Mystery bidder buys 6,000 foreclosures for $3 million

by 24 Oct 2014
Three million dollars will barely buy you a place in Manhattan, but in Detroit it will get you more than 6,000 foreclosed homes.  

In a Wayne County auction last week, an unidentified buyer placed a $3.2 million bid for the dilapidated homes, roughly the minimum allowable bid of $500 per property. According to David Szymanski, chief deputy treasurer of Wayne County, the bidder is not likely to turn a profit from the properties. In a Bloomberg interview, Szymanski said, “I can’t imagine that you are going to make money on this.”
 
A lot of work will have to go into the properties. The bundle includes 3,000 properties that need to be torn down, plus some 2,000 empty lots and about 1,000 homes that are believed to hold some value.

Wayne County has become one of the biggest owners of foreclosed homes since the bust. This year alone, the county has started foreclosure proceedings on 56,000 properties with about 20,000 of them headed for auction. In 2015, county officials expect to foreclose on an additional 75,000 parcels.

COMMENTS

  • by Cary M Cox | 10/24/2014 2:07:14 PM

    When all the water dries up in California, and the Southwestern United States, the buyer will make a killing.

    20% of the world's fresh water is contained in the Great Lakes.

    It may take generation, so it may be his children or grandchildren that reap the profit.

    Always buy when there is "blood in the streets".

    I am a contraian, so I think in the long run he made a great buy.

    One day a gallon of fresh water will be worth more than a gallon of gasoline, you can't live without one of them.

  • by | 10/25/2014 10:20:15 AM

    The buyer is another Chinese Army front group. The housing will be filled accordingly.

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