There are so many things that can be listed on eBay but who knew that we can sell houses there too?
According to Curbed Detroit, sixty houses owned by the Detroit Police and Fire Department Retirement Fund are currently being auctioned on eBay by the Findling Law Firm, the fund's receiver. The houses were foreclosed a few years ago after a financial controversy with its previous owners.
The homes' initial bids start at $9,400 and can go over $50,000. Most of the homes are in the famed Boston Edison district, and will include delinquent fees and taxes that have been incurred from the homes' previous owners. The auction is prioritizing the houses' present tenants to avoid displacing them.
Darin McLeskey of The Loft Warehouse, one of the properties' agents, gave an advice to the bidders. "Most of these homes were purchased out of bank foreclosure a few years back and may have tenants [or] holdover squatters. We recommend not approaching the homes, but performing due diligence otherwise," said McLeskey.
According to MLive.com, the previous owners George and Teresa Kastanes, each aged 62 and 54 at the time the lawsuit was filed, were sued by the fund after receiving a $9.9 million loan in 2008 and failing to make any payments. The couple even reportedly flew to Florida and the Caribbean to hide, spending the money they had on items like jeweled Russian eggs and Auguste Rodin-created sculptures.
The couple also spent $5 million of the loan they borrowed on over 2,500 properties in 30 states.
Including the litigation, unpaid interest and other fees, the pension fund has a total of $15.3 million claims with the family. When combined with other creditors, the Kastanes owes a minimum of $39.5 million.
The online auction will continue until Aug. 27 and starts at 10 in the morning. These houses are affordable and at the same time found in advantageous locations.