Important Information for Property Owners with Delinquent Taxes
FORMS AVAILABLE FOR DOWNLOAD:
- Foreclosure Prevention Goals
- Foreclosure Hardship Policy
- 2011 Tax Foreclosure Postponement Form (Homestead)
- Commercial Property Foreclosure Postponement Form
On July 22, 1999, the Governor of Michigan signed Public Act 123 of 1999, which shortens the time property owners have to pay their delinquent taxes before losing their property under the process called tax reversion. Property owners with taxes that are 2 years delinquent will go through a foreclosure process and the property may be sold at public auction.
For an opportunity to review this law, click the following link: Public Act 123 of 1999
Those who fail to pay their 2010 delinquent property taxes will lose their property to foreclosure in March 2013.
The time period to pay delinquent taxes has been reduced from 5 years to approximately 2 years. These are significant changes, thus, one of our goals is to ensure that your rights are protected.
PUBLIC ACT 123 QUESTIONS AND ANSWERS
Q. If I don't pay my taxes, will I lose my home and property?
A. YES. Property owners who had delinquent taxes under the old law could also lose their property, but they had more time to pay and more "second chances." Under the new law, if your taxes are delinquent for 25 months, that's it. You lose the property.
Q. What is a delinquent tax?
A. A delinquent tax is a tax that has been forwarded to the county treasurer for collection on March 1 of the year after it was billed. For example, taxes that are billed by your city or township treasurer in 2011 were forwarded as delinquent to the county treasurer on March 1, 2012.
Q. What happens after the property is forwarded to the county treasurer for collection?
A. The county treasurer adds a 4% administration fee and interest of 1% per month. After one year, the property is forfeited to the county treasurer. For example, the 2011 taxes that remain unpaid as of March 1, 2013 will be in forfeiture.
Q. What does it mean to be in forfeiture? Does that mean I lose my property?
A. No. Forfeiture is not foreclosure. If your property is in forfeiture, you still have a year before it will be foreclosed. However, the interest and fee will be higher. When a property is forfeited, the interest rate goes from 1% per month to 1.5% per month, back to the date the taxes became delinquent. A $175 fee and other administration fees are also added.
Q. What happens after my property is in forfeiture?
A. After a property has been in forfeiture for one year, it enters the foreclosure process. Properties with 2011 delinquent taxes will be foreclosed March 31, 2014.
Q. What happens after my property goes through foreclosure? How do I get it back?
A. Foreclosure is final. You cannot get your property back after it has been foreclosed. Once the Circuit Court enters the judgment of foreclosure, redemption rights expire March 31st of the current year, and the property may be sold at public auction.
Q. What if I can’t come up with all the money right now?
A. Even if you can’t pay your taxes all at once, you can still make partial payments. To ensure your payment is applied to your parcel, write your parcel number on your check or money order. The mailing address is 1101 Beach Street, Flint, MI 48502. If your can't pay all of your taxes before foreclosure, contact the Family Independence Agency at 768-2200 for possible financial assistance.
Q. Will I receive any notification before my property is foreclosed?
A. Yes. A total of five notifications may be made. Two will be by first class mail, two by certified mail and the last notification may be made by personal service. In addition to these notifications, names and addresses of delinquent property owners may be published in a local newspaper.
Q. I guess I really don’t have to worry about losing my property until 2014. Why not wait and pay my taxes then?
A. DON'T WAIT! Foreclosure is final. For a flow chart of the new deadlines to pay delinquent property taxes, just click on Property Tax Law Timeline.