I think most on here have made some good points. If their previous home was in shambles then how can they afford a home triple in size? People forget that maintaining a large home is a lot money. Let alone the utility bills. I think in most of these extreme makeover foreclosures is the fact the people pulled the cash out of them. If you needed help in the first place, then how can they afford a 400k mortgage?
When I was looking to buy a house we moved to a place where the homes are quite large. The largest home I ever owned was only 1200 sft. Our realtor was showing us homes in the 2500-3000 sft range. There is only 3 of us in our family. My realtor thought we were nuts cuz we wanted something around the 1500-2000 sft max. I couldnt see the point in having a 5 bedroom house. Sure it would be nice to have all that space but why? So I can heat and cool rooms I would rarely go into?