City of Grosse Pointe Farms

Tax Foreclosure

Preventing Tax Foreclosure
After the March 1st tax delinquency date, all property taxes are transferred to Wayne County for collection and can no longer be paid at the local level.  The Wayne County Treasurer's Office provides many forms of assistance to distressed property owners who are unable to pay their property taxes by the due date.  The County's  Tax Foreclosure Prevention Guide offers important information on how to act early to save your property.  Please visit their website or contact the Wayne County Treasurer's Office at 313-224-5990 for more information.

Tax Foreclosure Process

Tax foreclosure is governed by state law of Michigan, has a very strict set of rules for the collection of delinquent property taxes, and puts the responsibility for collecting back taxes in the County Treasurer's hands. Poverty exemptions, hardship extensions or payment plans may be available, but only if you contact the Wayne County Treasurer's Office as soon as possible.

The law involves a three-year process that can result in you losing your property! Understanding the process is the best way to stop this from happening. Here's how it works:

  • Taxpayers pay their current year property taxes to their city, village or township.
  • "Delinquent" taxes are turned over to the Office of the County Treasurer, and a 4% fee is added with a 1% per month interest rate, 12% per year, in March of that year.
  • In the next year, the interest rate jumps to 1.5% retroactively, or 18% per year.
  • In the third and final year of the process, you lose your rights to the property and it is offered at auction to recover the taxes, penalties and interest that are owed.

Delinquent Property Tax Timeline
Current Year
  • January 1 - December 31:  During this time, your property taxes are made payable to your local city, village or township government. Pay now to avoid high interest and penalties!
First Year of Delinquency
  • January 1 - December 31: During this time, your property taxes are made payable to your local city, village or township government. Pay now to avoid nasty interest and penalties!
  • March 1: On March 1, your taxes officially become "delinquent" and due to the Wayne County Treasurer's Office. A 4% administration fee is added, along with 1% interest per month.
  • October 1: A $15 fee is added to your delinquency.
  • November 1: Your property is added to preliminary forfeiture list.
Second Year of Delinquency
  • February 1: Mortgage lenders and banks may be notified of the delinquency.
  • March 1: Minimum of $195 in fees added to your delinquency. Your property is forfeited, not foreclosed, to the Treasurer. The interest rate increases from 1% to 1.5% or from 12% to 18% each year.
  • May 1: A foreclosure petition is filed in Circuit Court.
  • June 1 - January 31: All owners and lien-holders are identified and contacted through title research, and personal visits are made to taxpayers.
Third Year of Delinquency
  • January: Show cause hearings are held, giving taxpayers a chance to appeal foreclosure.
  • February: Circuit Court hearing is held, Foreclosure Order signed by the judge.
  • March 31: Taxpayers lose all interest in their property.
  • August: Tax foreclosed properties are offered at auction to recover back taxes, interest and penalties.