Newsflash: Going to bid on Tax Foreclosure House two doors down from us and concerned about Owner-Occupancy Covenant in Michigan

So one of our neighbors passed away from age related illness and complications. After the county came in and removed everything from the house (he was a hoarder), they listed it in the upcoming County Tax Foreclosure Auction this month, as there was around $10,000 owed in property taxes. We are jumping at the chance to bid on this house, as it would be ideal for my father-in-law to be 2 doors down from my nurse wife and I after he leaves the independent living facility out of state he’s been at while recovering from an illness (his house in Michigan is 2 hours away in an area hard hit by snow every year). While getting our ducks in a row before we seek a lender for a loan, I noticed that this house is being auctioned off with an Owner-Occupancy Covenant. As best as I can tell, that means essentially we cannot enter into an agreement with a third party to rent the house as an income property. Does anyone have any insight or experience with this? The monthly payment of this property will end up being so low (even with a higher winning bid price) that we wouldn’t need to charge rent to her dad, and we would be using it as an extension of our home, so that we can provide extra care for him if needed. I’m concerned that us living so close and registered with the county as owning our home so close to this one may cause a snag. Any thoughts anyone? And for bonus points, any advise when bidding at a tax foreclosure auction, or seeking a loan for a second property while already carrying one mortgage for our home? Financially, everything is looking good, since we got our home on a short sale after the crash; double income, no kids/dependants, super low house payment to begin with, and already own over 20% equity in our home (No PMI). Thanks to anyone reading this!

Read more at https://www.reddit.com/r/RealEstate/comments/6nk3qw/going_to_bid_on_tax_foreclosure_house_two_doors/?utm_source=ifttt

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s