Michigan guide
Selling a House With Back Taxes in Michigan
If you owe back property taxes on a Michigan house, the most important thing to understand is that the process has deadlines — and they don’t pause because you’re trying to sell.
How a delinquent bill becomes a foreclosure
Property taxes are billed locally and collected by the city or township treasurer. Once they go delinquent, the county treasurer takes over collection. Michigan law then moves the property through forfeiture and into foreclosure, with a redemption period during which the owner can still pay and keep the property.
The exact dates depend on the county and the year the taxes were due. Wayne, Oakland, and Macomb each publish their own schedules, and the county treasurer’s office is the authoritative source for your parcel.
Three balances that matter
- Property taxes. Delinquent taxes plus any interest, fees, and administrative costs attached to them.
- Water and sewer. In Detroit and some other cities, unpaid water balances can become a lien on the property.
- Liens and code tickets. Municipal tickets, nuisance abatement charges, and contractor liens all show up in a title search.
How a sale clears the balance
In most cases the balances are paid at closing out of the sale proceeds. The title company orders payoff letters from the county treasurer and the water department, and the settlement statement shows exactly what was paid and what you receive.
That means you usually don’t need to pay the taxes before selling. It does mean the numbers have to work: the offer has to cover the payoff, the closing costs, and whatever is left for you.
What a buyer will ask for
- The parcel number and property address.
- Whether the house is occupied, vacant, or rented.
- Any notices you’ve received from the county or the city.
- Whether probate is involved.
What to do this week
- Call the county treasurer and ask for the exact payoff and the redemption deadline in writing.
- Request a water payoff from the city.
- Ask a title company for a preliminary title search so you know what else is attached.
- Talk to a Michigan attorney or tax professional about your specific situation.
Selling won’t always be the right answer, but knowing the numbers makes the decision much clearer.
Selling a house in Michigan? Tell us the address and what you know about the condition. We’ll follow up with questions and a written offer if it’s a fit.
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