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While paying your property taxes is important, sometimes your income doesn’t allow you to pay all or any of these fees. But just because you miss one or two payments doesn’t mean you immediately go into foreclosure. There are still opportunities for you to pay the money back.

Additionally, even if you can’t pay the money back, you can choose other options, including solutions from Renewed Homes. We can help you keep your home or sell it and start fresh. If you’re wondering, “What happens if I don’t pay my property taxes?” this blog is for you.

What Happens If I Don’t Pay Property Taxes?

Stages of Tax-Delinquent Foreclosure

In Michigan, the state considers a taxpayer in “delinquency of their property taxes” after a property tax payment has not been made, but the process actually takes much longer.

There are three stages of tax-delinquent foreclosure; one for each year that you have to repay your missed property tax payment and any interest you accrue as time goes on. 

Year One

In the first year that you miss your property tax payment, your county treasurer will be notified and your property tax will be deemed delinquent. The county will also add a 4% administration fee and a 1% monthly interest rate to the property tax amount owed. 

After three months, the county treasurer sends a notice to the taxpayer. After six months, a second notice is sent. Once seven months pass, another $15 fee will be added to your property taxes.

Year Two

In year two, the county treasurer will send another notice and may post a notice of delinquent properties in the newspaper. The property is also considered forfeit to the county treasurer; another $175 fee is added to the tax and another 0.5% interest rate per month. 

You can still remain in your home but have to pay back all the taxes and fees to redeem the property.

Additionally, the Foreclosing Governmental Unit (FGU) will notify the property owner of an upcoming show cause hearing. At the hearing, the taxpayer can show why the property should not go to the FGU. The FGU must then file a petition for foreclosure of the property.

Year Three

During year three, the FGU must show proof of the show cause and foreclosure hearing as well as proof that they have visited the property. After that, the circuit court must decide on the property and whether it will be foreclosed on or not. The foreclosure goes through three months into this third year, and occupants must vacate the home. 

Seven months into the third year, the property can be offered at auction.

How Renewed Homes Can Help

At Renewed Homes, we’re a real estate investment company that can help you find a way to stay in your home or collect cash within 24 hours if you want to move on.

We can help you get back on your feet and start fresh or keep the home you know and love. We want to take away any stress and anxiety, avoid any harm done to your credit, and avoid the legal issues that come with foreclosure. 

The first thing you should do is give us a call so we can take some of the burden off your shoulders. From there, we can discuss your goals (to keep your home or sell it) and what plans we can come up with to make those goals possible.

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