Tax Foreclosure Process

Have you gotten a notice from the county that they are initiating the tax foreclosure process?  Maybe you are just getting behind and worried about the eventuality of a sale?  Whatever the case, we have a solution to get you back on track with your property taxes and other bills that may have also become delinquent.

Call us today at 866-261-8282 for a free consultation.  You may choose to talk to an attorney over the phone or meet with us in person at any of our seven Michigan offices in:  Detroit, Ann Arbor, Flint, Dearborn, Southfield, Lansing or Warren.

At the free consultation we will review your finances and discuss:

• Strategies to immediately resolve your property tax delinquency and stop any pending legal action from the county, such as a foreclosure;
• Review and discuss your overall income and outstanding debt;
• Discuss your long term financial goals;
• Lastly, we will develop recommended next steps for long term debt resolution.

Stop a Tax Lien Foreclosure

A Tax Forfeiture sale and tax lien foreclosure occurs when the taxing authority begins foreclosure proceedings due to unpaid property taxes. Property tax delinquency is a 3-year forfeiture and foreclosure process in the State of Michigan. Properties are forfeited to the county treasurers when the property taxes reach second year delinquency. If the property taxes remain unpaid as of March 31^st in the third year of delinquency, they are foreclosed upon by the Foreclosure Government Unit (FGU).

If you have gotten behind on your property taxes and/or are facing a forfeiture auction or sale, you can immediately and legally stop the sale by filing a Chapter 13 reorganization plan.  This is a legal means of creating structured repayment terms with your creditors.  The Chapter 13 plan will:

• Prioritize and Consolidate Your Debts: 
  • Secured creditors, such as the County Treasurer or your mortgage lender, are paid immediately and before other lower priority creditors such as credit card or medical bills.
  • Unsecured creditors are deferred until you are caught up on payments to secured creditors.

• Reduce Your Debt and Interest Rates:
  • The plan only requires that you pay your “best efforts” toward unsecured creditors.  This includes credit cards, medical bills, personal loans, loan deficiency debt, old utilities and often second mortgages or home equity loans.  At the completion of the program, any remaining balances are legally eliminated or discharged.
  • Unsecured creditors are paid back at 0% interest.
  • Interest rates on vehicle loans can be reduced to 1- 2 points above the prime lending rate and we can also extend the terms to lower the payment if necessary.  We can reduce the balance you owe on the contract to the current market value of the vehicle if you have been financing it with the current lender for over 2.5 years.

• Receive Legal Protection From Your Creditors and Their Actions:
  • By filing a Chapter 13 case, you receive immediate and complete court protection from your creditors and actions such as:
    • Foreclosure
    • Vehicle Repossession
    • Judgments
    • Garnishment
    • Letters or harassing collection calls
    • Negative reports to the credit bureaus

By prioritizing and reducing your debts, your budget will be brought into balance.  At the completion of the 36 – 60 month program, you will be caught up on secured debts, free off all unsecured debt and in the position to make a fresh financial start.

If your property has already gone through a tax forfeiture sale, there still may be the possibility of redemption.  Certain factors will contribute to our ability to negotiate with the taxing authority, a primary factor in redeeming the property depends on whether the delinquent taxes were purchased by a third party.  Call us for a free consultation to discuss your circumstances and possible remedies.

Avoid Foreclosure by Resolving Unpaid Property Taxes

If you have property taxes that are owed outside of an escrow, they can also be resolved through a Chapter 13 program. Unpaid property taxes can be paid in increments over the life of the Chapter 13 plan at 1% interest per month with no continued penalties. They take priority over your unsecured debts and creditors.

By creating a structured program to get caught up on delinquent property before that 3-year mark, you can avoid a tax forfeiture sale.  By creating a balanced budget, you will avoid becoming delinquent again in the future.

You have full legal protection against foreclosure while you are participating in the Chapter 13 plan.  Call one of our qualified attorneys today to discuss your options for comprehensive debt resolution.

Other Benefits of Filing Chapter 13 in Michigan

In addition to the program attributes already outlined above, the Chapter 13 plan will also put you in a better financial position after program completion.  Benefits include:

• Improved Credit:  A Chapter 13 reorganization will improve your credit throughout the program by reducing your debt-to-income ratio and restoring timely payments to your creditors.

• Manageable and Balanced Budget:  A Chapter 13 promotes sound budgeting principles and the plan’s debt reduction creates a balanced budget post-discharge that will help protect you from future financial difficulties.

Trust the Property Tax Foreclosure Specialists

Don’t wait until it is too late.  Call us today to get a free consultation on how you can get caught up on your unpaid property taxes and avoid a tax foreclosure sale.  Our highly qualified attorneys specialize in debt resolution and have vast experience working with the county taxing authorities on tax debt resolution.

We are Michigan-based law firm and have five convenient locations in:  Ann Arbor, Dearborn, Southfield, Warren and Flint.  We are proud of our A+ rating with the Better Business Bureau, as it is a good reflection of our commitment to excellent customer service.  Call us today at 866-261-8282 for a free consultation with one of our licensed attorneys.