Discuss Detroit Archives - January 2008 Forfeited Properties Auction - Is there ever a bargain? Previous Next
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Ocean2026
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Username: Ocean2026

Post Number: 52
Registered: 11-2008
Posted on Sunday, December 07, 2008 - 4:15 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

The list of properties is extensive and there are some in every ward- even Grosse Ile.

What do properties go for at these auctions? Most places eat the back taxes - does Detroit? (IT should).

With non-forfeited houses going for $500- 1,000 in some areas (and some nice stuff with $6-8k asking prices) to add more houses to a saturated market can't help prices although it can help city revenues- much more important.

With population continuing to leave Detroit as well as jobs si there much chance for properties already abandoned to come back?

There are large apt buildings on the list that would cost a fortune to build from scratch- but also cost a fortune to fix. Of course they will suffer from population loss even more than houses, and the national commercial market is the next one to collapse.

Has anyone gone to these auctions?

Any thoughts?
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Novine
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Username: Novine

Post Number: 903
Registered: 07-2007
Posted on Sunday, December 07, 2008 - 11:34 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

I don't know of any Michigan jurisdictions that "eat the back taxes".
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Jams
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Username: Jams

Post Number: 9761
Registered: 10-2003
Posted on Monday, December 08, 2008 - 12:06 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Not an auction, but after months of looking, I bought a "move-in" house for about 1/3 of its last market selling price.

Crazyass bullshit, despite the fact the money that purchased the house was in an account within the bank that "owned" the home, we had to have a certified check from that same bank in order to finalize the purchase.
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Detroitplanner
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Username: Detroitplanner

Post Number: 2050
Registered: 04-2006
Posted on Monday, December 08, 2008 - 8:42 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Hey Jams reminded me of the time I bought my house and transferred my deposit from savings to checking a week before closing(savings had a better interest rate). I got a call from the mortgage bank questioning why I took all of this money out of Comerica, and where did all the other money come from that ended up in my checking account at the Credit Union (yes the amount was the same!)
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Lefty2
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Username: Lefty2

Post Number: 2979
Registered: 07-2007
Posted on Monday, December 08, 2008 - 10:10 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

I don't know what type of auction you are referring to, can you be more specific. re taxes; Some do some don't.
It's hard to generalize a good deal, you have to do the homework.
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Sknutson
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Username: Sknutson

Post Number: 1212
Registered: 03-2004
Posted on Monday, December 08, 2008 - 10:13 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Jams: In what neighborhood did you buy?
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N7hn
Member
Username: N7hn

Post Number: 113
Registered: 02-2008
Posted on Monday, December 08, 2008 - 11:39 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

here is the sale history of my old house in detroit, 1994-$40,000 2002-$60,000 2007-$160,000 2008-$15,000.....sigh. the people that bought it for $60,000 put a ton of money into it. had I know I could have got it for $15,000 Ida bought it back. Id planned buying it in april 2009 for the asking price of $36,000 that the bank wanted. apparently there is alot of wiggle room on foreclosure prices,,,,, the bank had been keeping the taxes current too.
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Ocean2026
Member
Username: Ocean2026

Post Number: 54
Registered: 11-2008
Posted on Monday, December 08, 2008 - 12:38 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

lefty fair enough
http://www.waynecounty.com/tre asurer/

go to forfeited property list on the left bottom part of the page.

Just wonder if anyone has been to one?
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Lefty2
Member
Username: Lefty2

Post Number: 2982
Registered: 07-2007
Posted on Monday, December 08, 2008 - 3:07 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Yep, taxes are due on county auctions, by purchaser.

Normal bank foreclosures - taxes and usually all utilities etc are almost always paid by the lender before closing. so you get a free and clear title.

problem with private auctions for foreclosures is that you pay an auction fee of usually 5% or $2-4,000 for an auction fee. so add that cost in.
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Ocean2026
Member
Username: Ocean2026

Post Number: 55
Registered: 11-2008
Posted on Monday, December 08, 2008 - 4:33 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

These aren't private auctions as far as I know - its the forfeited property list - Wayne County Treasurer.

IF you do have to pay back taxes - then the entire process is foolish waste of time and money. The back taxes were assessed when the property was A. in better condition and B Worth more than now as values have decreased.

No wonder the list is so large - who wants to pay high prices for properties that are for the most part abandoned and crumbling?
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Cocoabee
Member
Username: Cocoabee

Post Number: 26
Registered: 03-2008
Posted on Monday, December 08, 2008 - 11:40 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

01003207-8
KENNETH V COCKREL JR
JOHN E JOHNSON
LUCINIA PETTIFORD ROBERT A FICANO EDWARD
M THOMAS
144 E BOSTON BLVD
S BOSTON BLVD LOTS 62 TO 64 MCLAUGHLIN & OWENS L18 P28 PLATS, W C R 1/125 225 X 178.85
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Ocean2026
Member
Username: Ocean2026

Post Number: 56
Registered: 11-2008
Posted on Tuesday, December 09, 2008 - 9:47 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Cocobee is that a bargain ? or are you using a thread about foreclosure auctions to make a political point of some sort?
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Cocoabee
Member
Username: Cocoabee

Post Number: 27
Registered: 03-2008
Posted on Tuesday, December 09, 2008 - 5:56 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

no, no polital statements, to busy working on my BE fixer, but thats a good deal though. The problem is that when these mansions go through the lengthy red tape process, theres hardly nothing left to work with
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Ocean2026
Member
Username: Ocean2026

Post Number: 59
Registered: 11-2008
Posted on Wednesday, December 10, 2008 - 7:25 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Thanks Cocoa - I saw it on Google - it looks pretty nice. I've been writing the Treasurer's office and they say they set the minimum bids to include back taxes - buyers have to do their homework concerning liens etc.

They also set some properties for a $25k minimum bid. Im not sure there are many abandoned buildings in town with that value as more people keep fleeing.
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Cocoabee
Member
Username: Cocoabee

Post Number: 27
Registered: 03-2008
Posted on Thursday, December 11, 2008 - 4:48 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

I paid 20k for mine on the other side of the lodge. theres some really good deals out there if willing to do the work. I had quite a mess on my hands and im still not anywhere near being done, its more of a labor of love
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Cocoabee
Member
Username: Cocoabee

Post Number: 28
Registered: 03-2008
Posted on Thursday, December 11, 2008 - 6:28 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

ocean:
I was told to watch out for federal tax liens that may be attached to many of these properties. they sometimes dont show up on the title search, so make sure you buy title insurance. I registered to attend the second county auction, but changed my mind and went the way of a realtor instead.
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Django
Member
Username: Django

Post Number: 2056
Registered: 10-2003
Posted on Thursday, December 11, 2008 - 7:14 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

I am almost positive back taxes are not required.
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Django
Member
Username: Django

Post Number: 2057
Registered: 10-2003
Posted on Thursday, December 11, 2008 - 7:18 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Little tip Ocean. I hear theres chatter of widening I-94. The prices I believe of prop near there will be going up if the widening is true.

Theres a website somewhere showing the scope on map of the proposal.

I have no Idea how serious they are.
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Ocean2026
Member
Username: Ocean2026

Post Number: 65
Registered: 11-2008
Posted on Saturday, December 13, 2008 - 8:04 am: Edit PostDelete PostMove Post (Moderator/Admin Only)

Django - they say the back taxes are build into the minimum bid except for current year taxes,and of course liens. That's why a bunch of properties start at $25k- it would have to be awfully appealing to be worth that though.

Perhaps someone will come on here who has bid at one.
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Lefty2
Member
Username: Lefty2

Post Number: 2919
Registered: 07-2007
Posted on Saturday, December 13, 2008 - 6:35 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

i looked at some but i never found one that is worth it after considering location cost to fix up and price taxes and time.
remember the three axioms of investing.
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Django
Member
Username: Django

Post Number: 2072
Registered: 10-2003
Posted on Saturday, December 13, 2008 - 6:58 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Thanks Ocean, I guess that makes sense if their selling off a decent property but I do know of lots that will go for $300, such as the shack I was in. Vacant lots same price. I cant imagine there were not back taxes on these lots.

Im just going by what Ive heard in the hood.
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Django
Member
Username: Django

Post Number: 2073
Registered: 10-2003
Posted on Saturday, December 13, 2008 - 7:03 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

Theres a house on Merrick and Rosa Parks for sale if anyones lookin.

^joke

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