delinquent property owners can't buy more?
Did anyone catch the story on WDET about the idea of banning tax-delinquent property owners from purchasing any other property?
I heard the tease on the radio on the way in this morning but missed the conversation. Think it was on Craig Fahle.
I for one think it's a great idea but why stop at taxes? How about anyone with a code violation lien?
property issue is not so simple
The issue has two parts to it:
1) the properties that are bought for $500 have no real value. So a new owner hopes that they can off it for more than they paid for it prior to tax forclosure. The process of forclosure can only start after 2 years. This being said they sit on the property for 2 years do nothing and worst case is the city or county goes through the process to take it back. That process costs more than the parcel is worth so it is difficult to justify financially. On top of that the owner has had to do nothing and pay nothing with fear of only loosing that $500 at best in 2-3 years. Not a high risk to them. Even if you write citations against them best you will come up with is the property which once again causes more money in court filings then the property is worth.
2) the second portion of the issue is county vs city. The county has forclosed on several of these homes and they want the the money. To give them to detroit for a land bank is essentially giving money from the county to the city which the county uses to balance their books. The City of detroit has first right of refusal for the properties and can request that they be moved off the auction or purchase them. Currently it is my understanding that the city has spent all the money set aside for the land bank on key parcels and cannot afford to buy every forclosed property. This becomes a situation where the city had to pick and choose key parcels based on future plans or highest rate of return. Key parcels at this time included all properties along the woodward light rail.
so there is an issue with speculators investment and really nothing can be done to keep them out except for more money for the city to land bank and then upkeep properties or remove blight. By detailing who is involved in each purchase prior to sale could help stop these people from the endless cycle of nothingness and blight.