Frequently Asked Questions
What is Pulic Act 123?
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.
With this new act, the amount of time to pay taxes has been reduced from approximately five years to approximately three years. Property owners who have multiple tax years owing will have to pay several years to avoid losing their property.
Property owners face higher interest and fees for not paying their taxes. Taxes that are more than one year old will have a substantially higher interest rate (1.5% per month, as opposed to the current 1%). After one year, taxes will also have a $175.00 forfeiture fee and additional administrative fees added to them.
If I don't pay my taxes, will I really lose my house and property?
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.
What is a delinquent tax?
A delinquent tax is a tax that has been forwarded to the Monroe County Treasurer for collection on March 1 of the year after it was due.
What happens after the property is forwarded to the Monroe County Treasurer for collection?
The county treasurer adds a 4% administration fee and interest of 1% per month. After one year, the property is forfeited to the Monroe County Treasurer.
What does it mean for my property to be in forfeiture? Does that mean I lose my property?
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 175.00 fee is also added.
What happens after my property is in forfeiture?
After property has been in forfeiture for one year, it will be foreclosed.
What happens after my property is foreclosed? How do I get it back?
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.
What if I owe prior years taxes?
If you owe prior years taxes, you may be in immediate danger of losing your property. Contact our office at (734) 240-7365.
What if I can't come up with all the money right now?
Even if you can't pay your taxes all at once, you can still make partial payments. Make your check payable to the Monroe County Treasurer. To ensure your payment is applied to your parcel, please write your parcel number on your check or money order. The mailing address is: 51 South Macomb Street, Monroe, Michigan 48161-2168. If you can't pay all of your taxes before foreclosure, contact the Department of Human Services at (734) 243-7200 for possible financial assistance.
Will I receive any notification before my property is foreclosed?
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.