Wayne County Tax Auction

15 Replies

I just read the initial listing of some properties on the Wayne County Tax Auction list...It says you need $3K to register...

Do you just show up pay the taxes and you get the house? Whats the process of how it works?  Because there appear to be some great deals outside of the the City in Western Wayne County...

Do you have to be the highest bidder on the first go-around? or do you have to pay the taxes and you get the property?

I understand the October sale starts at $500 per property, so thats a straight out auction.

Both the September auction and the October auctions are straight up "auctions". The September auction starts at whatever the outstanding taxes are and the October auction is for properties that do not get sold in the September auction.  

I have not participated before, but I have done a lot(a lot) of research this year. If you want to meet for coffee one day and talk, I would be happy to. Are there any specific areas that you are looking for?

@Christian Hutchinson

Please do your research on receiving a clear title once you've won the bid. I've learned the hard way that a lot of the liens on the property carries over to the new owner minus the water. I've purchased a few this year and tried to sell them just to find out I have title issues.

But don't let that scare you away there's excellent tax auction deals out here some you just have to do a little more leg work on to make it work.

Good luck..

Generally the auction in October does not have any liens or back taxes on the properties.
Originally posted by @Muhammad Abdullah :

@Christian Hutchinson

Please do your research on receiving a clear title once you've won the bid. I've learned the hard way that a lot of the liens on the property carries over to the new owner minus the water. I've purchased a few this year and tried to sell them just to find out I have title issues.

But don't let that scare you away there's excellent tax auction deals out here some you just have to do a little more leg work on to make it work.

Good luck..

 Point of clarification: perhaps you mean "...Do your research before the auction in order to know what happens..."

Everyone who takes action will get an education. Only those with such a low tolerance for risk and remain motionless, stuck in fear and doubt, will never benefit from the lessons.

I'll bet you'd never trade that education for an e-book, would you?

@Rick Harmon

Well put Rick. There's nothing like good old experience and there's another tax auction coming up at the end of the month which I'll happily be purchasing 10 or more...

Originally posted by @Muhammad Abdullah :

@Christian Hutchinson

Please do your research on receiving a clear title once you've won the bid. I've learned the hard way that a lot of the liens on the property carries over to the new owner minus the water. I've purchased a few this year and tried to sell them just to find out I have title issues.

But don't let that scare you away there's excellent tax auction deals out here some you just have to do a little more leg work on to make it work.

Good luck..

 You purchased at tax auction and there were liens? As far as I can tell, the only lien that may stick is an IRS lien and that only sticks for a short time(90 days?). Maybe all areas are different though. My research is specifically for Wayne County. Also the only part of the water bill that follows is what was accrued from the date of foreclosure until the home was sold.

@Joshua Woolls There are two ways to test your knowledge:

1) Your research

2) Your checkbook.

If you fail to do the first thoroughly, you will surely have an opportunity to do the second.

Originally posted by @Rick H. There are two ways to test your knowledge:

1) Your research

2) Your checkbook.

If you fail to do the first thoroughly, you will surely have an opportunity to do the second.

Very true. Even with loads of research I would be lying if I said it did not hit my checkbook occasionally though. It's all good though.

Originally posted by @Christian Hutchinson :

 Christian and others, is the online list of properties an up-to-date list of what will end up being offered during the auction?  

I'd be careful with the auction. I've been in the last three auctions. The last couple years there have been big players buying up all the good houses. Last year most houses were severely overpaid on as well. These are definitely risky as you aren't supposed to look inside and sometimes have no real idea of what is really going on. I've seen houses get bought for 30K/40K (outside of Detroit proper) and then sold later for half that price as the person who bought it had no clue what they were getting into. Most of these houses are the worst of the worst, so prepare for that.

If you are out of state don't even try it. You need to physically go to each house you are interested in and look it over as best as you can. I've looked at hundreds of auction houses over the last few years and I've only gotten 3 properties (two of which I later got rid of for a small ~500 loss). I've probably spent 100 hours on researching and visiting the houses over the last three years.

One of the houses I bought I literally had to redo the entire floor on one side of the house. Joists and subfloor. There was major water damage. Even with that, I still made a great profit off of it.

With that being said, I still love the auction and you can find great deals. Just make sure you do your due diligence and realize that some of these houses have major issues that aren't exactly noticeable at first.

If I do buy multiple houses during the auction. How do I get insurance? Do I need to get insurance before I receive the title?

Hi - I'm new to BP and buying property. I'm interested in buying a house in the tax auction and checked out some properties last weekend. Because this is all very new to me, I was hoping to reach out to the BP community to confirm the website for the auction - www.waynecountytreasurermi.com - I'm not from Detroit, or Michigan, and am a little thrown off by the ".com" nature of a government website.

I know this probably seems like a newbie question - but I'd like to confirm I'm registering 10k in the right place !

Well I purchased 2 properties, and hope to get few more at next months auction.  Does anyone know if i'll have to pay another deposit?  From what I read if i didn't win my 10k deposit would roll over to the October auction but since I did win will I need a new deposit?

Originally posted by @Gerald R. :

Well I purchased 2 properties, and hope to get few more at next months auction.  Does anyone know if i'll have to pay another deposit?  From what I read if i didn't win my 10k deposit would roll over to the October auction but since I did win will I need a new deposit?

 I believe you are correct. If you used your deposit for the September auction, you will need to put up another deposit for the October one.

Originally posted by @Anne McQueen :

Hi - I'm new to BP and buying property. I'm interested in buying a house in the tax auction and checked out some properties last weekend. Because this is all very new to me, I was hoping to reach out to the BP community to confirm the website for the auction - www.waynecountytreasurermi.com - I'm not from Detroit, or Michigan, and am a little thrown off by the ".com" nature of a government website.

I know this probably seems like a newbie question - but I'd like to confirm I'm registering 10k in the right place !

Well, it is a little late now, but that is the correct place.

How did the auction go for you?

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