Michigan - Tax Foreclosure Sale
Michigan no longer sales tax liens. They now have tax foreclosure sales. These homes have already been foreclosed on. In Wayne County they are forclosed on by the county treasuer. I'm new to real estate and plan on attending the Wayne County Tax Foreclosure sale. Is anyone familiar with these sales. I've read about 10 books or so on real estate, have limited experience, and I still have a long way to go. I havent found any books on buying these Tax foreclosed properties. It is my understanding that these homes have been foreclosed on and the liens and mortgages were canceled as a result of MCL 211.78g? I also understand that you should do a last owner search to see if any liens or judgments were not canceled or filed after the foreclosure process? Is it possible to get stuck with a mortgage after purchasing one of these homes? Any suggestions or tips on how to prepare for the auction or what to do if I win something? Ex. homeowners insurance, fees other than my bid and new taxes for the year? This will be my first purchase. Thanks for any advice[ Edited by DetDre313 on Date 10/31/2003 ]
Det,
P.M. me and I will give you the details that I have found on the sales.
I attended Oakland County's sale today and picked up a few properties, all I can say is research the properties well before bidding-I saw alot of crazy bidding there.
Hi,
About the auction, do you know when they'll be having another one? I mean, are they done monthly? Did you have a list before you went so you could research the properties? Last but not least, where do they hold the auctions?
So this is a tax auction right? So if the homeowner pays the taxes, they retain their homes right?
I'm interested because I live in Oakland County and I'm looking for a primary resident, the creative way of course
Any info would be greatly appreciated.
Quinn
Quinn,
I believe that was the last auction of the year. And yes, MAKE SURE YOU DO YOUR DUE DILLEGENCE!!! People do make some CRAZY bids.
yes it was the last auction of the year, some properties didnt go, and there is no redemption period, you get the deed in 30 days.
Thanks guys,
If some properties didn't sell, what do they do with them at that point?
Man I didn't know anything about the auction. Next time, how would I find info and I listing of the houses up for sell?
Quinn
I wondered the same thing, I should have picked up two more on the block I was buying up, and now they will hold them till next year. this auction the min bid was 250, next year at the first sale the min bid is taxes owed ( round 2500) should picked them up......
When will the next auction be held next year? Is it only twice a year, after tax times?
What were the highest bids?
Congrats on the purchases
Quinn
The Wayne county auctions are currently being held in September and November for sure. Michigan allows for three of these tax foreclosure auctions a year in the county under the new laws. The other possible auction time was supposed to be around April but when talking to the lady over the phone she told me Wayne County is only having 2 per year which I don’t see how since the new law describes the process and says auctions will be held in those three certain months. So look out for a auction around April. There is a method to the process. This is Michigan's answer to tax liens which it no longer does. You now are bidding directly for the property.
As far as a list of properties, the list is located at the Wayne county site ****Must Reach Freshman Investor status before posting URL's*** The list is located on the treasurers page. Check out anything you are bidding on. Especially in the city of Detroit where there are hundreds of properties to bid on. Alot of these addresses are lots or will become lots since the city is demolishing vacant building so if the house is marked with a D you must get it removed for the demo list. I stay in the city and spent last weekend looking at alot of these properties which turned out to be lots. There are some good finds to be found. Also some lots are in good locations if you want to build a house on them.
i was present and purchasing at the oakland county auction on the 18th as well. regarding the "crazy" bidding, i seem to recall some women at the back of the room who seemed inclined to bid on anything, at anytime, for any price.
for some reason or another, i suspect that due diligence was lax on their part.
the properties that were not sold at auction go through a process of transfer from oakland county back to the city/township/local authority, if the local gov't doesn't want that particular property, it stays with oakland county until someone walks in and picks it up or goes on the block next year.
i got a couple of nice properties at this auction, would have had a couple more if those women at the back didn't START to bid over me each time the auctioneer got to "going twice..."
he even disallowed their bids once after reprimanding them for joining the bidding process too late each time.
makes you wonder...