Man auctions 'cash for life' lottery winnings

Auction bidders usually know what they're bidding on, after all how many people are willing to shell out for something when they don't even know what it is!

But Duane Mingerink, president of Repocast.com, says that this week's hot item online requires a real leap of faith.

For the first time in his 25 years at Miedema Auctioneering, he's auctioning off lottery winnings.

According to federal court records, a man from Portage, Michigan won the 'Cash for Life' lotto back in 1994.

Hitting the jackpot on the 'Cash for Life' lotto means that the winner is entitled to a payment of $1,000 a month for the rest of their life.

But in 2005, the man had to file for bankruptcy, becoming a debtor, which means he has to forfeit his monthly winnings.

Two months ago the bankruptcy trustee decided the put the lottery money up for auction to generate a lump sum to pay off debts.
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Mingerink says that the highest bidder on the lotto winnings will receive the $1,000 a month prize, but there's a catch.

He said: "The main question we've had throughout this whole thing is 'how long am i going to receive these payments, my life or the debtor's life?'"

Mingerink says the payout lasts for as long as the debtor, who is currently 73, lives.

Many potential bidders have contacted the auctioneer to find out more about the man's health, presumably in the hope of estimating just how long they might be in the money for.

Mingerink says: "It's like gambling, who knows. You know, you're taking a risk. I mean the gentleman could actually die next week or he could die in 20 years, 30 years, we just don't know."

The bankruptcy trustee has said that he heard the man is currently in good health.

But those hoping to spend a little to get a lot might not be in luck because anyone wanting to take part in the auction has to offer an opening bid of at least $30,000, with $25 increments for each bid there after.

If the winning ticket ends up being sold for just $30,000 and the man lives for another 10 years then the owner will take home a huge profit of $90,000.

All the money raised in the auction will go towards paying off the man's creditors. Fox17 found out that the man had an overall debt of $1.6 million.

The auction will take place this Thursday 7 January between 8am and 8.30pm.