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 2019||2019 property taxes are billed by city, township, or local municipality treasurer.|
|March 1, 2020||Unpaid 2020 property taxes become delinquent and are forwarded to the county treasurer for collection. State law requires a 4% administration fee and 1% per month interest.|
|October 1, 2020||A $15 collection fee is added to each parcel.|
|March 1, 2021||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 2021||Personal visits will be done for each parcel facing foreclosure and a $40.00 Service of Process fee will be added.|
|November 2021||Publication of forfeited properties subject to tax foreclosure on March 31, 2023.|
|January 2022||A Show Cause hearing will be held giving taxpayers the chance to speak directly to a representative of the Wayne County Treasurer's Office. Contact information will also be available for other organizations that may be able to assist them with their delinquent tax issues.|
|February 2022||A Judicial foreclosure hearing will be held giving taxpayers with a valid legal objection the opportunity to contest the forfeited taxes subject to foreclosure.|
|March 1, 2022||Circuit Court enters a judgment of foreclosure. Property owners may redeem their property by paying the taxes, interest, and fees by March 31st or lose their property.|
|April 1, 2022||Property is foreclosed. Property owners lose all rights. Title to the property passes to the county treasurer.|
|September & October 2022||Property is sold at public auction.|