• Michigan auctions properties with delinquent taxes.gavel image by Cora Reed from Fotolia.com
  
  Michigan enacted the Public Act 123 in July 1999. This new law changed Michigan from a tax lien to a tax deed state, meaning that all property with delinquent taxes of 12 months or more could have its deed sold at a tax sale. Tax sales are held by counties at various times of the year--Saginaw holds theirs in August, for example, while Lansing holds infrequent sales--and some counties let the state conduct their tax sales.
  
  

Delinquent Taxes

• Property taxes must be paid on all real estate, including raw land, residential housing and commercial property. When taxes, fines and fees are left unpaid for 12 months or more as of March 1 each year, the state Tax Collector can have foreclosure judgment entered.
  
  The property owner has 21 days from the date of judgment to pay all back taxes, fines, fees and penalties. If full payment is not made, the property will be listed for sale at the tax auction.
  
  

Tax Deeds

• Michigan sells tax deeds instead of liens. This means that investors earn no interest or penalty payments; instead, they receive a full-ownership deed to the property they win at the tax auction.
  
  Tax deed sales are final in Michigan, and there is no redemption period for the previous owners to reclaim the property.
  
  

Tax Sale Process

• Current (as of 2010) tax foreclosure deed sales are listed on some Michigan county websites, and some allow online bidding. There is a minimum bid amount for buying tax foreclosure properties, usually consisting of the total amount of delinquent back taxes plus all related fees. In some cases, the assessed value of the property may be listed with the legal description of the property in the tax auction list.
  
  Some counties require physical presence at the tax auction in order to bid and win properties. Full payment is due and the property deed is issued at the end of each auction.