Detroit Has 26 Homes Available for $1,000 Minimum Bid

The differences in the sizes of the “$1,000” homes is considerable. The smallest is 700 square feet and has three bedrooms. The largest 3,800 and has four.

The rules for bidding are the same as when the program started:

•    Each property will be open for sale for only one day. Bidding will be open from 9:00 a.m. until 5:00 p.m.
•    If any bid is made within the last 5 minutes that bidding is open, the closing time will be extended by 5 minutes.
•    The bidding will open at $1,000.00. All bids must go up in increments of $100.
•    To bid, click on the property that you want and then click on “Bid Now”.
•    If this is your first bid you will be prompted to provide your credit card information.
•    The amount of each bid submitted will be posted immediately on the screen, so that the public knows the current bid at all times, together with the Bidder Name of the current bidder.
•    The DLBA reserves the right to reject any and all bids and either remove a property from auction, or reopen bidding on it at a later date.
•    No charge will be made to your credit card when you register. However, a $1,000 authorization will be placed on your credit card when you bid. If you do not have a minimum of $1,000 available credit balance you will not be able to bid.
•    The $1,000 authorization will automatically be released by most credit cards within 2-3 business days for all the non-winning bidders on each property. Please note, you must have an additional $1,000 available credit balance to bid on other properties within the authorization hold period.
•    If you win a bid, your credit card will immediately be charged $1,000, which will be applied to your down payment. If this $1,000 charge is declined by your credit card company, you will lose your right to purchase the property and will be forbidden to bid in all future auctions.

And so are the rules for those whose bids are accepted:

•    Winning bidders will be notified by email immediately after the auction’s close and their credit card will immediately be charged $1,000.00. This amount will be credited toward the winning bidder’s 10% deposit. If the purchase price is $10,000 or less, the $1,000 will be the deposit amount.
•    The winning Bidder Name will be listed on the auction website after the bid closes.
•    Within three business days after winning, you must pay the balance of the down payment, which is 10% of the winning bid, minus the $1,000 that was already paid.  This down payment may be made either by credit card or by certified check.  At the same time, you must submit a signed Letter of Intent to Purchase.
•    If you fail to make the down payment and submit a signed Letter of Intent to Purchase within three business days, the Land Bank will retain the $1,000 as a penalty charge and you will lose your right to purchase the property and will be forbidden to bid in all future auctions.

The system may be clever, but it cannot hope to make even a tiny dent in the entire inventory of abandoned homes.