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Discussion Starter · #1 ·
In these hard times, if this story is true, WTH aren't Americans snapping up these bargains instead of us Aussies? :confused:
Man I wish that tree that grew $100 notes hadn't have died on me. I'd buy up 1/2 the country. :(

House for sale for $1.50. Some commuting necessary...

BARGAIN-HUNTING Australians are raiding the US housing market where huge family homes are for sale for just $1.50.

Foreign buyers are travelling to US foreclosure hotspots where properties are listed for $US1000 ($1500), $US500 ($750) - even as little as $US1.
One prominent dealer in Detroit - a town crippled by the collapsing car industry - has sold properties to Australian buyers for just $US3000 ($4500).


Vacuum cleaner manufacturer Theo Szinger, 67, of Brisbane, cashed in his superannuation and plunged it into Detroit property last year. He has not looked back, snapping up six properties for as little as $5000.
"You can't even buy a second-hand car for that," Mr Szinger said.
His latest buy, a $16,000 home in such good condition it did not even need a paint job, came with a $10,000 rates bill but he was still thrilled with the deal.


Mr Szinger is among the enterprising Aussies who have swooped on the ailing US home market where homes worth $200,000 18 months ago are going for a few thousand dollars.


"We've had a handful. Typically, they have been paying $US3000 to $US5000," Detroit foreclosure specialist Mike Shannon said.


Mr Shannon said he had more than 100 lower quality homes listed in the Detroit metropolitan area for sale at just $US1.

http://www.news.com.au/business/money/story/0,28323,25184134-5013951,00.html
 

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Discussion Starter · #3 ·
Go ahead and buy all the houses you want in Detroit! Just saying....;)
Hey for $1.50, I'm not fussy! :D You've gotta wonder, why aren't these people buying their own homes back? What's stopping them? If the banks wont sell them back to them, what's stopping friends or family from buying them for them & handing them over? :confused:
 

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Well, I live in the "Metro Detroit area" and have not heard about ANY home being sold for $1.50. The ones that are for sale are either in the worst neighborhoods, or have been trashed so badly that they'd have to be demolished and rebuilt. Why buy something like that, and have to pay taxes on it, when it would cost a bundle to make it liveable - and even then, no one would want to live in it?
 

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Buy Garth, buy if you can find them, they need the tax money.:D
 

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In most states, if a mortgagee forecloses on a junior lien but a senior mortgagee does not, the senior lien remains. You could be buying a $150,000 home for $1.50, but that has a $200,000 senior mortgage. $1.50 sounds nice, but you're still going to be paying $200,001.50 for a $150,000 home by the time you pay the loan off.

Usually that's the case when you hear of homes selling for that price - there's a senior lien that exceeds the fair market value of the home. It's usually not as good of a deal as it seems.

Another possibility is what delmonico mentioned, tax liens.

If you really could get the house for $1.50 outright, I think someone would snatch it up, or maybe there is just a glut of houses in some markets. I'm guessing a lot of foreign investors who may not be familiar with US laws could be in for a rude awakening, or they think the market will turn around.
 
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