Not legal, tax, or investment advice. Data comes from public sources and may be incomplete or out of date; confirm with the county before bidding.

Michigan

MI

The investor buys the property itself at sale. No redemption period usually follows, so title transfers directly.

Sale type

Tax deed

Redemption

Not documented

Interest / penalty

Flat rate · 0.5%

Sale timing

Annual

Rules in plain English

Sale type

Tax deed

The investor buys the property itself at sale. No redemption period usually follows, so title transfers directly.

MCL 211.78m

“The deed must vest fee simple title to the property in the person bidding the highest amount above the minimum bid”
official source ↗

Redemption period

Not documented

Not documented

MCL 211.78g(3)

“may be redeemed at any time on or before the March 31 immediately succeeding the entry of a judgment foreclosing the property under section 78k”
official source ↗

Interest / penalty

Flat rate · 0.5%

0.5% flat per month.

MCL 211.78g(3)(b)

“additional interest computed at a noncompounded rate of 1/2% per month or fraction of a month on the taxes that were originally returned as delinquent, computed from the March 1 preceding the forfeiture.”
official source ↗

Bid method

Minimum bid (no bidding up)

The sale is at a fixed minimum bid, with no bidding above it.

MCL 211.78m(2)

“property must be sold to the person bidding the minimum bid, or if a bid is greater than the minimum bid, the highest amount above the minimum bid.”
official source ↗

Sale schedule

Annual

Sales are held about once a year.

MCL 211.78m(2)

“beginning on the third Tuesday in July immediately succeeding the entry of the judgment under section 78k vesting absolute title to tax delinquent property in the foreclosing governmental unit and ending on the immediately succeeding first Tuesday in November”
official source ↗

Bidder process

  1. 01Watch for the foreclosing governmental unit's notice of the time and location of the sale, which must be published not less than 30 days before the sale (211.78m(2))
  2. 02Attend a property sale held between the third Tuesday in July and the first Tuesday in November immediately following the judgment of foreclosure under 211.78k; sales are held at convenient locations and may be auction sales conducted via an internet website (211.78m(2))
  3. 03Bid at the auction: property is sold to the person bidding the minimum bid, or, if a bid is greater than the minimum bid, for the highest amount above the minimum bid (211.78m(2))
  4. 04Pay in full at the close of each day's bidding or by a date not more than 21 days after the sale, as the foreclosing governmental unit's procedures require (211.78m(2))
  5. 05Provide proof of payment to the local tax collecting unit of any property taxes owed on the property at the time of sale; the sale is cancelled if those taxes are not paid within 21 days of the sale (211.78m(2))
  6. 06Execute and file the penalty-of-perjury affidavit about interests in delinquent property in the county and unpaid ordinance civil fines before a deed is issued (211.78m(2))
  7. 07Take the deed, which the foreclosing governmental unit must convey not more than 14 days after payment of all amounts required (211.78m(2))
  8. 08If the foreclosing governmental unit holds a final sale under 211.78m(2), bid there as well: at that final sale the minimum bid is not required, though a reasonable opening bid may be set and a former interest holder must still pay the minimum bid (211.78m(5))
Registration
Not documented
Registration mode
Not documented
Registration deadline
Not documented
Registration fee
Not documented
Deposit required
Not documented
Deposit amount
Not documented
Deposit percent
Not documented
Deposit refundable
Not documented
Sale format
hybrid
Payment deadline
the foreclosing governmental unit shall require full payment at the close of each day's bidding or by a date not more than 21 days after the sale (211.78m(2))
Payment methods
unknown
Residency required
Not documented
  • Before a deed is issued, the purchaser must execute and file with the foreclosing governmental unit an affidavit under penalty of perjury stating that the purchaser does not directly or indirectly hold more than a minimal legal interest in any property with delinquent property taxes located in the same county as the property, and is not directly or indirectly responsible for any unpaid civil fines for a violation of a home rule city act ordinance in the local tax collection unit where the property is located (211.78m(2)); the sale is cancelled if the affidavit is not filed by the date payment is required
  • Proof of payment to the local tax collecting unit of any property taxes owed on the property at the time of sale must be provided before the foreclosing governmental unit conveys the property (211.78m(2))
  • A person convicted of executing a false affidavit under 211.78m is prohibited from bidding for or purchasing property at any sale under that section (211.78m(15))
  • At the final sale held under 211.78m(2) a person who held an interest in the property when the judgment of foreclosure was entered must pay the minimum bid before a deed is issued to that person (211.78m(5))

Mich. Comp. Laws 211.78m(2)

“beginning on the third Tuesday in July immediately succeeding the entry of the judgment under section 78k vesting absolute title to tax delinquent property in the foreclosing governmental unit and ending on the immediately succeeding first Tuesday in November, the foreclosing governmental unit, or its authorized agent, at the option of the foreclosing governmental unit, shall hold 1 or more property sales at 1 or more convenient locations at which property foreclosed by a judgment entered under section 78k will be sold by auction sale, which may include an auction sale conducted via an internet website. Notice of the time and location of a sale must be published not less than 30 days before a sale in a notice publication circulated in the county in which the property is located, if there is one.”
official source ↗

Mich. Comp. Laws 211.78m(2) (highest bid)

“Except as provided in this subsection and subsection (5), property must be sold to the person bidding the minimum bid, or if a bid is greater than the minimum bid, the highest amount above the minimum bid.”
official source ↗

Mich. Comp. Laws 211.78m(2) (payment and affidavit)

“The foreclosing governmental unit may adopt procedures governing the conduct of the sale and the payment for conveyance of properties under this section and may cancel the sale before the issuance of a deed under this subsection if authorized under the procedures. The foreclosing governmental unit shall require full payment at the close of each day's bidding or by a date not more than 21 days after the sale. Before the foreclosing governmental unit conveys a property sold at a sale, the purchaser shall provide the foreclosing governmental unit with proof of payment to the local tax collecting unit in which the property is located of any property taxes owed on the property at the time of the sale. A foreclosing governmental unit shall cancel a sale if unpaid property taxes owed on a property or properties at the time of a sale are not paid within 21 days of the sale.”
official source ↗

Mich. Comp. Laws 211.78m(2) (affidavit conditions)

“Before issuing a deed to a person purchasing property under this subsection or subsection (5), the foreclosing governmental unit shall require the person to execute and file with the foreclosing governmental unit an affidavit under penalty of perjury. If the person fails to execute and file the affidavit required by this subsection by the date payment for the property is required under this section, the foreclosing governmental unit shall cancel the sale. An affidavit under this section must indicate that the person meets all of the following conditions: (a) The person does not directly or indirectly hold more than a minimal legal interest in any property with delinquent property taxes located in the same county as the property. (b) The person is not directly or indirectly responsible for any unpaid civil fines for a violation of an ordinance authorized by section 4l of the home rule city act, 1909 PA 279, MCL 117.4l, in the local tax collection unit in which the property is located.”
official source ↗

Mich. Comp. Laws 211.78m(5)

“At the final sale held under subsection (2), the sale is subject to the requirements of subsection (2), except that the minimum bid is not required. However, the foreclosing governmental unit may establish a reasonable opening bid at the sale to recover the cost of the sale of the property or properties, and the foreclosing governmental unit shall require a person who held an interest in property sold under this subsection at the time a judgment of foreclosure was entered against the property under section 78k to pay the minimum bid for the property before issuing a deed to the person under subsection (2).”
official source ↗

Mich. Comp. Laws 211.78m(15)

“A person convicted for executing a false affidavit under subsection (5) is prohibited from bidding for a property or purchasing a property at any sale under this section.”
official source ↗

Mich. Comp. Laws 211.78m(16)(c)

“"Minimum bid" is the minimum amount established by the foreclosing governmental unit for which property may be sold or transferred under subsections (1) to (3). The minimum bid must include all of the delinquent taxes, interest, penalties, and fees due on the property, and may include any additional expenses incurred by the foreclosing governmental unit in connection with the forfeiture, foreclosure, maintenance, repair, or remediation of the property”
official source ↗

Notes

Title vests in foreclosing governmental unit at foreclosure. | Prose: deed | 1/2% per month noncompounded additional interest; $175 fee | until March 31 following foreclosure judgment | auction sale; minimum bid (highest amount above minimum wins) | July-November (3rd Tuesday in July to 1st Tuesday in November)