A growing number of Detroit property owners are using a secret ambiguity (but a well know secret) to expunge tax debt by letting their investment properties go into foreclosure and buying them back at the auction Wayne County Treasure has at the end of the month regroupement de crédit immobilier. Even though this process is legal, many believe it's unfair.
It has been predicted that Detroit will see close to 14,300 properties auctioned fall of 2011, creating an avenue for more owners to buy back their properties. The opening bid starts at $500, and most don't auction for more than that because so many are up for sale. This eliminates nearly 1.8 million in taxes.
So before I go further, let me explain how this process works: For example, if you own 4 properties (this is a random number I just chose) that you have not paid taxes on in years. Because of this, your properties will go into foreclosure from the back taxes owed. And let say the back taxes in total are around $74,000 ($18,000 per property). You could then let your properties go into foreclosure and let the Wayne County Treasures Department take possession of them. Next, they will put all 4 up for auction. This is when you the owner will be able to buy them all back for the auction price. And from that point forward you will own your properties again.
For the Detroit natives that are financially challenged this has been a dream come true. No one wants to walk away from a home that not only have they invested in but; raised generation after generation of Detroiters that still believe in the power of the city. Those same individuals decided to stay and invest in the city after many opt to leave. Recently, I've interviewed several Detroiters that chose to let their homes go into foreclosure in hopes to repurchase it right back. The connecting trend points to the fact that most homeowners know that the value of their home isn't worth the mortgage payment of $700-$1,000 that they agreed to pay years ago. But yet, they still don't want to walk away without somewhat of a fight. By letting the properties go into foreclosure and purchasing them back creates financial freedom.
Now on the other hand, some Detroit natives feel that this is a horrible idea because they managed to pay their taxes regardless of how bad the recession has hit the city. And this only creates more debt for the city which is in dire need of rejuvenating. One can understand the threat of this composing on Detroit, however if this option did not become available to the Detroit homeowners, tens of thousands of homes would be vacant rachat de crédit. And Detroit as we know it could have ended up as a ghost town.
Milan Ramsey is a Real Estate Investor Expert that specializes in Investment Properties, Rehabbing, Property Management, and Section 8. Her company Jetsetters Investment Properties has national, international, & celebrity investors clientele.
Home address: 7501 Windomere Ct2021 Taxable Value: $415,370Recent Sales Price: $260,000 – Over-taxed by 60%Half or more of Texas homeowners are paying more than their fair share of property taxes.
Appraisal districts are flexible on market value appeals given the large number of houses they value and that are protested.
Winning a property tax protest is easy.
Getting property owners to appeal is hard.
Only 10% of Texan home owners appeal their property taxes.Some homeowners do not appeal property taxes because they are not aware of this right.
You can and should protest both market value and unequal appraisal annually.
