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Mystery buyer bids US$3.2m for 6,000 foreclosed Detroit homes

Posted by: In: Real Estate 27 Oct 2014 Comments: 0 Tags: , , , , , , , , , , ,
One of the foreclosed homes in the Wayne County auction

An unidentified buyer has bid up to US$3.2million for a ‘blight bundle’ of 6,000 foreclosed Detroit homes and plots, but may have to pay out another US$24million in demolition costs, it is estimated

A mystery buyer is aiming to buy more than 6,000 foreclosed homes and land plots in Detroit, USA, for up to US$3.2million – but the true cost could be much more.

The unidentified bidder has offered to buy the ‘blight bundle’ in a Wayne County auction, which averages out at about US$530 per item.

At one time, some dilapidated Detroit properties were marketed for just US$1, attracting strong interest from overseas property buyers from China and around the world. Another property was offered in exchange for an iPhone 6 a few weeks ago.

The bid for around 3,000 properties that are due to be torn down, about 2,000 empty lots and about 1,000 homes, comes in an auction by Wayne County, Detroit, reports MSN.com.

The auction ends tomorrow (Tuesday, 28 October) at 2.30pm Eastern Time, although bidding will be extended if anyone bids in the final five minutes.

The homes, which were foreclosed by the Wayne County Treasurer, for non-payment of property taxes, are all sold as-is and the winner is also required to demolish the rundown buildings within six months at an estimated cost of US$24million.

Registration for the Wayne County auction is now closed, but bidders needed to deposit US$2,000 to bid on one property or US$5,000 to bid on more than one and pay a US$35 registration fee. Unsuccessful bidders will have their deposit and registration fee refunded.

David Szymanski, Chief Deputy Treasurer of Wayne County, which is selling the dilapidated properties, says, “I can’t imagine that you are going to make money on this. The county can seize the properties when owners fall behind on paying their taxes.”

“It could be—and this is all speculation—that the people who are bidding on it are altruistic in nature.”

Detroit is aiming to further eliminate neighborhood blight and recover lost revenue from home owners who default on their mortgages.

Wayne County plans to take possession of every property that is three or more years behind in taxes and is notifying 80,000 property owners that they are on the verge of losing their homes to foreclosure due to delinquent taxes. That equals one in five properties in Detroit.

Wayne County is the most populous county in the state of Michigan, with a 2010 population of 1.8million placing it 17th in the United States.

The image, taken from the Wayne County website, shows one of the properties in the auction, 13619 Glastonbury Avenue, Detroit.

Just two week s ago, OPP Connect reported how Austrian Andreas Gindelhuber sold his dilapidated Detroit home for US$900 after originally offering to swap it for an iPhone 6. In the end, neighbour Sean Washington offered to buy the home and a German well-wisher gave Mr Gindelhuber a new iPhone 6.

By Adrian Bishop, Editor, OPP Connect
Twitter: @opp_connect

Source: OPP


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