On April 18, 1998, at 1830 eastern daylight time, a Cessna 150J, N50556, registered to a corporation, sustained substantial damage during an off airport landing and post accident fire. The accident occurred about one mile south of the airport. The pilot said that there was a power interruption prior to impact, and he initiated a forced landing in a residential area. The instructor and student received serious injuries. The instructional 14 CFR Part 91 flight was operating in visual meteorological conditions. No flight plan was on file. The local flight originally departed Willow Run Airport, at Ypsilanti, Michigan, exact time unknown, and was conducting full stop and taxi back landings and takeoffs at the nearby Canton-Mettetal Airport. The instructor said that at the time of the accident they were returning to Willow Run. The pilot said that they were conducting full stop landings and taxi backs for departure at Canton-Mettetal. He said that they were on their sixth takeoff and had decided to return to Willow Run. He said that during the previous landings and takeoffs there was no problem with the airplane. He said that the carburetor heat was used on all previous landings and removed during the taxi and takeoffs. He said that the airplane was topped off with fuel prior to departure from Willow Run. He said that the airplane had been in operation a total of approximately 45 minutes at the time of the accident. He said that while in climb the engine lost power, and he realized that a forced landing would have to be made in a residential area. He said that about five to ten seconds prior to touchdown he lowered the flaps to full down. He said that at no time did he feel that the engine power had returned. He did not recall the impact. An examination of the airplane wreckage revealed that initial ground scars were on a residential street and coincided with the position and damage to the left wingtip. The airplane continued into the boulevard where a mailbox was knocked out of the ground. The airplane continued in a gradual turn to the left and there were three horizontal slashes in the concrete sidewalk consistent with propeller strikes. The airplane continued forward coming to rest in a driveway. The landing gear was failed with the main landing gear bent aft. The fuselage was fractured circumfrentially at the baggage compartment and the firewall was separated from the front of the fuselage with the nose bent down. An engine fire started after the airplane came to rest. When the airplane was removed from the accident site 18 gallons of fuel was removed from the airplane prior to transporting the wreckage. An examination of the airplane revealed fuel was present in the fuel selector and fuel lines to the carburetor. There was thumb compression on all four cylinders. Continuity was established through the flight and engine controls. There were no anomalies found that were attributed to other than impact and fire damage. One propeller blade was broken. The broken end was found about one city block away from the wreckage, in the front yard of a residence. The piece displayed nicks and chordwise scratches. The outboard end of the blade was curled back.