Important Information for Property Owners:
Public Act 123 of 1999 shortens the amount of time that property owners have to pay their delinquent taxes before losing their property. Property owners with taxes that are two years delinquent will be foreclosed and the property will be sold at public auction. For example, people who fail to pay their 2008delinquent property taxes will lose their property to Foreclosure on March 31, 2011.
With this new act, the amount of time to pay taxes has been reduced from approximately five years to approximately two years.
Property owners face higher interest and fees for not paying their taxes. Taxes that are delinquent for more than one year 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 Forfeiture Fee and additional administrative fees added to them.On March 1st a $45 DNR Inspection Fee and additional recording fees are added. A $10 fee to record the Forfeiture Certificate with the Register of Deeds and a $10 fee to record the Redemption Certificate; if a second page is required, an additional $3 per page. On December 1st a $50 Publication/Notice Fee is also added.
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 lose their property, but they had more time to pay and more "second chances". Under the new law, if your taxes are delinquent for three years, that's it. You've lost the property.
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 one 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 fee is also added.
Q. What happens after my property is in Forfeiture?
A. After a property has been in Forfeiture for one year, it will be Foreclosed. 2008 property taxes will be Foreclosed on March 31, 2011.
Q. What happens after my property is Foreclosed? How do I get it back?
A. FORECLOSURE IS FINAL. YOU CANNOT GET YOUR PROPERTY BACK AFTER IT HAS BEEN FORECLOSED. PROPERTY THAT HAS BEEN FORECLOSED WILL BE SOLD AT PUBLIC AUCTION.
Q. Will I receive any notification before my property is Foreclosed?
A. YES. Five notifications will be made. Two will be by first class mail, two 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 the newspaper.
PROPERTY FORECLOSURE TIME LINE - 2008 PROPERTY TAXES
- July/December 2008: 2008 Property Taxes billed by City/Township/Village Treasurer
- March 1, 2009: Unpaid 2008 Property Taxes are forwarded to County Treasurer for collection. A 4% administration fee and 1% per month interest is added to each parcel
- October 1, 2009: The County Treasurer adds $15 Statutory Fee to each parcel
- March 1, 2010: Property is Forfeited to County Treasurer. The County Treasurer adds a $175 Forfeiture Fee and a $45 DNR. Interest increases from 1% per month to 1.5% per month, back to the date the taxes became delinquent
- December 1, 2010: The County Treasurer adds a $50 Publication/Notice Fee.
- March 1, 2011 - March 10, 2011: Circuit Court enters Judgment of Foreclosure.
- March 31, 2011 - Clear title to the property passes to the State.
- August/October 2011- Property is sold at public auction.
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