Sale Type: | Tax foreclosure auction: after a court judgment, the county (or state) sells the foreclosed property and the buyer receives a deed |
Interest Rate: | Not earned by buyers; Michigan does not sell tax lien certificates |
Bid Method: | Public auction (in person or online); the minimum bid covers taxes, interest, penalties and fees, and the highest bid above the minimum wins |
Owner can redeem until March 31 after the foreclosure judgment (21 days after the judgment in a contested case); no redemption after the sale | |
Sale Date(s): | Initial auctions run from the third Tuesday in July to the first Tuesday in November; each county sets its own dates |
State Statute(s): | Michigan General Property Tax Act, Act 206 of 1893, MCL 211.78 through 211.78t |
Not a standard option; ask the county treasurer how unsold properties are handled | |
State Website: | michigan.gov/taxes (Property Tax Forfeiture and Foreclosure) and the county treasurer’s site |
How Michigan Tax Sales Work
Michigan is a tax deed state. It does not sell tax lien certificates, so buyers do not earn redemption interest. Instead, when property taxes go unpaid long enough, the county is allowed to foreclose through the circuit court and then sell the property. The buyer at that sale receives a deed.
Tax lien vs. tax deed: a tax lien investment means buying the tax debt and earning interest if the owner pays. A tax deed purchase means buying the property itself. In Michigan, the property is what is for sale.
The Michigan Timeline: Delinquency, Forfeiture, Foreclosure
Michigan’s process takes about three years from the first missed payment. In general:
Year 1: unpaid taxes become delinquent and are turned over to the county treasurer, with added fees and interest.
Year 2: after the taxes have been delinquent for about a year, the property is forfeited to the county treasurer, and more interest and fees are added.
Year 3: the foreclosing governmental unit, usually the county treasurer and in some counties the state, petitions the circuit court. After a hearing, the court enters a foreclosure judgment.
After judgment: if the owner has not paid by the redemption deadline, title vests in the foreclosing unit, which then sells the property.
Only properties that reach this last step are sold to investors, and the county decides when and how.
Can the Owner Redeem?
Yes, until the deadline. An owner can redeem by paying the full unpaid taxes, interest, penalties and fees. In an uncontested case, redemption rights end on March 31 after the foreclosure judgment. In a contested case, they end 21 days after the judgment.
Once that deadline passes, the owner’s right to redeem is gone. Because auctions happen afterward, there is no redemption period after the sale, which is a key difference from tax lien states. Michigan law gives the former owner other rights, including a claim to surplus money, covered below.
Who Gets First Chance to Buy
Not every foreclosed property goes to auction. Michigan law gives the state a right of first refusal to buy foreclosed property, normally exercised by the first Tuesday in July after the judgment. After that, the city, village or township where the property sits can buy it, and then the county. Properties these governments want for housing, redevelopment or other public uses may never reach the public auction.
How the Auction Works
Michigan law sets the basic rules, and each county runs its own sale:
Schedule: initial auctions run from the third Tuesday in July to the first Tuesday in November. Notice must be published at least 30 days before a sale.
Format: public auction, which can be in person or online. The county decides which.
Minimum bid: it covers all delinquent taxesProperty taxes that remain unpaid past the due date, which may result in penalties, interest, and eventually a tax lien being placed on the property., interest, penalties and fees, and can include the county’s added costs. The highest bid above the minimum wins.
Payment: the county requires full payment at the close of each day’s bidding, or by a date no more than 21 days after the sale.
Final sale: if a property does not sell, a later sale may be held with no minimum bid, though the county can set a reasonable opening bid.
Bidder rules matter. Buyers generally must show that property taxes owed to the local unit are paid, and sign a sworn statement that they do not hold more than a minimal interest in other delinquent-tax properties in that county, and that they owe no unpaid blight fines in that local unit. Read the county’s registration requirements before the sale.
What You Receive: The Deed
The deed vests fee simple title in the winning bidder. A foreclosure judgment generally clears most claims against the property, with limited exceptions. Even so, buyers still need to check the property itself: occupancy, condition, zoning, and any special assessments or local code issues. The deed gives you the title the foreclosure produced, not a guarantee about the property’s condition or value.
Surplus Money and the Former Owner
If a property sells for more than what was owed, the former owner and others with a legal interest can claim the remaining proceeds. Michigan law sets deadlines: a claimant must give notice by July 1 after the foreclosure takes effect, and then file a motion in circuit court within a window that runs from February 1 to May 15 after the sale. That claim is paid from the sale proceeds, not by the buyer, but it is one reason sales get reviewed carefully.
What This Means for Investors
Michigan is a property-purchase market, not an interest-earning one.
No fixed return. Nothing here pays a set percentage. Your outcome depends on what you pay and what the property is worth.
Costs beyond the bid. Title work, legal fees, back taxes owed to the local unit, repairs and carrying costs can add up.
Competition and timing. Public auctions are open to many bidders, and governments may take the best properties first.
County-by-county rules. Each county sets its sale details, so confirm them locally.
Older guides, including earlier versions of this page, listed a June sale date, no redemption period and a single auction company. Michigan law sets a redemption deadline before foreclosure, initial auctions run from July to November, and each county decides how to hold its sale.
What Investors Should Check
Before bidding at a Michigan tax foreclosure auction:
Get the county treasurer’s sale list, dates, registration rules and payment terms.
Check whether the property is still on the list, since owners can redeem and governments may buy first.
Order a title searchAn examination of public records to verify a property's legal ownership and identify any liens, encumbrances, or other claims that may affect the title. and look for easements, liens that may survive and local code issues.
Inspect the property from the outside and confirm occupancy, access and zoning.
Compare your total cost with the property’s real market value. Our guide on how to evaluate tax lien properties at auction covers the same due diligenceThe research and investigation process an investor conducts before purchasing a tax lien or tax deed to evaluate the property and assess risk. steps.
Check our tax lien states vs. tax deed states map to see how Michigan compares with other states.
All investing involves risk. Outcomes depend on due diligence, and results vary. This page is general education only and is not legal, tax or financial advice. Talk to a licensed Michigan attorney before you buy.
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