Got a Michigan Tax Sale question.
I am not an expert in this area - is MI a tax lien or deed state? If we are the winning bid at auction do I still have to foreclose on the owner to gain full ownership? What are 2 drawbacks in buying a property this way?
This is on a commercial property. Thanks in advance.
When you say winning bid at auction, what do you mean exactly? A foreclosure auction administered by the county for non payment of taxes?
I mean that we pay what the going bid is at the time when the gavel falls and they say SOLD! Yes this is a tax sale foreclosure process that is administered by the county.
Great question. Thanks
Your best bet is to talk to a title company, and ask them what they would need to issue a title insurance policy.
What they will likely tell you is that after foreclosure, you’re going to have to hire an attorney, file a quiet title lawsuit and win the suit to establish insurable title.
Thanks for sharing that information. Don’t have to worry we were not the winning bid. I would love to chat with whomever won and follow their progress on it. If it works out that is a steal of a price.
If it was a steal of a deal why did you not go higher? We have bought parks at auctions without any proof of a P&L but was aware of the value of land and prior to auction had set a top price we were willing to pay. Never decide you top price you are willing to pay during the bidding time. Going to a title company before the sale can be very helpful since you want in the end a clear title and their information for different states is critical.