Understanding Tax Foreclosure
It can take 3 years before a judgment of foreclosure is entered on a home with delinquent property taxes. For example, if property taxes were not paid in 2010, they become delinquent on March 1, 2011. The property will be forfeited on March 1, 2012, and a judgment of foreclosure will be entered by the circuit court in February 2013. After a judgment of foreclosure is entered in February 2013, the homeowner has until March 31, 2013 to pay the taxes on the property.
Some homeowners may be eligible and can apply for an exemption from property taxes. An eligible person must own and occupy his/her home as a principal residence and meet poverty income standards. The local Board of Review reviews the application and may also interview the applicant in order to determine eligibility.
- March 1, 2011- Property goes into delinquency for unpaid taxes for year 2010. The County Treasurer adds an administrative fee of 4%, plus charges an interest rate of 1% for every month the property remains in delinquency.
- June 1, 2011- County Treasurer will send a notice explaining the amount owed for 2010 Property Taxes.
- September 1, 2011- County Treasurer will send out statement indicating that if the delinquent taxes, penalties, interest, and fees are not paid before March 31, 2012, the property owner's right of ownership will expire.
- October 1, 2011- County Treasurer adds $15 fee on each delinquent property.
- November 1, 2011- County Treasurer prepares list of all property subject to forfeiture on the immediately succeeding March 1.
- February 1, 2012- County Treasurer sends notice of forfeiture, may insert one or more notices in newspaper.
- March 1, 2012- Property is forfeited to the County Treasurer for the total amount of the unpaid taxes, interest, penalties, and fees. At this time the County Treasurer will add a $175 fee to each property and will increase the interest rate charged to 1.5% per month, which is retroactive from the time the property was found to be delinquent.
- June 15, 2012- County Treasurer will file a petition in circuit court listing all property forfeited and not redeemed. The petition will ask that the properties be foreclosed on under MCL 211.78(K) for the total of the forfeited unpaid delinquent taxes, interest, penalties, and fees.
- February 2013- The circuit court will enter a judgment of foreclosure. After a judgment if foreclosure is entered, the homeowner has until March 31 of that year to redeem the property.
- March 31 2013- If the property is not redeemed by March 31, absolute title to the property will be transferred to the County Treasurer.