In Atlanta and elsewhere, the U.S. Department of Housing and Urban Development is selling government-owned homes for — get this — a buck. Problem is, almost nobody’s buying. The Atlanta Journal Constitution reports:

The dollar home program predates the housing meltdown, but it has become more active because of escalating foreclosures. Governments nationwide used to buy about 100 such homes a year, according to HUD. This year that number has more than tripled in 10 months.

Still, 100-cent homes remain scarce. In Atlanta just two were on the market last month. HUD decides a buck is better than nothing after waiting at least 180 days. The government has owned [a] Sims Street house since July 2007, courtesy of Wells Fargo.

The lender gave the house to HUD when the borrower, who had bought the property in 2000 for $84,000, quit making payments. HUD paid Wells Fargo the loan balance, then had an appraisal done, which turned out to be $50,000. After that, it tried selling the house through PEMCO Ltd., the company contracted to dispose of HUD homes in Georgia.

If HUD could kick itself, it probably would. It rejected three investor offers: one for $23,000 and two for $14,000.

Our tax dollars at work. Meanwhile, what’s the housing market like in your area? You or anyone you know making a killing investing in foreclosures?