While many advocates’ groups in Detroit, Michigan are currently engaged in trying to keep real estate investors who purchase large volumes of property in tax lien sales out of the city and preferably away from the auctioneer, Wayne County commissioners endorsed a plan yesterday that is a little more investor-friendly than many of the recent proposals. Under the proposed legislation, any individual or company whose property taxes are more than two years behind cannot participate in tax auctions[1]. Bernard Parker, commissioner who proposed the ban, says that he hopes that this will “stop speculators who are buying property with no intent to maintain the property or pay the taxes” without interfering with the real estate investors who are buying in good faith. “I have no problem with someone taking a chance to make money,” said Parker.

Critics of the plan argue that tax delinquents can simply create a new company and continue to buy property in the area. However, the strategy does allow for investors buying in good faith to continue to inject needed housing stimulus into the area. Do you think this is a good compromise for Wayne County, or are more aggressive measures needed?

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[1] http://www.freep.com/article/20110209/NEWS01/102090386/Wayne-County-Commission-panel-bans-tax-delinquents-from-house-sales