On August 28, 2001, at 1445 eastern daylight time, a Champion 7GCAA, N9047L, sustained substantial damage during a forced landing after takeoff. The 14 CFR Part 91 local instructional flight had departed Romeo Airport (D98), Romeo, Michigan, at 1400 and was practicing takeoffs and landings. The airplane had departed runway 33 when it experienced a loss of engine power. The pilot attempted to land on runway 09 but impacted the ground to the right side of the runway. The instructor pilot and commercial pilot, who was receiving dual flight instruction, received minor injuries. Visual meteorological conditions prevailed and no flight plan was filed. The commercial pilot, who was receiving dual instruction in the airplane, had purchased the airplane recently and had a total of 5.5 hours of flight time in the airplane. His total flight time was 1,207 hours. The pilot had a tailwheel endorsement, but wanted to practice takeoff and landings with an instructor with more tailwheel experience. The instructor pilot held an airline transport rating and had a total of 6,274 flight hours with 9.1 hours in the make and model airplane. The pilot reported the preflight and engine start and run-up were normal. He reported the carburetor heat was "working good." The pilot reported he practiced touch and goes on runway 36 for approximately 45 minutes. Then a touch and go was flown to runway 33 to practice crosswind landings. The pilot reported that after the airplane landed, power was applied. He reported the following: "Engine sounded normal, rpm's came up, airspeed 60 rotate up. Very shortly power began to decrease [.] Altitude 100-150' [.] Not enough runway to return - trees and road straight ahead, no real options left [.] 45 degrees right - airplane tie down area [.] Forced to make 90 degrees +/- right turn. Airspeed good but descent rate increasing. Once out I helped [other pilot] out and shut off main fuel & electrical switches." The instructor pilot reported the following: "Everything appeared normal until we were at approximately 100-150 feet in the air when I detected a deceleration and a reduction in engine noise. I noticed the tachometer was reading 2100 RPM. Going through a quick mental checklist I checked the throttle and applied carburetor heat, with no improvement in engine performance. Realizing a complete engine failure had occurred and that we were loosing altitude, I immediately took the controls. I lowered the nose to maintain airspeed to prevent a stall and turned to land on runway 9, the only safe area, in my opinion, to land, due to the trees and parked aircraft ahead of us. I completed the turn over the runway, loosing altitude rapidly. Touch down was at a high rate of descent with the left wing slightly up. I am not sure exactly [where] we touched down but realized that the gear had collapsed and that we were skidding to a stop. The plane ended up facing south." A Federal Aviation Administration Airworthiness Inspector examined the airplane. He reported the fuel system exhibited continuity. He could not examine the vent system since the fire department had put material in the system to prevent fuel leaks. The engine was inspected and the crankshaft rotated freely when the propeller was turned, yielding equal compression on all four cylinders. The engine impulse coupling was operating, and spark was generated by turning the propeller. The intake and exhaust system were intact. All engine controls were connected and worked properly. The throttle moved from stop to stop. The mixture control went from stop to stop. The carburetor heat would not move due to damage to the heat box.