Public Act 123 of 1999 shortens the amount of time property owners have to pay their delinquent taxes before losing their property. Property owners with taxes that are 25 months delinquent will be foreclosed and the property will be sold at public auction. For example, people who fail to pay their 2016 delinquent property taxes will lose their property to foreclosure March 31, 2019.
With this new act, the amount of time to pay taxes has been reduced from approximately 5 years to approximately 2 years.
Property owners face higher interest and fees for not paying their taxes. Taxes that are more than one year old will have a substantially higher interest (1.5% per month as opposed to the current 1%). After one year, taxes will also have a $175.00 forfeiture fee and additional administrative fees added to them.
Frequently Asked Questions:
Q. If I don't pay my taxes will I really lose my house and property?
A. YES. Property owners who had delinquent taxes under the old law could also lose their property, but they had more time to pay and more second chances. Under the new law, if your taxes are delinquent for approximately 25 months, that's it. You've lost the property!!!
Q. What is a delinquent tax?
A. A delinquent tax is a tax that has been forwarded to the county treasurer for collection on March 1 of the year after it was due. For example, taxes that are billed by your city or township treasurer in 2017, will be turned in to the county treasurer delinquent on March 1, 2018.
Q. What happens after the property is forwarded to the county treasurer for collection?
A. The county treasurer adds a 4% administration fee and interest of 1% per month. After one year of delinquency, the property is forfeited to the county treasurer. For example, the 2016 taxes that are still unpaid as of March 1, 2018, will be in forfeiture.
Q. What does it mean for my property to be in forfeiture? Does that mean I lose my property?
A. No. Forfeiture is not the foreclosure. If your property is in forfeiture you still have a year before it will be foreclosed. However, the interest and fees will be higher. When a property is forfeited, the interest rate goes from 1% per month to 1.5% per month, back to the date the taxes became delinquent. A $175.00 fee, recording fees and administrative fees will also be added.
Q. What happens after my property is in forfeiture?
A. After a property has been in forfeiture for approximately 13 months, it will be foreclosed. 2016 property taxes will be foreclosed March 31, 2019.
Q. What happens after my property is foreclosed? How do I get it back?
A. You can not get your property back after is has been foreclosed. FORECLOSURE IS FINAL. Property that has been foreclosed will be sold at a public auction.
Q. What if I can't come up with all the money right now?
A. You can make partial payments. Make your check or money order payable to the Montcalm County Treasurer. To ensure that your payment is applied to your parcel, please write your parcel number on your check or money order. Our mailing address is 211 W Main St, P O Box 368, Stanton, MI 48888. To make any payment of delinquent taxes by Credit/Debit Card on the Internet go to www.paygov.us After the page has loaded, click on the link Pay Online Now You may also call: 1-866-480-8552 and a live operator will assist you.
If you can't pay all of your taxes before foreclosure, contact the Treasurer's Office for a list of agencies that may provide possible financial assistance.
Q. Will I receive notification before my property is foreclosed?
A. Yes. At least five attempts at notification will be made. Two will be by first class mail, two by certified mail, and the last notification will be made by personal service. In addition to these notifications, names and addresses of delinquent property owners may be published in the newspaper. It is the owner/taxpayer's responsibility to notify the local unit and us when there is a address change.