The ultimate property “deal” has finally happened: in Detroit, Illinois, a foreclosure home sold for less than the price of a bottled water. In truth, the property likely is no longer worth a dollar, and would benefit more from being destroyed and rebuilt than from renovation. But hey, the land is worth more than one dollar, so not all is lost in the eyes of the savvy investor.
Why is the home is such bad shape? The property, sitting in foreclosure since Summer of 2007, has been the victim of the two biggest problems of foreclosures: vandalism and theft. Having been completely gutted and otherwise destroyed by scrappers (people who make their money in stealing and reselling items on the streets) and occasionally frequented by the local squatter, the lending agency who owned the property was desperate to offload the investment. The best part of the deal is that the bank is also paying closing costs, back taxes, and all other costs associated with disposing of the home, totaling nearly $10,000 in fees!
“DETROIT — One dollar can get you a large soda at McDonald’s, a used VHS movie at 7-Eleven or a house in Detroit.
“The fact that a home on the city’s east side was listed for $1 recently shows how depressed the real estate market has become in one of America’s poorest big cities.
“And it still took 19 days to find a buyer.
“The sale price of the home may be an anomaly, but illustrates both the depths of the foreclosure crisis in Detroit and the rapid scuttling of vacant homes in some of the city’s impoverished neighborhoods.
“The home, at 8111 Traverse Street, a few blocks from Detroit City Airport, was the nicest house on the block when it sold for $65,000 in November 2006, said neighbor Carl Upshaw. But the home was foreclosed last summer, and it wasn’t long until ‘the vultures closed in,’ Upshaw said. ‘The siding was the first to go. Then they took the fence. Then they broke in and took everything else.’”
