How does a delinquent tax auction work in MI?

[Cameron Weld]

Hello, I am looking at buying my first tax auction property this upcoming week. The property is located in Kalamazoo, MI. There is nothing wrong with it besides it needing updates. So I feel comfortable buying it at the right price. My question is though.... do I need to do any research about liens against the property. My understanding is the minimum bid is what is owed in taxes and then I’m responsible for the current summer taxes. If I’m wrong could someone let me know how it works? Thank you.

[Jessica A.]

Hello. In Michigan, all tax sold properties are sold clear of any liens. Only the federal government, can still hold a lien. For example, there is currently a property listed in the Kalamazoo auction that stipulates that the IRS can redeemed the property by a certain date. If this happens, you are reimbursed your funds, so you aren't just SOL. I live in K-zoo, and I can tell you be prepared to pay up. Because of the low risk and immediate possession that MIchigan offers, houses often go for way more than they should. I have bid on properties in the last several auctions, and have been significantly outbid on every one. Obviously, I am familiar with the area so I know what going prices should be. I would focus your due diligence on the neighborhood and ARV, if you are bidding from out of town. Good luck!