LOCAL

From tragedy to opportunity? Eaton County to auction off foreclosed homes, land

Rachel Greco
Lansing State Journal
John and Trixie Tanner pose for a portrait in the newly remodeled kitchen of the home they purchased last September. They had the intention of flipping it but during renovations, they fell in love with the home and property.  They plan to sell their home in Charlotte and move to Eaton Rapids.

HAMLIN TWP. - The rural, three-bedroom ranch near Eaton Rapids that Trixie Tanner and her husband, John, purchased at Eaton County's tax foreclosure auction last fall was in the worst shape of any property she's invested in.

Tanner has been buying and rehabbing foreclosed homes in and around Eaton County for several years.

None have ever been in good shape when she bought them, but the house on Durfee Road was beyond "uninhabitable," Tanner said.

The sprawling acreage was littered with garbage. The Tanners found decaying animal carcasses in the basement. The first-floor rooms were caked with filth and falling apart.

Tanner admits she bought the house without seeing the interior. She made the decision from the driver's seat of her car as she was parked in the driveway.

It was a whim, she said, but there was no mistaking one thing: the home had good bones.

On Tuesday morning, she sat on a folding chair in its newly-remodeled kitchen, surrounded by new appliances and freshly painted walls.

The Tanners have been cleaning up and rehabbing the home and the five-acre property for 10 months. Sun streamed through the new windows in the front living room. What was dark and dank is now light and airy with new carpet and light fixtures.

The Tanners bought it for around $63,000. When they finish rehabbing it, they believe it will be worth at least $150,000.

They love what it has become so much that they've decided to make it their own. They'll move in at the end of the month.

The newly remodeled home of John and Trixie Tanner on Durfee Road in Eaton Rapids.  They purchased it last September for around $63,000 with the intention of flipping it.  They've since fallen in love with the home and property, and will sell their home in Charlotte, and move into it.

This fall 27 Eaton County properties will go up for auction. Eaton County Treasurer Bob Robinson said some with sell for a few thousand dollars, others for more. Open houses will be held for four of them next month.

A foreclosure is an opportunity for the right buyer, Tanner said. Even the worst case scenario can be made like new again, and her new home is proof of that, she said. 

Generating a positive outcome

"I can't believe people lived here," Tanner said Tuesday morning on a tour of the Durfee Road property. "I really can't. It was not safe for humans to live here, in my opinion."

The dining area in the newly remodeled home of John and Trixie Tanner.  They purchased it last September with the intention of flipping it.  They've since fallen in love with the home and property, and will sell their home in Charlotte, and move to Eaton Rapids.

John Tanner thought his wife was crazy at first.

But the sprawling property's fall colors, with its orange, red and yellow leaves on the many trees there, won both of them over. 

"We loved this yard," Trixie Tanner said.

"It's exactly what we wanted," John Tanner said. "We always talked about getting a two or three bedroom ranch with some space. It didn't take us long to decide to move in."

A look at the living room at the home on Durfee Road in Eaton Rapids last fall before new owners Trixie and John Tanner bought and remodeled it.  Eaton County will auction off 27 foreclosed properties Sept. 6.

The Tanners have spent $30,000 on the home so far and plan to spend another $15,000. They plan to finish the basement, which will add 800 square feet to the 1,200-square-foot home. They also have landscaping plans. Trixie Tanner wants to plant flower beds. John Tanner plans to use a farming plow he found on the property as a decorative piece in the front yard.

The newly remodeled living room in the home of John and Trixie Tanner on Durfee Road in Eaton Rapids.  They purchased it last September for around $63,000 with the intention of flipping it.  They've since fallen in love with the home and property, and will sell their home in Charlotte, and move into it.

Property foreclosures are a tragedy, Robinson said. His office tries to help people avoid it, connecting property owners with nonprofits and resources that can help them hold on to their homes.

But, when foreclosure happens, Robinson wants people buy them at auction and make them viable again.

"The idea is to generate a positive outcome," he said. 

A detail of the crown molding and entryway lamp in the newly remodeled home of John and Trixie Tanner.

The 27 properties headed for auction Sept. 6 are a mix of residential homes, some vacant lots and a few of what Robinson calls "odd lots," small pieces of land that often end up being offered to neighboring property owners when they aren't sold at auction.

The properties are spread out throughout Eaton County and include a three-bedroom home on West Five Point Highway in Bellevue that sits on nearly four acres, a condominium in Delta Township and a two-story home in Eaton Rapids.

"It really rides the full spectrum," Robinson said. "I'm always surprised at how spread out the local foreclosures are."

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'Do your research'

The auction, held at the Eaton County Government Complex in Charlotte, offers "as is" sales. Each property's starting bid is whatever is owed on it in delinquent taxes, and buyers need to be prepared to pay for the property in full that evening.

A look at one of the bedrooms in the home on Durfee Road in Eaton Rapids last fall before new owners Trixie and John Tanner bought and remodeled it.  Eaton County will auction off 27 foreclosed properties Sept. 6.

Whatever the county makes at auction is put toward paying off back taxes owed on the foreclosed properties.The rest of the auction's profits stay within the county's foreclosure program, financing the cost of preparing other foreclosure properties for auction each year.

Eaton County's website offers auction rules and an interactive map with photos of the properties.

A newly remodeled bedroom in the home of John and Trixie Tanner on Durfee Road in Eaton Rapids.  They purchased it last September for around $63,000 with the intention of flipping it.  They've since fallen in love with the home and property, and will sell their home in Charlotte, and move into it.

Tanner said potential buyers should do their research before bidding.

Most foreclosures come with problems, she said. They might have major plumbing and structural issues, and you should go see them for yourself before placing a bid, she added.

"I've bought houses that have a foot of water in the basement," Tanner said. "I've bought homes where the roof is caving in."

The framing and structure of a home matter, she said, and so does the location.

"Do your research," Tanner said. "Find out what properties sell for in the area, look at the home with a fine-tooth comb if possible and take a contractor with you."

Robinson recommends that people reach out to the municipality where a property is located to ask about special tax assessments, code compliance issues or any other concerns they might have.

"I think it's the most valuable thing they can do," he said. "These places are not move-in ready. If somebody's had problems paying their taxes they don't usually have the resources to take care of a property."

If you buy a foreclosed home, the Tanners said, you should be ready to invest time and money in rehabbing or demolishing it.

It's worth it, John Tanner said.

"I was looking at pictures of this house the other day of before we started. You see it now and you can't describe it. It's amazing how you can change it. It makes you really happy."

Contact Reporter Rachel Greco at (517) 528-2075 or rgreco@lsj.com. Follow her on Twitter @GrecoatLSJ.

What you need to know about Eaton County's auction:

* Eaton County's property foreclosure auction is set for 5 p.m. Sept. 6 at the Eaton County Government Complex, at 1045 Independence Blvd. in Charlotte. A second auction is set for Oct. 18, during which properties that haven't been sold yet will be auctioned off.

* Open houses are planned at a handful of the properties being sold at the end of August. Those properties and their open house dates can be found on the county's website.

* An interactive map of the properties, auction rules and an auction information packet can be found on the county's website.