In 1999, a Michigan law, Public Act 123 (MCL 211.78) significantly shortened the time property owners have to pay their delinquent taxes before losing their property.
The act reduced the amount of time to pay taxes from approximately 5 years to 2 years. Property owners with taxes that are 2 years delinquent can be foreclosed and the property can be sold at a public auction. Not paying taxes results in higher interest charges and fees.
The interest rate on taxes that are delinquent for more than one year is 1.5% per month. The forfeiture fee is $175 plus administrative fees.
PUBLIC ACT 123 TIMELINE
|July/December 2020||2020 property taxes are billed by city, township, or local municipality treasurer.|
|March 1, 2021||Unpaid 2020 property taxes become delinquent and were forwarded to the county treasurer for collection. State law requires a 4% administration fee and 1% per month interest.|
|October 1, 2021||A $15 collection fee is added to each parcel.|
|March 1, 2022||Property is forfeited to the county treasurer. State law requires the addition of a $175 fee and $30 in recording fees. Interest increases from 1% per month to 1.5% per month back to the date the taxes became delinquent.|
|October/November 2022||Notice of Show Cause Hearing and Judicial Foreclosure Hearing are personally served upon a property occupant or posted on the property.|
|November 2022||Publication of forfeited properties subject to tax foreclosure on March 31, 2023.|
|January 2023||The Show Cause Hearings will be held remotely the second, third and fourth weeks of January. In addition to providing an opportunity to show cause why absolute title to the property should not vest in the county treasurer, our interviewers will have contact information for our community partners who may be able to assist you with your issues.|
|February 2023||Zoom Judicial Foreclosure Hearings will be scheduled for the month. The date and scheduling link for the Hearings will be included in the yellow bag packet.|
|March 2023||Circuit Court enters a judgment of foreclosure. Property owners may redeem their property by paying the taxes, interest, penalties and fees by March 31, 2023 or lose their property.|
|April 1, 2023|
Property is foreclosed. Property owners lose all rights. Title to the property passes to the county treasurer.
|July 1, 2023||Deadline to file the "Notice of Intent to Claim Remaining Foreclosure Proceeds" form for parcels foreclosed in 2023.|
|September & October 2023||Property is sold at public auction.|