In Michigan, the county doesn’t take a house until a little over two years after its taxes become delinquent. Until the final deadline, the house is still yours to sell, and the back taxes are paid out of the sale at closing.
The timeline
Property taxes still unpaid on March 1 after the tax year become delinquent and go to the county treasurer, with interest and fees added. A year later, the property is forfeited. If the taxes reach two years delinquent and aren’t paid by March 31, the county forecloses, takes title, and sends the house to public auction.
Before March 31 of the foreclosure year
- Pay what’s owed, or ask your county treasurer about payment options.
- Sell the house. The taxes, interest and fees are paid from the sale at closing, and you keep what’s left.
After a tax foreclosure: claiming leftover proceeds
If the house sells at auction for more than was owed, a former owner can claim what’s left. The process has strict deadlines:
- File Form 5743, Notice of Intention to Claim Interest in Foreclosure Sales Proceeds, with the foreclosing governmental unit by the July 1 immediately after the foreclosure.
- Watch for Form 5744, which is sent by January 31 after the auctions.
- File a motion with the circuit court between February 1 and May 15.
Even when it works, a claim pays only what’s left after taxes, interest, fees and the auction price. Selling before the deadline usually leaves you with more, and with control over the timing.
Getting an offer
Tell us roughly how much is owed in taxes and which years are unpaid. We’ll work out whether a sale clears it before the deadline. Tell us about the property.
This guide is general information, not legal or tax advice. Laws and city rules change, so check the sources below and talk to an attorney about your situation.