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What Every Property Owner Should Know

Public Act 123 of 1999 shortens the amount of time property owners have to pay their delinquent taxes before losing their property.  Property owners with taxes that are two years delinquent will be foreclosed and the property will be sold at public auction.

For example, people who fail to pay their 2009 property taxes will lose their property to foreclosure in March, 2012.

With this new act, the amount of time to pay taxes has been reduced from approximately five years to approximately two and a half years.

Properties owners face high interest and fees for not paying their taxes.  Taxes that are delinquent for more than one year will have a substantially higher interest rate (1.5% per month, as opposed to the current 1%).  After one year, taxes will have a $175 forfeiture fee and additional administrative fees added to them.

Public Act 123 Questions and Answers

Q.    If I don't pay my taxes, will I really lose my house and property?

A.    YES.  Property owners who had delinquent taxes under the old 
       law could also lose their property, but they had more time to pay and
       more "second chances."  Under the new law, if your taxes are delinquent for 
       two years, that's it.  You've lost the property.

Q.    What is a delinquent tax?

A.    A delinquent tax is a tax that has been forwarded to the county treasurer for 
       collection on March 1 of the year after it was due.  For example, taxes 
       that are billed by your city or township treasurer in 2009 were turned 
       over as delinquent to the county treasurer on March 1, 2010.

Q.    What happens after the property is forwarded to the county treasurer for 
       collection?

A.    The county treasurer adds a 4% administration fee and interest of 1% per
       month.  After one year, the property is forfeited to the Grand Traverse
       County Treasurer.  For example, the 2009 taxes that are still unpaid as of
       March 1, 2010 will be in forfeiture as of March 1, 2011.

Q.    What does it mean for my property to be in forfeiture?  Does that mean I
       lose my property?

A.    NO.  Forfeiture is not foreclosure.  If your property is in forfeiture, you still
       have a year before it will be foreclosed.  However, the interest and fees
       will be higher.  When a property is forfeited, the interest rate goes from 1%
       per month to 1.5% per month, back to the date the taxes became delinquent.
       A $175 title search fee is added along with other notice fees.

Q.    What happens after my property is in forfeiture?

A.    After property has been in forfeiture for one year, it will be foreclosed.  
       The 2009 property taxes will be foreclosed in March 31, 2012.

Q.    What happens after my property is foreclosed?  How do I get it back?

A.    You CANNOT get your property back after it has been foreclosed.  
       FORECLOSURE IS FINAL.  Property that has been foreclosed will be SOLD
       at public auction or transfered to a government unit.

Q.    What if I can't come up with all the money right now?

A.    Even if you can't pay your taxes all at once, you can still make partial
       payments.  Each payment wiill reduce the amount of interest that is added each 
       month.  The final payment must be made prior to the foreclosure date.
       Make your check or money order payable to the Grand Traverse County
       Treasurer.  To ensure your payment is applied to your parcel, please 
       write your parcel number on your check or money order along with the 
       year you intend to pay.  The mailing address is:  Grand Traverse County
       Treasurer, 400 Boardman Avenue, Traverse City, MI 49684.

Q.    Will I receive any notification before my property is foreclosed?

A.    YES.  At least five (5) notifications will be made.  Two (2) will be by First Class
       Mail, two (2) by Certified Mail and the last notification will be made by
       personal service.  In addition to these notifications, names and addresses
       of delinquent property owners may be published in The Record Eagle.

PROPERTY FORECLOSURE TIME LINE

JULY & DECEMBER 2012

2012 property taxes billed by City, Village, or Township Treasurer.

MARCH 1, 2013

Unpaid 2012 property taxes are forwarded to the County Treasurer for collection.  The County Treasurer adds a 4% administration fee and 1% per month interest.

OCTOBER 1, 2013

The County Treasurer adds a $15.00 mail notice fee to each delinquent parcel.

MARCH 1, 2014

Property is forfeited to the County Treasurer.  The County Treasurer adds a $175.00 Title Search fee and $20.00 Recording Fee.  Interest increased from 1% per month to 1.5% per month back to the date the taxes became delinquent.

OCTOBER, 2014

Property visit fee added.

DECEMBER, 2014

Publication fee is added.

Unpaid properties are published in the newspaper.

JANUARY/FEBRUARY, 2014

Show Cause Administrative hearing is held.

FEBRUARY/MARCH, 2014

Final judicial foreclosure hearing

Judgment entered and filed.

MARCH 31, 2014

Last day to pay taxes to avoid foreclosure.

APRIL, 2014

Treasurer takes title to foreclosed properties.

JUNE, 2014

Advertise office notice of Minimum Bid Auction.

JULY, 2014

Minimum Bid Auction / or property transer to governmental unit.