Property Tax Sales Begin July 21 Under New State Rules
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The new state law governing sale of tax-reverted property will take some study and computer knowledge to be successful.
Many potential buyers of tax-reverted property are still trying to sort out the details and instructions of how to purchase and to perfect title.
Sale of Bay County foreclosed properties begins online on Aug. 5 at 12 noon.
The following information is from Bay County Treasurer Richard Brzezinski's office or from the website www.tax-sale.info:
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 2008 delinquent taxes will be foreclosed and will lose all ownership rights to their property at 5 p.m. March 31, 2011.
With this new act, the amount of time to pay taxes has been reduced from approximately five years to approximately two years.
Jackson County has listed a series of questions and answers that appear to explain the tax sale process as well as it can be explained:
Q. If I don't pay my taxes, will I really lose my house and property?
Answer: 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 two years, that's it. You've lost the property.
Q. What is a delinquent tax?
Answer: 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 2004 will be turned over delinquent to the County Treasurer on March 1, 2005.
Q. What happens after the property is forwarded to the County Treasurer for collection?
Answer: The County Treasurer adds a 4 percent administrative fee and interest of 1 percent per month. After one year, the property is forfeited to the County Treasurer. For example, the 2003 taxes that are still unpaid as of March 1, 2005 will be in forfeiture.
Q. What does it mean for my property to be in forfeiture? Does that mean I lose my property?
Answer: No. Forfeiture is not foreclosure. If your property is in forfeiture, you still have the right to redeem. However, the interest and fees will be higher. When a property is forfeited, the interest rate goes from 1 percent per month to 1.5 percent per month, back to the date that taxes became delinquent. A $175 fee is also added, along with other costs allowed by law.
Q. What happens after my property is foreclosed? How do I get it back?
Answer: You CANNOT get your property back after it has been foreclosed. Foreclosure is FINAL. Property that has been foreclosed will be sold at Public Auction.
Q. What if I can't come up with all the money right now?
Answer: Even if you can't pay your taxes all at once, you can still make partial payments. This must be paid with cash or cashier check, and must be paid in full before foreclosure.
Under prior law, liens on parcels were offered to private investors at the annual May tax sale. Property owners were then subject to foreclosure of these liens and ultimately the loss of their property.
Those property liens not purchased by private investors (usually the less desirable properties) ultimately reverted directly to the State of Michigan, which processed them and sold them at regional 'scavenger sales' held by the Michigan Department of Natural Resources.
Under the new law, the sale of liens has been replaced by direct foreclosure to the County Treasurer, or to the State of Michigan if the County 'opts out' of participating in the process. The properties are then sold by deed at auction.
For investors and buyers this system eliminates the uncertainty of predicting which property owners will redeem their parcels from lien sale. At the new land auctions the high bidder is awarded a deed to the parcel, and all of the previous complications involving tax lien foreclosure are removed.
Thirteen Michigan counties 'opted out' of the new system, and the sale of lands foreclosed by these county treasurers is being handled by the Michigan Department of Natural Resources. Information regarding land sales in these counties can be obtained on the DNR's website.
Title Check, LLC which acts as the authorized representative in foreclosure for 56 of the 83 counties in Michigan, currently acts as the liquidation agent for 50 Michigan counties. Parcels which will be offered on behalf of these counties can be viewed on this website.
There are at least two annual sale dates for these parcels, with the first sale requiring a minimum bid to purchase the lands. This minimum bid consists of the property taxes for which the parcel reverted, as well as accrued interest, penalties, and other costs associated with the foreclosure process.
This minimum bid auction takes place at a date not earlier than July at the discretion of the seller. The second auction, which takes place at least 28 days after the reserve auction, is an absolute sale, where the highest bidder becomes the buyer with no minimum bid requirement.
In a few counties the auctions are only held locally, and there is no method for online bidding. We can, however accept absentee bids verbally with the proper identification and deposit.
In most auctions however, the buyers 'on the floor' bid in real-time against buyers from around the world via online live auctions.
All of the property information we have available is listed on this site. If you need additional information, please contact the local assessor for the City/Village/Township the property is located in. We do not have lot sizes, property condition reports, maps or other similar detail beyond what is already listed on this site.
"Property owners face higher interest and fees for not paying their taxes. Taxes that are delinquent for more than one year will have a substantially higher interest rate (1.5 percent per month, as opposed to the current 1 percent). After one year, delinquent taxes will also have a $175 forfeiture fee and additional administrative fees and costs allowed by law added to them.
PAY YOUR DELINQUENT TAXES NOW! FORECLOSURE IS FINAL!
Public Act 123
Property Foreclosure Time Line for 2008 Property Taxes
February 5, 2011 - Circuit Court enters a judgment of foreclosure. Property owners have until 5:00 pm March 31, 2011 to pay the taxes.
March 31, 2011 - All taxpayer redemption rights expire at 5:00 pm. The property is now owned by the County.
July, September and November, 2011 - Property is sold at public auction.
Preliminary lists of parcels that could be sold at auction will be available in mid May 2010.
For detailed auction information go to www.tax-sale.info
Public Act 123 of 1999 dramatically reformed the method by which Michigan County Governments manage tax-delinquent real-estate.
Online Sale Information
A number of the counties affiliated with Title Check, LLC have authorized sale of parcels via INTERNET bidding as a parallel method to the on-site 'live' auctions. In these instances, INTERNET bids will be taken at the same time as the live auction through our website.
In order to bid online:
1.) You must register on our site.
2.) You must have a valid credit card with $1000.00 USD available to post as a deposit.
You will be required to pre-authorize a $1,000 charge against a major credit card or electronic check prior to being allowed to bid on-line even if you are a prior customer. If you are not the successful bidder in any online sales, there will be no charge to your account. BE ADVISED the authorization may take 30-60 days to self-expire. (Debit card users BE AWARE, holds are released by your bank!) We do not (and can not) release any holds on credit cards.
The pre-authorization must be placed not more than 30 days prior to the sale date. One authorization is acceptable for all auctions occurring within 30 days of its placement.
If you are successful in bidding, we will charge your credit card or electronic check the purchase amount, up to $1000, at the close of the sale. If you purchase multiple parcels, this deposit will be one $1000 charge for the combined sales, not per parcel. This amount is held in the customer funds escrow account of Title Check, LLC for disbursement to the County Treasurer at the closing of the transaction and is NOT REFUNDABLE.
In addition to the winning bid amount, INTERNET bidders pay a 13% BUYER PREMIUM, with a 3 percent discount for payment by cash, check, money order, bank, cashiers, or traveler's check. There is also a $20 fee for PROCESSING AND RECORDING OF THE DEED for each parcel.
If the purchase amount exceeds $1000, the balance will be settled via FedEx, wire transfer or other means.
If you fail to complete the transaction for any reason, your credit card will be charged the amount of $1000 which will be forfeited as a non-refundable deposit (regardless of the purchase amount of the auction parcel(s) bid on), and you will be banned from future bidding.
Be aware that there are NO exceptions to this deposit forfeiture rule. If you .bid on the wrong parcel, or change your mind, you still bought it!
Be prepared to pay or do not bid!
PLEASE BE ADVISED: Michigan Law gives County Treasurers the right to pursue legal action against bidders who refuse to complete transactions. This may include (but not be limited to) suit to compel completion of the sale, and/o
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