We've mentioned this loophole before: homeowners that have had their homes foreclosed on are not legally prohibited from buying back their own homes with the debt erased in the Wayne County Foreclosure auction. What we have just learned about the fall auction was that 400 properties appeared to sell back to the original owners. This may have erased up to $4.7 million in property taxes and liens. "Unfortunately, some laws have loopholes, and in this case results in others exploiting matters for their personal advantage at the expense of responsible taxpayers and the city," Kirk Lewis, Bing's chief of staff, said in a statement." Legislative remedies must address and prevent the myriad of ways these property owners can scam the system for their personal gain." One man in Clinton Township bought back 34 of his foreclosed properties at auction. [The Detroit News]
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