Bill Hults already paid $200,000 in nonrefundable deposits for the 40-acre ruins.
The winning bidder raised red flags after a rambling statement about a “prophesy” to save Detroit.
“For these personal and professional reasons, I have determined it is in the best interests of all that I resign,” Dillon wrote to Gov. Snyder.
Once selling for six figures, the houses are on the auction block for as low as a few thousand dollars.
Treasurer Dillon’s attorney disputes the claims, saying the court “is confused.”
People close to the treasurer said his drinking was impacting his performance at work and taking a toll on his health.
The 52-year-old Democrat spent about five days at Brighton Hospital, an addiction treatment center, in early January after several years of heavy drinking,