Real Estate Investor · Clinton Township, MI · Member since 2011 · 33 posts · 4 votes
Hello, has anyone ever worked with Detroit Land Bank deed restrictions? The owner says that its a 3 year restriction, I've heard of landlords renting them out until the time is over but has anyone worked around a sale?
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
7y
I'd be very careful. Detroit bureaucracy is still a mess of red tape and poor record keeping (and possibly corruption).
I have a friend who bought a house in Brush Park, back when you could buy them for almost nothing. He spent years trying to buy the abandoned lot next door. He would take days off of work so he could talk to various people at the city trying to understand the process for buying it. After 4 or 5 years of doing this he confirmed that the only way to buy it was at auction and he was on a list to be notified when that happened. Not much later, he learned the city had sold it to some developer that was going to build condos ther. Then he got a foreclosure notice because his neighbor across the street didn't pay the taxes on the property across the street. That took 6 months to straighten out.
After all that mess, they decided to abandon their plans to live in the city. They sold last year and moved out of state.
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
7y
I'd be very careful. Detroit bureaucracy is still a mess of red tape and poor record keeping (and possibly corruption).
I have a friend who bought a house in Brush Park, back when you could buy them for almost nothing. He spent years trying to buy the abandoned lot next door. He would take days off of work so he could talk to various people at the city trying to understand the process for buying it. After 4 or 5 years of doing this he confirmed that the only way to buy it was at auction and he was on a list to be notified when that happened. Not much later, he learned the city had sold it to some developer that was going to build condos ther. Then he got a foreclosure notice because his neighbor across the street didn't pay the taxes on the property across the street. That took 6 months to straighten out.
After all that mess, they decided to abandon their plans to live in the city. They sold last year and moved out of state.
Rental Property Investor · Sterling Heights, MI · Member since 2018 · 13 posts · 11 votes
7y
@Jivonna B. Hello not sure if this has been answered or not. This rule only applies if a discount has been used to purchase the property. I don't believe there is a work around as it is recorded with the Wayne County Register of Deed's and is actively monitored when searching title. They charge 75% for a sale within the 1st year and the percentage reduces as time goes by. So only way around that is to not use a discount. If they didn't I believe they are misinformed and should call the Detroit Land Bank as this does not apply to all of their properties. Hope this helps!
Rental Property Investor · Sterling Heights, MI · Member since 2018 · 13 posts · 11 votes
7y
@Jivonna B. The discount is for City of Detroit worker's and their families (Emergency Responder's, Educators, Library Dept., ETC). They provide 50% off the sale.