Property Tax Foreclosure

You, as a tenant, may be living in a house or apartment for which the property taxes have not been paid. It is possible that, if your landlord does not pay the taxes which are due on his or her property, then Washtenaw County may foreclose upon the property where you are living.


What is the foreclosure process and how does it work?

The new foreclosure process is fairly complicated. After a foreclosure judgment is entered, there is a final 21-day redemption period, during which the property owner can pay the delinquent taxes and keep his or her property. If an owner does not pay the delinquent taxes within this final 21-day redemption period, then the title to that property will pass to Washtenaw County. After a property title passes to Washtenaw County, the State and local governments have the opportunity to purchase the property in question. If neither the State nor the local government exercises its right to purchase the property, then the County Treasurer conducts a "minimum bid" public sale, at which members of the public could purchase the property.

My landlord owes taxes for the property where I am living. What can I do?

If you have learned that property taxes for the property which you rent are delinquent, you may write, phone, and/or email your landlord and urge him or her to pay these taxes immediately and provide you with proof that the taxes have been paid. Some tenants report that they have had to contact their landlords several times, but that they have been successful in getting their landlord to pay the delinquent taxes. YOU as a tenant are NOT responsible for the delinquent taxes and do NOT have any obligation to pay them yourself.

Will I be evicted?

It is possible that, eventually, you may be asked to move as a result of the foreclosure process. However, there are many opportunities for your landlord to pay the delinquent taxes and eliminate the need for foreclosure. As a tenant, you have the right to strongly encourage your landlord to take advantage of these opportunities. If foreclosure occurs, there may be opportunities for you to remain in your present apartment until the end of your current lease. If the County takes title to your rental property, and neither the State nor a local government exercises its right to purchase the property, then the property can be sold at one of the ""minimum bid"" public sales described above. If the property where you live is sold at one of these ""minimum bid"" sales, then it is possible that the new owner may not have to honor any lease or rental agreement you have for the property at that time.

Should I withhold my rent?

Although tenants have the clear right to withhold rent in response to a landlord's failure to properly maintain and/or repair a rental unit, it is unclear whether the courts would support a tenant's right to withhold rent in response to a landlord's property tax delinquency. It is unlikely, however, that a landlord who had failed to pay his/her property taxes after the final 21-day redemption period had expired would still be able to collect rent for that property. Tenants who are interested in the possibility of rent withholding should contact an attorney for advice about this option.

What about my security deposit?

You have the right to contact your landlord and request that he or she tell you, in writing: (a) exactly where your security deposit is being held; (b) the exact amount being held; (c) whether or not it is bonded; and (d) the terms of the bond.

To learn more about housing rights in Michigan and where to get help:    

Consult the Michigantenants.org website for local housing resources and tenant counseling services. 

Consult the Michiganlegalaid.org website for legal education articles and local service information.

If you received court papers or otherwise need free or low cost legal advice:

This article appears courtesy of the Michigan Tenant Counseling Program.