Delinquent Property Taxes in Michigan: One Court Date Ends Every Right to Buy It Back
Reviewed by DocDraft Legal Team · Michigan · Last updated October 21, 2026
Michigan never auctions a lien or a certificate against a delinquent home. It forfeits the parcel to the county treasurer and then asks a circuit court to hand the taxing side absolute title. Delinquent property taxes are property taxes a homeowner did not pay by the date the state set, after which the county adds interest and fees and can ultimately force a sale of the property to collect them. Taxes levied in the preceding year that are still unpaid are returned as delinquent to the county treasurer on March 1 (MCL 211.78a(2)), and from the original delinquency date a 4 percent county administration fee and noncompounded interest of 1 percent a month run on them (MCL 211.78a(3)). On the March 1 when the parcel has been delinquent for 12 months or more it is forfeited to that treasurer, adding a 175 dollar fee and a further 1/2 percent a month (MCL 211.78g(1), (3)(b)). Forfeiture is not the loss of the house. The judgment is. The foreclosing governmental unit petitions the circuit court by June 15 (MCL 211.78h(1)), and all redemption rights expire on the March 31 immediately succeeding entry of the judgment, or 21 days after entry in a contested case (MCL 211.78k(5)). Title then vests absolutely, without any further rights of redemption (MCL 211.78k(5)(b), (6)). No payment after that date returns the property. What survives is a claim on any auction money above the debt, and it carries two separate deadlines of its own (MCL 211.78t). Attorney review is available through DocDraft.
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When exactly does the right to redeem end in Michigan?
All redemption rights to the property expire on the March 31 immediately succeeding the entry of a judgment foreclosing the property, or in a contested case 21 days after the entry of that judgment (MCL 211.78k(5)). Fee simple title then vests absolutely in the foreclosing governmental unit, which is usually the county treasurer.
Can I buy my house back after a Michigan tax foreclosure judgment?
Not by redeeming it. The judgment must state that title vests absolutely without any further rights of redemption (MCL 211.78k(5)(b)), and the petition opening the case asked for exactly that (MCL 211.78h(1)). A former owner who bids at the final auction must still pay the full minimum bid (MCL 211.78m(5)).
How much does it cost to redeem a forfeited Michigan parcel?
Two monthly interest layers and several flat fees. Noncompounded interest of 1 percent a month from the original delinquency date, plus a 4 percent county administration fee (MCL 211.78a(3)), then an additional 1/2 percent a month at forfeiture (MCL 211.78g(3)(b)), plus 15 dollars, 175 dollars, and recording and service fees.
When do unpaid Michigan property taxes reach the county treasurer?
On March 1. Taxes levied in the immediately preceding year that remain unpaid are returned as delinquent for collection on that date, or on the next business day where March 1 falls on a Saturday, Sunday or legal holiday (MCL 211.78a(2)). Local summer and winter due dates come earlier and differ by city or township.
Michigan delinquent property tax rules at a glance
Unpaid Michigan property taxes are taxes an owner missed by the local due date, after which interest and fees are added and the parcel can be taken and sold to satisfy the debt. Michigan collects through one circuit court case per county each year rather than through an investor's lien. The parcel is returned delinquent on March 1 (MCL 211.78a(2)), forfeited to the county treasurer on the March 1 after 12 months or more of delinquency (MCL 211.78g(1)), and then foreclosed by judgment. The ending is what sets Michigan apart. All redemption rights expire on the March 31 immediately succeeding entry of that judgment (MCL 211.78k(5)), title vests absolutely without any further rights of redemption (MCL 211.78k(5)(b)), and the only claim left is to remaining proceeds under MCL 211.78t.
A Battle Creek rental where the only date that counted was set in a courtroom
A two unit rental on the north side of Battle Creek carries about 2,480 dollars of unpaid 2024 taxes. The bill is returned as delinquent to the Calhoun County Treasurer on March 1, 2025, picking up the 4 percent administration fee and 1 percent a month (MCL 211.78a(3)), then 15 dollars that October (MCL 211.78d). On March 1, 2026 the parcel is forfeited, adding 175 dollars and a further 1/2 percent a month (MCL 211.78g(1), (3)(b)). The county petitions the circuit court by June 15, 2026 (MCL 211.78h(1)). Judgment follows the next spring, and in an uncontested case every redemption right ends on March 31, 2027 (MCL 211.78k(5)). A notice of intention to claim remaining proceeds would then fall due by July 1, 2027 (MCL 211.78t(2)). The payoff figure on any given day is for the treasurer's own records.
Relevant Laws
MCL 211.44 (local collection, the 1 percent administration fee and the optional 3 percent late penalty)
Governs collection by the township or city treasurer before the taxes leave the local unit. On sums voluntarily paid before February 15 the local unit adds a property tax administration fee of not more than 1 percent of the total tax bill per parcel, and on taxes paid after February 14 and before the return as delinquent the governing body of a city or township may authorize a late penalty charge equal to 3 percent of the tax. Subsection (7) makes both charges depend on a resolution or ordinance of the local governing body, so the amount an owner actually pays before March 1 is a local question.
MCL 211.78 (legislative intent, the foreclosing governmental unit, and what forfeiture means)
Sets out the legislature's findings and its statement that the forfeiture and foreclosure provisions satisfy minimum due process without creating new rights. Subsection (8)(a) defines the foreclosing governmental unit as the treasurer of a county, or this state where the county board elected state foreclosure. Subsection (8)(b) defines forfeiture as meaning that the foreclosing governmental unit may seek a judgment of foreclosure if the property is not redeemed, but does not acquire a right to possession or any other interest in the property.
MCL 211.78a (return as delinquent on March 1, the 4 percent fee and 1 percent a month)
Provides that on March 1 in each year, taxes levied in the immediately preceding year that remain unpaid shall be returned as delinquent for collection, moved to the next business day where March 1 is a Saturday, Sunday or legal holiday. Subsection (3) adds a county property tax administration fee of 4 percent and interest computed at a noncompounded rate of 1 percent per month or fraction of a month on the taxes originally returned as delinquent, computed from the date the taxes originally became delinquent.
MCL 211.78d (the 15 dollar fee added on October 1)
Requires the county treasurer, on the October 1 immediately succeeding the date unpaid taxes were returned as delinquent, to add a 15 dollar fee on each parcel for which the delinquent taxes, interest, penalties and fees remain unpaid.
MCL 211.78f (certified mail notice before the February 1 preceding forfeiture)
Requires the county treasurer, not later than the February 1 immediately succeeding the return as delinquent, to send notice by certified mail with return receipt requested to the person last billed and to the owner of record, with a first class copy addressed to the occupant where the occupant was not served. The notice must state the forfeiture date, that a legal interest may be lost, the amount due, a schedule of the interest, penalties and fees that accrue on the coming March 1, and that the rights of redemption expire on the March 31 immediately succeeding an uncontested judgment of foreclosure.
MCL 211.78g (forfeiture on March 1, the 175 dollar fee, and the redemption payment)
Provides that on March 1 in each tax year, property delinquent for taxes, interest, penalties and fees for the immediately preceding 12 months or more is forfeited to the county treasurer, which adds a 175 dollar fee, and that the foreclosing governmental unit has no right to possession until the April 1 after judgment. Subsection (3) allows redemption at any time on or before the March 31 immediately succeeding entry of judgment, or 21 days after entry in a contested case, on payment to the county treasurer of the forfeited amount, additional noncompounded interest of 1/2 percent per month computed from the March 1 preceding the forfeiture, and all recording fees and fees for service of process or notice. Subsections (8) to (11) carry the payment reduction program for parcels with a poverty exemption, as amended by 2026 PA 79.
MCL 211.78h (the June 15 petition, and withholding a parcel from it)
Requires the foreclosing governmental unit, not later than June 15 in each tax year, to file a single petition listing all property forfeited and not redeemed, and provides that the petition shall request a judgment vesting absolute title in the foreclosing governmental unit, without right of redemption. Subsection (3) lets the unit withhold property held by minor heirs or incompetent persons, by persons without means of support, by persons unable to manage their affairs due to age or infirmity, by a person under substantial financial hardship under a written policy it must publish, or by a person on a plan or agreement under section 78q.
MCL 211.78i (title search, certified mail, personal visit and publication)
Requires a records search initiated not later than May 1 after forfeiture, notice of the show cause hearing and the foreclosure hearing by certified mail with return receipt requested not less than 30 days before the show cause hearing, a personal visit to each forfeited property to establish occupancy with attempted personal service on an occupant or a plain English notice posted in a conspicuous location, and publication for 2 successive weeks where no address can be determined. The posted notice must name agencies that may help and explain the right to claim remaining proceeds under section 78t.
MCL 211.78j (the show cause hearing)
Requires the foreclosing governmental unit to schedule a hearing not later than 7 days before the foreclosure hearing to show cause why absolute title should not vest in it, and provides that the owner and any person with a property interest may appear at that hearing and redeem the property or show cause why absolute title should not vest, for any of the reasons set out in section 78k(2).
MCL 211.78k (the judgment, the expiry of all redemption rights, and extension)
The operative section. Final judgment is entered after the hearing but not later than the March 30 immediately succeeding it, effective on the March 31 for uncontested cases or 10 days after the hearing for contested cases. All redemption rights to the property expire on the March 31 immediately succeeding entry of the judgment, or in a contested case 21 days after entry. The judgment must specify that fee simple title vests absolutely in the foreclosing governmental unit without any further rights of redemption, that liens are extinguished, and that existing recorded and unrecorded interests are extinguished apart from listed exceptions. Subsection (4) lets the court withhold the property from foreclosure for 1 year or extend the redemption period where the owner is a minor heir, is incompetent, is without means of support, or is undergoing a substantial financial hardship. Subsection (7) sets the appeal route and requires payment of the judgment amount by the same deadline.
MCL 211.78l (two year outer limit on any action after judgment)
Provides that where a judgment for foreclosure is entered and all existing recorded and unrecorded interests are extinguished, the owner of any extinguished interest shall not bring an action, including an action for possession or recovery of the property or of any proceeds from its sale or transfer, more than 2 years after the judgment of foreclosure is effective, and that an action to recover proceeds must be brought as provided under section 78t.
MCL 211.78m (the auction window, the minimum bid, and the former owner at the final sale)
Sets the right of first refusal for the state and then for local units and land bank authorities, and provides that the foreclosing governmental unit shall hold one or more auctions beginning on the third Tuesday in July after judgment and ending on the immediately succeeding first Tuesday in November. Each purchaser must file a perjury affidavit that the person does not directly or indirectly hold more than a minimal legal interest in any property with delinquent property taxes in the same county. At a final sale the minimum bid is not required, except that a person who held an interest in the property when judgment was entered must pay the minimum bid before a deed issues. Subsection (16)(c) defines the minimum bid.
MCL 211.78q (installment payment plan and tax foreclosure avoidance agreement)
Lets a foreclosing governmental unit create a delinquent property tax installment payment plan for a financially distressed person holding a principal residence exempt from school operating tax, and remove that parcel from the petition once the initial payment is made, with the section 78g(3)(b) interest waived on successful completion. Subsection (5) lets a county treasurer enter a tax foreclosure avoidance agreement of up to 5 years on residential real property that is a principal residence, after an initial payment the treasurer sets, during which the parcel is withheld or removed from the petition and the lower interest rate applies. No owner may have more than two such agreements. Amended by 2026 PA 79.
MCL 211.78t (claiming remaining proceeds, and its two deadlines)
Added by 2020 PA 256 to codify the right recognized in Rafaeli, LLC v Oakland County. A claimant must notify the foreclosing governmental unit, by the July 1 immediately following the effective date of the foreclosure, on a notarized form prescribed by the Department of Treasury, served personally or by certified mail with return receipt requested. The foreclosing governmental unit must send its own notice by the January 31 after the sale. The claimant must then file a motion in the same circuit court proceeding in which the judgment was effective, during the period beginning February 1 after the sale and ending on the immediately succeeding May 15. The court takes a sale commission of 5 percent of the sale price for the foreclosing governmental unit, and subsection (11) makes this the exclusive mechanism.
2026 PA 79 (Enrolled Senate Bill No. 423, effective July 27, 2026)
The only 2026 public act touching this chapter. It amends sections 78g and 78q, eliminating the sunsets on the delinquent tax payment reduction program and on the tax foreclosure avoidance agreement, which makes both permanent. Approved by the Governor July 21, 2026, filed with the Secretary of State July 27, 2026, immediate effect.
Michigan Department of Treasury: Real Property Tax Forfeiture and Foreclosure Process
Treasury's year by year chart of the statutory process, citing MCL 211.78a to 211.78m. It records the March 1 return as delinquent with the 4 percent fee and 1 percent a month, the June 1 and September 1 notices, the October 1 fee of 15 dollars, the February 1 certified mail notice, forfeiture and the 175 dollar fee on March 1, the 0.5 percent per month added at that point, the June 15 petition, judgment by March 30, and the line that on March 31 redemption rights expire, with contested cases at 21 days after judgment.
Michigan Department of Treasury: Taxpayer Resources, claims for excess sales proceeds
Treasury's page for owners, confirming that those with title or equity interest at the time of foreclosure must submit the Notice of Intention to Claim Interest in Foreclosure Sales Proceeds, Form 5743, to the foreclosing governmental unit by July 1 following the foreclosure's effective date, and listing the counties for which the state rather than the county is the foreclosing governmental unit.
Regional Variances
Michigan delinquent property tax rules at a glance
Sale mechanism
Judicial. Nothing is sold to an investor before the house is gone. The parcel is forfeited to the county treasurer, the foreclosing governmental unit petitions the circuit court, and fee simple title vests absolutely in that unit by judgment (MCL 211.78g(1), 211.78h(1), 211.78k(6)). Only afterwards is the property auctioned, by the unit as owner (MCL 211.78m(2)).
Delinquency date
March 1 for the previous year's taxes, moved to the next business day where that is a Saturday, Sunday or legal holiday (MCL 211.78a(2)). Local due dates come first and differ: Treasury's timeline puts the summer levy at July 1 unless a city charter sets another date, and the winter levy in December.
Charges before forfeiture
Locally, a property tax administration fee of not more than 1 percent and, if the city or township governing body authorized it, a late penalty charge of 3 percent on taxes paid after February 14 (MCL 211.44(3), (7)). From March 1, a 4 percent county administration fee and noncompounded interest of 1 percent a month from the original delinquency date (MCL 211.78a(3)).
Time before sale
About three tax years. Forfeiture on the March 1 after 12 months or more of delinquency (MCL 211.78g(1)), petition by June 15 of the following year (MCL 211.78h(1)), judgment by the March 30 after the hearing (MCL 211.78k(5)), then auctions from the third Tuesday in July to the first Tuesday in November (MCL 211.78m(2)).
Redemption period and clock
The clock that matters runs off the judgment, not off the sale or the delinquency. Redemption is open from forfeiture until the March 31 immediately succeeding entry of the judgment of foreclosure, or 21 days after entry in a contested case (MCL 211.78g(3), 211.78k(5)). There is no redemption afterwards and none after the sale; title vests without any further rights of redemption (MCL 211.78k(5)(b)).
Redeemer's charge
Two stacked monthly simple layers, not one rate and not a flat penalty. Noncompounded interest of 1 percent per month or fraction of a month from the date the taxes originally became delinquent (MCL 211.78a(3)), plus additional noncompounded interest of 1/2 percent per month computed from the March 1 preceding the forfeiture (MCL 211.78g(3)(b)). Under a tax foreclosure avoidance agreement on a principal residence the additional interest is replaced by the lower rate in MCL 211.78g(3)(c)(ii).
Other redemption costs
A 4 percent county property tax administration fee, not less than 1 dollar (MCL 211.78a(3)); 15 dollars added on the October 1 after the return as delinquent (MCL 211.78d); 175 dollars added at forfeiture (MCL 211.78g(1)); and all recording fees and all fees for service of process or notice (MCL 211.78g(3)(d)).
Notice to the owner
Five notices. First class mail on or within 60 days before June 1 and again before September 1 (MCL 211.78b, 211.78c); certified mail with return receipt before the February 1 preceding forfeiture, plus a copy to the occupant (MCL 211.78f); a recorded certificate of forfeiture within 45 days explaining the remaining proceeds right (MCL 211.78g(2)); and certified mail of both hearings at least 30 days out, with a personal visit and a posted plain English notice (MCL 211.78i).
Where to redeem
The county treasurer, who takes the payment and issues a redemption certificate in quadruplicate, one copy recorded with the register of deeds (MCL 211.78g(3), (6)). The foreclosing governmental unit that runs the court case and the auction can be a different body, the State of Michigan, in counties that elected state foreclosure (MCL 211.78(8)(a)).
Surplus proceeds
Claimable, with two deadlines. A notarized Treasury form to the foreclosing governmental unit by the July 1 after the foreclosure takes effect, then a motion in the same circuit court case between the February 1 after the sale and the immediately succeeding May 15 (MCL 211.78t(2), (4)). Remaining proceeds are the sale price less the minimum bid, less the unit's other costs, less a 5 percent sale commission (MCL 211.78t(9), (12)(b)).
Payment plan
An installment payment plan for a financially distressed person on a principal residence, which waives the forfeiture interest on completion, and a tax foreclosure avoidance agreement of up to 5 years with the county treasurer on residential property, capped at two per owner (MCL 211.78q(1), (3), (5)). A county may also run a payment reduction program for parcels with a poverty exemption (MCL 211.78g(8)). 2026 PA 79 made both programs permanent.
Frequently Asked Questions
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