I own property in Michigan,which i farm.I have been thinking about buying some real estate there as it is a depressed area and the prices there reflect that.
Currently i am looking at tax sale properties near my farm.As i live across the border in Indiana and laws are different in each county,i wonder if the same holds true for Michigan.
Am i looking at a free and clear deal here or something that should be avoided.Or is it low risk if i were to hire an attorney?
MI is tax deed state - starting bid is the back taxes plus any fees - prop. goes to the highest bidder.
A great benefit to MI tax sales is the counties have a sort of system where the sales don’t take place at the same time… there is usually a sale every week or every other week… so an investor would have the ability to be able to hit all the sales and not miss any if they were aggressively pursuing tax deed sales.
the mortgages are always completely extinguished except for New Mexico… the only thing you want to double check is what special assessments or encumbrances (( if any )) will survive the issuance of a tax deed sale… this can be found in the MI state prop tax code laws.
there is a link on REI.clubs homepage that allows you to review every states prop laws.
for MI tax sale info go this website… it is one of the most user friendly sites I have ever come across.
www.tax-sale.info
this site gives you all of the info you’ll need - in my opinion there is no need to hire an atty as long as you understand what you are searching for on the title.
on the MI website, scroll to the bottom, and you will see these options…Information and Guidelines
General Information
Before the sale
Rules of auction
Registering ON SITE
Registering for ONLINE bidding
Pre Bid Instructions
Useful Forms
Links
More FAQs…
If you have any additional questions, please post them, and myself or others will walk you through it
Good Luck!
Yes i am familiar with the site. I have been wanting to pull the trigger on my first deal,but the bubble bursting and the inability to get a loan now even with excellant credit has been frustrating.
We have obtained a HELOC recently for 70k at 3% adj.The only way we saw to get started.I am nervous using my house to float another house. I am figuring to buy the house with most of the cash i have saved and use the HELOC to do repairs.
Getting stung for additional liens is not in my plan,and is my main concern. I know what the houses in the area sell for as i dealt with my Dads estate when he passed and he lived in the area.
The house is at 20% ARV right now.
I have noticed that alot of property goes unsold at Michigan tax sales in nearby counties. I know that some of these are landlocked lots.
I am going to take a hard look at the house this week.Thanks
I would not be among those who would recommend using your homes equity to float another home. hopefully you can find a hard money lender, or some other type of loan.
Great… I wouldn’t worry too much about surviving liens, I always say the same thing to be on the side of caution.
As far as I know, in MI you are only responsible for back taxes, fees, and the amount the prop is bid up by the other bidders at the sales (you can confirm that in the MI state laws)
some of the unsold properties will be due to lack of investors in the area… if you do your research, work the right areas, and are conservative in your bidding - you can make a killing in MI!
look for deals 15,20,30 cents on dollar!