Behind on Property Taxes in Michigan? Here’s What You Need to Know
Understand the Risks, Your Rights, and Your Real Options—Before It’s Too Late
Falling behind on property taxes doesn’t make you a bad homeowner—it makes you human.
Whether it’s because of a lost job, unexpected medical bills, or an inherited property you didn’t ask for, the result is the same: mounting letters, growing penalties, and the fear that you might lose your home.
But here’s the truth: you have more control than you think.
This page is here to guide you—not sell you anything.
Below, you’ll find clear, plain-English explanations of what happens when you don’t pay your property taxes in Michigan, how long you have before the county can take action, and what real options you have to fix it—even if you're already deep in the red.
🧾 Understanding Delinquent Property Taxes in Michigan
In Michigan, every property owner is responsible for paying annual property taxes. These taxes fund local services like schools, fire departments, road maintenance, and city infrastructure. The amount you owe is based on your property's assessed value, and bills are usually issued by your city or township treasurer.
But what happens when those taxes aren’t paid?
When you miss a property tax payment, your account becomes delinquent. This means the unpaid balance starts collecting penalties and interest, usually around 1% per month. If the taxes remain unpaid for too long, the consequences become more serious—leading to county foreclosure and even loss of the home.
Michigan uses a three-year timeline to handle delinquent property taxes:
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Year 1: Taxes become delinquent. You may start receiving notices from your local treasurer.
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Year 2: The delinquent taxes are turned over to the county treasurer for collection.
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Year 3: If still unpaid, the county can initiate property tax foreclosure and schedule your home for auction.
The system is designed to give you time—but if you're unaware or unable to catch up, it can feel like the rug is being pulled out from under you. That’s why understanding how the process works is the first step in protecting yourself—and making an informed decision about what to do next.
⚠️ What Happens If You Don’t Pay Property Taxes in Michigan?
Unpaid property taxes don’t just disappear. In Michigan, the consequences build slowly at first—but they eventually lead to something most homeowners don’t expect: losing their property entirely through county foreclosure.
Here’s how the process typically unfolds:
🔹 Year 1: Taxes Become Delinquent
The day after your property tax due date, the unpaid balance is considered delinquent. A 1% monthly interest charge begins to accrue, along with possible administrative fees. You’ll likely receive a few notices from your local treasurer—but there’s still time to catch up with minimal consequences.
🔹 Year 2: Forfeiture to the County Treasurer
If the taxes are still unpaid after one year, the debt is transferred from the local treasurer to the county treasurer. At this stage, your property is officially considered forfeited, but you haven’t lost ownership. However, additional fees and penalties are added—making the balance even harder to pay off.
You may receive notices about your forfeiture, and the property is often inspected and photographed in preparation for possible foreclosure.
🔹 Year 3: Foreclosure and Auction
If the taxes remain unpaid by March 31 of the third year, your property is foreclosed by the county. Ownership is transferred to the state or local land bank authority, and your home is scheduled for public auction—regardless of equity or mortgage status.
This means you lose all rights to the property, including the right to sell it, refinance it, or collect rent.
📅 Example Timeline:
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2022 Taxes Unpaid → Becomes delinquent in March 2023
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Forfeited in March 2024
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Foreclosed and auctioned in March 2025
If you're already in Year 2 or 3, time is critical—but even in Year 1, it’s wise to explore your options now. The sooner you act, the more likely you are to protect your property and your financial future.
How Long Before You Lose Your Home to Tax Foreclosure in Michigan?
Michigan gives property owners a three-year window to resolve unpaid property taxes before the county takes full possession of the home. But many homeowners don’t realize how quickly that time passes—or how little warning they may get before the final deadline.
Here’s a closer look at the timeline:
📅 Year 1: Delinquency Begins
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Begins March 1 following the year the taxes were due.
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Property is considered delinquent, and monthly interest begins to accrue.
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You’re still in control—you can pay the balance anytime to stop further penalties.
📅 Year 2: Property is Forfeited
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On March 1 of the second year, if still unpaid, the taxes are forfeited to the county treasurer.
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Additional fees and costs are added.
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Your home is flagged for potential foreclosure, but you still have time to redeem it by paying the balance in full.
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The county may conduct a property inspection and begin notifying you of upcoming deadlines.
📅 Year 3: Foreclosure is Final
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On March 31 of the third year, if taxes are still unpaid, your home is officially foreclosed.
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Ownership transfers to the county, and the property is scheduled for tax auction later that year.
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Once this happens, you permanently lose the property. There is no right of redemption after foreclosure under Michigan law.
🧠 Important Note:
Michigan’s process is automatic—meaning even if you’re still living in the home, using the property, or unaware of the sale, the foreclosure will proceed unless you intervene before the deadline.
🛑 Can You Stop It?
Yes—but only if you act before March 31 of the third year.
You may be able to:
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Pay the full amount due (including interest and fees)
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Work out a hardship payment plan (if available in your county)
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Sell the property before the foreclosure is finalized
The earlier you explore your options, the more control you have. Once the redemption period ends, your ability to save the property is gone for good.
🧷 What Is a Tax Lien and How Does It Affect Your Home?
When property taxes go unpaid in Michigan, the government doesn’t just forget about it—it attaches a tax lien to your home.
A tax lien is a legal claim placed by the government against your property for unpaid taxes. It doesn’t mean you lose your home right away—but it does mean the county now has a legal interest in it. This lien must be resolved before you can sell, refinance, or transfer the property.
🧾 Here’s How a Tax Lien Works in Michigan:
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Taxes become delinquent.
After the due date passes and the taxes remain unpaid (usually after March 1), the balance becomes delinquent and begins accruing interest. -
The county places a lien.
A tax lien is recorded against the property, showing that the county has a claim for unpaid taxes. This lien is public record and attaches to the title. -
The lien grows over time.
Penalties, fees, and interest are added monthly—making the total amount harder to repay the longer it sits. -
The lien must be cleared to sell.
If you try to sell or refinance the property, the tax lien will appear during the title search. It must be paid off—or factored into the closing—before the transaction can proceed. -
The lien leads to foreclosure.
If the taxes remain unpaid long enough, the lien doesn’t just stay there—it leads to property tax foreclosure and public auction, as described in earlier sections.
❗ Why This Matters:
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A tax lien makes your home harder to sell through traditional channels.
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It lowers your equity—sometimes completely wiping it out if the balance is high.
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It can also impact your credit and make you appear high-risk to lenders or future landlords.
The good news? A tax lien can be resolved—and even worked around during a sale—if you know what steps to take. Understanding the lien is the first step toward reclaiming your options and avoiding a much more serious outcome.
Gloria B. - Clinton Township, Michigan
“Thank you for contacting me. I didn’t know what I was going to do with this house"
Can You Sell a House With Delinquent Property Taxes in Michigan?
Yes, you can—even if you’re behind on taxes, and even if the county has already placed a lien on your property.
Many homeowners assume they need to pay off the tax debt before listing or transferring their home. But in most cases, the taxes can be settled as part of the sale itself. Whether you sell through a traditional real estate agent or to a direct buyer, unpaid property taxes are typically handled at the closing table.
🧾 Here’s How It Works:
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Title company does a lien search.
During the sale process, the title company will identify any delinquent taxes or liens tied to the property. -
The tax debt is paid at closing.
At closing, the owed taxes are paid out of the sale proceeds—just like a mortgage payoff or other lien. -
You receive what’s left.
After the taxes and any other debts are paid, the remaining balance goes to you.
📉 But What If You Owe More Than the House Is Worth?
This is where things get complicated. If your tax bill and other debts (like mortgage or code violations) are more than the value of the home, you may not be able to sell it traditionally without bringing money to the table.
In these situations, sellers often consider:
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Short sales
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Cash buyers or investors who can absorb the debt
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Negotiating with lien holders to reduce the payoff
The important takeaway is this:
Delinquent taxes don’t automatically block a sale. They’re just one part of the closing process—and in many cases, they can be handled without you having to pay anything out of pocket beforehand.
Understanding how this works gives you back your leverage—and opens up more options than you might think.
🛤️ What Are Your Options If You’re Behind on Property Taxes?
Falling behind on property taxes in Michigan can feel like a trap—but you actually have several paths forward, depending on your financial situation, how far behind you are, and whether you want to keep or sell the property.
Here’s a breakdown of the most common options available to Michigan homeowners with delinquent property taxes:
✅ 1. Catch Up on Payments Yourself
If you’re only a few months behind and can pull together the funds, this is the most straightforward option. Contact your local or county treasurer’s office for the full payoff amount—including interest and fees—and pay it directly to remove the delinquency.
💬 2. Set Up a Payment Plan with the County
Some Michigan counties offer hardship or installment plans to help residents catch up over time. These plans vary by county and may require proof of income or financial hardship. It’s best to reach out early—especially during Year 1 or early in Year 2 of the foreclosure timeline.
🆘 3. Apply for Property Tax Relief (If Eligible)
Michigan has limited relief programs for seniors, veterans, and homeowners experiencing poverty. These programs may reduce or defer taxes—but they are often underutilized. Check with your local assessor’s office or the Michigan Department of Treasury for available options.
💼 4. Refinance or Use Equity to Pay the Debt
If you have enough equity in the home and decent credit, you might qualify for a refinance or home equity loan to pay off the tax bill. This isn’t ideal for everyone, especially if you’re already struggling with other payments—but it’s an option worth exploring.
🏠 5. Rent Out the Property
If you don’t want to sell but can’t afford the taxes, consider renting out the property to generate income. Just be sure the rent covers all expenses—including future tax bills—so you don’t fall further behind.
🔄 6. Sell the Property
If catching up isn’t realistic, selling the home may be the most practical solution. This allows you to pay off the taxes from the sale proceeds and walk away without further penalties. You can sell through a traditional real estate agent—or directly to a buyer who specializes in homes with back taxes, liens, or repairs needed.
🛑 7. Do Nothing (Risk Losing the Property)
Letting the situation go unresolved will eventually result in tax foreclosure. Once the redemption deadline passes in Year 3, the property is seized and sold at auction—and you lose all equity and control. This should always be the last resort.
No matter your situation, it’s important to take action sooner rather than later. The earlier you explore your options, the more flexibility—and dignity—you’ll retain in choosing your path forward.
💰 What Happens to the Back Taxes If You Sell?
One of the most common concerns for homeowners behind on property taxes is this:
“If I sell my house, what happens to the taxes I owe?”
The good news is, you don’t need to pay them upfront to sell your property. In Michigan, delinquent property taxes are typically handled at the closing table—just like a mortgage payoff or other lien.
🧾 Here’s How It Works:
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A title company checks for unpaid taxes.
When you sell your home, the title company performs a lien search to find any outstanding debts tied to the property—including delinquent property taxes, municipal fines, or other liens. -
The taxes are paid out of the sale proceeds.
If the sale goes through, the taxes you owe are paid at closing—either by you (from your share of the proceeds) or by the buyer, depending on the terms of the agreement. -
The county is paid directly.
The title company sends payment to the county treasurer, ensuring that the lien is released and the sale can legally go through. -
You receive the balance.
After all liens and closing costs are paid, you receive whatever is left.
🔍 Example:
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Sale price: $120,000
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Delinquent property taxes: $8,500
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Mortgage balance: $70,000
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Remaining proceeds to seller: $41,500 (before closing costs)
🚨 But What If the Taxes Exceed What I’ll Make?
If your back taxes and other debts exceed the sale price, you may not have enough equity to sell through traditional channels. In these cases, you may need to:
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Negotiate a short sale (if a mortgage is involved)
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Work with a specialized buyer who can absorb the debt and work directly with the county
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Explore other relief options before the foreclosure deadline
The key takeaway is:
Selling with delinquent taxes is not only possible—it’s often the cleanest way to resolve the debt without further damage. Understanding how the taxes are paid during a sale helps remove one of the biggest mental roadblocks homeowners face.
🏚️ What If the House Is Also in Bad Condition, Vacant, or Inherited?
It’s common for delinquent property taxes to be just one part of a much bigger situation. In fact, many of the Michigan homeowners who fall behind on taxes are also facing other challenges with the property—like costly repairs, vacancy, or complications from probate.
If that’s your situation, you’re not alone—and you’re not out of options.
🧱 The Property Needs Major Repairs
Maybe the roof leaks, the plumbing’s outdated, or there’s years of deferred maintenance. You might assume you need to fix it before selling—but that’s not always true. In many cases, buyers (especially investors) will purchase the home as-is, even with back taxes owed.
If you sell traditionally, you’ll likely need to disclose and repair major issues. If not, a direct sale may offer more flexibility.
🚪 The Property Is Vacant or Abandoned
Vacant properties rack up tax bills fast—especially when there’s no rental income to cover expenses. They also attract code violations, squatters, or vandalism, which can lead to additional liens or city fees.
Selling a vacant property with delinquent taxes is still possible—but the longer it sits, the more costly it becomes to fix or bring current. Time is key here.
🧑⚖️ You Inherited the Home Through Probate
Inheriting a home with unpaid taxes can be confusing, especially if the estate hasn’t been fully settled. You may not even realize you’re responsible for the taxes until notices start arriving.
In Michigan, you can usually sell an inherited home during or after probate, as long as all heirs are in agreement. The taxes can be paid from the proceeds, just like with a standard sale.
📉 Multiple Issues? Don’t Panic.
Many homeowners face some combination of:
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Delinquent property taxes
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Needed repairs
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Vacant or tenant-damaged property
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Inheritance complications
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Mortgage arrears
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Municipal liens or fines
It might feel overwhelming—but every one of these challenges has a path forward. The key is understanding what you’re working with and acting before the situation becomes irreversible.
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📚 Frequently Asked Questions About Selling With Delinquent Taxes in Michigan
We’ve gathered the most common questions Michigan homeowners ask when dealing with property tax issues and considering a sale. These answers are designed to help you feel more confident and informed—no matter what path you choose.
Can I sell my house in Michigan if I owe back property taxes?
Yes. Delinquent property taxes do not prevent you from selling. In most cases, the taxes are paid out of the sale proceeds at closing—so you don’t need to pay anything upfront.
Do I have to pay off the taxes before I can sell?
Not necessarily. If you have enough equity in the property, the taxes can be paid at closing. You’ll receive the remaining balance after all debts are cleared. If you don’t have enough equity, you may need to consider alternative solutions like a short sale or working with a direct buyer who can absorb the tax debt.
How do property tax liens affect the sale of my house?
Tax liens must be cleared during the sale process, but they don’t block the sale. The title company will identify the lien and ensure the amount is paid from the sale proceeds. Once paid, the lien is released.
What if I’ve already received foreclosure notices from the county?
You may still have time to sell. Michigan counties typically finalize foreclosure in the third year of tax delinquency (on or around March 31). If you act before that deadline, you can still sell and stop the foreclosure.
Will I get any money after selling a house with back taxes?
If your home sells for more than the amount owed in taxes, liens, and other debts, you will receive the remaining funds. If the debts are higher than the sale price, you may need to negotiate a reduced payoff or consider a short sale.
Can I sell a home in poor condition with delinquent taxes?
Yes. Many buyers—especially cash buyers—purchase homes in as-is condition, even with back taxes and repairs needed. You don’t need to fix the property to sell it, though you should expect the price to reflect its condition.
What happens if I do nothing about the taxes I owe?
Eventually, your home will be foreclosed by the county and sold at public auction. Once this happens, you lose all rights to the property and any equity. There is no redemption period after foreclosure in Michigan, so it's important to act early.
Can I sell a house I inherited that has unpaid taxes?
Yes, but you’ll likely need to go through or complete the probate process first. Once you're legally authorized to sell, the taxes can be paid from the sale proceeds. All heirs must typically agree to the sale.
How long does the selling process take if I owe back taxes?
It depends on the method of sale. A traditional sale through a real estate agent may take 30–90 days, while a direct cash sale can often close in 7–14 days—even with delinquent taxes involved.
Is it better to sell now or wait until I can pay off the taxes?
That depends on your financial situation. If catching up isn’t realistic or if the property is also in poor condition or vacant, selling now could prevent further damage, like foreclosure or added penalties. Waiting too long reduces your options.
These FAQs are designed to clarify what’s possible and what to expect. If you’re still uncertain about your specific situation, consider reaching out to a local professional who understands Michigan’s tax laws and property transfer process.
🔍 Now That You Know Your Options, What Should You Do Next?
By now, you’ve learned a lot:
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How Michigan handles delinquent property taxes
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What a tax lien means for your home
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How long you have before foreclosure
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And the different paths available to you
That knowledge is powerful. But information alone doesn’t fix the problem—action does.
🧭 Take Stock of Where You Stand
Start by asking yourself:
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Am I still in Year 1, or has my property already been forfeited?
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Can I realistically catch up on the taxes—and if so, how?
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Is the house worth keeping long-term, or would selling give me peace of mind?
The answers to these questions will help clarify your next step—whether it’s setting up a payment plan, seeking assistance, or exploring a sale.
🧱 The Sooner You Act, the More Control You Keep
In Michigan, the clock doesn’t stop. Waiting only limits your options. Acting early gives you flexibility, time, and a stronger financial outcome—no matter which route you take.
And if selling is something you're considering, it helps to understand how that process works when taxes are still owed. Even if you're not ready to sell today, talking to someone who understands the system can help you plan a smart way forward.
🤝 How We Help Homeowners in Michigan Facing Property Tax Problems
For some people, catching up on back taxes makes sense. For others, the smartest move is letting go of the property and walking away from the stress. If you’re leaning in that direction but don’t know where to start, we’re here to help.
At Dennis Buys Houses, we specialize in working with Michigan homeowners who are overwhelmed by property tax debt, foreclosure notices, and homes they no longer want—or can’t afford to keep.
🧰 Here’s What We Do:
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Buy properties as-is—no cleaning, repairs, or showings needed
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Handle all the paperwork and tax payoff at closing
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Work with tight timelines, including homes already in Year 2 or 3 of delinquency
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Communicate clearly and answer every question honestly—no pressure, no sales tactics
We’ve worked with people facing:
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Thousands in unpaid property taxes
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Tax foreclosure deadlines just weeks away
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Vacant homes with damage, liens, or city violations
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Inherited properties sitting unused for years
If you’re just looking for answers or want to know what a realistic next step looks like, we’ll walk you through your options—even if that means not working with us.
📞 Let’s Talk (If You’re Ready)
You’ve taken the first step: you got informed.
Now, if you’re ready to take the next one—or even if you just want to ask a few questions—we’re here for you. No sales pitch. No pressure. Just a real conversation about what’s possible in your situation.
Whether you’re in the early stages of tax delinquency or right up against a foreclosure deadline, we’ll walk you through your options and give you honest feedback. If we can help, we will. If we’re not the right fit, we’ll point you to someone who is.
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📞 Call or text us at (734) 224-5977
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We Help Michigan Families Navigate These Situations Every Day
At Dennis Buys Houses, we’re not just cash buyers — we’re trusted problem-solvers who help Michigan families find real answers during difficult times.
Since 2004, we've been helping homeowners across Michigan sell their properties quickly and easily—without the stress of agents, repairs, or hidden fees.
We’re a family-owned, local business with deep roots in the community. Over the years, we’ve helped hundreds and hundreds of homeowners in situations just like yours—whether they’re dealing with delinquent property taxes, foreclosure, or simply needing a fresh start.
If you're dealing with a tough family situation and don’t know where to turn, we’re here to help.
Start here:
- Learn how we buy houses in Michigan: How It Works
- See what makes us different: Why Choose Us
- Ready to get a cash offer? Contact Us Today
Whether you’re ready to sell or just want to explore your options, we’re here for you. Call us today, and let’s talk about how we can make your situation easier.
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Michelle L. - Michigan
“Thanks for buying my Mother’s home. It was a big help that you were able to buy it without us having to clean it out and get it ready to sell. My mother had accumulated lots of stuff and after the stress of her long illness I was exhausted and I dreaded dealing with all of it. I also liked it that you gave me a very fair price for the home. I’m on a fixed income and that really helped a lot.”
Henry G. - Michigan
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