Bankruptcy filing halts ‘Extreme Makeover’ foreclosure

A Clayton County couple living in an “Extreme Makeover” home delayed foreclosure Tuesday for a second time by filing for bankruptcy.

Milton and Patricia Harper and their three sons will continue living for now in the 5,300-square-foot home constructed four years ago by the ABC television show that rebuilds or refurbishes homes for families in need.

The house was scheduled to be sold on the Clayton County Courthouse steps Tuesday, but the auction never happened. Court records showed Milton Harper filed Monday for Chapter 13 bankruptcy, which stalls the foreclosure.

In the bankruptcy filing, Harper said he owes $100,000 to $500,000 to creditors, including the mortgage company, six credit cards, two pawn shops and Sprint. Harper says he owns the same range amount in assets. He is scheduled to meet April 21 with creditors.

The Harper home was rebuilt for free when the television show’s producers learned the family was having septic tank problems. In addition to the $450,000 remodeling, the show gave the family $200,000 in cash.

The couple borrowed against the house to start a business and ended up with a $450,000 mortgage. After struggling several years with finances, the couple faced foreclosure in August. The house was saved then by a loan modification.

After defaulting on that loan, the house was again up for auction Tuesday.

When reached by phone Tuesday afternoon, Harper would not comment, but said the family will remain in the house. Johnson and Freeman, the law firm handling the foreclosure, would not disclose details, either.

Jonesboro attorney Stephen White, who is not involved in the case, said the filing doesn’t mean the couple stops paying their debts.

“This just means debt cannot be collected without a court order,” White said. “It stops the foreclosure and gives the borrowers a chance to propose something to satisfy the [unpaid bills]. The regular payments still have to be made and also whatever is owed.”