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And worth every penny: Homes for sale for one dollar

Real Estate Agent with The Partner Network

If you've been paying attention to the property transactions in The New London Day's Home Source you've probably been noticing what I'm writing about today.  All of the homes listed as ‘Sold' for one dollar.

I have had clients call me about this, wondering what kind of conditions these houses must have been in to be sold for such a low price.   My office has also had potential buyers call the office wondering how they can purchase a house for one dollar.  I suppose if you could buy a house for $1 anyone would be a ‘potential buyer'.

Even though I understand what this means, many others are confused by this.  The ‘buyer' of these $1 properties are the banks that hold the mortgage.  In the foreclosure procedure there is an auction.  If a buyer doesn't come forward with an acceptable (to the bank) offer, then the bank buys the property back, the final process in the foreclosure process.  The transaction is recorded such as:

"Doe, John to GMAC Mortgage LLC, $1". 

And this is what you are seeing in the property transaction report in the Home Source.

Last week I just shook my head.   This week I actually counted.    Here's the breakdown.

The Home Source property transactions covers the following towns:

Bozrah, Colchester, East Lyme, Groton, Lebanon, Ledyard, Montville, Norwich, Stonington and Old Lyme

There were 86 Property Transactions.  24 of these homes were ‘sold' for $1.  That's a huge percentage.  If I was smarter than a 5th grader I could probably tell you the exact percentage.  But all I can tell you for sure is that it's a big number. 

Til next time