Tax Foreclosure in Michigan: What Homeowners Need to Know
Published by AuctionBlock.org — a mission-driven company dedicated to foreclosure prevention education
Michigan has one of the fastest and most aggressive property tax foreclosure timelines in the United States. If you are a Michigan homeowner who has fallen behind on property taxes, you may have less time than you think. Understanding how the process works — and what options you have — can make the difference between keeping your home and losing it.
This guide explains the Michigan property tax foreclosure process in plain language, citing the Michigan General Property Tax Act (MCL 211.1 et seq.) so you can verify the information.
How Property Taxes Work in Michigan
Michigan property taxes are assessed by your local municipality and collected by the local treasurer. There are two collection periods:
- Summer taxes: Billed July 1, due by September 14
- Winter taxes: Billed December 1, due by February 14
If summer taxes go unpaid by the due date, they are turned over to the county treasurer on March 1 of the following year (MCL 211.78a). At that point, the county takes over collection.
How Tax Foreclosure Works in Michigan
Michigan uses a tax deed system and the process moves quickly — much faster than most states. The county forecloses on the property and takes title directly.
Timeline
Year 1 — Delinquency and county takeover. If you miss your tax payment, the delinquent amount is returned to the county treasurer on March 1. A 4% administration fee is added, and interest begins to accrue at 1% per month (MCL 211.78a).
Year 2 — Forfeiture. On March 1 of the second year of delinquency, the property is forfeited to the county treasurer (MCL 211.78g). The county sends a notice of forfeiture to the property owner.
Year 3 — Foreclosure. On March 31 of the third year, if taxes remain unpaid, the county treasurer forecloses on the property and takes title (MCL 211.78k). The original owner's rights are extinguished.
This means that from your first missed payment, you may have as little as approximately two years before losing your home.
Notice Requirements
The county treasurer must provide notice to the property owner at multiple stages:
- Notice of forfeiture (MCL 211.78g)
- Notice of foreclosure hearing (MCL 211.78i) — sent by first-class mail and certified mail
- Notice must also be posted on the property and published in a local newspaper
Under MCL 211.78i, the court holds a show cause hearing before finalizing foreclosure. This is your last opportunity to present reasons why the property should not be foreclosed.
Redemption: Your Last Chance to Save Your Home
Michigan's redemption period ends before the foreclosure, not after. Under MCL 211.78g, you can redeem your property by paying all delinquent taxes, interest, penalties, and fees during the forfeiture period — that is, between the March 1 forfeiture date and the March 31 foreclosure deadline of the following year.
Once the county forecloses and takes title on March 31, there is no right of redemption. The property belongs to the county and will typically be sold at public auction.
This is an extremely tight timeline. If your property has been forfeited, you should treat every day as urgent.
Surplus Funds and Tyler v. Hennepin County
Historically, Michigan counties kept all proceeds from the sale of tax-foreclosed properties, even when the sale price far exceeded the amount of delinquent taxes. The U.S. Supreme Court's decision in Tyler v. Hennepin County (2023) ruled this practice unconstitutional under the Takings Clause. Michigan subsequently enacted reforms. Under MCL 211.78t (added by 2024 PA 3), former property owners may claim surplus proceeds from the sale. If your property was foreclosed and sold for more than the taxes owed, you may have a right to those surplus funds.
Real Programs Available to Michigan Homeowners
Principal Residence Exemption (PRE)
Under MCL 211.7cc, homeowners who use their property as a primary residence are exempt from the 18-mill non-homestead school operating tax. This can reduce your tax bill significantly. You must file a Principal Residence Exemption Affidavit with your local assessor.
Poverty Exemption
Under MCL 211.7u, homeowners whose income falls below federal poverty guidelines may qualify for a full or partial exemption from property taxes. You must apply annually with your local board of review, typically in March. Required documentation includes proof of income and assets. Each municipality sets its own poverty exemption guidelines.
Payment Plans
Michigan law allows county treasurers to offer payment plans for delinquent taxes. Under MCL 211.78q, after a property has been forfeited, the county treasurer may enter into a stipulated payment agreement. Contact your county treasurer immediately to request a plan. Not all counties offer this, but many do — especially Wayne County (Detroit), which has offered structured payment plans.
Homeowner Assistance Fund (HAF)
Michigan's HAF program, called the Michigan Homeowner Assistance Fund (MIHAF), is administered by the Michigan State Housing Development Authority (MSHDA). The program provides assistance for delinquent property taxes for eligible homeowners. Apply at michigan.gov/mihaf or call 1-844-756-4423.
Step Forward Michigan
Step Forward Michigan, also administered by MSHDA, has historically provided financial assistance for delinquent property taxes and mortgage payments. Check michigan.gov/mshda for current program availability.
Legal Aid and Counseling Resources
- Michigan Legal Help: Free legal information at michiganlegalhelp.org.
- Legal Aid of Western Michigan: Call 888-783-8190 or visit lawestmi.org.
- Lakeshore Legal Aid (Southeast Michigan): Call 888-783-8190 or visit lakeshorelegalaid.org.
- Legal Services of South Central Michigan: Call 888-783-8190 or visit lsscm.org.
- Michigan Poverty Law Program: Visit mplp.org for referrals.
- Wayne County Taxpayer Assistance (Detroit area): Call the Wayne County Treasurer's Office at 313-224-5990.
- HUD-Approved Housing Counselors: Call 1-800-569-4287 or search hud.gov/counseling.
United Way 211
Call 211 for referrals to local assistance programs, including emergency financial assistance, utility help, and housing counseling anywhere in Michigan.
What to Do RIGHT NOW If You Are Behind on Property Taxes
- Contact your county treasurer immediately. Find out exactly how much you owe and what stage you are in (delinquent, forfeited, or foreclosure pending).
- If your property has been forfeited, ask about a payment plan under MCL 211.78q. This is your most important step.
- Apply for MIHAF assistance through MSHDA at 1-844-756-4423 or michigan.gov/mihaf.
- File for the Principal Residence Exemption if you have not already. This reduces your future tax bill.
- Apply for the poverty exemption during the March Board of Review period if your income is below poverty guidelines.
- Contact a HUD-approved housing counselor at 1-800-569-4287.
- If a show cause hearing has been scheduled, attend it. This may be your last chance to present your case to the court.
- Do not wait. Michigan's timeline is one of the shortest in the country. Once March 31 foreclosure hits, your ownership rights are gone.
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Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Michigan tax laws and programs change over time. Always verify current rules with your county treasurer or a licensed attorney. AuctionBlock.org is a mission-driven company organization providing foreclosure prevention education and awareness.