Tuesday, August 8, 2017

Man buys home from Detroit Land Bank, then told by city it could be demoed

 - A Detroit-area business owner bought a house from the Detroit Land Bank.

The Detroit Land Bank is not licensed to engage in any real estate transactions in the State of Michigan.

As a matter of fact, it is not even incorporated under the laws of the State of Michigan.

 He then spent $25,000 to fix it up - only to get the bad news that the city might tear it down anyway.

On April 7, Preston Morgan bought an abandoned home on Carlin Street from the Detroit Land Bank for $3,200. He spent another $300 for a city inspection that detailed the repairs he needed to make.

Those inspections are supposed to be done pre-sale and are billed, with approval of City Council, for cost reimbursement from the Hardest Hit Fund. 

Those dirty, dirty dogs pocketed the money.

Then he spent another $22,000 to get it started.

Morgan didn't buy the home to flip it - he bought it for his own use.

"We own multiple properties, but this one was mine. It was a place to start a family and have some equity in something," Morgan said.

Under the agreement with the Land Bank, he has six months from the date of purchase to get it fixed.

There is no law on the books of Detroit, Wayne County or the State of Michigan to enforce a "6 month" time frame to fix a home.

They made that shit up so they could reconvey the fraudulent deed back to themselves, and keep all his money, to flip the house again.

"They informed me that I had six months to get the house done, to have it livable. They said there were no taxes on the property, that the property was clear and free from any dangerous buildings list or demolition list and that's all been not true," he said.

I am standing up speaking in defense of BSEED.

BSEED has no idea what the hell that damn Detroit Land Bank is doing because they are not, I repeat emphatically, they are not part of the City of Detroit.

Last month, Preston received a letter from Detroit's Building Safety Engineering and Environmental Department (BSEED) that contradicted what he was told in April.

"The house was on a dangerous buildings list and could possibly be demolished," Morgan said.

The letter cited a January 12th inspection that deemed it to be a dangerous building and to prevent it from being recommended for demolition, he must appear at a hearing on Tuesday.

Remember, he bought the home in April and had it inspected in May. He went to the hearing to tell the building and safety team his story.

"I had an inspection done May 8 and they didn't have any of that paperwork, they only were going off an inspection from January of this year."

Adding insult to injury, Morgan was told that not only did he have to pay another $130 for a second inspection, $1,700 in back taxes was due on the home. For a city that says it's investing in the neighborhoods, this is how they're welcoming young buyers?

There are no damn back taxes on these homes because the Detroit Land Bank, without filing any docs demonstrating legal standing or corporate interests, because they are not a corporation, got quiet title, which wipes all back taxes and liens.

The Detroit Land Bank runs that tax scam and pockets the money.

They need to give him his money back.  All of it.

If that Detroit Land Bank did collect taxes, it is quite obvious they did not give it to the City of Detroit, or even Wayne County Treasurer.

"Now we're just at a standstill because I don't want to continue to rehab the home if it's going to be demolished," he said.

As a matter of fact, the Detroit Land Bank has no legal authority to levy taxes.

FOX 2 needs to ask Preston Morgan to whom he wrote the check out to purchase the home because the Detroit Land Bank cannot open any bank accounts as they are not incorporated.

He probably wrote the check out to Title Source, Inc. (TSI)

He wasn't getting anywhere. But FOX 2 did.

We reached out to the city and found that he didn't owe back taxes at all - the Land Bank handled all of that before he bought the home. As it turns out, BSEED was operating on outdated information and the home has been taken off the dangerous building list.

The city apologized and Morgan is now free to continue work on his new home. But if it happened to him, will it happen to someone else? That's his concern today.

"Because of some failure to communicate down at the city - it's just sad."

The city assures us they are working to get up to speed with better computer systems and communication.

This is not an issue of the city, unless Mike Duggan's name was on as a co-plaintiff on the quiet title action.

FOX 2 needs to step up its game, pull the Third Judicial Circuit Court Case and see when the quiet title was issued, then go down the Wayne County Register of Deeds and do a deep dive on the history of the property to see if that damn Detroit Land Bank took out and wiped out with other quiet title actions, mortgages from the Neighborhood Stabilization Program 2.

I hope he gets an attorney and sues the hell out the Detroit Land Bank for blatant, out could, fraud.

I am so sick of these people.

Detroit Land Bank Authority Leaks.  The webpage is constantly updating with more of its crap.


On second thought, I would like to extend my sincerest gratitude for another archival moment of the public record, documenting false claims, to support our case against the Detroit Land Bank Authority, et. al.

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