Core Concepts
Tax Foreclosure
A court or administrative process that takes title to a property because its taxes are unpaid.
In tax foreclosure states, the government (not an investor) takes title once taxes are delinquent long enough and the redemption period ends. The property is then sold at auction.
Notice requirements are strict, because a foreclosure ends the owner's rights. A defect in notice can be grounds to challenge the sale.
How it works by state
- Michigan
- Under Michigan's General Property Tax Act, unpaid taxes are forfeited to the county treasurer, a court enters a foreclosure judgment, and owners can generally redeem until March 31. Unredeemed properties go to auction later that year.
General information, reviewed 2026-10-12. Not legal advice. Rules change and each county publishes its own sale terms; confirm with the county before bidding.
Related terms
- Tax SaleA public sale a local government holds to collect unpaid property taxes, by selling either the property itself or a claim against it.
- ForfeitureIn Michigan, the step where delinquent taxes are turned over to the county treasurer and the property becomes subject to foreclosure.
- Redemption PeriodThe window during which an owner can keep a property by paying the delinquent taxes, interest, and fees.
- Surplus FundsMoney left from a tax sale after the taxes, interest, and costs are paid. Also called excess proceeds.