Delinquent Property Taxes
The Wayne County Treasurer's Office is responsible for collecting delinquent taxes on Real Property located within Wayne County. Property taxes not paid to the local Treasurers office by the last day in February become delinquent on the following March 1. For example, property taxes that were due in 2018 and payable to the local City or Township will became delinquent on March 1, 2019. Once property taxes are in a delinquent status, payment can only be made to the Wayne County Treasurer's Office.
Under the authority of the State of Michigan, the Wayne County Treasurer participates in the Delinquent Tax Revolving Fund Program which is an alternate method of collecting delinquent property taxes. All communities and school districts participate in the Delinquent Tax Revolving Fund program. Under the Michigan Public Act 246, the City of Detroit began participating with tax year 2003. The program has proven beneficial to all participants.
State Law regarding Delinquent Taxes
In 1999, Michigan law: Public Act 123 (MCL 211.78) was passed. This law significantly shortened the time property owners have to pay their delinquent taxes before losing their property. Property owners with taxes that are delinquent for one year will reach a forfeited status on the following March 1, and may be foreclosed the following year on March 31.
When a property enters forfeited status, the property owner still has one year before the property will be foreclosed. Unfortunately at this point, the interest rate increases from 1% per month to 1.5% per month, retroactive to the date the taxes become delinquent, a $175 foreclosure fee and an additional $30 in recording fees is also added.
While a property is in a state of forfeiture, the taxes are still payable to the Wayne County Treasurer until the following March. Interest and penalty fees will continue to accrue each month that the property taxes remain unpaid. During this one year period, the parcel may also incur other fees, such as a personal service fee and a publication fee.
If you are unable to pay your taxes, there may be several options available. The Wayne County Treasurer's Office offers various plans to assist distressed taxpayers in paying delinquent property taxes.
To learn more about these options click on the link below:
Taxpayer Assistance Programs
Prior to Foreclosure, the Wayne County Treasurer's Office will send at least ten written notices. Four notices are sent prior to foreclosure in the first year of Delinquency and six notices are sent after the property is forfeited and prior to foreclosure.
When a property is foreclosed the property owner loses all rights to that property. The title to the property is transferred to the Wayne County Treasurer's Office. A notice of Judgement of Foreclosure is also recorded with the Wayne County Register of Deeds.
Unless the taxpayer is up to date with their payment plan or the delinquent 2016 and/or prior years taxes, interest, penalties, and fees are paid in full on or before the March 31 immediately succeeding the entry in an uncontested case of a judgment foreclosing the property under MCL 211.78k (March 31, 2019), or in a contested case within 21 days of the entry of a judgment foreclosing the property under section 78k, your redemption rights will expire and YOU WILL LOSE YOUR PROPERTY.
Per the statute, a foreclosed parcel is first offered to the State of Michigan, the local municipality, and Wayne County for the minimum bid. Parcels not purchased will then be sold at public auctions held in September and October of the year that the property is foreclosed. At the September auction, properties are offered for a minimum bid that consists of all delinquent taxes, penalties, interest, and costs. Properties not sold at the September auction are then offered at our October auction. Successful bidders will receive a Quit Claim deed to the property.
It is our goal to make every effort to notify homeowners of any delinquent taxes on their property to prevent it from being sold at auction. A listing of public auction dates and the properties available will be posted in August at the link below: