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Real Property Tax Forfeiture and Foreclosure Process

Real Property Tax Forfeiture and Foreclosure Process

This page outlines the statutory process for real property tax delinquency, forfeiture, foreclosure, and disposition in Michigan. The process is organized by year and presented in chronological order to support accessibility, clarity, and ease of reference.

Legal authority: MCL 211.78a–211.78m

Year One – Delinquency

Tax Levy and Delinquency

When

Responsible Party

Action

Notes

Summer (July 1*)

Local Unit

Summer tax levy issued

*Unless city charter establishes a different date

December

Local Unit

Winter tax levy issued

March 1

County Treasurer

Unpaid taxes from the immediately preceding year are returned as delinquent for collection

March 1

County Treasurer

Administration fee of 4% and interest added at 1% per month (non-compounded)

Applies to delinquent parcel

Notices and Preparation for Forfeiture

When

Responsible Party

Action

June 1

County Treasurer

First notice sent by first-class mail to taxpayer or owner

September 1

County Treasurer

Second notice sent by first-class mail to taxpayer or owner

October 1

County Treasurer

$15.00 fee added to parcel

November 1

County Treasurer

List of all property subject to forfeiture prepared

Year Two – Forfeiture

Notice and Forfeiture

When

Responsible Party

Action

February 1

County Treasurer

Certified mail notice sent to taxpayer and owner; first-class mail sent to occupant

February 1

County Treasurer

Optional additional notices published in a newspaper

March 1

County Treasurer

Property forfeited to the county treasurer

March 1

County Treasurer

$175.00 fee added to the parcel

Redemption Requirements

When

Responsible Party

Action

Notes

March 1

County Treasurer

Additional interest added at 0.5% per month (non-compounded)

Calculated from forfeiture date

March 1

County Treasurer

Recording fees and service/notice fees required for redemption

Forfeiture Administration

When

Responsible Party

Action

April 15

County Treasurer

Certificate of forfeiture recorded

May 1

Foreclosing Governmental Unit (FGU)

Title search and personal visit to forfeited property initiated

May 1

FGU

Notice by publication initiated if owners’ addresses cannot be determined

Year Three – Foreclosure and Disposition

Foreclosure Proceedings

When

Responsible Party

Action

Notes

January–February

FGU

Proof of service for show cause and foreclosure hearings filed

Includes proof of personal visit

May 1

FGU

Certified mail notice of show cause hearing sent to owners of interest

Sent ≥30 days before hearing

June 15

FGU

Petition for foreclosure filed with circuit court clerk

Includes list of forfeited properties

March 30

Circuit Court

Judgment entered for uncontested cases or within 10 days after hearing

March 31

Redemption rights expire

In contested cases, 21 days after judgment

Auction and Final Disposition

When

Responsible Party

Action

Notes

Third Tuesday in July

FGU

First public foreclosure auction held

Two auctions required, ≥28 days apart

July–November

FGU

Second governmental right of refusal purchase opportunity

Occurs between auctions

First Tuesday in November

FGU

Deadline for completion of all auctions

December 1

FGU

List of unsold parcels transferred to city, township, or village

December 30

Local Unit

Deadline to reject property transfers or transfer to land bank

December 31

Taxes and qualifying liens canceled for eligible parcels

Applies after auction or transfer