Fear and Foreclosing in Miami

Foreclosures anyone? The Miami condominium, Everglades on the Bay is certainly dealing with their own issues regarding the subject, and it looks like things could get pretty sticky (no Everglade, swamp-like pun intended).

Cabi Downtown LLC owes Bank of America $205 million in cahoots with the Miami property and will be in court today to hear the final ruling from the judge on whether or not to either dismiss the reorganization of, or modify the supposed automatic stay concerning the foreclosure. The bank has also requested that the bankruptcy court preclude leasing unsold units. Why? Well, for one, the bank has alleged that some of the 244 units were previously leased to individuals without any prior background or credit checks. Someone please tell me this is a joke, right? I mean, what is this, amateur hour? Credit checks are usually the first most important step in dealing with potential tenants and occupants in a new home so how, and why in the world did this all ever get overlooked? As if that isn’t bad enough, how about this for an over-the-top shocker–nine of the units are occupied by convicted criminals. Holy-you-know-what! Yikes! This all definitely sounds like a nightmare. That friendly neighbor you have that has come over a time or two for dinner, drinks, or just to borrow a cup of sugar? Yeah, about that–he’s a convicted criminal. No word on what category of criminals these individuals fall in, but it’s all pretty scary just the same.

Cabi filed under Chapter 11 back in August, soon after the bank began foreclosure on the $34 million loan. The company itself is owned by GICSA, which claims to be the largest and most profitable real estate developer in Mexico and apparently, not the brightest either.