Properties having unpaid 2022 property taxes are currently subject to tax foreclosure proceedings by county treasurers. The last day to redeem the property from the property tax foreclosure is March 31, 2025. If those 2022 taxes are not paid, any lien held by community associations against the property will be extinguished, and the association’s right to foreclose on delinquencies owing through that date will be lost. If you received notice of a pending tax foreclosure on a property within your community, but have not forwarded it to our office yet, you should do so immediately. This is especially important if the property owes unpaid assessments.
We can help in the following ways:
- Evaluate whether the association should consider advancing payment of the 2022 property taxes to protect the association’s lien rights in the property.
- Monitor the tax foreclosure to determine whether the owner or any third party redeems the property by paying the 2022 taxes on or before March 31, 2025.
- Assist the association in filing a notice with the State of Michigan to claim an interest in any foreclosure sale proceeds. If the tax foreclosure is completed, and there was a balance due to the association through March 31, 2025, hope is not lost. The property will eventually be sold by the county treasurer at an auction later in 2025, and the association will be able to make a claim against any surplus proceeds (if any) to apply to the assessment balance. However, the association must file the required notice to claim such proceeds with the State by July 1, 2025.
If you have any questions about the tax foreclosure process, or any notices you received from your county treasurer, please feel free to contact us.
