Bargain basement prices of foreclosed homes may start from $1!

In St. Paul there is a clearance sale. Bargain basement prices being offered for foreclosed houses on Dayton Bluff may start from $1 and go up to $50,000. But there is a catch – the purchaser has to bear the repair expenses satisfying the rules of the city and guidelines related to preservation. Thus is boils down to the fact that for a cup of coffee one can become the owner of a house in St. Paul.



The Housing and Redevelopment Authority of the city is conducting open houses recently for 11 units in the locality of Dayton Bluff with prices that go up to $50,000 and down to $1. The properties are owned by HRA. The officials have laid down that they will sell only to those who can prove that they can afford repairs. The repairing cost could range from $140,000 to $190,000. It would be required of the purchasers to explain how the work would be executed bearing in mind the rules of the city and the guidelines regarding preservation.



The purchaser of a house costing $1 would get together with the house a lengthy list of things to be done compiled by the inspectors of the city. It would cover everything from demolishing a rotting wall to replacement of joists, beams, posts and studs that had been damaged by arson. Thus buying a house for a buck is nothing to lark about!



Ellen Biales of the city council said, "When people acquire these properties, they're not just going to be paying the acquisition price. The $1 price has sort of piqued people's interest, but it comes with certain obligations.”

Although buying a house for a dollar is a rare incident it is not without precedent in the Twin Cities said the local realtors. In the early part of this year Minneapolis spend a dollar each for two vacant plots being sold by banks after having foreclosed upon them. These plots were bought with an eye to future development projects. The structures on the plots were pulled down. One realtor described one of these derelict houses as not meant for those with faint hearts.



Another house in Dayton Bluff on East Fourth Street contains two floors and having a yellow outside. The inspectors said that by taking one step inside it is clear that extensive repairs would be required to salvage it from the damages wrought by fire.



Jessica Alberton, has been working on ForeclosureRepos.com studying the foreclosures market, helping buyers on the finer points of bank foreclosures.