Yes, for a 1$, you too can own a brand new home. Get in while the bargains are still available.


http://www.foxnews.com/story/0,2933,506827,00.html

Holy crap, the average home price last month in Detroit was just a hair above $6,000... And I thought my property value had slipped.

I wonder if you can go back and bid on your house once it is foreclosed on and goes to auction?? Banks are taking homes and then reselling them at huge losses rather than work with the home owners.. Why can't the homeowners go back in and repurchase at the new bargain price??

There's nothing stopping homeowners from bidding on their own homes, is what I've been told. It raises an interesting question though: what if people start foreclosing their homes on purpose, in order to recapture it in the sinking market? That could start some very serious problems, not that we don't have problems already.

Originally Posted by wayfarer07

what if people start foreclosing their homes on purpose, in order to recapture it in the sinking market? That could start some very serious problems, not that we don't have problems already.

I'm not sure if that is possible (correct me if I'm wrong). If the bank forecloses on your house its assumed that you cannot make your payments. If you turn around and try to place a bid on it when the bank sells it I think someone is going to notice.

that is cheap!

Originally Posted by NullPointer

I'm not sure if that is possible (correct me if I'm wrong). If the bank forecloses on your house its assumed that you cannot make your payments. If you turn around and try to place a bid on it when the bank sells it I think someone is going to notice.

Maybe weird and unethical, but illegal? I don't think so. Of course it is not the norm, as someone who is foreclosed on is typically not going to have the cash on hand to pay for a home outright, even at a reduced cost.

Actually, I have a source that can offer 30 year adjustable financing at 2.5% over LIBOR on bad credit (fico 620 or better) so long as the amount borrowed doesn't exceed 70% of the appraised value. No verification of income required. The money comes from China but the loan would be serviced by a US lending institution. Considering the 3 month LIBOR is at 1.25% right now, you would start out with a rate of 3.75%.

I have no idea what these houses in detroit are appraising for, but the idea of letting foreclosure happen and rolling back into the same structure at 25% of the cost is certainly a possibility. At these types of prices/rates, becoming a slumlord also looks pretty attractive. If you buy enough of them, maybe you can get a cut of all the crack being sold on the streets of your neighborhood.