I’ve been looking into some other methods in purchasing propeties and know of some properites going to the sherrif’s sale. However, I cannot find much info on the specifics in Michigan. Do any of you have some insight, articles to review, words of wisdom, etc.?
Thanks for your help,
I recommend you start educating yourself on this site, and get ready for the sales which start again in July. You can buy properties in MI at these auctions for less than anywhere else in the state.
then just go to the middle of the homepage where it says…
Information and Guidelines
Before the sale
Rules of auction
Registering ON SITE
Registering for ONLINE bidding
Pre Bid Instructions
all of the info you will need to know is in these links…
That looks like a great site. I will be watching it carefully.
It is my understanding that a sherrif sale is different from a tax lien though. I know a financial institution that will be buying back the property at a Sherrif sale later this month (or atleast they will begin the bid). Some of the questions I have are:
- Is this something I can potentially buy too?
- Is there a redemption period, if so, how long and what interest can I charge (if any)
- Will the properties be free of all liens, clean title, etc.?
I think you’ll find there are different terms used for the sales depending on what part of the country you’re in.
yes, a Sheriff sale is different from a tax lien sale. However, the sales in MI are not tax lien sales, they are Tax Deed sales. These are very similar to sheriff sale, and in my opinion that are better. You are only bidding against the people in the room (or if online against the people logged in), and you are not trying to meet a certain reserve amount that may have been set by the financial institution.
The bidding in MI starts at the back taxes that are owed plus fees. The mortgages are completely wiped out. There may be some special assessments that survive the issuance of a tax deed, however in MI i doubt it. (( however you can find that info on the guidelines on the homepage of the site)
As long as you are the highest bidder you get the prop, no redemption period, no mortgages either.
Now, if you go to Texas, they call their tax deed sales Sheriff’s sales. So I always think a tax deed sale when I hear someone say sheriff’s sale (just a habit)
to answer your questions listed…
- yes, this is a property you are purchasing. no liens are sold in MI.
- No Redemption period (please double check that on the site). Even if there was a redemption period, it wouldn’t be interest that you have the ability of charging someone else, it doesn’t work like that. You may want to read a report I posted a while back (7 steps to tax sales), I think it will give you a better understanding of the process.
30 the properties will most likely not be free of liens, however they are extinguished at the time of purchase at the sale. The county is only responsible for re-cooperating the monies owed to them for outstanding taxes. Others will lose mort & liens placed against the prop…but that’s just too bad, it’s the way it goes.