Property Tax Liens In Michigan

Property Tax Liens In Michigan

Property Tax Liens In Michigan are actually “tax deeds”.

When property is 1-year delinquent in tax payments, the property is “forfeited” to the county treasurer, unless the county “opts out”, in which case the property will revert to the state.

The owner has 1 year to redeem the property after which the county (or state) will foreclose on the property and sell it at auction.

Tax foreclosure sales, or “land sales” as they are called in come counties, are conducted by the state treasury department as well as by individual counties.

According to state statutes, the tax foreclosure extinguishes most liens, including unpaid tax and special assessment liens, but excludes IRS liens and liens filed by government agencies in relation to the environmental protection act.

There is no redemption period after the sale.

In most counties you must register and receive a bid card before the sale.

In order to register you must be at least 18 and have at driver’s license or state ID and a social security number. Some counties also require a sizable deposit that is refunded to unsuccessful bidders upon surrender of their bidder cards.

Most of the counties now conduct online auctions. But the online sales occur side by side with the actual “in person” county and state auction. You can be at the sale in order to bid; or at least have a representative at the sale. Or you can participate online.

Forms of payment accepted at all sales are the usual: cash, certified funds, or money order. For counties that have online sales, payment is made by credit card.

Property Tax Liens In MichiganProperties are sold to the highest bidder and payment must be made the day of the sale. The minimum bid consists of delinquent taxes, interest, penalties, fees due on the property, and the cost of the sale.

A quitclaim deed is issued to the purchaser. In some counties the deed is registered before it is delivered to the 39 purchaser. In other counties the purchaser is responsible for registering the deed with the county clerk.

There is a lot of information available online for Michigan tax sales. There is now a state website at where you can get the tax sale information, and register and bid at the online tax sales. Michigan tax sale season starts in July through November.

There are 83 counties in Michigan. Thus, there are almost constant tax sales taking place thru the summer and fall.