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Now I needed to patch and weatherproof the hole. Searching around the local home improvement store, Home Depot, I found a plastic for sale sign. Perfect. I used some contact cement to adhere the a square from the sign to the existing door panel. I then caulked around the hole with some 3M 5200 sealant. Works great!
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I'm
betting there is an easier way to replace corroded basement door latches.
But my way was quick and cheap. First, I ordered a bag full of
replacements. I drilled out the rivets with a quarter inch drill and then
chewed a hole into the inside door cover. The old latch pops out.
The new one pops in. A couple of new rivets (aluminum) finished the job. 
