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Foreclosed Property Auction Returns This Fall: What to Know

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At present as many as 18,910 Detroit properties could end up in the 2013 Wayne County Tax Foreclosure Auction for racking up three (or more) years of unpaid property tax bills. Crain's Detroit is reporting that this year is going to be an experiment with property bundling, with multiple properties sold as package deals. And while the official start dates of the next auction are not yet posted via the Wayne County Treasurer's page, multiple sources say that bidding will start again in September. Adding another level of broke ass-ness to the whole deal this year is the fact that the company that will run this year's auction filed for Chapter 11 bankruptcy this month. But we're told that this won't effect Realauction's ability to get the job done.

Right now the city is on a phase that leads up to the foreclosure action called "right of refusal." That means that the city has the opportunity to buy properties that are headed to auction for the amount owed in back taxes. This is followed by one more window of opportunity for preventing foreclosure. Then its up on the action block. As for the number of bundled properties, the treasurer's office says it could be as low as 400 or as high as more than 1,000.

Want to buy something this year? Heres what you need to know:

1. There are two round of bidding. In the first, properties are auctioned for the total amount of back taxes owed. In the second round, the opening bid on all properties is $500.

2. These are likely going to be the dates, but stay tuned for updates:
Round one: Property information is released, and registration begins on August 20th and runs through September 13th. Bidding begins September 4th.

Second round registration runs September 30th - October 11th. Bidding begins October 8th.

3. There are registration fees to bid, so it will cost you $535 for one property, $5,035 for multiple properties.

4. Bids will be incremental this year. One significant difference for 2013 is that you cannot bid beyond the $100 bid increment (i.e., see a property at $5,000 and "jump bid" to $15,000). You can still set your maximum bid.

5. To recap last year, 20,041 Detroit properties went to auction. 703 properties sold in the first round, and about 11,831 sold in the second (county wide). 7,920 Detroit properties did not sell even for a minimum bid of $500.

6. The count will not be final until the Wayne County treasurer releases this list, but right now Why Don't We Own This reports that 18,910 Detroit properties are foreclosed and headed to foreclosure. There are 11,502 properties that will be conditionally withheld from foreclosure so long as they continue to make payments towards their payment plan. And it seems that 3,524 properties previously at risk of foreclosure have escaped auction fate, and are no longer at risk.
· 2013 Auction Info Map [WDWOT]
· Your 2013 Wayne County Tax Foreclosure Auction [WDWOT blog]