Detroit debuts the new house auction site.

**brizee** · January-07-15, 01:14 PM

Uh oh.

Looks like the website just got a little shittier.

http://auctions.buildingdetroit.org/Faq

http://auctions.buildingdetroit.org/TheRules

From what I gather you no longer have a guaranty of a clean claim to auctioned off properties.

And it also seems you need to pay to view the properties instead of open houses.

It also seems to be an unannounced portion of the website.

http://auctions.buildingdetroit.org/BuyNow/Home

Looks like you can buy some properties straight up no auction, but again there might be water bills or liens or other BS attached to it.

This is all just digging on my part and nothing is confirmed but it sure seems like a good idea taking a slight turn for the worse.

**animatedmartian** · January-07-15, 01:56 PM

Or maybe that the initial hype has died down. Once all the historic properties got gobbled up, the rest of the auctions have been mostly sub-$10,000 sales. No point in having opening houses if few if any people show up.

**Shai_Hulud** · January-07-15, 02:06 PM

First assumption is that they have closed down the open houses for the winter. Remember, these were unoccupied houses they were paying two or three people to sit around in for four or five hours. That probably wouldn't fly in January.

If they have permanently stopped the open house, that kind of sucks, but it will also cut down on lookey-loos and probably garbage bids.

Buy now function is interesting, looks like they are offering the worst houses on there.

**ABetterDetroit** · January-08-15, 08:44 PM

Open houses in January are pretty unusual anywhere in this metro area. No worries April is only a few months away!

**Hypestyles** · January-08-15, 08:57 PM

more neighborhoods need to be marketed on the website.
and how are the more reckless speculators kept at bay? is it contractually required to bring the houses up to code and keep them that way?

**brizee** · January-11-15, 12:24 PM

They continue to refine the website.

It now shows which auctions/locations have been completed [[which I'm assuming means paidin full and not completely renovated).

It also shows the full name of the buyer/corporation and not just the nickname. I guess they weren't joking about transperency. It's actually one of the best government websites I've ever seen.

As of last night 88 have been completed. Some of them in neighborhoods I wasn't expecting. It's not the 150-200 that have been auctioned, and some were purchased by corporations and I'm sure some were already in the city of Detroit, but that's 88 less blighted/demolitions and it's a win to me. [[I've seen at least 5 being done around/adjacent to where I'm staying).

IN an interview last December the Mayor mentioned they'll be looking into bumping it to 3 or 4 houses a day "soon". He might also look at incentives for CoD employees.

Tangentially related, but during his campaign he mentioned abandoned homes and business/store fronts in the same breath. I wonder when he's going to get the store front program up and running.

**enio** · January-25-15, 12:28 PM

The article can be found here:

http://www.detroitnews.com/story/new...tion/22202417/

I doubt this is news to anyone on this board. Only 138 completed sales for all of 2014. The auction program hasn't faltered, it's a disaster.

The houses offered at auction require so much work, that the labor and expense necessary to make them habitable can't be justified. Prospective repairs of a house in a decaying neighborhood, with nearby homes either tax-distressed or in foreclosure, won't increase appraisal values enough to justify any type of loan.

As the News article further states:

"Part of the problem rests with the appraisal process, since comparisons are being based on homes sold nearby, often times at values that are disproportionate. That, Fahle said, is the primary reason that some deals have fallen through". . .

"In 2014, there were 10,000 recorded residential purchases in Detroit. Of those, only 462 were bought with a traditional mortgage. The rest, Fahle said, were cash purchases."

If Duggan and the council are serious about making land-bank auctions a success, the properties offered can't be a week ahead of demolition. The city will also have to make financing far easier to obtain.

However, I'm in favor another solution in this cash-poor city. Make it possible for the current occupants to stay in homes facing tax foreclosure. The last thing the city needs is another 25,000 vacant and decaying homes. The only beneficiaries in this case will be the scrappers and the wrecking companies.

**ABetterDetroit** · January-25-15, 01:17 PM

Originally Posted by enio

The article can be found here:

http://www.detroitnews.com/story/new...tion/22202417/

"In 2014, there were 10,000 recorded residential purchases in Detroit. Of those, only 462 were bought with a traditional mortgage. The rest, Fahle said, were cash purchases.".

10,000 sales in 2014 is damn good news. This program has certainly brought a lot of publicity to the deals that can be had if someone has the inclination, that's a great benefit. The city is not a bank nor should it ever be, to get more financing available will take time. 10,000 sales on residential property in one year is a huge move in the right direction to getting more finance options.

**animatedmartian** · January-25-15, 12:43 PM

To call it a disaster is missing the whole point of the program. The goal was to stabilize neighborhoods by getting city-owned homes occupied. Any number of sales is pretty much a success.

The policy allows the land bank to seize properties if new owners don't hold up their end of the deal.Fahle says the deadline for completing repairs hasn't elapsed yet for any of the properties.

The land bank has a three-member team working on with homeowners on compliance, to let them know what is needed. There has been an 89 percent compliance rate each step of the way.

"For the most part, people are working hard to get this done," Fahle said. "They are excited about it."

The sales that have gone through people seem to be actually making progress on getting the homes occupied.

The financing side of things does slow the overall process down, but it hasn't derailed it. Duggan knew there was financial issues even before the program was launched, but that shouldn't and hasn't stopped people from making an attempt to buy these homes.

**brizee** · January-25-15, 01:09 PM

A singular occupied home instead of a vacant/teardown is a succes to me.

In the neighborhood[[s) immediately adjacent to me several homes have been occupied, several more have visible work going on, and several more are paid in full.

**Bucket** · January-25-15, 07:37 PM

Originally Posted by brizee

A singular occupied home instead of a vacant/teardown is a succes to me.

In the neighborhood[[s) immediately adjacent to me several homes have been occupied, several more have visible work going on, and several more are paid in full.

^^^This. Couldn't agree more.

**DetroiterOnTheWestCoast** · January-26-15, 01:18 AM

I'd say the auctions have been a bit disappointing, because so few of the sales have actually closed. That being said, the alternative [[not having the program) is much worse, as few if any of the rehabbed houses would have been fixed up. A glass a third full is better than an empty glass. I hope they can work out some better financing options, and continue to improve the process.

**ABetterDetroit** · January-27-15, 12:17 AM

Originally Posted by DetroiterOnTheWestCoast

I'd say the auctions have been a bit disappointing, because so few of the sales have actually closed. That being said, the alternative [[not having the program) is much worse, as few if any of the rehabbed houses would have been fixed up. A glass a third full is better than an empty glass. I hope they can work out some better financing options, and continue to improve the process.

I agre, you have to start somewhere then try to iron out the kinks.

**Shai_Hulud** · February-02-15, 02:40 PM

Open houses are back this weekend. I'm surprised they're back in the dead of winter, but they will need all the traffic they can get to move those on the East Side.

**DetroiterOnTheWestCoast** · April-18-15, 01:10 PM

A boatload of Boston-Edison properties have been posted on the auction website. There are 19 open houses on April 25; a number of these were auctioned off before.

**Shai_Hulud** · April-18-15, 10:24 PM

Originally Posted by DetroiterOnTheWestCoast

A boatload of Boston-Edison properties have been posted on the auction website. There are 19 open houses on April 25; a number of these were auctioned off before.

I've walked through most of those. They are in very rough shape and easily $200k projects. I would love to save one, or all of them, but it's beyond my means.

It's also very sad to walk through the neighborhood and realize how many houses are empty or in poor condition. Two of those houses on this round are next to each other, and on Boston.

**DetroiterOnTheWestCoast** · April-18-15, 10:42 PM

Originally Posted by Shai_Hulud

I've walked through most of those. They are in very rough shape and easily $200k projects. I would love to save one, or all of them, but it's beyond my means.

It's also very sad to walk through the neighborhood and realize how many houses are empty or in poor condition. Two of those houses on this round are next to each other, and on Boston.

That might seem like a lot, but from my perch out here in CA, I am amazed at how inexpensive renovations in Detroit are. I actually have a friend who is spending $50,000 for a custom deck in San Francisco.

I love the solarium in 1474 Boston, but the house is alongside the Lodge. That solarium would be spectacular fully restored. 2224 Boston has a nice solarium as well....

**DetroiterOnTheWestCoast** · April-20-15, 02:32 PM

There is a new mortgage program that might help financing on the land bank houses.

http://www.freep.com/story/news/loca...help/25885313/

One thing that impresses me about the Duggan administration is how they keep tweaking things; there have been obvious problems with the land bank auctions but they keep making adjustments and improvements. Hopefully, getting easier financing will get more of these houses fixed up and occupied.

**Detroitdave** · April-20-15, 04:48 PM

I've lived in LA and southern California most of my life and these rehabs are still cheap anywhere else in the country , however dealing with the current residents and what they are use to , this is a WHOLE NEW GAME . This ain't the wayne country auction folks.
It is sticker shock to people from here , but to folks from out of town that win it's not that big of a deal. It's just the actual cost of having a home.
Having and owning a nice home ain't cheap folks .
Someone once said , " not everyone can own a home". you can't just move in and think well that's it.

**animatedmartian** · June-08-15, 10:21 PM

Duggan is offering special mortgages for city employees.

The program will be through Flagstar Bank, and city employees must purchase a home in Detroit through the Detroit Land Bank auction. The good news is that homes should be more affordable than ever.
In March, Duggan announced a 50 percent discount on Land Bank homes for city workers, retirees, and their immediate family members. The incentive seems to be working.
44 homes, about 22 percent of the total, have been sold to qualifying bidders as part of the employee discount program.

...

Loans will be written for up to 300 percent of a home’s loan to value ratio
Renovation funding is included in the mortgage
City employees are eligible for a 50 percent discount on final bid on Detroit Land Bank Auctions
The mortgage is 15 year fixed rate

http://www.dailydetroit.com/2015/06/...e-opportunity/

**DetroiterOnTheWestCoast** · November-24-15, 06:36 PM

This is not a part of the auctions but is a new venture between the Land Bank and the AFL-CIO. The Land Bank will transfer up to 300 homes to an AFL-CIO trust, which will rehab and sell them. Nice to see that apprenticeships will be involved.

http://www.freep.com/story/news/loca...omes/76264678/

**Richard** · November-24-15, 06:41 PM

That seems like a really good program,and allows for hands on experience in the skills training.

**Shai_Hulud** · December-21-15, 03:53 PM

Found this while browsing Trulia.

http://www.trulia.com/property/32201...-48202#photo-1
http://auctions.buildingdetroit.org/...-E-Boston-Blvd

This property was auctioned off by the Land Bank in January of this year and the final bid was $9,500.

Judging from the pictures, some work has been done. and it's now it's for sale at $65,900. Not sure how this could be anything other than against the rules as the house is clearly not fit for occupancy, and the 9 months to renovate have passed. So the Land Bank should have took possession of the house again.

This could be a flip, or someone in over their head trying to get out as the house needed a good bit of work and looks like most of what was done is superficial. Or maybe it's truly shady and intending to sell the property to them without letting them know the Land Bank will be involved.

In any case, I was a big supporter of this program but it looks like many of the purchases are investors sitting on property or inexperienced buyers who may or may not be able to hack it and the Land Bank does not have any real follow up for either one. It's somewhat disappointing.