed a second $450,000 mortgage? Let's do some quick math, no mortgage for 3.5 years (42 months) at a grand a month (to make the math easier). So there is $42000 bucks you have saved. Add to that the 100 grand, which should have been used to pay off any car notes and other outstanding debt. Suddenly, you should be able to find yourself living pretty comfortably with a 40K/year job if all you're doing is paying utilities and food costs.
But no, you want to start a business. Good for you, entrepreneurial spirit is the backbone of this country. But what's that you say? You don't want to try to save the start up money or get a traditional loan from the bank? Huh? You wanna take out a second mortgage on a home that is paid for, likely your greatest asset? Uh, ok....
Yeah, no sympathy for this couple whatsoever......
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