Selling a House With Delinquent Property Taxes in Michigan
Yes, as long as you still own the house and can close before the foreclosure deadline. The back taxes, interest and fees are paid out of the sale at closing. In Michigan, unpaid taxes forfeit to the county treasurer on March 1 a year after they go delinquent, and the house is foreclosed if they're still unpaid on March 31 the year after that. A signed purchase agreement doesn't stop that clock, so the date matters more than the balance.
Reviewed by Dennis Fassett, founder of Dennis Buys Houses · Updated November 2026
Where You Stand for the 2027 Deadlines
Find the oldest tax year you still owe. That year sets your deadline, under the standard county timeline.
| Oldest unpaid taxes | Where it stands now | The date that matters |
|---|---|---|
| 2024 | Forfeited to the county treasurer March 1, 2026. Foreclosure is underway. | March 31, 2027. If it's not paid by then, the county takes the house. |
| 2025 | Delinquent since March 1, 2026. | March 1, 2027. Forfeits, a $175 fee is added, the interest rate goes up, and foreclosure starts. Final deadline March 31, 2028. |
| 2026 | Still with your city or township. | March 1, 2027. Turns delinquent and goes to the county with a 4% fee and monthly interest. |
Your county may run on slightly different dates, and contested cases follow the court's schedule. Call the county treasurer to confirm your exact deadline and payoff before you plan anything around it.
How Michigan Tax Foreclosure Works
- 1Delinquent (March 1, year one)
Unpaid taxes from the prior year go to the county treasurer. A 4% administration fee is added, plus 1% interest a month. Notices go out by mail, and a $15 fee is added October 1.
- 2Forfeited (March 1, year two)
The house is forfeited to the county treasurer, a $175 fee is added, and the interest rate rises to 1.5% a month. You still own it. Forfeiture lets the county file to foreclose, with a personal visit to the house, a show-cause hearing and a court hearing to follow.
- 3Foreclosed (March 31, year three)
If the taxes, interest and fees aren't paid by March 31, the right to redeem ends and the county takes title. The house then goes to auction that summer or fall.
For the statute behind each stage, see What Is the Michigan General Property Tax Act?
Call the County Treasurer First
Don't work from an old tax bill. Call the county treasurer, or whoever handles tax foreclosure in your county, and ask:
- Which tax years are owed, and the total payoff good through a specific date
- Whether the house has been forfeited, and whether a foreclosure petition or judgment has been filed
- The last day you can pay to keep the house
- Whether a payment plan or hardship program is available, and whether you qualify
A Small Balance Can Still Cost You the House
Michigan's foreclosure process doesn't have a minimum. In the Michigan Supreme Court's Rafaeli case, a house was foreclosed over a delinquency that had grown to $285.81. The amount doesn't protect you; the date is what counts. (Can you lose your home over $500 in unpaid taxes?)
Want a Number to Compare Against?
Tell me about the house and which tax years are behind. I'll give you a straight as-is number, and tell you if keeping it or listing it makes more sense.
Keep It or Sell It
If You Want to Keep the House
Ask the county treasurer whether a payment plan or hardship option is available before deciding anything. Michigan has a poverty exemption you apply for through your city or township's Board of Review, and some counties offer payment plans or a hardship deferral. What's available, the terms and the deadlines vary by county. (Property tax hardship options by county.)
List It
If the house is in good shape and there's enough time before your deadline, a traditional listing will likely bring the most money. The taxes come out of the proceeds at closing. Just make sure the timeline works: showings, a buyer's mortgage approval and an appraisal all have to fit before March 31.
Sell It to a Real Estate Investor
The easiest route when the deadline is close, the house needs work, it's vacant or inherited, or you're simply done with it. There are no repairs, no showings and no mortgage approval to wait on, and you pick the closing date. The title company gets the exact payoff from the treasurer, and the taxes are paid at closing out of the sale.
A signed purchase agreement doesn't pause tax foreclosure. Whatever route you pick, it has to close before your deadline.
What Happens to Your Equity After Foreclosure
Since the Rafaeli decision, Michigan lets former owners claim the money left over when a tax-foreclosed house sells at auction for more than was owed. You have to file Form 5743, a notarized notice of intent to claim, with the county by July 1 after the foreclosure. Then you have to file a motion in circuit court the following year. Even when it works, you get whatever's left after an auction price you didn't choose, many months later. Selling before March 31 keeps the price, the timing and the equity in your hands.
Tax Foreclosure Isn't Mortgage Foreclosure
Both can cost you the house, but they run on completely different clocks. Mortgage foreclosure ends in a sheriff's sale followed by a redemption period. Tax foreclosure runs through delinquency, forfeiture and a court judgment, and there's no redemption period after March 31. Don't use one's deadline for the other. (Tax foreclosure vs. mortgage foreclosure.)
Inherited House With Back Taxes
The tax clock doesn't stop for probate or a family disagreement. Work out who has authority to sell at the same time you deal with the taxes, not one after the other. (How property taxes work for inherited homes.)
What I'd Do Today
- 1Call the county treasurer
Get the payoff and the exact deadline, in writing if you can.
- 2Ask about help
Whether a payment plan, hardship deferral or the poverty exemption is available, if keeping the house is the goal.
- 3Know what else is owed
The mortgage, any liens, and who's on the title.
- 4Get a realistic value
What it would list for, and what it's worth as-is.
- 5Pick a route that closes in time
Work backward from your deadline, and leave room for surprises.
Common Mistakes
- Working from an old tax bill instead of calling the county treasurer.
- Assuming a small balance is too small to foreclose on.
- Mixing up tax foreclosure deadlines with mortgage foreclosure deadlines.
- Assuming a signed purchase agreement stops the clock.
- Waiting on family agreement while the deadline gets closer.
- Ignoring certified mail, forfeiture notices or court papers.
- Not asking whether a payment plan or hardship option is available before deciding to sell.
Where I Fit, and Where I Don't
I'm usually a good fit when the deadline is close, when the house needs work or is vacant or inherited, or when you just don't want to deal with it anymore.
I may not be a good fit if you want to keep the house and can catch up on a payment plan, if one's available, or if it's in good shape and there's time to list it. In these cases a payment plan or a traditional listing will likely serve you better.
Either way — I'll tell you directly whether or not I'm a good fit.
Frequently Asked Questions
Yes. The title company gets the payoff from the county treasurer and pays it at closing out of your proceeds, as long as the sale brings in enough to cover it.
Delinquent means the taxes went to the county unpaid. Forfeited, a year later, means the county can start foreclosure, but you still own the house. Foreclosed means the March 31 deadline passed and the county took title.
No. Your chance to pay and keep the house ends on March 31. That's different from mortgage foreclosure. (Right of redemption after tax foreclosure.)
Don't count on it. Ask the treasurer what's actually available, and get anything they agree to in writing.
No. Michigan doesn't sell tax-lien certificates. The county forecloses and auctions the property itself. (Tax deed sale vs. tax lien sale.)
Your county treasurer, or whichever office handles tax foreclosure in your county. In a few counties the State of Michigan handles it.
Michigan Treasury – Property Tax Forfeiture and Foreclosure, its foreclosure process timeline, and Taxpayer Resources (including how to claim leftover proceeds). Confirm your own dates with your county treasurer.
Michigan Property Tax Guides
- What Is the Michigan General Property Tax Act?
- Can You Lose Your Home Over $500 in Unpaid Taxes?
- Right of Redemption After Tax Foreclosure
- Tax Deed Sale vs. Tax Lien Sale in Michigan
- How Property Taxes Work for Inherited Homes
- Property Tax Hardship Options by County
Get a Straight As-Is Number
Tell me which tax years are behind and what's going on with the house. I'll give you an honest offer, even if the honest answer is a payment plan, if one's available, or a listing.