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 new act reduces the amount of time to pay taxes from approximately 5 years to 2 years. Property owners with taxes that are 2 years delinquent will be foreclosed and the property can be sold at a public auction. Not paying taxes will now result in higher interest charges and fees.
Taxes that are delinquent for more than one year will have a substantially higher interest rate (1.5% per month, as opposed to the current 1%), and will have a $175 forfeiture fee plus additional administrative fees added.
PUBLIC ACT 123 TIMELINE
|July/December 2017||2017 property taxes are billed by city, township, or local municipality treasurer.|
|March 1, 2018||Unpaid 2017 property taxes became delinquent and were forwarded to the county treasurer for collection. State law requires a 4% administration fee and 1% per month interest.|
|October 1, 2018||A $15 collection fee is added to each parcel.|
|March 1, 2019||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 2019||Notice of Show Cause Hearing and Judicial Foreclosure Hearing are personally served upon a property occupant, or posted on the property.|
|November 2019||Publication of forfeited properties subject to tax foreclosure on March 31, 2020.|
|January 2020||The Show Cause Hearings typically occur during the second and third week of January. In addition to|
providing an opportunity to show cause why absolute title to the property should not vest in the county treasurer, these hearings also serve as resource fairs that are designed to assist taxpayers with many community and government partners in attendance.
|February 2020||The Judicial Foreclosure Hearings are scheduled in February of 2020. The date and location of the|
Judicial Foreclosure Hearing for the subject property are included in the helpful yellow bag packet.
|March 2020||Circuit Court enters a judgment of foreclosure. Property owners may redeem their property by paying the taxes, interest, penalties, and fees by March 31, 2020 or lose their property.|
|April 1, 2020||Property is foreclosed. Property owners lose all rights. Title to the property passes to the county treasurer.|
|September & October 2020||Foreclosed property is offered for sale at public auction if not purchased by the local, state or county government.|