HUD-owned homes for $1 each....omg!! No Wonder the Values Are Dropping!

in Michigan..more than 20 homes around 2000 each...WOW

[link to www.hudhomestore.com]

If they're selling houses for a dollar, that neighborhood already went a long time ago.

Incidentally, if they're gonna pull out such a ridiculous program, why don't they just sell them back to the original owners for a dollar? Doesn't seem entirely fair that someone gets a house for a buck that someone else busted his ass to make payments on, let's say, a $100,000 loan, and maybe lost his job.

yup..yup!

interesting OP! Thanks for the heads up, I had no idea that there were homes like this available.

THANKS YOUR WELCOME

thats only one state..there are so..so many more!

That solution is just too sane for them. They don't want a reality where things are connected and there is a value system, ethics, They are tearing it all down and when we cry out for relief they will install the new order. Kiss your constitution goodbye and grovel at Goldman-Sachs feet.

I like your thinking on that one Revbo.

Yeah

I've looked at them. All home with Homeowner's association fees associated with them. As well as property taxes up the wazoo.

Wouldn't touch them with a ten foot pole.

This.

How long will it take until you folks understand that if it sounds too good to be true, it probably isn't?

I wonder if I can get the White House for a buck and kick out the current tenant?

link..
[link to portal.hud.gov]

Dollar Homes are single-family homes that are acquired by the Federal Housing Administration (which is part of HUD) as a result of foreclosure actions. Single-family properties are made available through the program whenever FHA is unable to sell the homes for six months.

By selling vacant homes for $1 after six months on the market, HUD makes it possible for communities to fix up the homes and put them to good use at a considerable savings. The newly occupied homes can then act as catalysts for neighborhood revitalization, attracting new residents and businesses to an area.

Local governments can partner with local nonprofit homeownership organizations or tap into existing local programs to resell the homes to low- and moderate-income residents of the community.

Seems to me like they are still about .75 cents over priced.

Same shit, different decade.

See: The great depression.

"Look honey, the old Saxon residence just got sold. I wonder who bought it!"

"Gee, I don't know, Roger, I hope they're friendly..."



[link to www.youtube.com]

"Oh, Roger... I think it's time we moved."

Go buy one of dem houses and tell me what the neighbors do for a living.

Oh yeah. Good point. How much were they?

You can only get the cheap if you are government agency of non-profit. They do not sell at these prices to individual homeowners.

These are real, but the reason they do it is to start a blind bidding war for investors. The first two weeks the house is on the market ONLY primary resident purchasers can bid on the house, after the two week if no offers are accepted then investors can bid on the subject. If no investor comes along the original realtor get fired for doing a bad “broker price opinion” and is often replaced. They will then try to auction the house; if it fails to sell at auction they put it on the market for pennies with a start and end date for investors start making blind bids.

Now these neighborhoods are not good neighborhoods on average or the house would have sold from the start. But the reason entire neighborhood are being foreclosed on is because predatory small lenders would roll through town back at the peak of the market and make loans to the entire neighborhood. Once they got the first loan approved for $100k on a property that was worth maybe $20k they would they would go from house to house and get everyone to take the cash, these small lenders would then bundle the neighborhood and sell the loans off to a large bank as a bundle. Then everyone just walked away from the homes and entire city blocks went vacant.

From there the investors would come in and where you might be able to get an empty lot for $5000 in the area, you could buy entire neighborhood for $2000 or $3000 a house. Houses that just 3 years before were getting 5 figure loans on them. The investors would buy up the whole street for cheaper than they could get an empty lot; they would call it an “up and coming area” and again get the banks to over loan on the homes.

Now the biggest issues the industry is having is now appraisers, they have because of federal laws become untouchable. But they are just “mailing in” their jobs at this point. I have seen them compare a 3 bed 3 bath 2 car attached garage home to one in a different city with 1 bath 3 bedrooms and a one car detached garage. Becoming an appraiser is rather easy and there is a LOT of very bad appraisers out there, but it is illegal to talk to them now. And once the appraisal is in on say a FHA house it cannot be reappraised for 6 months no matter what. They are single handedly bringing down entire neighborhoods, GOOD neighborhood not just the “bad ones”. They automatically calculate in a drop on a home value of 5% every six months for around the last 2 and half years.



Last Edited by Chrit on 09/21/2012 07:13 AM

Crystal meth and crack houses....

There are 4 Million foreclosure homes there keeping off the books,That is a sad fact my house was worth $100.000 less then I owed on it,I can't blame people for walking away from there homes,Soon they will pass a bill where you can't foreclose on your home,And they will sell them for next to nothing,And put a brick on peoples checks for the balance

One last thing, some of these areas were over loaned on purposefully, with the goal of foreclosing on entire city blocks so specific large investors could purchase for penny’s on the dollar entire neighborhoods to build large scale apartment or offices in what used to be expensive urban areas.

They are 'a buck' each because they are a LIABILITY: all SFR's are; I.e. it costs the bank more to hold it over the terms of its projected sales price vs its costs to carry.

Probably needs work too; thats more out of pocket...

Somewhere, people started thinking SFR's were an investment, which they are NOT; they are liabilites; under an illusion of ownership that costs 50% more than renting...

at some point, it will be smarter to buy... but the costs to carry need to be LOWER than rents, not higher, and there has to be y/o/y price appreciation, not stagnation or price drops.

Last Edited by Intergalactic Diplomat on 09/21/2012 07:36 AM

thats kind of a stretch; making zoing changes from residential to commercial is near impossible; and if possible takes YEARS.

Last Edited by Intergalactic Diplomat on 09/21/2012 07:39 AM

The banks just want to dump the shit, i dont think there is any purposeful intention to help "investors"... housing is a liability; so they are trying to GIVE them away, to get out from under the maintenance nut.