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Just after the new year, I found myself drawn into the website: fiftydollarhouse.com. 

My wife and I have been talking about getting rid of our house in hopes for something bigger.  Unfortunately, given that we bought at the peak of the market back in 2006, we're now upside-down in our mortgage.  This, coupled with the VERY low rent rates, leaves us with very little options.

This is what made the website so intriguing.  For $50 (and who can't come up with $50?), I could own my dream home in a great location.  So what could it hurt?  Thankfully, I didn't make any quick decisions and instead, played a quick numbers game.

The house is valued at: $1,250,000

Guessing my gift tax would be roughly 40% (or $500,000)

Annual Property Taxes (in 2008): $4499 (or  $375 a month)

Roughly Upside-down in our current mortgage by: $50,000

equals...

A guaranteed mortgage I'd have to take out immediately for my $50 house.  And best of all, I wouldn't be able to afford repayment on such a high mortgage.  So, my only option would be to immediately unload the house - which is not something I'd want to be forced to do in a buyers market. While I'm sure I'd still come out ahead, it wouldn't be close to turning $50 into $1.25 million.

I gave the computer screen a quick grin and closed my web browser.

Note: looks like the winners are trying to unload the house - though for different reasons.