Property Tax Forfeiture and Foreclosure

Real property tax delinquency entails a three-year forfeiture and foreclosure process in Michigan. Parcels are forfeited to the county treasurers when the real property taxes are in the second year of delinquency. Real property taxes which remain unpaid as of March 31 in the third year of delinquency are foreclosed upon by the Foreclosing Governmental Unit (FGU). The FGU is responsible for inspecting forfeited property, providing due process notifications and subsequent disposition of the tax foreclosed property. Claims for excess sale proceeds may be filed by those who hold interest in property at the time of foreclosure. Claims must be filed within statutory timeframes. For further information regarding claims for excess sales proceeds visit the Taxpayer Resources page.