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 2016||2016 property taxes are billed by city, township, or local municipality treasurer.|
|March 1, 2017||Unpaid 2016 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, 2017||A $15 collection fee is added to each parcel.|
|March 1, 2018||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.|
|November 2018||Publication of forfeited properties subject to tax foreclosure on March 31st.|
|March 1, 2019||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, 2019||Property is foreclosed. Property owners lose all rights. Title to the property passes to the county treasurer.|
|September & October 2019||Property is sold at public auction.|