WACPtv IS SWITCHING TRACKS .. CLICK HERE!......STAY TUNED FOR THE BEST AND THE REST OF YOUR LIFE... IT BECAME TOO EXPENSIVE TO STAY ON THIS TRAIN.............. ENJOY YOUR NEW FREE RIDE!
101FOOD I 202COM303CRAF404EDU505ENGINE I606FASHN707HEALTH I808PERF909 ESTATE110MONEY111REFORM I112GRAPHIC

        MOVIES & MUZIC                  I                  WOW - MUST WATCH!               I               ALT DIRECTORY               I                  NEW OPPORTUNITIES

Radical cheap: $1,000 homes Les Christie, CNNMoney.com staff writer
Thursday January 8, 2009, 12:31 pm EST
Yahoo! Buzz Print The real estate market is so awful that buyers are now scooping up homes for as little as $1,000.

There are 18 listings in Flint, Mich., for under $3,000, according to Realtor.com. There are 22 in Indianapolis, 46 in Cleveland and a whopping 709 in Detroit. All of these communities have been hit hard by foreclosures, and most of these homes are being sold by the lenders that repossessed them.

"Foreclosures have turned banks into property management companies," said Heather Fernandez, a spokeswoman for Trulia.com, the real estate Web site. "And it's often cheaper for them to give these homes away rather than try to get market value for them."

In Detroit for instance, Century 21 Villa owner Randy Eissa has a three-bedroom, one-bath bungalow of about 1,000 square feet listed at just $500. It's a nice place with lots of light, but it needs a total rehabilitation inside, which Eissa estimates will cost between $15,000 and $20,000. But that's not bad, considering that the home last sold for $72,000 in late 2007, according to Zillow.com.

With prices this low, lenders aren't looking to make any money on these deals. They just want to get these houses off their books, so they don't have to bear the cost of maintaining them and paying property taxes.

In fact, the $500, $1,000 or $3,000 that a buyer forks over often goes straight to the real estate brokers as a commission. And often the lenders have to kick in extra cash to make it worthwhile for a realtor even take the listings, according to Eissa.

"Usually these homes are bank repossessions that the lenders have already tried to sell on the market, perhaps then put up for auction without success and then re-listed," he said.

Fixer uppers

These houses are almost always small fixer-uppers. Wiring, plumbing and heating systems have to be replaced, walls and ceilings sheet-rocked, plumbing and light fixtures installed and new kitchen cabinets and counters put in. Few come with working appliances.

Often buyers are legally required to rehab these homes to bring them up to code. In Detroit, buyers are required to sign Affidavits of Compliance Responsibility, which obligates them to make repairs outlined in an inspection report. Only after that can a certificate of occupancy will be issued, which makes the house legal to live in.

But even factoring in these costs, they're still bargains.

And as the housing crisis drags on, there are more and more four-figure listings popping up, as lenders try to unload their repossessed properties.

Cleveland is another city with many incredibly inexpensive homes. On Ardenall Avenue, in East Cleveland, McMullen Realty has a listing for a four-bedroom, one-and-a-half bath house for $1,900. It's been vandalized inside, but the outside is in good shape.

It features a deep front porch with Doric columns, double dormer windows and a separate garage. It's an excellent opportunity, according to agent Tonya Stoudamire. The last time it sold was in March of 2008 when it went for $16,677, according to Zillow.

"East Cleveland has a beautiful housing stock," she said. "These houses just need someone to come in and love them a little."

Another property for sale in Birmingham Ala. is priced at $1,900. The one-bedroom, one bathroom home was built in 1923 and has major fire damage, according to its listing broker, Tom Murphy Realty. The listing states that "Rooms are hard to distinguish."

But it's on a nice-sized lot, about 0.38 acre, close to downtown and transportation and has all utilities. Nearby, comparable homes in good condition sell for about $100,000, according to Zillow.

Rehab money

Most of these $1,000 homes can be renovated relatively inexpensively, and buyers can actually get government help to finance these repairs. The U.S. Department of Housing and Urban Development (HUD) has a special loan program for just such purchases.

Its rehabilitation mortgage insurance, available through FHA-approved lenders, was designed to encourage banks to issue a single, long-term loan to buyers that covers both the acquisition and rehabilitation of a property, according to HUD spokesman Brian Sullivan.

He adds that there may also be grant money available from the $4 billion Neighborhood Stabilization Program, which was a part of the massive housing rescue bill passed by Congress in July, to assist buyers with grants for down payments.

Buying homes like these is certainly a leap of faith; they're generally not in the best of neighborhoods and they're often surrounded by many other vacant and deteriorating homes. Still, some of these neighborhoods may turn around and provide residents with good, dirt-cheap housing.

"It's a sad time," said Stoudamire. "But it's also a time of opportunity, especially for low and moderate income people."

Views: 48

Comment

You need to be a member of WACPtv to add comments!

Join WACPtv

1.0 SPACEBOOK ALMANAC. The MULTI-MEDIA INTERACTIVE AGGREGATE OF CATEGORIZED CONSCIOUS CREATIVE CONTENT & ACTIONS IN REAL-TIME..JOIN US NOW!

CONNECTIONS

 GBI  UIN U2bCh  Share |

WE ARE THE DIVINE SOLUTIONS TO THE WORLD....LET OUR TRUE SPIRIT BE REVEALED TO THE WORLD!

RSS

Wales 'behind' in technology to detect prostate cancer

The mpMRI scan is currently available in just three out of seven Welsh health boards.

Emotional eating 'learned by children not inherited'

Genes are significant in most eating behaviours but not emotional under- or overeating, say experts.

Cannabis oil row: Billy Caldwell discharged from hospital

The 12-year-old is treated in hospital for his severe epilepsy with the oil, which is illegal in the UK.

Theresa May is asked where NHS cash will come from

Theresa May is asked how the government will fund a £20bn cash increase for the NHS.

Tax rise need to help pay for £20bn NHS boost, says PM

The prime minister promises any tax increases will be introduced in a "fair and balanced" way.

HPV vaccine cuts cancer-causing infection

The vaccine has brought about an 86% reduction in cancer-causing infection, a study has found.

Politicians unite to demand dignity for terminally ill

Politicians describe the current system as "cruel and lacking in dignity and compassion".

Hundreds of breast cancer patients 'denied reconstruction'

One in five NHS bodies is limiting access to corrective surgery, a breast cancer charity report says.

WHO: Gaming addiction 'a mental health condition'

For millions, it is a harmless hobby but for some it can become more than that.

Over 40s health check to include dementia advice

Public Health England wants to give advice to patients to help reduce the risk of the condition.

Teenager's cowpox diagnosis surprises doctors

A 15-year-old boy is diagnosed with the historical disease now usually only found in animals.

The common condition that has no cure

One in five women in the UK are thought to have PCOS, a condition for which there’s no cure.

The youngster challenging children's perceptions of disability

Paddy and his mum visit schools to help challenge children's perceptions of disability.

Children in England consuming 'twice as much sugar as recommended'

Youngsters in England have consumed their recommended 2018 sugar allowance before the end of June.

Babies most likely to be born at 4am, study finds

More than 70% of births took place outside working hours in England, a study of five million births found.

Nottingham beauty therapists taught to spot skin cancer signs

There are more than 2,400 deaths from melanoma every year, according to Cancer Research UK.

Gene therapy reverses rat's paralysis

Experts say the findings could be life-changing for millions of patients.

World's first quadruplets born by Caesarean section turn 70

The Goods were the world's first surviving quads to be born by Caesarean section.

How one woman coped when 13 years of caring ended

Helen Clues says she's now rebuilding a life after years spent caring for her parents and husband.

One-handed cookbook for stroke patients

Patients often lose the use of one of their arms, making everyday tasks more difficult.

Music

Loading…

Badge

Loading…

© 2018   Created by TheArtiste Hassan.   Powered by

Badges  |  Report an Issue  |  Terms of Service