Select a one-word bidder name without any spaces. Provide contact information and check the box that you agree to the rules. The applicant or entity registered will be the sole purchaser.
If you are using Internet Explorer, you must use version 10.0 or higher, or use another web browser. Internet Explorer 11.0 can be used with Windows XP, Windows Vista, Windows 7, or Windows 8.
You may browse properties online for at least a week before the bidding opens. You can also see the properties in person at the scheduled Open House events.
All applicants must meet the same eligibility requirements to buy Auction homes as you must to buy Own It Now homes.
Each property will be open for sale for only one day. Bidding will be open from 9:00 a.m. until 5:00 p.m. If any bid is made within the last 5 minutes that bidding is open, the closing time will be extended by 5 minutes, and extended another 5 minutes each time a bid is made until no further bids are made. The bidding will open at $1,000.00. All bids must go up in increments of at least $100. To bid, click on the property that you want and then click on “Bid Now”. If this is your first bid you will be prompted to provide your credit card information. The amount of each bid submitted will be posted immediately on the screen, so that the public knows the current bid at all times, together with the Bidder Name of the current bidder. Bidders are encouraged to refresh their browser screen frequently to ensure that current bid amounts are reflected. The DLBA reserves the right to reject any and all bids and either remove a property from auction, or reopen bidding on it at a later date.
If you know the maximum amount that you want to bid and don't want to sit at the computer all day, you can enter an automatic bid with a preset maximum amount that is hidden on the website. The computer will then automatically enter bids for you in $100 increments only as needed to top other bidders. For example, at 10:00 a.m., you are the winning bidder at $5,000, but you need to go out. You can enter an automatic bid with a hidden maximum of $20,000. When someone else bids $5,100, the computer will automatically enter a bid from you at $5,200. The computer will only enter bids for you as necessary to keep your place as the winning bidder, up to your maximum bid price. NOTE: Be sure to double check your bid amount. Once you enter a maximum bid, it cannot be deleted!
Only MasterCard, Visa, and Discover credit cards are accepted at this time. Only one card per sale may be used. Split tenders cannot be performed.
Credit Card information will be required for all bidders upon registration. There is no authorization or charge upon registration. When you bid, the credit card will be authorized for $1,000.00 but will not be charged. If you do not have at least a $1,000 available balance on your credit card, you will not be able to place a bid.
Only winning bidders’ credit card will be charged a nonrefundable $1,000.00. If your credit card is denied for any reason, you will have until noon the next business day to process another credit card, or to provide a certified check for the $1,000.00 winning deposit. If it is not received by this deadline date, you will lose your right to purchase the property.
The required deposit is 10% of the winning bid price, or $1,000.00, whichever is greater. The deposit amount is due within three (3) days of winning the bid. If the winning bidder does not provide the balance of the 10% deposit within 3 days of winning the bid, the $1,000 that was charged to the credit card will be retained as a penalty charge, the bidder will lose the right to purchase the property, the bidder account will be deactivated, and they will not be allowed to make future auction bids.
All losing bidder credit card authorizations are immediately released by the Land Bank’s merchant account provider. However, the Bidder’s credit card issuer often will take 2-3 business days to release the $1,000 authorization. This may restrict bidders who do not have an additional $1,000 available balance from bidding until the authorization is released by the credit card issuer.
The next business day after you win a property bid, you will receive an email notifying you that you are the winning bidder. The sales and program team will review your eligibility and you will hear back within 3-5 business days.
Three to five business days after you win a property bid, you will receive an email notifying you that you are eligible along with a link that will take you to a form for inputting your purchaser information for the preparation of your Purchase Agreement. Once you have completed inputting all your purchaser information, your Purchase Agreement will be generated electronically and downloaded to your computer for printing. In addition, you will receive an invoice showing any balance of down payment due, and a Closing Tasks and Timeline. A web link will be included in the email taking you to a secure site where you can pay by credit card any remaining down payment that may be due. Winning bidders will need to sign the Purchase Agreement in front of a notary and have them notarize the document. You can do this at your bank or have it notarized at the Land Bank office if you sign in person. The signed and notarized Purchase Agreement must then be submitted along with a copy of government issued ID for all listed purchasers within three business days of the winning bid along with any unpaid deposit.
For legal entities, winning bidder must submit within 3 business days the following documents along with the items outlined above:
If you are ineligible based on the listed eligibility requirements, your deposit will be forfeited and the property will be offered to the next highest bidder.
If you are interested in viewing the property before closing, there is a $35 non-refundable fee per appointment. Three hour appointments are available 9-12pm, 11am-2pm, 1-4pm on Mondays, Wednesdays, Fridays as well as 11am-2pm and 1pm-4pm on Saturdays (depending on staff availability). Only one appointment per purchaser allowed per day. No walk-in appointments are available. Appointments are scheduled on a first come first serve basis. You must arrive within 15 minutes of your appointment time or you will need to schedule another access appointment. Any missed appointments will result in forfeiture of payment.
Locate the Purchase Agreement email you received from firstname.lastname@example.org after being deemed eligible. Toward the bottom of this email you will find a link to schedule a Pre-Closing Property Visit. Click on this link and follow the instructions to schedule your property visit. Please do not edit any information that has auto-populated. This information is required by the Detroit Land Bank for scheduling the appointment. Read the terms and conditions of the Pre-Closing Property Visit and note anyone who will be joining you at the property. All attendees will need to complete and sign a waiver at the property. Check the box if you agree to the terms and conditions and proceed with scheduling and paying for your appointment. Visa, MasterCard, and Discover are accepted.
Property taxes are determined by the City of Detroit Assessor based upon the Taxable Value at the time of sale, which will be equal to the State Equalized Value (SEV) of the property (or half the Fair Market Value of the property). More information can be found at the following links, or by calling the City of Detroit Assessor at (313) 224-3011.
Neighborhood Enterprise Zone Frequently Asked Questions:
Principal Residence Exemption Form:
Further information can be found at:
If you are not seeking lender financing for the sale or rehabilitation of the property, you will need to close on the sale no later than 30 days after the winning bid. If you are seeking lender financing for the sale or rehabilitation of the property, you must close on the sale no later than 60 days after winning the bid. The Land Bank will consider requests for closing deadline extensions on a case by case basis with documentation from the lender that all required buyer documentation has been submitted for lender review, and lender requests additional time for loan processing and a final loan decision.
If you fail to close by the deadline, you will forfeit your down payment and the property and are forbidden to bid in all future auctions. The Land Bank may offer the property to the next highest bidder, auction it again at a later date or remove it from the auction. Closings will take place at the offices of the Seller’s title company.
No. All persons that will sign the purchase agreement and other closing documents must be present in person for the closing at the offices of the Seller’s closing title company.
Buyer will be responsible for the following estimated closing costs:
Please note, that if Purchaser is obtaining lender financing, there will be additional closing costs and fees to be determined by the lender, and $500.00 to clear title if desired by buyer.
The Land Bank will issue a Quit Claim Deed as evidence of title at closing, and does not guarantee clear title to the property all properties are sold “AS IS, WHERE IS, WITH ALL FAULTS”. The Detroit Land Bank makes no warranty or representation, express or implied, or arising by operation of law, including, but not limited to, any warranty of condition, habitability, merchantability or fitness for a particular purpose, with respect to the physical condition or status of the title to this property. The Land Bank will provide a copy of a Title Search Report to the winning bidder for each property (this will be a closing cost to the Buyer). To ensure clear title, the buyer may wish to obtain title insurance at an additional cost to the Buyer, and the cost of the title search report will be credited toward the cost of the title commitment. If desired, the Buyer will need to work with the title company to resolve any identified title issues at the cost of the Buyer.
Seller will pay all outstanding water bills, liens, or delinquent property taxes at closing. Purchaser will be responsible for paying all current year real property taxes, as well as property taxes in all future years. Current year taxes will need to be paid at closing along with closing costs.
Within 30 days after closing, you must provide the Land Bank an executed copy of a contract to rehab the home. If you can demonstrate to the Land Bank you have the skills to rehab the house yourself, within 30 days after closing you must provide the Land Bank with a plan of work and receipts showing you have purchased the materials necessary. See following web link Post-Closing Frequently Asked Questions (FAQ): Many of these properties were originally built using lead-based paint, asbestos, or other hazardous materials. If available, environmental reports will be provided to winning bidders. It is recommended that homeowners seek professional advice on how to properly address hazardous materials. Within 6 months after closing (9 months for homes located in a historic district), you must provide the Land Bank with a Certificate of Occupancy, or Certificate of Approval for the house and demonstrate that the house has an occupant. If you fail to meet these deadlines, you will forfeit both your purchase price and the property, and are forbidden to bid in all future auctions.
|Required Regular Updates||Accepteable proof at each milestone|
|Agreement signed (0 days)|
|Proof Secured (15 days)||
|Rehab 30-day update||Proof of progress on property including:
These items need to be provided EACH MONTH at 30 days, 60 days, 90 days and 120 days
|Rehab 60-day Update|
|Rehab 90-day Update|
|Rehab 120-day Update|
|* Rehab 150-day Update (extension possible)||
In addition to the proof provided above provide:
If diligence shown until this point , a short extension is possible
|Certificated of Completion(180 days)||
A copy of the City of Detroit Building Codes, Ordinances and Acts can be found at the following web link: https://library.municode.com/index.aspx?clientid=10649&stateid=22&statename=michigan
You can find links to this information on the City of Detroit’s Buildings Safety Engineering and Environmental Department website at the following web link: http://www.detroitmi.gov/Government/Departments Following are web links for the following items:
Permit Application Procedures: http://www.detroitmi.gov/How-Do-I/Apply-for-Permits
Building Permit Requirements: http://www.detroitmi.gov/How-Do-I/Construction-Permit-Information
Zoning Information: http://www.detroitmi.gov/How-Do-I/Apply-for-Permits/Zoning-Permit-Information
Requirements and Process for obtaining a Certificate of Occupancy: http://www.detroitmi.gov/Portals/0/docs/Permits/BSEED/Construction/Certificate%20of%20Occupancy%20Process%20-%20Plan%20Review%20-%20NEW.pdf
Lender financing information can be found at http://buildingdetroit.org/Financing
Any eligible bidder can purchase only one property until they have successfully closed on one home, completed the rehabilitation, submitted a copy of the Certificate of Occupancy, or Certificate of Approval, (and proof of rental registration for rental properties), and submitted evidence that the property is occupied within the required 6 months (or 9-month period for homes located in historic districts).
Any eligible bidder can purchase one property per month once it has brought the first property up to code and has it occupied within 6 months (9 months for homes located in a historic district). Buyers will not be able to purchase any further properties if any property that was previously purchased is not in compliance with all requirements outlined in the purchase agreement.
Please note, that this rule limiting the amount of properties that can be purchased may come into effect before the 6 month (9 month) deadline for any property that is purchased and not in compliance as determined by the DLBA. This rule shall also apply to all bidders that have won previous auction bids and have not completed the rehabilitation of at least one property and have it occupied within the required time period.