Foreclosure For Sale: $7 (I am not making this up!)

Last Updated Apr 26, 2011 4:45 PM EDT

Just last week, we looked at 10 states where foreclosures are on sale. Michigan appeared at #8 on the list and this property is an example of what's going on in that state and why we should all be concerned about the state of real estate in this country.

Want to buy a house for less than a sawbuck? There are foreclosures for sale across the country for less than the amount you might find if you root around in your couch cushions or at the bottom of your handbag. Spend 10 minutes hunting around for spare change in your house and you might just come up with enough to purchase this home:

15422 Chatham Street, Detroit MI 48223

Okay, so it needs some work. This vintage bungalow, built in 1925 and measuring 1,080 square feet, shows clear evidence of fire damage.

However, home improvement buffs won't let that get in the way. The three bedroom, one bathroom single family home sits atop 0.11 acres of land with an adjacent two-car garage.

For those who are not into ABC's Extreme Makeover: Home Edition, the ultimate fixer-upper could just as easily be leveled. The land alone is worth much more than $7.

The property is a mile or less away from four different elementary schools and a high school, while Trulia users rate the area a cumulative "3" (out of a possible 5) for restaurants and shopping, public transportation, safety and walkability.

In addition to being an almost laughably affordable real estate deal, this listing speaks volumes about the true state of the market. The estimated value of the land and home is over $32,000 (still fairly low), but as they say, an item's real worth is only what someone else will pay.

Interested? Then act fast! Not surprisingly, Trulia recently updated the status of the sale to "pending."

As a glut of foreclosed and real estate owned (REO) properties continue to flood the showroom, expect offerings like this to become a new normal.

Are you noticing deals like this in your area? What do you think it says about the state of the real estate market in general?

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Ilyce R. Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com and The Equifax Personal Finance Blog, and is Chief Content Strategist at RealtyJoin.com, a community for real estate investors.
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    Ilyce R. Glink is an award-winning, nationally syndicated columnist, best-selling book author, and radio talk show host who also hosts "Expert Real Estate Tips," a Internet video show. She owns ThinkGlink.com as well as Think Glink Media, a privately held company that provides consulting, content and video services companies and non-profit organizations.

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