Detroiters who are behind on their property taxes can use resources to reduce their tax liability and avoid foreclosure.
A tax foreclosure is the process by which a homeowner loses property due to non-payment of property taxes.
Earlier this year, Wayne County Treasurers suspended several foreclosures to give taxpayers who were struggling financially due to the COVID-19 pandemic enough time to apply for relief programs.
more:Wayne County will suspend foreclosures on certain owner-occupied homes through March 2023.
more:Housing costs make up the bulk of thousands of Detroiters’ salaries, survey shows
A court order withholding the foreclosure of homes occupied by owners with delinquent taxes from 2017 to 2019 until March 2023.
The ruling saved 3,861 homes from foreclosure across the county this year, according to the Treasury Department.
However, the court order does not apply to taxable property owners in 2016, or to previously unoccupied homes, such as rental homes.
That means Detroit has had 3,695 properties foreclosed since March 31, including 401 owner-occupied units and 1,421 non-owner-occupied units.
The City of Detroit is using $2.7 million in U.S. Relief Plans Act funds to go door-to-door to residents whose homes have already been foreclosed or may be foreclosed next year to inform them of available assistance.
“The intent and goal is to be really proactive and to ensure that residents are aware of the various property tax foreclosure prevention resources that exist,” said Chelsea Nebrett, financial entitlement manager for the city’s Neighborhood Authority. said.
The Treasury Department has an up-to-date list of assets likely to be seized. Download from https://www.waynecounty.com/elected/treasurer/.
Taxpayers can also find delinquent property tax information at https://pta.waynecounty.com/.
Free Press has also partnered with Outlier Media, which operates an SMS messaging service, to allow Detroit residents to text HOUSING to 67485 to look up an address and find out if their property has been foreclosed. increase. This service only works for Detroit addresses. The data is as of June 1st.
For those who may face foreclosure in the next year, here are some available resources.
- Homeowners Property Exemption (HOPE): This is a poverty tax exemption for income-qualified Detroit citizens, exempt from property taxes for the year. For more information, visit www.detroitmi.gov/hope.
- Detroit Tax Relief Fund: This program, funded by the Gilbert Family Foundation, can eliminate your property tax liability. This is for those who are already approved for the HOPE exemption and the county’s Pay As You Stay (PAYS) program to help reduce your tax liability. For more information, visit waynemetro.org/propertytax or call the Detroit Tax Relief Fund at 313-244-0274.
- Michigan Homeowners Assistance Fund (MIHAF): This statewide and federally funded program targets those who have been hit hard economically by the pandemic. The grant can be used for delinquent property taxes. For more information, visit Michigan.gov/MIHAF or call 844-756-4423.
- Wayne County Payment Plans: The Wayne County Treasurer has several payment assistance plans. For more information, visit bit.ly/WayneCountyPaymentPlans.
Some Detroiters whose properties have been foreclosed may be eligible for the Make It Home program, which allows residents, including renters living in foreclosed homes, to purchase the property before the auction. For more information on this program, please visit uchcdetroit.org/makeithome.
Those who applied for the MIHAF program before March 31st may notify the Treasury Department with proof that they applied before that deadline to have their property removed from the foreclosure list.taxinfo@waynecounty Please contact us at .com.
Nushrat Rahman is a member of The GroundTruth Project’s initiative Report for America, covering issues related to economic liquidity for the Detroit Free Press and Bridge Detroit. Please make a tax deductible donation to support her work at bit.ly/freepRFA.