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 taxes that are three years delinquent will be foreclosed and the property will be sold at public auction. For example, people who fail to pay their 2003 property taxes will lose their property to foreclosure in March, 2006. With this new act, the amount of time to pay taxes has been reduced from approximately five years to less than 2.5 years.

PROPERTY FORECLOSURE TIME LINE

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JULY & DECEMBER 2003

2003 property taxes billed by City, Village, or Township Treasurer.

MARCH 1, 2004

Unpaid 2003 property taxes are forwarded to the County Treasurer for collection. The County Treasurer adds a 4% administration fee and 1% per month interest.

OCTOBER 1, 2004

The County Treasurer adds a $15.00 mail notice fee to each delinquent parcel.

MARCH 2005

Property is forfeited to the County Treasurer. The County Treasurer adds a $175.00 Title Search fee and $20.00 Recording Fee. Interest increases from 1% per month to 1.5% per month back to the date the taxes became delinquent.

OCTOBER 2005

Property visit fee added.

DECEMBER 2005

Publication fee is added.

Unpaid properties are published in the newspaper.

FEBRUARY, 2006

Show cause hearing is held.

MARCH, 2006

Final judcial foreclosure hearing.

Judgement entered and filed.

APRIL, 2006

Treasurer takes title to forclosed propertis.

JUNE 2006

Advertise official notice of Minimum Bid Sale.

JULY 2006

Minimum Bid Auction.

QUESTIONS AND ANSWERS

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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 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?

A. A delinquent tax is a tax that has been forwarded to the Leelanau County Treasurer for collection on March 1 of the year after it was due. For example, taxes that are billed by your city, village, or township treasurer in 2004 will be turned over delinquent to the Leelanau County Treasurer on March 1, 2005.

Q. What happens after the property is forwarded to the Leelanau 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 Leelanau County Treasurer. For example, the 2004 taxes that are still unpaid as of March 1, 2005 will be in forfeiture as of March 1, 2006.

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 a 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 $210.00 fee is also added.

Q. What happens after my property is in forfeiture?

A. After property has been in forfeiture for one year, it will be foreclosed. 2004 property taxes will be foreclosed in March, 2007.

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. What if I can't come up with all the money right now?

A. Even if you can't pay your taxes all at once, you can still make partial payments, but we have to receive the final payment of at least $350.00 to cover all the fees. Make your check payable to the Leelanau County Treasurer. To ensure your payment is applied to your parcel, please write your parcel number on your check or money order along with the year you intead to pay. The mailing address is: Leelanau County Treasurer, PO Box 468, Leland MI 49654.

Q. Will I receive any notification before my property is foreclosed?

A. YES. Five (5) notifications will be made. Two (2) will be by First Class Mail, two (2) 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 a newspaper of general circulation within your community.