[jackmichigan]

I have previously written in the Real Estate Forum about the draconian property tax policies in Michigan—both in terms of inflated tax assessments and the unjust property tax foreclosure process. Michigan’s tax foreclosure law allows for the quickest foreclosure in the nation, with no right of redemption. It also unjustly confiscates a homeowner’s equity in their home, regardless of the size of the tax bill or the value of the property involved.

One of the lawyers on CD challenged what I've written before, claiming that I was wrong because such a law would be unconstitutional. Well, a lawyer should realize that laws have a presumption of validity, and that they are enforceable until the courts determine otherwise. Such is the case in Michigan. Our property tax foreclosure law has been on the books for over 20 years and it has yet to be overturned. Hopefully, that may soon change as additional lawsuits are pending.

Does anyone have any stories about property tax foreclosures that can top these? (I doubt it!)

https://www.michiganradio.org/post/a...s-keep-profits

https://reason.com/2019/11/06/a-mich...t-the-profits/

https://www.freep.com/story/opinion/...se/1511525001/

Can a county government seize a home for back taxes, sell it for price that exceeds the tax debt, and pocket the profits?
That issue is at the heart of the lawsuit that Erica Perez filed against Wayne County and County Treasurer Eric Sabree Tuesday.

Wayne County foreclosed on the Perez family’s Detroit home in 2017 over a $144 tax debt. The county then sold the property for $108,000, according to the lawsuit’s complaint.

An 83-year-old retired engineer in Michigan underpaid his property taxes by $8.41. In response, Oakland County seized his property, auctioned it off to settle the debt, and pocketed nearly $24,500 in excess revenue from the sale.

Under Michigan law, it was all legal. And hardly uncommon.

[jackmichigan]

Originally Posted by jackmichigan

Does anyone have any stories about property tax foreclosures that can top these? (I doubt it!)

Well, believe it or not, I found an even more egregious horror story. In this case, an out-of-state owner lost a lakefront house that they were building in Cass County due to an unpaid $14,000 property tax bill. The house, which was nearing completion but still under construction, was worth approximately $3.5 million.

The title company that acted as the County's agent for sending notices effectively knew that the owner had not received actual notice of the pending foreclosure because their certified letters had been returned. Shortly after foreclosure, however, and after the deadline had passed for the owners to redeem the property, the title company officer called the owners to ask if they were going to bid on the property. They managed to find their phone number to notify them about the auction, but apparently they couldn't find it earlier to notify them about the foreclosure.

The owners then tried to pay the taxes and regain the house, prior to it being auctioned off, but Cass County officials refused to accept the check. County officials saw this as a great opportunity to reap a windfall.

Foreclosure also wiped out the mortgage of $3.5 million which was recorded after a certificate of forfeiture was filed, so no notifications were sent.

The property owners have already lost two rounds in Michigan Courts. Their next stop is the Michigan Supreme Court or perhaps federal courts on Constitutional grounds.

Top that!!

https://courts.michigan.gov/Courts/M...69_COA_opn.pdf

[Angry-Koala]

Originally Posted by jackmichigan

The title company that acted as the County's agent for sending notices effectively knew that the owner had not received actual notice of the pending foreclosure because their certified letters had been returned. Shortly after foreclosure, however, and after the deadline had passed for the owners to redeem the property, the title company officer called the owners to ask if they were going to bid on the property. They managed to find their phone number to notify them about the auction, but apparently they couldn't find it earlier to notify them about the foreclosure.

Wow! That's awful!

Originally Posted by jackmichigan

Top that!!

Sorry. No can do.