Public Act 123 - Frequently Asked Questions
Questions and Answers
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 redeem their taxes. With Public Act 123 there is a two year limit on being delinquent.
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 1999 will be turned delinquent to the County Treasurer on March 1, 2000.
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, the property is forfeited to the County Treasurer. For example, the 1999 taxes that remain unpaid as of March 1, 2001 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 foreclosure. If your property is in forfeiture, you still have one 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 fee is also added.
Q. What happens after my property is in forfeiture?
A. After a property has been in forfeiture for one year, it will be foreclosed. 1999 property taxes will be foreclosed in March, 2002.
Q. What happens after my property is foreclosed? How do I get it back?
A. 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. I still owe my property taxes from 1997 & 1998. What should I do about those?
A. If 1997 taxes remain unpaid after April 30, 2000 they will follow a similar payment schedule as the 1999 delinquent taxes. If 1998 taxes remain unpaid after April 30 2001 they will follow a similar payment schedule as the 2000 delinquent taxes.
Q. What if I can't come up with all the money right now?
A. Partial payments can be made any time prior to foreclosure on delinquent taxes that were not sold at a previous Tax Sale. Please make your check payable to Saginaw County Treasurer and mail it to 111 S. Michigan Avenue, Saginaw, MI 48602. To ensure your payment being applied to your parcel, please write your parcel number on your check or money order.
Q. Will I receive any notification before my property is foreclosed?
A. Yes. Five notifications 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.
Q. I guess I really don't have to worry about losing my property until 2002. Why not wait and pay my taxes then?
A. DON'T WAIT! You may have to pay as many as three years taxes at once to keep your property. Foreclosure is final!