How quickly can a Michigan house be lost to foreclosure once it's abandoned?
Within about a month of the sale. For a home of up to 4 units that has been found abandoned, the redemption period after a foreclosure sale is 1 month, or at least 30 days under the second abandonment test.
Otherwise the redemption period for a home of up to 4 units is generally 6 months when more than two-thirds of the original loan is still owed. If none of the shorter periods apply, it is 1 year from the sale.
Under section 3241a, a house is presumed abandoned when the lender personally inspects it and finds no sign that the borrower or anyone claiming under the borrower lives there or will. The lender must also post a notice on the house and mail one by certified mail saying it considers the house abandoned. The presumption holds only if, within 15 days of that notice, no one has written to the lender saying the house is not abandoned.
Own an empty Michigan house and fallen behind on the loan? Read how Michigan foreclosure and redemption work before the clock gets short.
When does Michigan forfeit a house for unpaid property taxes?
On March 1, property that has been tax-delinquent for 12 months or more, along with certified abandoned property, is forfeited to the county treasurer. Forfeited property can still be redeemed up to the March 31 after a court enters the foreclosure judgment, by paying the county treasurer what is owed.
On March 1 each year, last year's unpaid property taxes are returned as delinquent. The forfeiture certificate must explain how a person with an interest in the property can claim any remaining proceeds after it is sold.
Abandoned houses can move faster. A local government can adopt a resolution declaring accelerated forfeiture of abandoned property, which covers tax-delinquent property with a building that is vacant or dilapidated and open to entry or trespass.
- To use it, the local government inspects the property before February 1 and posts a notice on it warning that it will face accelerated forfeiture and foreclosure if the taxes are returned as delinquent.
- A property occupied by its owner or someone with a legal interest cannot be certified as abandoned.
- An owner can file an affidavit saying the property is not abandoned.
When does Michigan law call a vacant house a dangerous building?
Under the Housing Law of Michigan, a building that is vacant, dilapidated and open at a door or window, leaving the inside exposed to weather or trespassers, is a dangerous building. So is a building left unoccupied for 180 days in a row or longer that isn't listed for sale, lease or rent with a licensed real estate broker.
The 180-day rule doesn't apply if the owner tells local law enforcement, within 30 days of the building becoming empty, that it will stay empty, and keeps up the outside and the grounds.
The Housing Law covers cities, villages and townships of 10,000 people or more, and covers houses and two-family homes only in places of 100,000 or more unless the local board adopts it for them.
At a hearing on the dangerous-building notice, the owner can show why the building shouldn't be torn down, made safe or properly maintained. Within 5 days after the hearing, the hearing officer either closes the case or orders the building demolished, made safe or properly maintained. For a building that's dangerous because it sat empty, the order can require the owner to keep up the outside, including the lawn, trees and shrubs.
If the owner doesn't pay the town back within 30 days of the bill, the town gets a lien that is collected like a property tax lien.
Can a Michigan court appoint someone to rehab or remove a neglected house?
Yes. When a suit is brought against an owner to enforce the Housing Law of Michigan, the court may appoint a receiver for the property.
The receiver can be the town, a local agency or officer, or any competent person. The receiver's job is to repair and rehabilitate the building so it meets the law, or remove it if the court orders.
If the receivership's expenses aren't otherwise covered, the court can put a lien on the property for them.
Who watches over a Michigan house between the foreclosure sale and the end of redemption?
After the sale, the buyer can inspect the outside of the house any number of times during the redemption period. A borrower who plans to move out after the foreclosure sale must tell the buyer at least 10 days before leaving so the house can be secured.
During redemption, the borrower is liable for physical damage beyond normal wear and tear that the borrower causes or directs.
Where can Grand Rapids, Michigan residents complain about a vacant house?
Grand Rapids takes complaints about a vacant house with windows, doors or other openings that don't shut or lock, or with broken doors or windows. Complaints go through the city's Citizen Access system, and can be filed without logging in, anonymously.
Once the city accepts a complaint, it opens a case, sends the owner a letter, and an inspector follows up on site.
The city suggests first trying to talk with the owner, and says the City Assessor's Office can help find who that is.
You can also tell me where it is. I'll find out who owns it and reach out about buying it and fixing it up.