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$100 Raffle

Topic closed. 19 replies. Last post 5 years ago by nsv314.

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HoLeeKau's avatar - YheaShea
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Posted: May 25, 2012, 4:02 pm - IP Logged

St. Judes is raffling off a $350K home.  They're selling a maximum of 7,777 tickets (which they usually sell out) for $100 each.  I'm debating whether to buy one.  Would you?

 

Also, the website says taxes must be paid before they will transfer the house to you.  But seriously, who has the money or the credit line to come up with that kind of money without the house to borrow against?   I'd paste the relevant paragraph here but I can't, I assume because I'm using Firefox?

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    Minnesnowta
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    Posted: May 25, 2012, 4:14 pm - IP Logged

    I'd rather stick a hundred into my local pick 5 game.

    Making dreams on a 1-175 million chance...

    Fools we are.

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      Posted: May 25, 2012, 4:26 pm - IP Logged

      St. Judes is raffling off a $350K home.  They're selling a maximum of 7,777 tickets (which they usually sell out) for $100 each.  I'm debating whether to buy one.  Would you?

       

      Also, the website says taxes must be paid before they will transfer the house to you.  But seriously, who has the money or the credit line to come up with that kind of money without the house to borrow against?   I'd paste the relevant paragraph here but I can't, I assume because I'm using Firefox?

      I did, and I won.

       

      It is correct that the withholding must be paid at the time you close on the house.  You also receive a W-2G form to use for tax filing purposes.


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        Posted: May 25, 2012, 4:30 pm - IP Logged

        Also, unless something has changed since I won, there is no cash option.

        You either close on the house and take possession of it, or...if you can't do that...you can donate it back to St Jude's.

         

        (I wanted to point that out, because in some cases where a person can win a house there's a cash option in lieu of the house.  For example, the HGtv Green Home that will be given away next month.  Valued at $800K, but the winner can take a $400K cash prize in lieu of the house.  That's not the case with St Jude.)


          HoLeeKau's avatar - YheaShea
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          Posted: May 25, 2012, 4:32 pm - IP Logged

          I did, and I won.

           

          It is correct that the withholding must be paid at the time you close on the house.  You also receive a W-2G form to use for tax filing purposes.

          That kinda sucks because that prohibits lower income people from winning.  Unless there's a bank that would work with you before the house is in your name, I can't imagine where a middle class person could come up with that kind of money.

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            Posted: May 25, 2012, 4:33 pm - IP Logged
            Typically, they only sell a limited number of tickets.
            For example, when I won, the maximum number of tickets that would be sold was 5,000.  I'm not sure if all 5,000 tickets were sold or not, but still...at worst, I had a 1 in 5,000 chance of winning.


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              Posted: May 25, 2012, 4:35 pm - IP Logged

              That kinda sucks because that prohibits lower income people from winning.  Unless there's a bank that would work with you before the house is in your name, I can't imagine where a middle class person could come up with that kind of money.

              Since the taxes are paid at the time you take possession of the house, it is possible that a bank would loan a person money the same as if they were getting a mortgage.  (Obviously they'd have to qualify for the mortgage, of course.)
              A family member fronted the cash to us for closing.  Later on, I took out a home equity loan to repay them.  So, we never investigated the bank option.


                HoLeeKau's avatar - YheaShea
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                Posted: May 25, 2012, 4:46 pm - IP Logged

                Congrats on your win nsv314!  Around here they build very nice homes for this promo.  How many tickets did you buy if you don't mind my asking?

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                  Posted: May 25, 2012, 4:57 pm - IP Logged

                  Congrats on your win nsv314!  Around here they build very nice homes for this promo.  How many tickets did you buy if you don't mind my asking?

                  Only one ticket!  It was complete blind luck.

                   

                  Some people initially made the mistake of assuming that we must have ended up being "rich" because I won a house. 

                  However, technically, our living expenses increased afterwards, with no increase in income.  (Had to pay the withholding taxes on the prize, then the ongoing property taxes, utilities/maintenance on a bigger house, etc.)

                  Don't get me wrong, I'm not complaining at all, of course.  I realize that I was very lucky, and it has worked out OK.

                  However, when you win a big non-cash prize, some people don't think about the fact that you aren't actually getting money, and you have to pay the taxes on your win.  Of course, you always have the option to list and sell the house after you take possession of it.

                  It was definitely an interesting experience though.

                  If I had to do it all over again, there's probably a few things I would do differently after the win, in terms of keeping things straight financially.  (Especially since the housing bubble burst not too long after I won, so I paid all those income taxes on value that I don't technically have.)

                  Live and learn, right?  :)  It was still worth the learning experience, of course.



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                    Posted: May 25, 2012, 5:00 pm - IP Logged

                    Congrats on your win nsv314!  Around here they build very nice homes for this promo.  How many tickets did you buy if you don't mind my asking?

                     I had a 1 in 5,000 chance of winning.

                     

                    Vulcan logic would surmise that if they sell 5,000 tickets...and you have a 1/5000 chance of winning...than 1 ticket was purchased.  Anything else would be illogical captain and highly dubious.

                    Good luck Holy Cow.

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                      Posted: May 25, 2012, 5:12 pm - IP Logged
                      Since the taxes are paid at the time you take possession of the house, it is possible that a bank would loan a person money the same as if they were getting a mortgage.  (Obviously they'd have to qualify for the mortgage, of course.)
                      A family member fronted the cash to us for closing.  Later on, I took out a home equity loan to repay them.  So, we never investigated the bank option.
                      Wanted to clarify something for the record, as I realized the above post might sound like I know wealthy people.  (Having someone who could front the cash for the taxes, until I secured a home equity loan.)
                      We are solidly middle class.  However, I happened to know someone who had been a small business owner that decided to retire and sell off the business with the plan to live off the proceeds.
                      That's the only reason I knew someone who happened to have that kind of cash on hand.  I was low-risk for a short-term loan in that situation, of course, since I had the new asset to back it up.
                      Win-win situation for both of us...Iwas able to claim the prize, and they made a small amount of interest on their short-term loan that helped to increase the money they had to live off for retirement.
                      If it hadn't been for that, I'm not sure what we would have done?  Probably tried to see if we could get a regular mortgage loan at the time we did the closing with St Jude?


                        sully16's avatar - sharan
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                        Posted: May 26, 2012, 7:42 am - IP Logged

                        Depends where the house is.

                        Did you exchange a walk on part in the war ?

                        For a lead role in a cage?

                         

                                                                    From Pink Floyd's " Wish you were here"

                          rdgrnr's avatar - walt
                          Way back up in them dadgum hills, son!
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                          Posted: May 26, 2012, 8:55 am - IP Logged

                          Depends where the house is.

                          Potatoville.


                                                                       
                                               
                                                                   

                           

                           

                           

                           

                                                                                                                             

                          "The only thing necessary for evil to triumph is for good men to do nothing"

                                                                                                                      --Edmund Burke

                           

                           

                            dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
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                            Posted: May 26, 2012, 10:21 am - IP Logged

                            Depends where the house is.

                            I Agree!

                            I Love Pink & Green 1908

                              dallascowboyfan's avatar - tiana the-princess-and-the-frog.jpg
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                              Posted: May 26, 2012, 10:22 am - IP Logged

                              Potatoville.

                              LOL... how about Orangeville or Pearville....Green laugh

                              I Love Pink & Green 1908