Posted: May 24, 2012 7:36 AM by Associated Press
ST. LOUIS (AP) - Foreclosed homes typically sell cheap, but just how cheap is surprising some buyers in the St. Louis area.
The St. Louis Post-Dispatch (http://bit.ly/KhEvCk ) checked public records and found that some homes in the region are going for small fractions of the price they brought at market-rate sales just a few years ago.
One buyer paid $12,000 for a 1,600-square-foot suburban home assessed at nearly $90,000.
Investor-buyers are combing the market for bargain-bin listings, hoping to quickly flip them or rent them out.
They're taking advantage of banks and other lenders eager to move toxic assets off their books.
But the low-priced homes also affect their communities, lowering property values and discouraging improvements to neighboring homes.