Property tax foreclosure in Michigan

The property tax process in Michigan, step by step

1. Taxes returned as delinquent

   March 1 of the year after the tax was levied

   Unpaid taxes are returned to the county treasurer as delinquent on March 1. A 4 percent county administration fee and interest of 1 percent a month are added from then on. Paying now is the cheapest way out.

   MCL 211.78a

2. Forfeiture to the county treasurer

   March 1, one year after the taxes were returned delinquent

   Before forfeiture, the treasurer must send you a certified notice listing what you owe and the fees coming on March 1. At forfeiture a $175 fee and extra interest are added, and a certificate is recorded that also explains your right to claim leftover sale money. You still own the home and can redeem by paying in full.

   MCL 211.78f, 211.78g

3. Payment plans and hardship help

   Before the foreclosure judgment

   A county treasurer may give a homeowner a tax foreclosure avoidance agreement of up to 5 years for a principal residence, which keeps the home out of foreclosure and lowers the extra interest while you keep paying. Counties can also offer installment plans to people in financial distress, and you can ask your local board of review for a poverty exemption. Michigan Treasury also points to Department of Health and Human Services help with property taxes.

   MCL 211.78q, 211.7u

4. Notices, hearings and hardship relief

   Notice at least 30 days before the show cause hearing

   The county must search the records, send you certified notice of the show cause hearing and the foreclosure hearing, and visit the property. At the foreclosure hearing, the court can hold back the property for a year or extend your redemption time if the owner is a minor heir, is incompetent, has no means of support or has a substantial financial hardship. Go to the hearing or call the treasurer before it.

   MCL 211.78i, 211.78k

5. Last day to redeem

   March 31 after the judgment (21 days in a contested case)

   The circuit court enters the foreclosure judgment by March 30, and all redemption rights end on March 31. After that, title passes to the county or state and all your rights in the home end, except your right to claim leftover sale money.

   MCL 211.78k

6. Tax foreclosure auction

   Third Tuesday in July to first Tuesday in November

   The state, then the city or township, then the county can buy the home first. If someone has filed a claim for leftover money, those buyers must pay the greater of the minimum bid or fair market value. Otherwise the home is sold at public auction, which may be online.

   MCL 211.78m

7. Claim the leftover money

   Form 5743 by July 1 after foreclosure; court motion February 1 to May 15 after the sale

   Send the foreclosing county or the state a notarized Notice of Intention to Claim Interest in Foreclosure Sales Proceeds (Treasury Form 5743) by certified mail or personal service by the July 1 after the foreclosure takes effect. The county must mail you a notice of any leftover money by January 31, and you then file a motion in the same circuit court case between February 1 and May 15. Under this law, which followed Rafaeli v Oakland County (2020) and is in line with Tyler v. Hennepin County (2023), the county keeps the minimum bid, its costs and a 5 percent sales commission, and you get what remains.

   MCL 211.78t

Common questions in Michigan