The Simpsons throw a Mardi Gras party, having invited most of the town. Marge asks Homer to invite Ned Flanders, which he reluctantly does. As they clean up the party the following morning, Lenny asks how they pay for the huge yearly party. Homer gleefully confesses that he borrows from a home equity line to do so, calling his home a "sucker" for getting stuck with the bill. Marge and Homer visit their mortgage broker, Gil Gunderson, after receiving a letter and find out that their adjustable rate mortgage payment has increased drastically because of Homer's ineptitude. The Simpson home goes up for auction and after seeing the Simpsons' sorrow, Ned Flanders outbids Mr. Burns, purchasing the home for $101,000 and then offers to let the Simpsons move back in and rent the property from him. The Simpsons thank Ned with a song and a small celebration, when Marge notices the sink faucet dripping. Ned offers to fix it, as he is now their landlord and the repairs are his responsibility, along with some other items that he is obligated to correct. However, Flanders quickly tires of their constant requests for repairs.
Despite having already make his best, Homer gets mad at Ned and decides to go to the media and defame him as some corrupt slumlord. When Homer refuses to apologize for his ingratitude, Ned tells them they must leave at the end of the month. The Simpsons bring Grampa home since if someone older than 65 lives with them, they will not be evicted, but are unsuccessful as Flanders invites Grampa to live with him in his house. Homer could not compete with Ned who offers to feed him 'people food'. The Simpsons return home from a walk to find their items on the lawn. The family spends a night at the town's homeless shelter wondering how they will ever rebound. Flanders interviews a couple of potential tenants when he sees a picture from the move-in celebration and is reminded of the happiness and admiration of the Simpsons. Realizing that he should allow them to move back in, he sends the potential tenants away and the Simpsons return to their home, causing their other neighbors, who utterly despise them, to move out. Homer responds "I really hate this neighborhood".