Thu, 25 February 2016
Property tax foreclosures in Detroit are one of the biggest burdens on the city’s housing market. Unlike mortgage foreclosures, tax foreclosures eat into the city’s revenue, erode its tax base, and ultimately end up on the city’s books if the property goes unsold at the auction. Of the 25,000 properties auctioned in last year’s tax auction, only 8000 actually sold. But more striking is the number of homes that are occupied: about 9000 properties according to Loveland Technologies, who has surveyed every parcel in Detroit. This is perhaps the most troubling aspect of Wayne County’s tax auction -that thousands of people face eviction in the months after September and October auctions. In Detroit, an eviction can take less than 6 weeks, so many of these folks will be put out by the holidays.