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Tax foreclosure is a scary thought for many homeowners. But it’s not always easy to understand when you’ve just missed a tax payment, or when you’re in real trouble. If you’re wondering about the signs and implications of a tax delinquent foreclosure, then this is the article for you. Here, we’ll cover all of the warning signs of tax foreclosure, and offer up a few suggestions for ways to avoid foreclosure, if possible. 

Warning Signs of Tax Foreclosure

If you’ve received a notice regarding your property taxes and your home, it’s good to know exactly where you are in the tax foreclosure process. The following list includes all of the notices you’re required to receive from the county and the Foreclosing Governmental Unit before anything can happen to your home. 

Notice 1 — June of the First Year of Unpaid Property Taxes

You’ll see this first notice in June of the first year your property taxes have gone unpaid. It will come from the office of the county treasurer. When you see this notice, you can pay those back taxes immediately and your only additional fees will be a 4% administration fee and a 1% monthly interest rate that was added on in March. If you are able to pay back those missed property taxes now, you’ll avoid the rest of the tax foreclosure process, and shouldn’t have a problem with tax foreclosure. 

Notice 2 — September of the First Year of Unpaid Property Taxes

This notice will come around September of that first year of missed property tax payments. Again, if you are able to pay back those taxes now, it’s good to do so. You will avoid any further hassle regarding the foreclosure process. 

Notice 3 — February of the Second Year of Unpaid Property Taxes

This is the last notice you will receive from the county treasurer, and it will be delivered in February of the second year of unpaid taxes. At this point, you may also see a notice of your home posted in the newspaper. 

Notice 4 — Notice of Show Cause Hearing

In May of the 2nd year of unpaid taxes, the Foreclosing Governmental Unit will send you a notice detailing the time and place of your show cause hearing. If you are able, it’s important to attend the show cause hearing, so you can explain why you should be able to keep your home. If you’ve faced instances of financial hardship, this is your opportunity to explain those to the FGU so that you might keep your home. 

What to Do After Receiving Notice of Unpaid Property Taxes

If you’ve received one or even all of these notices, you still have options. Here are a few ways you can avoid a tax delinquent foreclosure:

Pay Back Taxes

The simplest way to avoid foreclosure, and to stop getting these notices, is to pay back those owed taxes. If you work to pay them back starting after that first notice, you may not have to pay them back all at once. 

Talk to Your Lender

If you don’t own your home outright yet, you’ll want to talk to your mortgage lender as soon as possible. Since a tax lien overrides any other loan on the home, your lender will likely pay off those back taxes as soon as they hear about it. However, they’ll then turn around and charge you for the amount they paid on those property taxes. If you can get out ahead of the issue, you may be able to work with your lender to find a payment plan, rather than having them foreclosing on you. 

Attend Your Show Cause Hearing

If you’ve faced financial hardship or have recently gone through a major life change, the show cause hearing is your opportunity to present your case, and possibly receive a deferral or a compromise. If you can show a reasonable cause for not paying your property taxes, you may be able to work to a solution that allows you to keep your home. 

Talk to Renewed Homes

If you’re facing a property tax foreclosure here in Michigan, don’t hesitate to reach out to the team here at Renewed Homes. We work with homeowners every day to find solutions that take them away from financial worry just like a property tax foreclosure. We make cash offers for homes in distress, but we’ll also work with you to find creative solutions that can allow you to pay off that debt, and still keep your home. 


If you’ve received a notice of property tax delinquency, and are worried about the potential of foreclosure, please don’t hesitate to give us a call at 269-362-0931 or contact us online. We’re here to help you get out from under that debt and back on your feet.