Tax Sale Information
If I don't pay my taxes, will I really lose my house and property? YES, Public Act 123 of 1999 shortens the amount of time property owners have to pay their taxes. If your property taxes are delinquent for two years, you lose your property. Example: If you fail to pay your 2003 property taxes you will lose your property to foreclosure in March 2005.
Property owners face higher interest and fees for not paying their taxes. Taxes that are delinquent for more then one year will have substantially higher interest rates. After one year, a $175 forfeiture fee and additional administrative fee are added. After March 1st additional recording fees are added: a recording fee to record forfeiture with Register of Deeds; a recording fee to record redemption certificate; if a second page is required a additional charge will be added.
Public Act 123 Questions and Answers
- What is deliquent tax?
- What happens after the property tax is forwarded to the county treasurer for collection?
- What does it mean for my property to be in forfeiture? Does that mean I lose my property?
- What happens after my property is in forfeiture?
- What happens after my property is foreclosed? How do I get it back?
What is delinquent tax?
A delinquent tax is a tax that has been forwarded to the County treasurer for collection on March 1st of the year after it was due. For example taxes that are billed by your city or township treasurer in 2004 will be turned over as delinquent to the County Treasurer on March 2005.
What happens after the property tax is forwarded to the county treasurer for collection?
The County Treasurer adds a 4% administration fee and interest of 1% per month. After on year, the property is forfeited to the County treasurer. For example, the 2003 taxes that are still unpaid as of March 1, 2005 will be in forfeiture.
What does it mean for my property to be in forfeiture? Does that mean I lose my property?
NO, Forfeiture is not foreclosure. If your property is in forfeiture, you will still have a year before it will be foreclosed. However, the interest and fee will be higher. When a property is forfeited, the interest rate goes from 1% per month to 1.5%, back to the date the taxes became delinquent. A $175 fee is also added.
What happens after my property is in forfeiture?
After a property has been in forfeiture for one year, it will be foreclosed. 2003 property taxes will be foreclosed in March 2005.
What happens after my property is foreclosed? How do I get it back?
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.