Falling behind on property taxes happens more often than people think, especially after a job change, an illness, or the death of the family member who used to handle the bills. In Michigan, unpaid property taxes don’t just add up. After about three years, the county can foreclose and take the house. Here’s how the process works in Muskegon County and what you can still do about it.
This article is general information, not legal advice. Fees and dates change, so always check the notices you’ve received and confirm with the Muskegon County Treasurer’s office.
The Muskegon County tax foreclosure timeline
Michigan uses a process that runs about three years. Here’s how it looks on the Muskegon County Treasurer’s published deadline chart:
Year 1: The taxes become delinquent
- Your city or township bills summer taxes on July 1 and winter taxes on December 1.
- Taxes still unpaid on March 1 of the next year are turned over to the Muskegon County Treasurer as delinquent. A 4% administration fee is added, plus 1% interest per month.
- On October 1, a $15 fee is added to each unpaid parcel.
Year 2: The property is forfeited
- On February 1, a forfeiture notice is sent by certified mail.
- On March 1, the property is forfeited to the County Treasurer. The county’s chart lists a $235 forfeiture fee, and interest rises to 1.5% per month, recalculated back to the original delinquency date.
- A $40 site-visit fee is added on August 1, and a $75 certified mailing and publication fee on December 1.
Forfeiture does not mean you’ve lost the house. You still own it, and you can still pay.
Year 3: Foreclosure
- In February, the circuit court enters a judgment of foreclosure.
- March 31 is the last day to pay the delinquent taxes, interest, and fees.
- On April 1, redemption rights expire and the county takes ownership.
- The county then offers the property at public auction, usually in August or September. Auctions are listed at tax-sale.info.
The State of Michigan describes the same statewide process on its foreclosure process page.
Your options before the March 31 deadline
1. Pay the delinquent taxes
You can pay online or in person at the Muskegon County Treasurer’s Office, 1903 Marquette Ave., Suite A103, Muskegon, MI 49442, (231) 724-6261. To stop a foreclosure, all the delinquent taxes, interest, and fees for the years in foreclosure have to be paid by the deadline.
2. Ask about a hardship option
The Treasurer’s Avoiding Foreclosure page links to a Financial Hardship Policy and application. Call as early as you can.
3. Look at the poverty exemption for future taxes
Homeowners with low income may qualify for a full or partial property tax exemption through their city or township Board of Review under Michigan’s poverty exemption (MCL 211.7u). It doesn’t erase past-due taxes, but it can keep the problem from coming back. Ask your local assessor for the application.
4. Get free legal help
Michigan Legal Help has free guides and can point you to legal aid if you qualify.
5. Sell the house before the foreclosure
If keeping the house isn’t realistic, selling before March 31 protects your equity. The delinquent taxes, interest, and fees are paid from the sale proceeds at closing, and the rest goes to you. A traditional listing can take months, so if the deadline is close, a direct sale to a cash buyer may be the only option that closes in time.
Already foreclosed? You may be able to claim leftover proceeds
If the county has already taken the property, Michigan law (MCL 211.78t) lets former owners claim money left over after the county sells it and deducts what’s owed. To keep that right, you must file Form 5743 with the county treasurer by July 1 after the foreclosure takes effect. If the sale produces leftover proceeds, you then file a motion with the circuit court by May 15 of the following year. Auction prices are often below market value, so selling before the deadline usually leaves more money in your pocket.
How Grayline Real Estate helps Muskegon homeowners behind on taxes
We buy houses across Muskegon County with back taxes, forfeiture notices, and foreclosure judgments. You’ll get a written offer within 24 hours, and we can close in as little as 10 days, with the delinquent taxes paid off at closing through the title company. There are no commissions, and we cover the closing costs. Learn more on our Stop Foreclosure page.
Ernesto Rodriguez is a licensed Michigan real estate broker. We’re happy to talk through all of your options, including the ones that let you keep the house. Call 616-816-5111 or request your cash offer.