Notable Michigan Legislative Changes from 2020:

Alicia Schaub

The amendment modified the provisions regarding foreclosure on tax-delinquent properties by a governmental entity.

Due to a recent Michigan Supreme Court ruling, the Act was amended to allow the title owner of the property to request the remaining proceeds from the sale of a tax-foreclosed property. Prior to the amendment, the tax act required excess funds from the sale to be deposited to the county treasurer. The change now allows people to request from the court that the excess funds be deposited to them.

Another notable change comes from the forfeiture certificate that the County’s treasurer must record. Currently the county treasurer must record a certificate with the register of deeds stating that the property has been forfeited and not redeemed. The amendment now requires that the certificate also include an explanation of the rights of a title owner of the property to claim that interest in remaining proceeds after a foreclosure sale or transfer. Essentially, the amendment provides that more notice of a person’s state and constitutional rights must be published with a foreclosure notice.

Among other changes, the Bill also discusses new procedures for claimants with an interest in the foreclosed property, including establishing a limit of 2 years in which a person with an extinguished interest in a foreclosed property can try to recover the property.

You can read the full amended General Property Tax Act here: http://www.legislature.mi.gov/documents/2019-2020/publicact/htm/2020-PA-0256.htm

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