Someone bought my house at the auction. He has agreed to sell it to me. We are worried that Wayne county will see that I was the homeowner who was tax foreclosed and will not let me buy it in my name? I don't think it should be a problem. Now I see I think I could have even bid on my own house in my own name and it would have not been a problem. Is it a problem? 2nd question: The buyer is responsible for 2012 taxes? If the auction was in October than does that mean prorated 2012 taxes for Oct-Dec? or the entire year of 2012?
You will have to pay all of the 2012 taxes. There is a reverter clause in the deed that says if the taxes are not paid in full and on time for two years after the auction sale, then the county or local municipality can take back the property. Long story short, be ready to pay the 2012 taxes right away. I believe they are due sometime in January.
I also believe that you can buy your property back from the auction buyer and it's still legal. I would double-check with an attorney about this.
You can buy your house back in the auction, or you can buy it back from someone else who bought. Both are legal, and not a problem.