All Forum Posts by: Cierra Seay

Michigan landlords and investors should be happy with these new statutes. This will effect foreclosure and auction property sales now that it's easier to get people out.

Michigan recently passed three new statutes specifically addressing squatting and trespassing. They will take effect on September 24, 2014. Here is what it means:

1. HB 5069/PA 223 amends the revised judicature act to allow a landlord to use force (but not including assault) and self-help when recovering possession of premises from a person who came into possession by trespass (squatting).
Translation: Previously, an eviction action had to be filed to remove all occupants even if they did not have a valid lease. Now, for occupants who are there illegally or as a result of trespassing the landlord can use "self-help" to remove the sqautters. (This does not apply to residents that had a lease that has expired). This allows the landlord to change the locks and remove stuff belonging to the residents. Physically removing a person is not allowed as that is technically assault. However, combined with the other new laws that make squatting a crime, you could have a squatter arrested by the police.

2. HB 5070/PA 224 makes squatting in a single family house or a duplex a misdemeanor for the first offense, with a $5,000 maximum fine and 180 day maximum sentence; and a felony for second and subsequent offenses, with a $10,000 maximum fine and a 2 year maximum sentence.
Translation: This is a new law. Squatting was not a crime before, other than trespassing, and in fact, Michigan also has a law allowing adverse possession, otherwise known as "squatters rights." Previously the real owner had to file charges for trespassing.

3. HB 5071/PA 225 identifies the felony for second and subsequent squatting offenses as a class G felony with a 2 year maximum sentence.
Translation:A legal expert at the city explains that that this law is tougher, but not to expect many more convictions. "For the most part most squatters are doing it because they need to. However, I think it will make it much easier for property owners to take over foreclosures and auction properties if they don't have to proceed through the whole eviction process for every new property they acquire."

@Dan Gheesling

Let me know if you need any help with the site at all.  It's a great idea and I think it will help with the apprehensiveness. I grew up in the city and I'm very familiar with what's going on. 

@Jonathan Pliszka 

 Over the past 4-5 years all 3 automotive companies have been on a hiring spree hiring thousands of blue collar and white collar workers since the industry is back on an upswing. Dan Gilbert and Quicken Loans also employ thousands of people and Blue Cross Blue Shield is another huge employer. The one thing colleges are doing to keep the population is scholarship incentives for people who take jobs in the city. I just met with an investor who's originally not from the area went to college in upper Michigan but came here for a job with an ad firm who does marketing for Ford based on a scholarship incentive. This young man is living in the University District in Detroit has never had any problems and we just put in offer in on his first investment property in Detroit. 

@Mike H. 

The new mayor is attacking the inflated tax assessment problem. 

http://archive.freep.com/article/20140127/NEWS01/301270081/Duggan-property-tax-assessments

I hate to see that members of BP have been scammed by real estate scam artist in Detroit because it gives the honest hard working people in the area a bad name. With that being said sometimes you just have to see for yourself. I recently met with a BP member that was here from California and he said it was nothing like the way the media portrayed it and me and him are working on getting him some properties in the area. For every bad post about Detroit there's probably 3 good ones about it's surrounding areas as well as some good areas in the actual city.

@JOAN DICKIE  I've heard of Mojo I will look into landvoice. Thanks so much ! 

@David Hunter

great advice thanks a lot !

@Bill Gulley  thanks for the insight it's much appreciated !

@Ryan Dossey 

that was going to be my next question how do you determine how far to push out closing and things before you find the buyer ? I'm sure most wholesalers already have a buyer in mind when putting under contract but for someone who doesn't what rule of thumb would you use ? Or do most people offer a 30 day close and just speed things up after they find the buyer ? 

@Ryan Dossey

Thanks for the insight. I'm getting a bunch of different answers off the forum in my inbox and everyone's reasoning makes sense. Do you wholesale at all ?

@Shawn Mcenteer

Thanks so much !

@Jim B.  thank you for that I had no idea so how does that work for people who put flyers in doors ? Or is that okay because it's not the mailbox ?

@Carlos Coppin Jr 

Thanks good luck to you as well.