Aug 25, 2009

Bailout My *ss

Henderson Home

(Ma, don't panic over the title... it was the only appropriate comment I could find for the title)

So, I've put off writing about this for a while. But felt like writing about it today. In September 2007 we "purchased" a home in Henderson CO via an owner finance deal (that's the simplified version of the whole deal) where the owner held a mortgage from CitiMortgage (a subsidiary of Citi which has seen at least $25billion of our tax dollars) and was supposed to pass our payments through to the Citi loan for two years until our self employed status allowed us to refinance with a conventional mortgage. In September of 2008 we became aware the owner had not been passing our monthly payments back through to the CitiMortgage loan and Citi was proceeding with foreclosure on that loan. Essentially that meant we were screwed and would lose all we had invested in the owner finance deal. At the time the house we had "purchased" for $275k was valued at around $242k and the outstanding on the original owner's Citi loan was right at $242k (our outstanding was $235k).

All that to get to this beef. On June 15, 2009 the property was sold by the the clerk's office at Adam's County for $263k to a single bidder. Who was that bidder that paid $21k over what the home was valued and the same amount over what the original owner owed to CitiMortgage? Yep, you guessed it... a Citi subsidiary. So the huge and failing mortgage company you and I are paying taxes to cover a $25billion plus bailout to, paid $21k more for a house than the value of the home, not to mention $21k more than the orginal loan that they were foreclosing on.

So there's another reason for the bailout to have a bad taste in your mouth.