Foreclosures Fall in the United States (Photo: wikipedia.commons)
Five million probably won't even get you a proper sized home in midtown Manhattan or downtown Hong Kong, but in Michigan's Macomb County, it's enough for 627 homes.
That's how much Bill McMachen, a yacht dealership owner from Michigan, paid to acquire all those homes. These homes were all foreclosed properties, part of a deal McMachen cut with the Macomb County's treasurer--pay $4.7 mil, get every foreclosed home in the region.
Other investors weren't happy that one man managed to snag up every cheap property on the market, but McMachen could do what they couldn't do--pay the entire sum at once (investors had planned to pay in installments).
One investor told Detroit TV station WJBK that he was ready to bid three to four times higher on some of the properties that McMachen bought--homes for which McMachen paid an average of about $7,500 apiece.
As we've reported before, the foreclosure auction system in the US is inherently flawed in that struggling homeowners are evicted out of their homes by investors who buy these homes simply for business plans. McMachen's move will probably make him a lot of money--it just won't win him any karma points, as 627 families will now lose their homes.