HGTV Dream Home Owner: "Foreclosures Proceedings Have Begun

[Liberal_in_LA]

http://www.kltv.com/Global/story.asp?S=74511

12/4/07-Lake Tyler
HGTV Dream Home Owner: "Foreclosures Proceedings Have Begun"

It's the beginning of what looks to be the end of quite a journey for Don Cruz and his family.

When asked if the house will be foreclosed on Don Cruz replied, "Yes. It will be sold on the courthouse steps, the first Tuesday of January. All I know is we're out of money and we're four months behind on payments."

Four months behind on the mortgage Don took out last year. The money from that loan helped him pay off the taxes on his winnings to the IRS.

The rest was supposed to help with monthly expenses. Instead, Don said, the money paid for two family emergencies including his wife's brain surgery.

"There's no way we could have afforded to do it if we hadn't won the house. And then my dad ended up with cancer. I paid for all the cancer treatment, paid for all the surgery and that ate up all the money we had," Don said.

[madfloridian]

1. You need to post this in a thread by a TX poster

who said the government should not help those losing their homes.

Apparently some are not aware of the toll that medical bills take.

About 20 years ago someone at our church had to have heart surgery. They were fairly young, living on a huge bit of land with homes built by her family...nice homes.

The hospital and doctors worked with them to write off some of the cost and allow them to keep their home and cars.

I don't think that happens much anymore.

We are in for some very hard times.

[Digit]

2. I feel sorry for the guy of course, but the taxes on winning something are extremely high

I would have sold the home immediately, possibly furniture first as it was completely furnished, and paid the taxes.
What was left, which would have been plenty by my standards, would have kept his credit in good shape and he would not have gone through all this in the first place.

Isn't it true that they can't tax you more than you are able to sell it for?
Say the prize is valued at 2 million and the most you get from it is 1 million...they can only tax you on the 1 million, right? Figure 50% in taxes, and you walk away with $500,000.

That would be $500,000 you did not have before and you have already paid all the taxes.

I hope this guy comes out okay..he has been through enough.

[Horse with no Name]

3. I live near Tyler

and if I am not mistaken, he has been trying to sell it for quite some time.
Just a very soft market for a home like this.

http://www.laketylerdreamhome.com/

[Digit]

5. Have you ever noticed the prices quoted on "The Price Is Right"?

Those are the top, TOP retail prices and those contestants pay taxes on THOSE prices!
If they manage to get the prizes sold elsewhere and able to prove it, the IRS has no choice but to take the price received.

I would have dropped the price like a rock to get it sold.
That is just me, but otherwise, I would realize I would be paying inflated taxes on my winnings.

[SoCalDem]

12. My friend won on Wheel of Fortune (before they gave out cash prizes)

She was 1099ed for the "suggested retail price" on all the winnings..and yet when she sold them (to pay the taxes) she got a pittance.. After months of storing all the JUNK, she about broke even..

[Diamond Dave]

6. They wanted to turn the home into a B&B and were shot down by

City of Tyler, Smith County, zoning don't you know. They have lasted far longer than I thought they would be able to. It really is a shame.

Their intentions were honorable, what harm could possibly have been caused, they were not going to turn it into a hotel as far as I know.

Just is a damned shame all around, has there been another "dream home" give away since? This dream turned out to be a NIGHTMARE!!

[Horse with no Name]

10. They were shot down because of zoning laws

Have you ever lived next to a hotel?
Personally I won't even get a room next to the pool because of the noise factor.
It is a shame--no doubt about that, however, the OTHER citizens of the lake community have the right for the zoning laws to be upheld so that their property values don't plummet. Those laws include that only single-family residences are allowed.
I personally think if these people had put this home on the market immediately, they might have realized enough profit to buy a home they could afford--the market was pretty good back then. However, you can see from the other article that they thought the house was a gift of God and moved into knowing full well they didn't have the money to pay the taxes on it and basically just tried to wing it--hoping for a miracle which makes it very similar to the other stories of folks getting homes they can't afford and hoping for the best.
One of Tyler's largest employers is shutting down on the heels of another large employer shutdown in the recent past. I do have to mention that I am a little shocked that this home didn't sell. Tyler has 3 large hospitals--lots of docs and administrators that could easily afford this home.
However, it is an isolated area and really not one that I would even like to live in--even if the house was this nice.

[Samurai_Writer]

11. A B&B is NOT a hotel

It's a house, usually with no more than 4-6 guest rooms. Here's some B&Bs. I sure wouldn't mind living next to these.

[SoCalDem]

13. Some locales will not allow ANY "money-generating" venue in a "family-home" zone.

They don't want mixed-use ..No home-offices or even daycare allowed

[blondeatlast]

14. Right, because it's so very easy to give up your home and so very easy to anticipate

the need for brain surgery and cancer.

For the wittically challenged--:sarcasm:

[Digit]

15. It was a humongous home that he WON in an HGTV sweeps

Fully furnished to the hilt with at least one brand new vehicle in the garage.
What you need to anticipate with ANY winnings is the tax man wanting roughly 50% of your winnings.

If you can't afford the taxes, sell the goods immediately, pay the taxes, and the rest is yours.

Many would have been in the same predicament, even without the unforseen health issues.

[Horse with no Name]

4. Another article

http://www.realitytvworld.com/news/hgtv-dream-home-has-become-tax-nightmare-for-house-winner-1003677.php

"We're going to try everything we can to stay," Cruz said. "God gave us this house. It's not for sale."

[Raine]

7. Sometimes wining isn't all it's

cracked up to be but still I guess it's good he won cause he had the money to pay for the medical emergencies. I hope the family isn't financially ruined by the whole thing.

[Selatius]

8. The health care system fucked him over.

If the US operated upon a single-payer format like France's version, he would've paid a whole lot less out-of-pocket expense than he actually did. Also, with the government-run single-payer format, the profit-seeking in health insurance would've been eliminated as well. Now he's in foreclosure.

[killbotfactory]

9. Thank Jesus and the Free Market we don't have evil socialized medicine

Those operations could have been paid for by taxes raised from OUR money and that would be wealth distribution, which is completely immoral.