Tax foreclosure for Michigan homeowners
I am Mitchell Bisson, a Grand Rapids real estate lawyer. I have litigated for over 15 years. When a county moves to foreclose on a home for unpaid property taxes, the deadlines are short and the paperwork is easy to misread. This page covers questions Michigan homeowners ask about tax foreclosure, including payment plans, what happens to mortgages and other liens, notice problems, surplus proceeds, and appeals. I represent homeowners in these matters. The short answers below come from my Michigan legal library, and each links to the full answer.
A Michigan county tax foreclosure runs on the calendar. Taxes still unpaid on March 1 are returned as delinquent, and property that has been delinquent for the preceding 12 months or more is forfeited to the county treasurer on the next March 1. MCL 211.78a(2); MCL 211.78g(1). By June 15 the foreclosing governmental unit files one petition with the circuit court clerk listing the forfeited parcels, and the clerk sets a hearing. MCL 211.78h(1), (5). If the delinquent amounts are not paid by the March 31 after the judgment, or within 21 days of the judgment in a contested case, title vests in the foreclosing unit. MCL 211.78k(5), (6). The foreclosing unit is the county treasurer, or the State if the county has elected to have the State foreclose. MCL 211.78(3), (8)(a).
The bill grows while you wait. Taxes returned as delinquent carry a 4% county property tax administration fee and noncompounded interest of 1% per month, a $175 fee is added on forfeiture, and additional interest of 1/2% per month runs from the March 1 before the forfeiture. MCL 211.78a(3); MCL 211.78g(1), (3). For a Kent County homeowner, the redemption deadline in your notice is the date that matters most.
Two recent developments are worth knowing. A former owner now has a right to claim surplus money when the county sells a foreclosed home for more than the tax debt and costs, under strict dates in MCL 211.78t. And the Legislature amended MCL 211.78g and MCL 211.78q again by 2026 PA 79, effective July 27, 2026, so I work from the current text. This page is written for homeowners. Nothing here predicts how a particular case will end, and I do not promise outcomes.
Michigan tax foreclosure steps, deadlines and where owners stand
These are the steps in the General Property Tax Act and the court decisions that apply it. The dates in your case come from your notices and the judgment.
| Claim or issue | What must be shown | Time limit or key rule | Authority |
|---|---|---|---|
| Delinquency and forfeiture | Taxes unpaid after the March 1 return; delinquent for the preceding 12 months or more | Forfeited to the county treasurer on March 1; certificate recorded within 45 days; interest and fees added | MCL 211.78a(2), (3); MCL 211.78g(1)-(3) |
| Petition and hearings | One petition listing the forfeited parcels; proof of notice and of the personal visit filed with the court | Petition by June 15; foreclosure hearing not more than 30 days before the next March 1; show cause hearing not later than 7 days before it | MCL 211.78h(1), (5); MCL 211.78j(1); MCL 211.78k(1) |
| Notice to owners and lienholders | Records search by May 1; certified mail at least 30 days before the show cause hearing; personal visit and posting; publication if no address is found | Defects do not void the proceeding if the person was notified consistent with minimum due process | MCL 211.78i(1)-(3), (5), (10) |
| Redemption | Payment to the county treasurer of the unpaid taxes, interest, penalties and fees | On or before the March 31 after the judgment, or within 21 days of the judgment in a contested case | MCL 211.78g(3); MCL 211.78k(5) |
| Contesting the foreclosure | Written objections filed with the circuit court clerk and served on the foreclosing unit before the hearing, on a ground listed in the statute | The court may withhold property for 1 year or extend redemption for a minor heir, an incompetent owner, an owner without means of support or an owner in substantial financial hardship | MCL 211.78k(2)-(4); MCL 211.78j(2) |
| Payment plans and agreements | A county treasurer may agree; the home must be a principal residence exempt from the school operating tax; the owner makes an initial payment | Up to 5 years; the property is withheld from the petition while the agreement is effective; default puts it in the next petition | MCL 211.78q(5), (10); MCL 211.78h(3) |
| Surplus claim after a sale | Notarized notice of intention to the foreclosing unit, then a motion in the foreclosure case | Notice by the July 1 after the foreclosure is effective; motion from February 1 through the following May 15 | MCL 211.78t(2), (4), (11); Rafaeli, 505 Mich. 429 (2020) |
| Appeal of the judgment | Notice of appeal to the Court of Appeals, with payment to the county treasurer of the amount due under the judgment | Payment by the March 31 after the judgment, or within 21 days in a contested case; court rule time for an appeal is 21 days unless another time is provided | MCL 211.78k(7); MCR 7.204(A)(1), (F)(1) |
What the county has to do before it can take title
Find you. By May 1 after the forfeiture the foreclosing unit must start a records search for everyone with a property interest. It then sends notice of the show cause hearing and the foreclosure hearing by certified mail, return receipt requested, at least 30 days before the show cause hearing, to the address reasonably calculated to reach each person. MCL 211.78i(1), (2). If it cannot find an address, it publishes notice for 2 successive weeks. MCL 211.78i(5). A person is entitled to notice if the interest could be identified from the register of deeds records or the county, local assessor or local treasurer tax records before the certificate of forfeiture was recorded. MCL 211.78i(6).
Visit the property. The unit or its representative must make a personal visit to find out whether the property is occupied. If it looks occupied, the visitor must try to serve an occupant personally and verbally tell the occupant that the property will be foreclosed unless the amounts are paid, how much time there is, and where help may be available. If the visitor does not meet the occupant, a plain English notice must be placed in a conspicuous location. MCL 211.78i(3). Keep any notice left at your door.
Say what the statute requires. The notice must state the forfeiture date, the total owed, both hearing dates, that title will vest in the unit if payment is not made, the right of redemption and when it ends, and the right to claim remaining proceeds under section 78t. MCL 211.78i(7). I compare each item to what actually arrived.
The law favors finality. The Legislature stated its intent that these provisions meet the minimum requirements of due process, and that a failure to follow the Act does not create a claim unless due process is violated. MCL 211.78(2). A failure to comply with section 78i does not invalidate the proceeding if the person was notified consistent with the minimum due process required by the state and federal constitutions. MCL 211.78i(10).
Defenses and answers I look at in a tax foreclosure case
The tax itself. A person claiming an interest in a parcel may contest the validity or correctness of the forfeited taxes, interest, penalties and fees on these grounds: no law authorizes the tax; the person appointed to decide whether to levy it acted without jurisdiction or did not impose it; the property was exempt or the tax was not legally levied; the tax was paid within the time allowed; the tax was assessed fraudulently; or the property description was so indefinite or erroneous that the forfeiture was void. MCL 211.78k(2). Objections must be filed in writing with the circuit court clerk and served on the foreclosing unit before the hearing. MCL 211.78k(3). You can also appear at the show cause hearing to redeem or to argue those grounds. MCL 211.78j(2).
Notice that never reached you. In In re Petition by Wayne County Treasurer, the treasurer sent the required notice to the previous owner and did not post a notice on either parcel. The Michigan Supreme Court held that the part of the statute limiting the circuit court’s power to modify a foreclosure judgment is unconstitutional and unenforceable as applied to owners denied due process, and it affirmed the order restoring the church’s title. 478 Mich. 1, 10-11; 732 N.W.2d 458, 463 (2007). The same decision treats the statute as sound when the unit complies with the notice provisions. The foreclosing unit can also cancel a foreclosure by recording a certificate of error if an owner entitled to notice did not get notice that met minimum due process, but only if the property has not been transferred under section 78m to someone other than the unit. MCL 211.78k(9)(e). The statute also bars an action by the owner of an extinguished interest brought more than 2 years after the judgment is effective. MCL 211.78l(1).
Hardship. The foreclosing unit may withhold from the petition property held by minor heirs or incompetent persons until a guardian is appointed, and property held by a person in substantial financial hardship under the unit’s written policy, which must be available to the public. MCL 211.78h(3). If the court finds an owner is a minor heir, is incompetent, is without means of support or is in substantial financial hardship, it may withhold the property for 1 year or extend the redemption period as it finds equitable. MCL 211.78k(4). Neither is automatic.
Exemptions and reductions. A principal residence of a person who cannot contribute toward the public charges because of poverty is eligible for exemption under MCL 211.7u, on an annual claim to the board of review. MCL 211.7u(2)(b), (3). Where a local unit takes part in a payment reduction program, the foreclosing unit may reduce what is owed on an exempt property to 10% of its taxable value for the year before the exemption, or cancel interest, penalties and fees, if the owner has not had a reduction before. MCL 211.78g(8), (10). I ask the treasurer whether a program covers your property.
A payment plan. MCL 211.78q gives the county two optional tools. A foreclosing unit may create an installment plan for eligible property held by a financially distressed person, and a county treasurer may enter a tax foreclosure avoidance agreement of up to 5 years for a principal residence exempt from the school operating tax, if the owner makes an initial payment the treasurer sets. MCL 211.78q(1), (5), (10). While an agreement is effective the property is withheld from the petition. If the owner does not comply, the additional interest applies, the property goes into the next petition, and the owner may not bid on it at the later sale. A treasurer may not enter more than 2 such agreements with an owner. MCL 211.78q(5). Ask early and keep every receipt.
What happens if the county forecloses
Your interest and most liens end. If the amounts are not paid by the deadline, the judgment states that the foreclosing unit has good and marketable fee simple title and that liens, including tax and special assessment liens, are extinguished, with exceptions such as future special assessment installments and certain environmental liens. It also extinguishes recorded and unrecorded interests other than a visible or recorded easement or right-of-way, private deed restrictions and a few other listed interests. MCL 211.78k(5)(b)-(e). A mortgage is a recorded interest, which is why lenders watch tax notices. The unit has no right to possession until the April 1 after the judgment, or 22 days after it in a contested case. MCL 211.78g(1). A judgment generally cannot be modified, stayed or held invalid after the March 31 that follows it, or 21 days after it in a contested case, except as the statute provides, such as an appeal. MCL 211.78k(5)(g), (7).
The sale. The State, and then local governments in an order the statute sets, may buy first. MCL 211.78m(1). Otherwise the unit holds auctions from the third Tuesday in July through the first Tuesday in November. MCL 211.78m(2). The minimum bid includes all of the delinquent taxes, interest, penalties and fees and may include the unit’s expenses of foreclosure, maintenance, repair and remediation. MCL 211.78m(16)(c).
Surplus money after a tax foreclosure sale
In Rafaeli, LLC v. Oakland County, the Michigan Supreme Court held that former owners have a vested property right to the surplus proceeds of a tax-foreclosure sale, and that the county’s retention of that surplus took their property without just compensation under Const 1963, art 10, sec 2. 505 Mich. 429 (2020). In Schafer v. Kent County, the Court held that Rafaeli applies retroactively to timely filed cases not yet final when it was decided. 515 Mich. 1 (2024). The Legislature wrote the claim process into MCL 211.78t by 2020 PA 256.
The process has steps, and each has a date. For property sold or transferred after July 17, 2020, the claimant sends the foreclosing unit a notarized notice of intention, on the Treasury Department form, by personal service acknowledged by the unit or certified mail, return receipt requested, by the July 1 after the foreclosure is effective. MCL 211.78t(2). By January 31 after the sale the unit sends each claimant a notice with the sale price, the minimum bid, the 5% sale commission and the remaining proceeds. MCL 211.78t(3). The claimant may then file a motion in the foreclosure case from February 1 through the following May 15. MCL 211.78t(4). The claimant has the burden of proof, and the court decides the relative priority and value of each interest and orders payment of what remains after the 5% commission. MCL 211.78t(8), (9). The unit must pay within 21 days of the order. MCL 211.78t(10). “Remaining proceeds” is the amount paid for the property less the minimum bid, the unit’s other expenses and the 5% commission. MCL 211.78t(12)(b). Section 78t is the exclusive mechanism for claiming them. MCL 211.78t(11).
A published Court of Appeals decision from Kent County applied those rules. In In re Petition of Kent County Treasurer for Foreclosure, Docket No. 363463 (Mich. Ct. App., March 21, 2025) (published), the court held that section 78t is the sole avenue for claiming surplus, that due process is upheld when the unit follows the statutory process, and that the unit must give timely notice of the right to claim. It remanded for the circuit courts to decide whether constitutionally adequate notice was given, and said that an owner who did not get it is entitled to the surplus under Rafaeli and section 78t. Opinion.
Federal law points the same way. In Tyler v. Hennepin County, the United States Supreme Court held that the Takings Clause requires the government to return surplus proceeds from a tax foreclosure sale. 598 U.S. 631 (2023). In Pung v. Isabella County, Docket No. 25-95 (U.S. June 23, 2026), a Michigan case, the Court held that the baseline for just compensation after a tax sale is the auction price, not the property’s hypothetical fair market value, at least when the sale is fairly conducted. It vacated the Sixth Circuit’s judgment and left any preserved fairness arguments to that court on remand. Opinion.
Two Michigan Supreme Court decisions of July 16, 2025 mark the edges. In Yono v. County of Ingham, Docket No. 166791, a unanimous per curiam opinion held that there is no compensable taking when the unit tries to sell the property at a public auction in conformity with MCL 211.78m(2) and it does not sell. Opinion. In Jackson v. Southfield Neighborhood Revitalization Initiative, Docket No. 166320, the Court held that when a property was never offered at auction and a government using the former right of first refusal paid only the minimum bid, it committed a taking if the value it kept exceeded what it was owed, and that the section 78t process does not reach that added value. Opinion. Sales before July 18, 2020 fall under a separate track with its own dates in MCL 211.78t(1)(b) and (6).
How I handle a tax foreclosure case
- Fix the dates. I start with the notices of the show cause hearing and the foreclosure hearing, the forfeiture date and the redemption deadline, and I calendar the earliest date that could end your rights.
- Pull the record. I get the tax history, the payment record, any exemption applications and the recorded certificate of forfeiture, and I list everyone with an interest who should have received notice.
- Check the notice steps. I compare what the county did with each step in section 78i: the certified mailing, the personal visit, the posting, any publication and the proof of service filed with the court.
- Decide the path with you. We weigh paying to redeem, asking the treasurer for an avoidance agreement or a hardship withholding, written objections and, after judgment, an appeal. I tell you what each costs and what it risks.
- Appear and file. I file written objections before the hearing when the grounds support them, and I appear at the show cause hearing and the foreclosure hearing.
- Watch the post-judgment dates. I confirm that any redemption payment reached the county treasurer on time and in the right amount, and if a sale follows I calendar the July 1 notice of intention and the February 1 to May 15 motion window.
Ways a tax foreclosure dispute may end without a trial
Whether any of these is available depends on the county, the property and the dates. None is automatic.
Paying to redeem. Payment of the full amount to the county treasurer by the deadline ends the foreclosure for that property, and the treasurer issues a redemption certificate. MCL 211.78g(3), (6). I ask the treasurer for a written payoff figure and pay in a way that leaves a record. If the property is redeemed after the petition is filed, the unit must ask the court to remove it from the petition. MCL 211.78h(2).
An avoidance agreement or hardship withholding. The county treasurer can agree to a payment schedule or withhold the property from the petition under the sections described above. Get any agreement in writing and read what happens if a payment is missed.
A cancelled foreclosure. After judgment the foreclosing unit may cancel the foreclosure by recording a certificate of error for a reason the statute lists, such as taxes that had already been paid. That is the unit’s decision to make.
What I need from you
Bring every letter, notice and envelope from the county treasurer, the circuit court or anyone acting for the county, including anything left on your door. Bring the tax bills and payment receipts, the deed, the mortgage and any lender statements, any exemption or hardship application, and any payment plan or agreement. If the property has been sold, bring the judgment and any notice about the sale or a surplus claim. Do not ignore a notice because the amount looks small, do not sign over a deed to anyone before we talk, and do not hand money to a company that promises to save your home until someone you trust has read what it wants you to sign.
Where your Kent County tax foreclosure case will be heard
I represent homeowners in Grand Rapids, Kentwood, Grandville, Wyoming and across Kent County. The petition is filed with the clerk of the circuit court for the county, so a tax foreclosure is heard in the Kent County Circuit Court, the 17th Judicial Circuit. MCL 211.78h(1). A claim for remaining proceeds is a motion filed in the same foreclosure case, and an appeal from the foreclosure judgment goes to the Court of Appeals. MCL 211.78t(4); MCL 211.78k(7). Which of those fits your situation depends on the dates, and I decide that with you after I read the papers.
Why people hire me for a Michigan tax foreclosure matter
You work directly with me, the lawyer handling your case. I give you the strengths and weaknesses of the case straight, including what it could cost you and what you could lose. I build the case the facts support, and then we decide together how to proceed.
Fees depend on the type of case, its complexity and whether it is likely to go to trial. I explain my fee arrangement at the consultation, before you decide whether to hire me.
Questions I hear from people facing a property tax foreclosure in Michigan
When can the county foreclose on my house for unpaid property taxes in Michigan?
Property that is delinquent for the preceding 12 months or more is forfeited to the county treasurer on March 1 under MCL 211.78g. It can then be redeemed by paying the delinquent taxes, interest, penalties, and fees until March 31 after the foreclosure judgment, or within 21 days of judgment in a contested case. If it is not redeemed, title vests in the foreclosing unit.
Can I fight a tax foreclosure or ask the court for more time?
Yes, within limits. Under MCL 211.78k, a person with an interest in the property may file written objections and serve them on the foreclosing governmental unit before the hearing. The grounds include that no law authorized the tax, the property was exempt, the tax was paid, or the tax was assessed fraudulently. The court may also withhold property for 1 year or extend redemption in hardship cases.
If the county sells my foreclosed home for more than I owed in taxes, do I get the extra money?
Generally yes. Under the Michigan Supreme Court’s 2020 decision in Rafaeli, LLC v Oakland County, former owners have a vested property right to the surplus proceeds of a tax-foreclosure sale, and keeping it is a taking requiring just compensation. The money is not paid out automatically. MCL 211.78t requires a notice of intention by July 1 and then a motion in the foreclosure case.
What deadlines apply to claiming surplus proceeds after a tax foreclosure sale?
For property sold or transferred after July 17, 2020, MCL 211.78t requires a notarized notice of intention to the foreclosing governmental unit by the July 1 after the foreclosure takes effect. After receiving the unit’s notice, a claimant may file a motion in the foreclosure case from February 1 through the following May 15. The statute makes this the exclusive mechanism for remaining proceeds from a sale or transfer under MCL 211.78m, except that, under Jackson v Southfield (July 16, 2025), a claim for added value in property a local government took at the minimum bid without an auction goes through inverse condemnation.
Can I get on a payment plan to stop a Michigan tax foreclosure on my home?
Possibly, but it is the county’s choice. Under MCL 211.78q(5), a county treasurer may, but is not required to, enter a tax foreclosure avoidance agreement of up to 5 years for a principal residence that qualifies as eligible property, if the owner makes an initial payment the treasurer sets. While it is in effect the property is withheld from the foreclosure petition. If you default, the property goes into the next petition. Ask the treasurer early.
If the county tax-forecloses on a property, what happens to the mortgage and other liens?
Generally they are wiped out if the taxes are not paid in time. Under MCL 211.78k(5), if the delinquent amounts are not paid by the March 31 after the judgment (21 days after it in a contested case), the judgment extinguishes all liens, including tax and special assessment liens, and all recorded and unrecorded interests. The listed exceptions include future special assessment installments, certain environmental liens, visible or recorded easements, and private deed restrictions.
What if the county never gave me notice of the tax foreclosure? Can the judgment be undone?
Possibly, but the law favors finality. MCL 211.78i requires certified mail, a personal visit to the property, and publication if an address cannot be found, yet a failure to follow a step does not invalidate the foreclosure if the owner was notified consistent with minimum due process (MCL 211.78i(10)). In In re Petition by Wayne Co Treasurer, the Michigan Supreme Court held the bar on modifying judgments unconstitutional as applied to an owner denied due process.
Can I appeal a Michigan tax foreclosure judgment, and do I have to pay first?
Yes, but the statute attaches a payment condition. Under MCL 211.78k(7), the foreclosing unit or a person claiming a property interest may appeal the judgment to the Court of Appeals. To appeal, the appellant must pay the county treasurer the amount determined due under the judgment by the March 31 after the judgment (21 days after it in a contested case), together with a notice of appeal. The appeal is on the circuit court record, and the judgment is stayed as to that property.
Related Michigan pages
- Grand Rapids Real Estate Attorney
- Grand Rapids Foreclosure Defense Lawyer
- Redemption and eviction after foreclosure
- Deeds and title defects
- Grand Rapids civil litigation attorney
- civil statutes of limitation
I help Michigan homeowners respond to tax foreclosure and pursue surplus proceeds. Contact me 24/7 by phone or email. Your Rights, My Fight! Call for a free initial consultation.
Big-Firm Power. Street-Level Grit.
Law Offices of Mitchell S. Bisson, 2828 Kraft Ave SE, Suite 295, Grand Rapids, MI 49512, serving Kent County and West Michigan.
This page provides general information about Michigan law and is not legal advice. Reading it does not create an attorney-client relationship. Laws change and every case turns on its own facts. Consult a licensed attorney about your specific situation.