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.

**Wheels** · August-02-12, 08:04 PM

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

**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?

**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.

**Goose** · August-02-12, 11:20 PM

Originally Posted by p69rrh51

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.

opens the door to other counties doing the same.... maybe mcmachen has a good reputation, but i bet you can put together a large list of names of people you wouldn't want doing this..... but sorry, door has been opened...

**p69rrh51** · August-02-12, 11:47 PM

Originally Posted by Goose

opens the door to other counties doing the same.... maybe mcmachen has a good reputation, but i bet you can put together a large list of names of people you wouldn't want doing this..... but sorry, door has been opened...

If it was illegal everyone involved would be in jail. Unfair yes, but all those properties are now back on the tax roles! Also give him some time if he rehabs all the properties everyone's property values go up and we all win. Consider all the jobs that will be created by someone who can afford to pay! Also he kept them from being purchased by some out of town slumlord who does not have ties to the community. Last there is that individual who gets in over their head and the county ends up with the property back again something we don't need but I see all the time in every county in the metro area.

**Gannon** · August-03-12, 06:19 AM

Originally Posted by p69rrh51

If it was illegal everyone involved would be in jail.

We've seen, from the Kwyme-family debacle, that sometimes the Federal investigations take additional time. So, your statement, while statically correct, might dynamically not be true.

**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.

**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?

**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.

**p69rrh51** · August-03-12, 11:04 AM

Originally Posted by Gannon

We've seen, from the Kwyme-family debacle, that sometimes the Federal investigations take additional time. So, your statement, while statically correct, might dynamically not be true.

I do not know what are stated in the rules of the auction maybe its time to go over them! I have a feeling they state the county can sell to a qualified individual if they want to.

**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.

**JBMcB** · August-03-12, 12:21 PM

Originally Posted by p69rrh51

I do not know what are stated in the rules of the auction maybe its time to go over them! I have a feeling they state the county can sell to a qualified individual if they want to.

I think I read in an article about this sale that this is common practice. At the beginning of auctions like this, a price is offered, or a bid is solicited for the entire lot. If nobody bids, they go ahead with the individual lots. I've been to liquidation and estate auctions where they've done this.

**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.

**Wesley Mouch** · August-03-12, 02:05 PM

Originally Posted by JBMcB

I think I read in an article about this sale that this is common practice. At the beginning of auctions like this, a price is offered, or a bid is solicited for the entire lot. If nobody bids, they go ahead with the individual lots. I've been to liquidation and estate auctions where they've done this.

Nobody stopped anybody from buying lots individually by private transaction before tax foreclosure. And nobody is prevented from buying these properties now from this gent.

Seems to be like a 'entire lot' auction is a great way to maximize revenues for the taxpayer -- while keeping adminstration costs to the taxpayer down.

Does anyone know whether the successful 'lot' bid exceeded the expected individual 'lot-by-lot' bids?

**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.

**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....