I’m At Risk of Property Tax Foreclosure: What Are My Options?

Property tax foreclosure takes about three years in Michigan. If you’ve received notice that you’ve begun the foreclosure process, that doesn’t necessarily mean you will lose your home. There are things you can do such as reducing or delaying payments, or selling your home to avoid eviction.

The quickest solution would be to pay back the taxes you owe. This ends the foreclosure process and you get to keep your home. Everyone wins. However, if you are already facing financial hardship, or you owe more than your home is worth, paying your taxes is not so simple.

What are my other options?

Reduce or Defer Property Taxes

If property taxes don’t feel manageable, you can try to reduce the amount you owe, or defer payments until a later date. Reduction or deferment are good options if you meet certain age, disability or income requirements. Also, if you can prove your home’s value is less than it was originally estimated for calculating property taxes, you may be able to slightly reduce the total taxes you owe.

Plead Your Case

Every property tax foreclosure case is assigned a “show cause” hearing sometime in the second year of delinquency.  At this hearing, you can make a case for why you should keep your home. This can include an explanation of any financial difficulties or circumstances that have made it impossible for you to pay your debt. The government officials presiding over the case may be willing to work with you on a solution if the court decides you should earn relief.

Sell Your Home

You can sell your home if you need the cash fast, or won’t be able to pay off your debt another way. There are several ways you can do this, but the most common is to sell your home yourself or with the help of a realtor, or to sell it as-is to a real estate investor.

Sell It Yourself or With a Realtor

If you want to sell your home yourself, you’ll have to make repairs or updates to your home to attract a buyer. Using a realtor may help accomplish this, but they come with their own fees and timelines. Selling your home on the real estate market can take several months. If you’re further along in the foreclosure process, this may not be a realistic option.

Sell to a Michigan Real Estate Investor

A real estate investor will purchase your home in the state that it’s in and make you an offer based on the real value of your home. If you’re ready to be unsaddled from your debts and avoid property tax foreclosure, selling to a real estate investor can provide you with a quick and hassle-free way out.

When is my last chance to pay?

Your last chance to pay delinquent taxes is March 31st of the third year. If your property taxes are not paid in full at this time, you will forfeit the property and must vacate your home. If at any time during the three years of the property tax foreclosure process you can pay off your debt you should do so. There is no sense in waiting if you can avoid extra fees and interests that will build up over time. The sooner you can be freed of your tax burdens, the better for you and your home.

Reach out to Renewed Homes

The situation is never without hope. Renewed Homes works with West Michigan families to avoid property tax foreclosure in the way that’s best for you. We can make you a cash offer so you can pay your debts and sell your home. Because the offer is available right away, you can avoid a long closing process and you won’t have to wait to attract a buyer as with a traditional sale. If a cash offer isn’t right for you, we can work with you to find a creative solution.

If you’re worried about losing your home to foreclosure, give Renewed Homes a call at (269) 362-0931 to find out more about how we can help.