  Mrsjdaniels Member Username: Mrsjdaniels Post Number: 1209 Registered: 08-2005 |
Ron French / The Detroit News 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. http://detnews.com/apps/pbcs.d ll/article?AID=/20080813/METRO /808130360 | ||
Detroitrise Member Username: Detroitrise Post Number: 3387 Registered: 09-2007 |
Ah yes, I was a bit surprised until I discovered that home was in the vicinity of City Airport. The big question is how are these home owners who want to leave planning to sell their homes? | ||
Mrsjdaniels Member Username: Mrsjdaniels Post Number: 1210 Registered: 08-2005 |
exactly, you have effectively ruined the comps on the area | ||
Danny Member Username: Danny Post Number: 7625 Registered: 02-2004 |
YAY! What a great start to develop Detroit. | ||
Novine Member Username: Novine Post Number: 656 Registered: 07-2007 |
The surprise isn't that it took 19 days to sell. It's a surprise with the unpaid taxes and the condition of the house that someone was foolish enough to take it. The selling price of $1 tells us nothing about the real cost of the house. Too bad the headline writers can't understand that. | ||
Southwestmap Member Username: Southwestmap Post Number: 1064 Registered: 01-2005 |
If the new owner plans to make this a rental property, we can plan on nothing happening. She put $1 down and she'll walk away. And the Bank is off the hook. Just another scam on stupid people. And I think its illegal for the bank to sell it for nothing - further ruing the neighborhood. Detroitrise asks a good question: what are the other homeowners going to do? My neighborhood in SW Detroit is suddenly over run by gangs sqautting in empty foreclosed houses. I don't think I could sell my house for more than $20,000, although it has central air, an alarm system, a beautiful new kitchen, three bathrooms, etc. How can I sell it with an empty foreclosed house next door (that sold in November 2005 for $112,000) with a loud gang staying inside every night, pouring waste water out the windows because no utilities. The police say that they are overrun with these situations in foreclosed houses. I don't think the answer is to let the people stay. They are incapable of keeping up a home. The 2005 event was a sale without documents. They didn't have jobs, a few thousand only down payment. They lost the utilities early on. Stopped paying taxes in 2006. No lawn mower! They should have stayed renting. | ||
Jt1 Member Username: Jt1 Post Number: 11999 Registered: 10-2003 |
quote: So all they did was board it up and walk away. I don't consider that managing the property. Then the bitch from this company has the nerve to say {"My 14-year-old son could buy a block of Detroit property," said Ann Laciura, senior servicing specialist for the Bearing Group.} I'm curious to know how much the Bearing Group was paid to maintain, I mean board the windows. I find it appalling that the supposed property management company that took money to manage the property has employees that can joke about the sitaution. (edited out comment that was out of line) I conceded managing properties in the city in some areas (probably all) is no walk in the park but if they are willing to accept money as a property management company they should be required to 'manage' the property. (Message edited by jt1 on August 13, 2008) | ||
Gannon Member Username: Gannon Post Number: 13745 Registered: 12-2003 |
It is a surprise that the deed record could be found within nineteen days...if indeed it was. Is that a pun?! | ||
Fnemecek Member Username: Fnemecek Post Number: 2876 Registered: 12-2004 |
quote: Amen. Bearing Group also "manages" a couple of properties in my neighborhood. And by "manages" I mean, brings the value of every property on the block down with the sloppy practices. quote: Let's see: a typical block in Detroit has 64 homes. Thanks to douche bags like the Bearing Group, as well as the general economy, many homes are available in the mid-20s. 64 homes x $25K avg = $1.6 million If her 14 year old son has $1.6 million in his back pocket then I want to meet him. | ||
Brandon48202 Member Username: Brandon48202 Post Number: 230 Registered: 12-2004 |
Even though this house is selling for $1, the buyer needs to come to closing with the property tax proration (about $3000), the title company fee (around $300), and the $350 administration fee for the Bearing Group. (Message edited by brandon48202 on August 13, 2008) | ||
Digitalvision Member Username: Digitalvision Post Number: 1090 Registered: 11-2003 |
I wish I were a moderately rich man. I'd start a DYes Community on a few blocks - no gates, no street altering (I might put in entrance medians like they have on that historic block by Traffic Jam and Snug to slow down traffic). I'd buy the blocks' infill and lots, and have a central "forum square" where discussion could occur, and open pit barbequing; an urban garden; and a gallery of Lowell's choice. And it'd be right near a major bus line that would eventually be a light rail line. And of course, mixed income housing and preferably an old-school apartment block or two :-) | ||
Goat Member Username: Goat Post Number: 10286 Registered: 10-2003 |
Why don't you people contact the News with your issues as a follow-up story? I am sure they would be more than glad to add fuel to any fire. Plus it shows how this company really operates. So instead of complaining here do something about it. | ||
Jt1 Member Username: Jt1 Post Number: 12000 Registered: 10-2003 |
Showing that Bearing is negligent in their duties will take away from the initial story. The news won't do it. | ||
Goat Member Username: Goat Post Number: 10288 Registered: 10-2003 |
Have you tried or is that just speculation? how about the Freep? They love stories such as this as does the illustrious Steve Wilson. | ||
Craig Member Username: Craig Post Number: 961 Registered: 02-2007 |
quote: Jacking the thread for a sec: how do you come up with 64 homes to a block? West side on the grid counts 15 homes on each side of a residential street for a total of 30. Really: I cannot get my head around "64." | ||
Jt1 Member Username: Jt1 Post Number: 12001 Registered: 10-2003 |
quote: Tried all of them multiple times. Apparently not enough shock value for any of them. | ||
Jimaz Member Username: Jimaz Post Number: 6088 Registered: 12-2005 |
quote:That's pretty crude. No wonder people get discouraged.  | ||
Lnfant Member Username: Lnfant Post Number: 98 Registered: 05-2008 |
drudgereport.com is featuring this article with the house photo | ||
Catman_dude Member Username: Catman_dude Post Number: 290 Registered: 03-2006 |
And the real estate salesperson commission is....3 to 6 cents?? | ||
Funaho Member Username: Funaho Post Number: 73 Registered: 11-2007 |
Well geez, of course nobody wanted it: "...has been stripped of its siding, plumbing, copper wiring, hot water tank and furnace." It's basically a $1 shack with NO indoor utilities remaining. Very, very sad. | ||
Thejesus Member Username: Thejesus Post Number: 260 Registered: 06-2008 |
by contrast... Half-a-million dollar home in Birmingham sold in less than a week at full asking price... http://mioaklandcounty.com/blo g/2008/07/30/a-plea-for-seller s-who-want-to-sell-their-metro -detroit-home/ Amazing to think about how both these homes are located in the same geographic region and are separated by nothing but political boundaries. | ||
Registeredguest Member Username: Registeredguest Post Number: 397 Registered: 10-2003 |
"'The company hired to manage the home and sell it, the Bearing Group, boarded up the home only to find the boards stolen and used to board up another abandoned home nearby.' That's pretty crude. No wonder people get discouraged." Kind of resourceful, though. "Well geez, of course nobody wanted it: "...has been stripped of its siding, plumbing, copper wiring, hot water tank and furnace." It's basically a $1 shack with NO indoor utilities remaining. Very, very sad." Well, looking on the bright side, at least the scrappers left the Direct TV Dish (see sat. dish near dormer). Anyone up for some HSN? | ||
Johnberk Member Username: Johnberk Post Number: 97 Registered: 11-2003 |
The national media has picked up on this story. Just mentioned by Erin Burnett on CNBC. | ||
Fnemecek Member Username: Fnemecek Post Number: 2879 Registered: 12-2004 |
quote: My guess is that you live in an area where either the houses are very far apart or the blocks are short. Take a look at Google Maps for any given area and select the "Satellite" option. You can then count the number of roof tops. Much of the city has 32 lots on either side of the street, for 64 homes total. | ||
Lefty2 Member Username: Lefty2 Post Number: 1657 Registered: 07-2007 |
Manage a dump which no one could live in? how? Management companies aren't hired to turn around properties and communities. Detroit City can't even sell property because taxes on dumps and lots are too high or its in the worst of areas. If someone buys a total dump then what will they do with it? | ||
Fmstack Member Username: Fmstack Post Number: 77 Registered: 06-2007 |
I'd start a DYes Community on a few blocks - no gates, no street altering (I might put in entrance medians like they have on that historic block by Traffic Jam and Snug to slow down traffic). I'd buy the blocks' infill and lots, and have a central "forum square" where discussion could occur, and open pit barbequing; an urban garden; and a gallery of Lowell's choice. And it'd be right near a major bus line that would eventually be a light rail line. And of course, mixed income housing and preferably an old-school apartment block or two :-) Don't forget that there should also be a community-supported express bus to Livonia, just for Trainman. | ||
Professorscott Member Username: Professorscott Post Number: 1565 Registered: 12-2006 |
Fmstack, there is a community-supported bus to Livonia, though not an express. It's DDOT route 38 Plymouth, which serves quite a few Livonia locations, and runs out there from Capitol Park every 30 to 40 minutes on weekdays. It's odd to me that Detroit is spending its money to provide transit to Livonia, which opted out of the SMART system and isn't paying anything for transit service for the general public. But I guess Detroit's just nice like that. | ||
Digitalvision Member Username: Digitalvision Post Number: 1097 Registered: 11-2003 |
I think it's 'cuz Detroiters need to get to jobs there, PS. Livonia is a moderately-sized job center. Probably what Livonia figured when they cut the service - that if Detroit REALLY wants to, they can pay for serving the area for it's citizens on it's own. We cooperate so well. | ||
Sean_of_detroit Member Username: Sean_of_detroit Post Number: 1456 Registered: 03-2008 |
"I wish I were a moderately rich man. I'd start a DYes Community on a few blocks - no gates, no street altering (I might put in entrance medians like they have on that historic block by Traffic Jam and Snug to slow down traffic). I'd buy the blocks' infill and lots, and have a central "forum square" where discussion could occur, and open pit barbequing; an urban garden; and a gallery of Lowell's choice. And it'd be right near a major bus line that would eventually be a light rail line. And of course, mixed income housing and preferably an old-school apartment block or two :-)" DV, I'm in! Let's do it! LOL! I have an idea.... you'll love it, I swear!...  | ||
Sean_of_detroit Member Username: Sean_of_detroit Post Number: 1457 Registered: 03-2008 |
All kidding aside though, this does surprise me just a little. Most of the land in Detroit is worth more than that. I like the idea that a few people are using. They're slowly acquiring many (even blocks) of adjacent lots, and then selling them as part of a bundle. Although, these aren't doing to well either. I've been keeping an eye on a few of these "bundles" and the prices have plummeted from just a year or two ago... That would mean that even the really good plans and ideas right now (like DV's above) could be extremely risky. Of course, if you love risk... Detroit sure is the place to be right now! Repelling off the Book Tower would probably be less intimidating. LOL! | ||
Rjk Member Username: Rjk Post Number: 1164 Registered: 11-2003 |
Just curious, based on the area and the style of the house does anyone have a guess as to when that house may have been built? Thanks. | ||
Sean_of_detroit Member Username: Sean_of_detroit Post Number: 1459 Registered: 03-2008 |
So, what is usually left behind when a house is scrapped? I'm just curious. Many look great from the outside. | ||
N7hn Member Username: N7hn Post Number: 36 Registered: 02-2008 |
A)Digitalvision for mayor..... B)to sean_of_detroit mostly whats left is the outside (if your lucky) C)i so have been planning to do something like digitalvision is planning, big obstacle is getting folks to live in all them thar houses, sigh. Im doing some groundwork to get out of state (california) investors to go in on this type of plan. In california most vacant lots are over 100,000 in crappy neighborhoods so detroit real estate is a attractive gamble even just as a tax writeoff.... almost cheap as the lottery. | ||
N7hn Member Username: N7hn Post Number: 37 Registered: 02-2008 |
I remember GM doing something like what Digitalvision suggested with a big block of homes near boston edison during the 1980's. They bought all the homes and rehabbed them and sold them like new. Was a very charming area right after it was done. Anyone know where Im talking about and what happened to that project. Ive lost track and cant even remember what streets, just that it was off woodward. | ||
Dustin89 Member Username: Dustin89 Post Number: 249 Registered: 07-2006 |
Quote: "The agent did say that the buyer agreed to pay the full list price of $1, and planned to pay cash." Ho ho ho! P.S. I vaguely remember hearing about or seeing the project near Boston-Edison that N7hn references above...I would be interested to hear if anyone on the forum knows any further details about it. -Dustin | ||
Whittier70 Member Username: Whittier70 Post Number: 180 Registered: 02-2008 |
this story will be on channel 2 at 10 tonight. | ||
Neilr Member Username: Neilr Post Number: 769 Registered: 06-2005 |
N7hn, You're referring to The New Center Commons, the neighborhood just north of the Fisher Building. The Streets are Delaware, Bethune, Pallister, Seward, and Virginia Park. In the early 1980's GM bought most of the houses and refurbished them-restoring where they could and doing exposed brick and chic white plaster where they could not restore. The kitchens and baths were completely redone. Most individual houses sold for ±$70-80,00 at the time. The larger ones on Pallister and Virginia Park went for much more. Pallister was closed and the street turned into a pedestrian mall. The street plan was altered to eliminate most east-west through traffic. If you are not familiar with the neighborhood, it's well worth a visit and walk-through. Here's the floor plan for a medium sized house on Bethune.  A small row of new TH's were also built at that time near the old DFT office. That area was greatly expanded about 10 years ago. | ||
Rid0617 Member Username: Rid0617 Post Number: 257 Registered: 03-2008 |
From what I picked up in the article and have been told by real estate people if the property is bank owned they have to pay back taxes. That was why the article said it cost the bank $10,000 to sell the property for $1. We have been wondering what buying a bunch of these $100 lots would equal in 10-20 years. Dumb question. If someone was to buy a place like this $1 home could you tear it down and replace it with a modular home or is zoning too strict up there? | ||
Dustin89 Member Username: Dustin89 Post Number: 250 Registered: 07-2006 |
Thanks for that Neilr...I wasn't even alive in the early 80s, so I appreciate the run-down on the New Center Commons. I've always loved that area, but I didn't know how it came to be the way it is today. | ||
Wanderinglady Member Username: Wanderinglady Post Number: 60 Registered: 10-2007 |
Some older folks might be able to help me on this...didn't HUD sell a lot of homes in Detroit (in much better shape than this) for $1 during the '70's? I recall my father buying and rehabbing a house that he gave to my aunt. I was a kid back then, and unfortunately, my dad passed away years ago, so I can't ask him how much he paid for it. BTW, this story was on one of the local Los Angeles stations this morning. I was getting ready for work, so I wasn't paying much attention. But I'm sure the newscasters had the typical smug L.A. media reaction to the story. | ||
Dougw Member Username: Dougw Post Number: 2122 Registered: 11-2003 |
That's a 116% Loss Severity for the lender, for you mortgage nerds out there. And investors wonder why their mortgage-backed securities are worth less than 50 cents on the dollar. | ||
Dougw Member Username: Dougw Post Number: 2124 Registered: 11-2003 |
Basically, much of the root of the whole foreclosures problem is that these loans should have never been given out in the first place. The house foreclosed only 11 months after the loan was taken out. To foreclose that fast, either the borrower was given a loan he could not remotely afford, or it was a pure for-profit mortgage fraud deal from the get-go, and the borrower might never have even moved in. More commentary here: http://detroitmortgagemeltdown .com | ||
Craig Member Username: Craig Post Number: 965 Registered: 02-2007 |
Reporting back: a friend in Atlanta emailed the story of the $1 house to me. I told him that I was the one who bought it, and I used the change from the five that I spent on his ma. | ||
Mwilbert Member Username: Mwilbert Post Number: 334 Registered: 11-2007 |
"Dumb question. If someone was to buy a place like this $1 home could you tear it down and replace it with a modular home or is zoning too strict up there?" I've seen modular homes put up on lots in Detroit, so it isn't impossible. Maybe someone knows what the requirements are. | ||
Brandon48202 Member Username: Brandon48202 Post Number: 231 Registered: 12-2004 |
OK, so if you were to buy this $1 home you would still need to bring about $3500 to closing because of the property tax proration, title company fee, and REO processing fee. Tearing down a house like this would cost you another $5000. So now you're at about $8500. Vacant lots have little to no value so you're underwater before building anything! | ||
Sean_of_detroit Member Username: Sean_of_detroit Post Number: 1482 Registered: 03-2008 |
You could build a modular home on some of the lots, as far as I have seen. Aren't there some really nice modulars in Southwest Detroit? If you were building new, some of those foundations may still be okay. It would be a nice little way to save money. For a frame and foundation (let alone a small lot), it really would be an idea to look into if you were into construction (and had some broke friends who owe you some money or big favors). It really depends on so many things though. If your creative, you can live for peanuts in Detroit, while making, investing, and saving decent money. It's tough to learn everything you need to know though. In fact, it is nearly impossible if you really want to get into it. Having a successful life in Detroit is definitely a team sport... no matter who you are. | ||
Dustin89 Member Username: Dustin89 Post Number: 251 Registered: 07-2006 |
I have a friend who said she entered some sort of city of Detroit lottery for a home--I'm thinking it would have been in the 1970s--and won. Does anyone have any background information on this? I think the gist of it was that if you won, they turned over a city-owned [habitable/presentable] home to you & you became the owner. | ||
Ohudson Member Username: Ohudson Post Number: 306 Registered: 09-2004 |
Yes, I know someone who got one of those HUD homes for $1. In order to get the home they had to get a loan first to fix it up. This was in the 80's... |
