Paul and Rachel Bowes left the two-bedroom semi in Leeds, in January last year after continually being victims of burglary.
But when attempts to sell it for pounds 28,000 failed they decided to put it for auction with a reserve price of only pounds 1,000.
"We just want to get our debts paid off and forget we ever lived there," said Mr Bowes, 29.
The couple, who now live in Selby, North Yorkshire, said their five-year marriage was under strain from living in the house.
Tony Webber, an auctioneer with Eddisons Commercial, Leeds, said the house, which has a kitchen, living room, bathroom and two bedrooms, could not be lived in because of the amount of vandalism. "It is an ex-council house on a predominately local authority estate on which there are quite a number of social problems," he said.
Although the house next door was in immaculate condition, Mr Bowes did not expect to see a selling price much above pounds 1,000.