One man brought every tax-foreclosed home in Macomb County

**sg9018** · August-02-12, 07:36 PM

Bill McMachen a former owner of the MacRay Harbor, bought every tax-foreclosed home in Macomb County. A total of 650 homes for about $4.5 million dollars. The Free Press has the story,

A group of Macomb County businesspeople bought all of the county’s tax foreclosed properties at a public auction this week — bringing in $4.7 million for the county.Bill McMachen, former owner of MacRay Harbor in Harrison Township, bid for the group that bought 657 parcels at the auction at Freedom Hill in Sterling Heights on Tuesday, county Treasurer Ted Wahby said.
He said the first bid was for all the properties — the good and the bad. If no one takes that bid, officials then do individual bids.
“This is the first time somebody took it all, though,” Wahby said.
He said bidders have bid on all of the available properties in the past, but haven’t taken all the parcels. The county has been holding auctions for 12 years, Wahby said.
Wahby said this was the county’s first auction this year. No other auctions are planned since the properties are gone.
Wahby said he heard that the group plans to use some of the parcels and donate some.
McMachen could not be immediately reached for comment.
Treasurer’s Office officials said 285 people registered to bid at the auction. Their $500 fee to register was returned, officials said.

http://www.freep.com/article/2012080...public-auction
Fox 2 has a interview with Bill,
http://www.myfoxdetroit.com/story/19...-macomb-county

**mikefmich** · August-02-12, 07:45 PM

I saw that story, personally I thought it a major ...... nozzle move. Govt. pandering to big money, what else is new.

**Goose** · August-02-12, 07:50 PM

Originally Posted by mikefmich

I saw that story, personally I thought it a major ...... nozzle move. Govt. pandering to big money, what else is new.

agree... cut out any small business man looking to buy and flip a house or two... to me, this is the same as no bid county work contracts....

let the guy bid against everyone else... but no, money and influence buys preference.....

Shollin · August-02-12, 07:53 PM

Originally Posted by Goose

agree... cut out any small business man looking to buy and flip a house or two... to me, this is the same as no bid county work contracts....

let the guy bid against everyone else... but no, money and influence buys preference.....

He did bid against everyone else. No one else bid for all the properties.

**internet_pseudopod** · August-02-12, 08:20 PM

With the poor quality of writing and editing these days I'm afraid I don't understand some of the wording in the article. Fox 2 reports that according to Wahby "...bidders have bid on all of the available properties in the past, but haven’t taken all the parcels." Does that mean a bidder has bid on all parcels before but the county refused the offer for some reason or does it mean someone bid, won and then decided to return some of the properties?

**Richard** · August-03-12, 10:22 AM

Originally Posted by internet_pseudopod

With the poor quality of writing and editing these days I'm afraid I don't understand some of the wording in the article. Fox 2 reports that according to Wahby "...bidders have bid on all of the available properties in the past, but haven’t taken all the parcels." Does that mean a bidder has bid on all parcels before but the county refused the offer for some reason or does it mean someone bid, won and then decided to return some of the properties?

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.

**Wheels** · August-02-12, 08:04 PM

At least they returned the registration fee to the other 285 bidders.

**JBMcB** · August-02-12, 08:23 PM

Sucks, as I had my eye on a property nearby.

However, I understand the county's position. They could go through the hassle of trying to sell all 600+ properties, probably only selling a portion of them, or sell them all in one go. Individually, they probably would have made more money per property, but I doubt they would have sold even close to all of them.

**Johnnny5** · August-02-12, 08:40 PM

Does Macomb County have a reliable means of preventing this group of buyers from abandoning the undesirable parcels and letting them go back due to unpaid taxes in the future?

**Goose** · August-02-12, 08:46 PM

Originally Posted by Johnnny5

Does Macomb County have a reliable means of preventing this group of buyers from abandoning the undesirable parcels and letting them go back due to unpaid taxes in the future?

i forsee the worst of em being left to rot for a long time, with the to 20% being the bread basket, probably some of the commercial properties are prime....

**p69rrh51** · August-02-12, 11:12 PM

Originally Posted by Goose

i forsee the worst of em being left to rot for a long time, with the to 20% being the bread basket, probably some of the commercial properties are prime....

I have dealt with McMachen in the past and when he puts his mind to something he does a very good job. When I first heard all the properties were sold I had the same feelings being posted here until I found out it was McMachen. He is one of a handful in Macomb who could do the job and kudos to the county get rid of your headaches in one move instead of having to hold multiple auctions of many for the unwanted properites. From a money saving aspect the county did well! Hopefully the savings will be used for constructive purposes. As for those who are crying there are plenty of available properties in other counties in the area.

**Detroitej72** · August-03-12, 07:19 AM

Imagine the uproar if this was done by some foreign investor group, say from China. That has been happening in Detroit the last few years.

**Wesley Mouch** · August-03-12, 01:51 PM

Originally Posted by Detroitej72

Imagine the uproar if this was done by some foreign investor group, say from China. That has been happening in Detroit the last few years.

Says a lot about how stupid we are. Investment from China would be wonderful. The right answer should be 'thanks for your money' -- now do good.

**cramerro** · August-03-12, 10:10 AM

Now all we need to do is find one guy to buy all 40,000 properties taken for back taxes in Wayne County... calling John Hantz? Dan Gilbert?

**Jimaz** · August-03-12, 11:42 AM

The thread title says one man but today's Free Press said he had a silent partner. I nitpick.

Seems kind of reckless as a business move but more power to them.

**p69rrh51** · August-03-12, 02:54 PM

Originally Posted by Jimaz

The thread title says one man but today's Free Press said he had a silent partner. I nitpick.

Seems kind of reckless as a business move but more power to them.

Very smart not to tie up all your money! Also will it be reckless if all the homes are returned to their intended purpose?

**jiminnm** · August-03-12, 03:38 PM

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.

**Wesley Mouch** · August-03-12, 05:14 PM

Originally Posted by jiminnm

...
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** · August-03-12, 07:15 PM

Originally Posted by jiminnm

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. ...

**Goose** · August-03-12, 10:49 PM

Originally Posted by davewindsor

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** · August-04-12, 02:31 AM

Originally Posted by Goose

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** · August-04-12, 01:47 PM

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.

**Mark Smiles** · August-03-12, 04:33 PM

Every auction starts with a bulk bid.

**Goose** · August-03-12, 04:45 PM

Originally Posted by Mark Smiles

Every auction starts with a bulk bid.

thanks for this info... did not know that

if our wonderful journalists would have explained this in the article it would have answered a lot of questions.... but who expects the news to actually explain anything....

**devman1983** · August-04-12, 05:20 PM

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.