Stupid Banks in the Housing Market

When you read an article like the following where a foreclosed home sold for only $1, you no longer have to wonder why banks are losing money.

In what might be considered a new low for the housing market, a home in Detroit sold for $1.

The home, located at 8111 Traverse Street, close to the Detroit City Airport, was foreclosed upon last summer, after it was purchased for $65,000 in 2006, according to an article in The Detroit News.

The bank was so eager to sell the foreclosed property, it lowered the price to $1 in a final attempt to find a buyer. According to the newspaper, 14 days after the property was listed for $1, a local woman purchased the house as “an investment property.” The property taxes will run the new owner $3,900, in 2009.

At the time of sale, the home had been stripped of its siding, fence, light fixtures, copper plumbing — even the kitchen sink had been taken. Boards that were used to board up the windows were also stolen and used to board up a house down the street, according to The Detroit News.

It’s not the fact that they are having to sell foreclosures, it is that they are stupid enough to sell a $65,000 house for only $1. At least they should be smart enough to try to get as much out of the sale as they can. And then they expect us to have confidence in the banking system???? After several banks have already shutdown, my confidence in them continues to weaken. Yet another reason to use only cash!

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