Got $100 (and want $25,000 more)? Welcome to your new Michigan home

That's one way to get the neighborhoods cleaned up and spark the economy.

I think so too Nana to Seven Cutiepies. Great to see you around.

This is an example of why these entitlements need to stop. 

Oh, and the last time I looked,  1% of $25,000 is $250 not $100.  CNN needs to go back to Math class.

Actually, the going rate for some houses there is $100. You bring $100 to the table, and the state of Michigan will give you $25,000 of its federal Recovery & Reinvestment Act funds to fix it up. A little different, huh?

I still wouldn't want to live there.  Too cold and expensive compared to life in the south.

Ahhh, warm weather.... ; )

I went and read the article, very very interesting, I have no idea if Iowa is doing anything like this..how do I find out? Anoyone got any ideas?

This is the first state that I had heard of that is using their Recovery funds in this way. (In Oregon, the funds are going to things like schools [including construction projects], a summer citizen work program, small business loans and roadway projects.)

However, Dana H. talks about a similar plan in Missouri in her comment below and suggests that other states aren't far behind....

That is so great. I wish CA would do something like this, but the state is so broke!

Yep, California budget needs its own Recovery!

i live in a suburb of detroit.  i don't think i would want to live in some of the neighborhoods that are within this program.  some of the homes are not livable until you begin a rehab.  if you aren't living there, you don't get your money.

You're right Michelle. Under this plan you do have to want to live in the home. The Recovery money though, from what I can tell, is intended so you can rehab it so you can then move on. Please let me know if you read otherwise! And do keep me posted as to your view of how this program is working.

i guess my understanding was you have to live in the home while doing the rehab.  if the home isn't safe to occupy; you need to start the rehab with the money to follow once you are able to safely move in.  maybe i misunderstood, but that's what i had heard from around here a few weeks ago.  :)

Good to know. Keep us posted please Michelle!

Missouri has just launched a "Neighborhood Stabilization" program in which they give you up to $14,999 towards your downpayment if you buy a foreclosure. It's in the form of a 0% 2nd mortgage that is forgiven after you live in the house for five years. I think we'll see more of theses types of state housing programs.

Wow, what a great offer for someone wanting to buy a home in Missouri right now Dana. Thank you so much for passing it along!!!

Sounds like an awesome opportunity

For those in the area, yes. For those looking for the best opportunities in real estate right now in order to move, yes as well.

If I worked a job that allowed me to live anywhere, this might be tempting. Moving to Michigan hoping to get a job is, however, kindof risky right now.

Agreed. Having a mobile position would make this decision a whole lot easier! Meanwhile, I'm thinking that knowing that these offers are out there could insight some to add the state to their job search alerts -- just in case.

I am curious as to what the property taxes are on this. In the story attached, the first house purchased was gussied up with enough solar power to power the neighborhood -- something that could definately keep end costs down. It would be interesting to know that, at this price and incentive level, how much you'd actually have to make per year to cover your hard costs. It could be a lot less than where you are now.

don't head to motown looking for employment!!!  even the supposedly strong medical field is cutting back to a certain degree around here.  no new hires; no overtime; 4 day work weeks.

public schools are in trouble.

anything remotely related to the auto industry is going into the crapper.

restaurants are closing daily.

bowling alleys are empty.....the list goes on & on & on.....

MMMM - I guess one question would be whether MI allows you to sell back solar power to the utility at this juncture. Not all states have this requirement and, while rural power authorities can make this work outside a city, not all urban systems are structured to do this.

The cost of insuring property in the city, auto insurance, etc is high. There is also the ability to do contents insurance if, in example, work required computer systems at an acceptable level to replace them if needed.

Excellent insight Debra. I do know that the area's are in need of public service workers, such as teachers, police and emergency personel.... so much so that I believe the plan is still in place to offer homes for $1 to people with those credentials who are willing to relocate. Add that to the $25,000 and maybe for someone you'd have a deal!

Thanks for all of your background information Debra.

I have some friends in public service positions living in Detroit. A couple made purchases this way in the past and have ended with very nice homes for little investment. Sadly, they are worth little at the present time as well.

If a group of people can get together and commit to a neighbourhood, that might be a way to help everyone in the group enhance their investment potential.

i'm not sure where you've heard that teachers are needed in the detroit area.  every public school district in the tri-county metropolitan area are laying off hundreds of teachers.  the detroit public schools are in the midst of a huge scandal involving "lost" money.  30 some schools in the city of detroit are being closed.  people are moving out of michigan & taking their children with them.  districts are losing state money as enrollment goes down.  i am a member of the michigan education association.  i've worked as a paraprofessional in an asd center program in a detroit suburban school district.

detroit police were given a federal grant to hire more officers and to fix existing police sub-stations.  they recruited outstate to fill those positions.

I was thinking of people already there who are renting. Law enforcement personnel have an opportunity here, though yes, teachers and other education professionals are being laid off.

I used to live in the greater Detroit area and am really saddened to see what is happening there.

I'm sure Iowa has no such program........besides I don't think I'd want to live in those homes, as most, I'm sure are in very undesirable areas..........I'd not even think of wanting to move.....we paid our house completely off like 13 years early.....all we have to worry about now are property taxes (they're very reasonable) and homeowners' insurance (also very reasonable, through AARP!!!)........besides, we have too juch "junk" to ever think of relocating anywhere!  Besides, we're planning on starting to completely remodel our house late this summer/early fall.  Much, much cheaper than buying another!

Meant to say "too much junk."  I type way too fast and don't always watch what I'm typing!

Thanks for the tip on the AARP homeowners insurance Nora. No problem on the typo. Been there, likely doing that. ; )

Meanwhile, if your household falls within 80 percent of the median income in your area you can qualify for an Individual Development Account that matches up to $3 for every $1 you save for home improvements. With a complete remodel in the plans you may not be eligible, but just in case....

I'm sure we'd not be eligible.....hubby was going to retire from trucking (he's got almost 32 years in).....well, when his company found out, they gave him a huge "bonus" plus a raise......of right around $200 a week....we couldn't believe it (especially not after the bad wreck with the work truck last Dec......totalled out the work truck at $32,000...ouch!).....so, he's decided NOT to retire...plus, by a sheer miracle, he passed his DOT exam (now good for 2 more years of work....even though he's almost totally deaf....LOL!).....so, we'll probably have to take care of remodeling costs ourselves.

The trucking industry is hurting for good, reliable drivers....soooo many guys are retiring, it's not funny!  That's one industry that's not laying off, but needing more people!

That should be a helpful thing for some people.

I read the article, but what I didn't really understand was whether this has to be in the Detroit area. I would like to purchase a home in Northern Michigan and that 25K would really help.

Too bad California won't do something so generous.