Michigan to Hold Tax Auction on Foreclosed Properties

The Michigan Department of Treasury will be offering 385 state-owned properties for public auction on August 14th at the Ramada Inn in Grayling. These parcels include homes as well as vacant residential and commercial lots. Any registered person may bid on the properties being offered. Parcels are sold to the highest verbal bid accepted at the auction. Minimum bids for some of these parcels begin as low as $450.

Property tax foreclosures were established in Michigan under the General Property Tax Act (Act 206 of 1893). This bill states that property is subject of sale or forfeiture as a result of delinquent property tax. Properties are forfeited to the county treasurer for unpaid taxes in the second year of delinquency. If taxes remain unpaid for three years, these properties are then foreclosed upon by the state. The previous owners lose all rights to the property during the foreclosure process. The only liens that survive foreclosure are those filed by governmental agencies in relation to the environmental protection act. Records of visible easements, deeds, right of ways, and environmental restrictions also survive the foreclosure.

Michigan is offering parcels based solely on their legal description; some of which may be subject to flooding. These properties are sold in “as is” condition. It is the responsibility of the prospective purchaser to do their own research. Therefore, it would be wise to thoroughly investigate any of the properties you may be interesting in purchasing. Successful bidders at the sale will be issued a receipt for their purchases upon payment. Special assessments through last year are included in the minimum bids. You should contact the appropriate municipal office to determine if there are any outstanding bonded assessments for future tax years. Deeds are executed within 30 days and forwarded to the purchaser after being recorded at the county register of deeds offices.

The properties being offered are the upcoming auction are located in the Upper Peninsula and Northern Lower regions of Michigan and include Keweenaw, Luce, Dickinson, Iron, Kalkaska, Iosco, and Mecosta counties. Bidder registration starts at 9 am and the auction will begin one hour later. Payment for parcels totaling $1,000 or less can be made by cash and cashier’s checks. Purchases totaling more than $1,000 must be made by cashier’s check. Any parcel not sold at this auction will be offered again at a no minimum bid auction in November.

The full list of available properties, answers to frequently asked questions, auction rules, and a bidder registration form can be found at the Michigan Department of Treasury website. Be sure to print a copy of the auction listings and bring it with you, as these listings will not be provided at the auction. Subdivision plat maps for the entire State of Michigan are available from the Department of Energy, Labor and Economic Growth website.

It is unfortunate that with the struggling economy, foreclosures have become an increasing problem for many home owners across the country. On the bright side, however, tax foreclosure auctions and other distressed property sales allow many people to purchase properties at just a fraction of the original cost. Whether you are seeking to buy a home for the very first time or are looking to make an investment, it is a great time to purchase a property at an extremely low price. You can find listings and information about foreclosures, tax liens sales, and Sheriff’s sales at the Free Public Records Directory, Foreclosures and Tax Lien Sale Records Resources category page. There, you can easily search for information and property listings by state and county. Additionally, you can also find a number of national resources there as well, such as Fannie Mae and USDA properties for sale.

The Free Public Records Directory also provides access to a number of different public records such as birth records, marriage records, bar associations, maps, warrants, professional licenses, and more. Information can be found on the national, state, county and local levels.

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