How Michigan Tax Delinquent Foreclosure Sales Work

If you’re behind on property tax payments, you may be concerned about a tax delinquent foreclosure. It’s good to know that you have about three years in the state of Michigan to pay back those taxes.

Let’s say you missed your property tax payment first in 2016. That means you’ll have until March 31 of 2019 to pay those taxes back before the county will assume your home. (Take a look at our guide to tax delinquency for the complete timeline of the Michigan tax delinquent foreclosure process.)

While that might seem like a lot of time, we know it’s not always as easy to catch up as it sounds, and you might be looking at other options.

If you’re hoping to sell your home and pay off those delinquent taxes before the county can foreclose on your home, here’s what you need to know:

March 31  – Michigan’s Deadline to Pay Back Property Taxes

This is the last day to pay back delinquent property taxes if you’re in your third year of missed property tax payments. If you’re hoping to sell your home before a foreclosure sale happens, you’ll need to close before March 31 of that third year.

Selling Your Home Before The County Forecloses

If you’re hoping to sell your home before a tax delinquent foreclosure is final, you have two options. You can list your home traditionally, or sell to a real estate investor.

List Your Home Traditionally

If you want to list your home traditionally, it’s best to do in the first or second year of tax delinquency. Traditional home sales can take months, and sometimes even years. You’ll need to find a realtor, clear out your home, and make sure it’s ready for open houses and new owners. Then, you’ll have to wait for a traditional closing period, usually about 90 days, and sometimes longer if an inspection turns up any necessary repairs.

Sell to A Real Estate Investor

This is a great option if you need to move on from your home quickly. You can work with a real estate investor at any point in the tax delinquent foreclosure process, and even up to the last month before the county assumes your home.

The benefit of selling to a real estate investor is that you’re immediately rid of those back taxes, and you can close on your home in just weeks and even days. A real estate investor will close on your timeline, and you won’t have to worry about inspections, making repairs, or even clearing out unwanted clutter. You just close, and move on.

While these are all options for selling your home before a tax delinquent foreclosure is final, what happens if you are unable to sell your home before that March 31 deadline?

How Michigan Tax Delinquent Foreclosure Sales Work

If you are unable to pay back property taxes or sell your home before the March 31 deadline, then the county will assume your home. In Michigan, after the third year of unpaid taxes, the county will assume your home and then put it up for sale, usually in June, July, or August.

Move Out March 31

If the county is to assume your home due to delinquent property taxes, you will be required to move out on that March 31st date of the third year.

County Assumes Home

At this point, the county will take the home. They may make some changes, but for the most part, they ensure the house is vacated and take photos to post in advance of an auction.

County Arranges Auction

In the summer, the county will arrange an auction where all of the area’s foreclosed homes will be put up for sale. The auction date varies depending on your county, but you can check your county’s official website for dates, and most Michigan properties are listed through this site.

Home is Sold

At the auction, homes that have been foreclosed on due to delinquent property taxes are sold. If a home does not sell in the first auction, it will appear in one more. From there, the home will either be sold, or the government will retain possession until a sale can be made.

The Michigan tax delinquent foreclosure process can be long and grueling. If your home is facing foreclosure and you’re not sure you can pay back the taxes, you don’t have to wait for the county to seize it. Get out from under those troublesome property taxes, and move on quickly with enough money in your pocket to get started somewhere new. Renewed Homes can help.