Tax sale foreclosures in Michigan

     

      I answer a lot of questions about the tax foreclosure process in Michigan. I thought I would share with you the process here in Michigan as opposed to some other states. Michigan used to sell the delinquent taxes and they were bought by individuals who had a lien on the property for the tax amount. When the property owner paid the taxes, then the lien holder would be paid with interest. Thus the tax lien process, still used by many states and purchased by many real estate investors to get a quick ROI.

     Michigan is what is called a tax foreclosure state. Once the property owner has failed to pay the local municipality for their property taxes and falls delinquent for 2 years, then the taxes are turned over to the County for collection at the beginning of the year 3. This is a judicial proceeding very similar to any other foreclosure. There are legal guidelines that must be followed to ensure the foreclosure.

     First someone must go out to the property and do an inspection. This inspection is just to see if the property is vacant or has a home on it etc. The property gets posted and a picture is taken to attach with the inspection affidavit. This is required by law and the County has no choice but to have the inspection done.

     Each property is researched to find all parties of interest of public record and first class mail is sent to each party. Then there is certified mail that goes to each and every party of interest. Newspaper publication is also required for all parties of interest and is published 3 consecutive weeks in the newspaper for that County.

     This process takes a year to execute and a lot of people who research public records, state records and skip trace to make every effort to find the owners and interested parties involved. If the taxes are not paid by the March 31 deadline the Judge issues a foreclosure judgement to the County or State, whichever is the Judicial foreclosing unit. The County or State will sell these properties at auction in the summer and fall months.

    My advise to anyone facing a tax foreclosure is to contact your County Treasurer and work out a payment plan. There are many programs available like Michigan's Hardest Hit and others that can help get you back on track. The County and State do not want to foreclose on people's homes and will make every attempt to help the owner get a hardship extension or payment agreement set up.

     So call your County Treasurer as soon as you can and get those taxes dealt with. It will give you a little more peace of mind and save your home