Owners escape tax debt by rebuying foreclosed homes

Detroit property owners are using a little-known loophole to erase tax debt by letting their properties go into foreclosure and then buying them back a month later at the Wayne County Treasurer's auction for pennies on the dollar.

It's legal. But that doesn't mean it's fair, said homeowner Marilynn Alexander, who lives on Fairmount next door to one of Cusimano's rentals. The landlord owed $26,200 in taxes and other fees on the bungalow, but bought it back in October for $1,051.