One man brought every tax-foreclosed home in Macomb County

[Wesley Mouch]

...
There is a redemption period on tax foreclosures [[used to be 6 months in Michigan, not sure what it is today), during which anyone with an ownership interest in the property can pay the unpaid taxes plus interest and fees to the buyer and get the property back.
...

Shouldn't this law be changed -- or at least married with significant penalties?

[[I'm quite OK with the State's intervention in local affairs -- it is our State, after all. When they haven't even fixed this law -- it does undermine their credibility. Or am I missing something just about this law?)

[davewindsor]

Whether or not all the lots will be his [[or theirs) remains to be seen. There is a redemption period on tax foreclosures [[used to be 6 months in Michigan, not sure what it is today), during which anyone with an ownership interest in the property can pay the unpaid taxes plus interest and fees to the buyer and get the property back. Also, if there are any title issues on a property that goes unredeemed, the new buyer has to resolve them with whoever is a cloud on the title. That would include any lien holders, as the tax foreclosure only clears the issues with the taxing authorities. If not done, there will be a quiet title suit filed by one of the parties to clear the title for each parcel so encumbered.

Apparently, Michigan adopted a new system where buyers get a quit claim deed from a tax sale and you own the property free and clear [[the only exception being a governmental environmental lien from an industrial cleanup--highly unlikely to be found against a residential home). Prior owners no longer have any right to redeem after the sale: https://www.tax-sale.info/html/index/page/faq Do I still get a tax lien when I buy property from Michigan tax sales? No, under the new system all buyers receive a quit claim deed. All previous title rights have been extinguished, and you own the property free and clear. Prior owners have no right to redeem the parcel from the deed sale. The only liens that survive foreclosures are those filed by governmental agencies in relation to the environmental protection act. ...

[internet_pseudopod]

What happens is people bidding do not do the research and get caught up in the bidding and buy a property,you have 3 days to pay for it but then they go and look at the property and find out it is not something they want to deal with so they walk away,probably in the past you did not have to put up a deposit to bid making it easy to walk away and the city is still stuck with the property and having to bear the holding and re listing administration costs again. With the deposit required the city IE: taxpayers can at least recoup some of the costs if they walk.

I see. Thanks.

[Goose]

Apparently, Michigan adopted a new system where buyers get a quit claim deed from a tax sale and you own the property free and clear [[the only exception being a governmental environmental lien from an industrial cleanup--highly unlikely to be found against a residential home). Prior owners no longer have any right to redeem after the sale: https://www.tax-sale.info/html/index/page/faq Do I still get a tax lien when I buy property from Michigan tax sales? No, under the new system all buyers receive a quit claim deed. All previous title rights have been extinguished, and you own the property free and clear. Prior owners have no right to redeem the parcel from the deed sale. The only liens that survive foreclosures are those filed by governmental agencies in relation to the environmental protection act. ...

a quit claim deed only conveys all rights that the "quitter" has to a property.... I can sell you any house and give you a quit claim deed, and you might have nothing because I actually have NO ownership vested in the property.... a quit claim only conveys the amount of ownership the one party has to the other, if that interst is limited to none, the holder of the deed has nothing....

thus the warranty deed, which is backed by title insurance, conveys ALL rights to a property, and with the insurance, guarnatees this ownership...

a quit claim is basically crap

[davewindsor]

a quit claim deed only conveys all rights that the "quitter" has to a property.... I can sell you any house and give you a quit claim deed, and you might have nothing because I actually have NO ownership vested in the property.... a quit claim only conveys the amount of ownership the one party has to the other, if that interst is limited to none, the holder of the deed has nothing....

thus the warranty deed, which is backed by title insurance, conveys ALL rights to a property, and with the insurance, guarnatees this ownership...

a quit claim is basically crap

We're talking apples and oranges here. This is a government imposed sale through new special legislation, not a private sale. You are not selling me a house privately nor would I buy one from you privately via quit claim, so your scenario is irrelevant.

If you're going to say something is crap, cite a link to back up your information. Does anybody here actually research what they say before they post so they know their information is true and current?? It only took a few minutes for me to google this stuff.

Read the link from my last post. This is a quit claim deed going through a new Michigan tax sale system which delivers a "free and clear" title within 30 days after the tax sale. You get full ownership with all other title claims wiped out with a couple exceptions such as mineral rights if they were separated prior to the sale [[but you are still entitled to the royalties if minerals are extracted like any normal owner would). The new legislation untangles the deed so well that they even list the name and contact for a title company that will insure the deed for you [[at the bottom of the link). READ THE FULL LINK https://www.tax-sale.info/html/index/page/faq

Think for a second. Why would this guy buy everything for $4.7million cash and expect to make at least a $2m profit in a couple months [[as he says in his interview) if most of the properties had messed up titles or he was getting no interest at all?

[Danny]

What a rip-off! What does one man want 650 Homes? Oh I know! he would fix some of them up, tear some of them down and sell it to anyone who has the higher income instead of low-income folks.

[p69rrh51]

What a rip-off! What does one man want 650 Homes? Oh I know! he would fix some of them up, tear some of them down and sell it to anyone who has the higher income instead of low-income folks.

As opposed to individuals who would do the same thing? Everyone was looking for a bargain and were beat at their own game! How about those underwater in their home values why should they have to suffer? I am all for the repaired homes sold to those who can afford them and pay taxes, and help give some relief to the current owners in the neighbor! Also there are plenty of homes around the metro area available to low income people and next year there will be a new crop of tax foreclosures. Its not the end of the world get over it!

[Wesley Mouch]

What a rip-off! What does one man want 650 Homes? Oh I know! he would fix some of them up, tear some of them down and sell it to anyone who has the higher income instead of low-income folks.

Of course -- except he probably doesn't care about their income as long as they can GIVE HIM CASH.

Selling homes to those who can't afford the costs is plain stupid. But if you wish to be stupid, then feel free to buy a house -- and resell for less than you paid for someone deserving with your money. You have that freedom.

[devman1983]

Too bad the average joe had no chance of buying a home at this auction. I participated in the Wayne County tax auction last year and it worked out great. I bought a house in a nice area of Detroit for $1000, I put $14000 into it and voilla I have a brand new house, free and clear of any mortgage/leins. My family now doesn't have to worry about a mortgage payment or throwing rent down the drain.

[Wesley Mouch]

Too bad the average joe had no chance of buying a home at this auction. I participated in the Wayne County tax auction last year and it worked out great. I bought a house in a nice area of Detroit for $1000, I put $14000 into it and voilla I have a brand new house, free and clear of any mortgage/leins. My family now doesn't have to worry about a mortgage payment or throwing rent down the drain.

Great move. Congrats to you.

The 'average joe' still has lots of great options out there right now. Its even very good for the 'way-below average joe' too. Even the 'nearly-broke' joe.

Detroit has accomplished something that's very valuable -- affordable housing.

The current housing depression is a very real opportunity for many people without wealth to get into the real estate market and a great time. When Detroit rebounds... and it will... there will be some real wealth created.

[devman1983]

Great move. Congrats to you.

The 'average joe' still has lots of great options out there right now. Its even very good for the 'way-below average joe' too. Even the 'nearly-broke' joe.

Detroit has accomplished something that's very valuable -- affordable housing.

The current housing depression is a very real opportunity for many people without wealth to get into the real estate market and a great time. When Detroit rebounds... and it will... there will be some real wealth created.

Like my friend says, "With $500 houses in Detroit there is no reason for anyone to be homeless." [[of course this is arguable) At least for Wayne County, the tax auction is a very easy way of obtaining a home. All online, and the County just mails you the deed one month after auction.

Dealing with realtors and the home buying process can be a real hassle. I've seen most homes now on the market go "highest and best" offer, many are short sales, and many banks take their time and don't do things the way they should be done. Buying a house is way more complicated than it should be. The tax auction gives an easy alternative!