Getting Your Home Back After a Michigan Property Tax Sale

If you are facing tax forfeiture and foreclosure in Michigan, you will have some time to redeem your house.

If you do not pay your property taxes on time, the amount owed becomes a lien on your house. This form of lien nearly often takes precedence over other types of liens, including mortgages. In general, if taxes are not paid, the taxation authorities will eventually:

Sell the lien (and if you do not pay the past-due sum to the lien purchaser, that party may foreclose or use another procedure to get title to your house) or sell the property itself in a tax sale.

In certain areas, however, no auction is made; instead, the taxation body enforces its lien by acquiring ownership to the residence. The taxation body is then required by state law to dispose of the property, typically by selling it. Before conducting a sale, the taxation authority in some countries utilizes a foreclosure procedure.

If you do not pay your Michigan property taxes, you may lose your house via a tax forfeiture and foreclosure procedure. However, “forfeiture” does not imply that you have lost your house. A “forfeiture” under Michigan tax rules generally implies that the county will ultimately foreclose on your house. Following the forfeiture, you will have some time to catch up on the unpaid sums and rescue your property from tax foreclosure.

How Tax Forfeitures and Foreclosures Work in Michigan

Property that is overdue for taxes, interest, fines, and fees for the immediately previous 12 months or more is forfeited to the county treasurer on March 1 of each tax year. The taxation body must then file a foreclosure petition with the court by June 15. Michigan Comp. Laws 211.78h.) During the redemption time, the foreclosure process begins (see below).

If the taxes are not paid, the court will issue judgment no later than late March of the following year, and the house will be repossessed. (Michigan Comp. Laws 211.78k) The property is subsequently transferred to the county treasurer, who may sell it to a new owner.

The Right to Redeem Your Michigan Home in the Event of Tax Forfeiture

According to Michigan law, you will have about one year following the forfeiture to redeem your house. You may specifically redeem your house by:

at any time following the foreclosure judgment (that is, March 31 in the third year of delinquency), or within 21 days after the court files a judgment foreclosing the property if you opposed the foreclosure. Michigan Comp. Laws 211.78g.)

After the foreclosure is completed, there is no redemption period.

How Much Does It Cost to Redeem Your Michigan Home?

To redeem your property, you must normally pay the county treasurer:

the sum of all outstanding overdue taxes, interest fines, and fees (Mich. Comp. Laws 211.78g.)

To Avoid Tax Foreclosure, You Might Be Able to Enter Into an Installment Agreement.

If your circumstance satisfies certain conditions, such as meeting the federal poverty income guidelines, you may be allowed to enroll into an installment payment plan to bring your account current. 211.78q (Mich. Comp. Laws). A payment plan will prevent a tax foreclosure. Check with your county treasurer’s office for information on how to apply for a property tax payment plan.

Getting Your Michigan Property Taxes Reduced

Even though you’ll have some time to redeem your Michigan property following a tax forfeiture, it’s usually advisable to act sooner to attempt to reduce your taxes. For example, before becoming behind on your taxes, you could:

Investigate if you qualify for a property tax abatement, or contest the taxable valuation of your house if you believe it is inaccurate.