Saturday
August 30, 2014

Detroit Auctions Vacant Homes for $1K Apiece

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Detroit Auctions Vacant Homes for $1K Apiece

The city of Detroit launched a website this week to auction off vacant homes seized in tax foreclosures. There are 15 homes up for grabs right now, and one will be auctioned off each day starting May 5. The starting bid for each home is $1,000, and the city is requiring any winning bidder to rehabilitate the home within 30 days of possession and have it occupied within six months, CNNMoney reports.

BuildingDetroit.org is the latest move by Detroit officials in trying to fight the city’s blight stemming from the housing crisis. And they're serious: If winning bidders are unable to meet the terms of the auction, they stand to lose the house and their money.

"We are moving aggressively to take these abandoned homes and get families living in them again," says Detroit Mayor Mike Duggan. "Knowing that other people are going to be buying and fixing up the other vacant homes at the same time will make it a lot easier for them to make that commitment."

The city owns 16,000 vacant homes from tax lien foreclosures. These are homes that were seized after owners did not pay their property taxes or other municipal fees.

Source: “Detroit to Auction Vacant Homes Online. Starting Bid: $1,000,” CNNMoney (April 14, 2014)

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