The latest from Citi – another program with the ill-advised moniker of FAP (Foreclosure Alternatives Program), in which they encourage you to hand over the deed to your house and let the Bandit move in (via Jr. Deputy Accountant):
In exchange for the deed on their property, CitiMortgage will allow borrowers to stay in their homes for a period of up to six months. At the end of the six months, the borrower will turn over the property deed to CitiMortgage, and CitiMortgage will provide a minimum of $1,000 in relocation assistance to the borrowers. Citi will also provide relocation counseling by trained professionals and will cover certain monthly property expenses if Citi determines that the borrower can no longer afford them. Payment of utilities costs will be the responsibility of the borrower. Other costs incurred by the borrower, such as homeowner’s association and escrow fees, will be determined on a case-by-case basis considering the borrower’s specific financial circumstances.
This is being run as a test in Florida, New Jersey, and a few other states — we aren’t sure who would actually fall for it, because these days, people in FL are getting a full year or more rent-free before the bank finally decides to up and kick ‘em out, so six months and $1K doesn’t look like a very good deal (come on, if you’re getting foreclosed on, you can get a grand by selling off the two-year-old stainless GE Profile appliances in the kitchen before you hand over the keys). The program would have looked a LOT more innovative and interesting (and far less like a vulture picking a carcass) had they come up with it a year or two ago, before so many credit ratings, lives and – yeah – foreclosed homes themselves, were wrecked.
Were I in this situation, I would do this only if The Bandit personally were bringing me my groceries and performing monthly checks to make sure that I’d not stripped out the copper wiring.
An aside – want to know what losses on a condo in Florida look like for the banks? Here’s a condo at 9801 Turf Way #1, in Orlando, FL. It’s on the CitiMortgage.com property search, and it’s listed for $9,900. How much did CitiMortgage finance it for? OCPAFL.org says $216,000. (And color us shocked – the prior resident left the appliances in place.)
Davros // Feb 17, 2010 at 10:55 am
Paid $216,000? Now worth $9,900? Oh teh lulz
Alyx // Feb 17, 2010 at 11:03 am
It’s walking distance to Orlando’s notorious south OBT redlight district, too. Even though it’s under 1,000 sf, I’m sure $C could throw some killer parties there.
Jason // Feb 17, 2010 at 11:31 am
9 grand and a stone’s throw from prostitutes? I think I have found my vacation home.
Davros // Feb 17, 2010 at 4:55 pm
If we all chip in to get $1000 we can get a mortgage of $50pm! An apartment will cost me less than a cellphone. Shall we buy it and call it is Castle Bandit? C World? Or just cover the walls with picture of Rob Rubin and never visit? Or buy it on a $50 pm month mortgage, default and try and renegoiate with Citi?
alyx // Feb 17, 2010 at 6:28 pm
If someone who is eligible wants to step up and hold the property in their name for us, after the $8K tax rebate we can get the thing for two grand. I would be happy to assist with (and of course document) the Castle Bandit conversions.
$BAC Foreclosing On Houses They Didn’t Finance // Feb 18, 2010 at 12:02 am
[...] we posted that $C and the Bandit were playing Let’s Make A Deal with homeowners, offering them a hot grand for their deed if they would walk away from houses they [...]
Glossolalia Black // Feb 20, 2010 at 11:04 am
Good god, don’t tempt me to move to Orlando, Alyx, I’ll never forgive you for luring me back to Florida.