MI-Widowed mother of three, loses home that was a TV "makeover" project ten years ago

[Anti Federalist]

Too much to copypasta, especially from a Daily Fail piece, but taxes played a large role in this...


'I can't believe this is happening': Widow featured on Extreme Home Makeover in 2008 loses the home to foreclosure after falling behind on mortgage payments

Arlene Nickless appeared in 2008 on ABC' Extreme Makeover: Home Edition
The mother-of-three was begging for help with her home after her husband of 18 years passed away leaving her to raise their three sons
The family had been living in an 1860s farmhouse in Holt, Michigan that desperately needed attention
The crew from the show demolished the old home and built a 3,300-square-foot residence with four bedrooms and a retractable flat-screen TV
She fell behind on mortgage payments due to several reasons and now has to be out of the home by Monday due to foreclosure

http://www.dailymail.co.uk/news/arti...#ixzz4iFNO9cFz

Karen Schroeder, vice president for East Lansing-based Mayberry Homes, the general contractor for the home, told the Detroit Free Press that the home's annual taxes more than tripled from $2,000 in 2008 to $7,500 in 2009.

[Anti Federalist]

From the comments

utap, Mechanicsville, United States, about an hour ago

"home's annual taxes more than tripled from $2,000 in 2008 to $7,500 in 2009." Watching home make over, one of the first things I thought of is how many of these poorer families will be forced off the property due to property taxes. The State would rather have her a dependent on them with welfare, foodstamps etc that will cost more than 7500 /year rather than even the slightest break on property taxes. Property taxes are now surpassing the point of what a mortgage was when some of these older homes were bought. $7500 property taxes adds $625/month to the mortgage. It has become beyond ridiculous to pay never ending tax on property that has been paid for by hard earned money. The real criminal in most of these cases is the socialist State, looking for ways to tax more and more. Similar property taxes here in MD and now a $20,000 adder for mandated sprinkler system, $28,000 reduced nitrogen septic tanks + ever increasing impact fees placed upon all new homes. When is enough enough??

[jkr]

NOW?


nah, it is still ok for me...

[oyarde]

Well , without trying to be a dick . She should never have allowed the home to be replaced . I cannot even imagine how much it must cost to heat 3300 square feet in Michigan , but I bet she is not chopping wood . With taxes like that her best bet is to leave it and move on .

[juleswin]

Well , without trying to be a dick . She should never have allowed the home to be replaced . I cannot even imagine how much it must cost to heat 3300 square feet in Michigan , but I bet she is not chopping wood . With taxes like that her best bet is to leave it and move on .

That or take the makeover and a roommate or two to make up for the roommate and extra mortgage. If it was just the tax liens, then the state would sell the house and give her the difference between the ta liens and the purchase price.

[Schifference]

That or take the makeover and a roommate or two to make up for the roommate and extra mortgage. If it was just the tax liens, then the state would sell the house and give her the difference between the ta liens and the purchase price.

Area not zoned for boarding/rooming house.

[juleswin]

Area not zoned for boarding/rooming house.

But that did not stop the many people running Airbnb from renting their space.

[Krugminator2]

Not sure I have a whole lot of sympathy for her. She has clearly made numerous poor decisions. With a $30k mortgage she could have figured out a way to be paying $150 a month and $7500 in property taxes is $600. So $750 a month. Still $7500 in property taxes is ridiculous. And as an aside, the company that foreclosed on her, Ocwen Financial, is being bankrupted by the government for aggressive foreclosures. Their stock went down 60% a few weeks ago and their parent company Altisource went down big as well.

[Anti Federalist]

Thanks to the unknown mod who corrected the grammar error in my OP headline.

[angelatc]

Not sure I have a whole lot of sympathy for her. She has clearly made numerous poor decisions. With a $30k mortgage she could have figured out a way to be paying $150 a month and $7500 in property taxes is $600. So $750 a month. Still $7500 in property taxes is ridiculous. And as an aside, the company that foreclosed on her, Ocwen Financial, is being bankrupted by the government for aggressive foreclosures. Their stock went down 60% a few weeks ago and their parent company Altisource went down big as well.

]

One mainly being that she struggled to manage the property's pre-makeover mortgage, which was a $30,000 balance after the 2008 makeover. But that number increased to roughly $113,000 by the end of 2016.

Someone started taking out home equity loans, it appears.

[Dr.3D]

I suspect some politician wants the property.

[angelatc]

I suspect some politician wants the property.

The article says it's currently for sale.

[Dr.3D]

The article says it's currently for sale.

Let's see who buys it.

[Krugminator2]

Someone started taking out home equity loans, it appears.

Right. That was referring to. Even with 3 kids, very few skills and property taxes, she would have figured out a way to make it work if it were a priority to her. The property taxes don't explain why she took out 83k in equity. And absolute worst case scenario she could have sold the property if it became evident that she was running a deficit and netted a couple hundred k and then downsized houses. Instead she let the problem fester. It isn't a good thing and everyone makes mistakes. I have made tons of financial mistakes. Take the lumps and learn from them.

[Anti Federalist]

Someone started taking out home equity loans, it appears.

Yup, just a continuation of the bad decisions and bad luck that got her into the mess in the first place.

I reckon there will be some tear jerking "go fund me" campaign before long that will have her in better digs than she is now.

From the OP:

She claims she withheld her mortgage payments because she was unsure of where the money would end up.

And that is one thing you never do.

[oyarde]

Yup, just a continuation of the bad decisions and bad luck that got her into the mess in the first place.

I reckon there will be some tear jerking "go fund me" campaign before long that will have her in better digs than she is now.

From the OP:



And that is one thing you never do.

Not paying rent , mortgage payment etc means you wish to be evicted .

[Dr.3D]

Not paying rent , mortgage payment etc means you wish to be evicted .

Yep, and property tax is just another form of rent.

[Anti Federalist]

Yep, and property tax is just another form of rent.

Yup...it's all rent and cease to pay and you will find yourself homeless.

I write "squatter's fee" in the memo section of property tax payments.

Wonder if anybody notices or even cares?

[Dr.3D]

Yup...it's all rent and cease to pay and you will find yourself homeless.

I write "squatter's fee" in the memo section of property tax payments.

Wonder if anybody notices or even cares?

I finally got our township treasurer to agree that it's rent. I just said, it's rent and if I don't pay it, I'll get evicted and she agreed that it's rent.

What I don't understand is, how is it that the home that widow had, suddenly required more money to do road maintenance, trash pickup, fire protection and school? It was on the same property as the home she had a year before. Strange how they want to reward people for fixing up their homes, by making their rent go up.

[angelatc]

Let's see who buys it.

If I had $176000 I would.

This is Michigan. There's no shortage of affordable cheap housing.

[Anti Federalist]

Strange how they want to reward people for fixing up their homes, by making their rent go up.

A "thing" in New England, (that drives Mrs. AF bug$#@!) is to not finish the upstairs of your typical Cape Cod home, in order to reduce your squatter's fees.

[angelatc]

A "thing" in New England, (that drives Mrs. AF bug$#@!) is to not finish the upstairs of your typical Cape Cod home, in order to reduce your squatter's fees.

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Do they come in and inspect?

[Chester Copperpot]

this lady's home was made over and it had to have increased the value of the property.. so it looks like she started using her equity as an ATM instead of paying it off.

[Anti Federalist]

Do they come in and inspect?

Depends on where you are...varies from state to state and town to town, but yes they can and often do.

Running them off is an option, but then they de facto, place you in the highest tax structure

[Dr.3D]

I've envisioned having a hidden house, underground where they couldn't see it. Just have a very little one showing.

[oyarde]

Yep, and property tax is just another form of rent.

Absolutely correct . I would though dig in my pocket and kick in a few bucks for someone maybe who is elderly , handicapped etc and cannot pay all the property tax . Never going to do it though for someone who just did not pay the mortgage or rent .

[RonPaulIsGreat]

I've envisioned having a hidden house, underground where they couldn't see it. Just have a very little one showing.

LOL, I thought of that to.

[RonPaulIsGreat]

My sympathy is generally very little for people that buy more house than they rationally can afford. I'd be horrified if placed in the average persons brain. In my head, you shouldn't live in a house that costs more than you make in a year or 2 max. If that isn't possible in your area, well you are living in an area not designed for you. You should move, or figure out how to make more bitcoins. So, this woman, should have sold the house obviously, or rented out a portion, or whatever, but she's humping the dream!!!

However, with all that property taxes are to high, I was looking before and it works out more or less in 30 years or less around here you'd end paying the value of the house in property taxes. Buying a house is really just buying into a reduced rental plan. I've 0.0 want to live in a mcmansion in the suburbs, but bless those people they keep the economy grinding along, they have no choice but to make $#@!loads of bitcoins just to fund their retarded "fantasy" of life.

[specsaregood]

I've envisioned having a hidden house, underground where they couldn't see it. Just have a very little one showing.

i grew up in such a house. . my pops was ahead of his time.

[kcchiefs6465]

this lady's home was made over and it had to have increased the value of the property.. so it looks like she started using her equity as an ATM instead of paying it off.

That's what it was?