Step-by-step: how Michigan tax foreclosure works, from the first delinquent year through forfeiture, foreclosure, and the right of redemption.
Michigan tax foreclosure is governed by the General Property Tax Act (Public Act 206 of 1893, as amended). Here's the step-by-step timeline:
Property taxes become delinquent on March 1st of the year after the tax year. Interest at 1% per month begins accruing. Additional administrative fees apply.
On March 1st of the second year of delinquency, the property is "forfeited" to the county treasurer. At this point the county holds a lien on the property. The owner still has possession but the county can now initiate foreclosure.
The county treasurer files a petition for foreclosure in circuit court. Owners receive notice by certified mail and publication. A show cause hearing is scheduled where owners can contest the foreclosure.
Under Michigan law, a foreclosure judgment must be entered by March 31st (with possible extensions). After judgment, owners have a final redemption period — typically 21 days after judgment — to pay all taxes, interest, and fees.
If taxes remain unpaid after the redemption period, title transfers to the county treasurer. The property may then be sold at public auction. Former owners receive any surplus from the sale after taxes, fees, and costs are deducted.
Get a fair cash offer. The sale pays your tax debt. Close before the foreclosure judgment.
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