My home is in tax foreclosure…now what?
Right now, over 80,000 Detroit properties are at risk of foreclosure. If the property you live in is one of them, you have options.
No matter what, you have options. Every person’s situation is different and the whole process can be very confusing. Just know that you are not alone, you have options, and that there are people out there who will support you in keeping your home.
What you do next will depend on your relationship to the property:
I am the owner, my name is on the deed (or the name of someone else who lives there such as your spouse)
Your priority is to try to save the house from foreclosure by either
- a) getting an extension (DOOE),
- b) getting on a payment plan or
- c) paying the taxes
Technically, you only have until the end of March to save the house from foreclosure though its possible the treasurer might give you more time.
If you try to get on a payment plan, make sure you ask about the “tax cap” and “IRSPA” plans. These might help reduce the total amount that you owe and keep the monthly payments at an affordable level. If you are already on a payment plan, you may be able to renegotiate so that you get these benefits.
But what if you don’t save the house from foreclosure? The actual foreclosure comes into effect on April 1. That does not mean you have to move out. The new owner is Wayne County and they will not evict you. Use this time to SAVE MONEY and explore your other options.
If you don’t succeed in saving your home from foreclosure, it will probably go up for auction in September/October. If your name is on the deed, you personally will not be able to buy the home back in the auction. The auction is risky because you never know what will happen, but it is possible in some cases to buy a house for as low as $500 with no back taxes. If someone else buys the home, you may be able to rent it from them. Even if they want you out, you may have until the end of 2015 until you have to move.
I am the owner but my name is not on the deed
You consider yourself to be the owner but the city/county government might not. Maybe you have a land contract or you inherited the property from a family member or neighbor but never filled out the official paperwork. It might make sense for you to save the house from foreclosure, or you might wait for the auction in the fall. Both options have their risks.
Even if you are not the official owner, you can save the property from foreclosure by paying off the taxes or getting on a payment plan. If you have a land contract, or if the owner is someone you trust, this might make sense. Unfortunately the payment plans will probably not be as affordable for you as if you were the official owner and you are taking a chance by paying money for someone else’s property. If you become the official owner, you might be able to renegotiate and get a better payment plan.
If no one stops it, the foreclosure will come into effect on April 1. That does not mean you have to move out. The new owner is Wayne County and they will not evict you. Use this time to SAVE MONEY and explore your other options.
The house will probably go up for auction in September/October. Since your name wasn’t on the deed, you will have the chance to buy it back in the auction. The auction is risky because you never know what will happen, but it is possible in some cases to buy a house for as low as $500 with no back taxes. If someone else buys the home, you may be able to rent it from them. Even if they want you out, you may have until the end of 2015 until you have to move.
I am a renter or an unofficial resident
Even though you are not the owner, it is possible for you to save the house from foreclosure by paying off the taxes or getting on a payment plan. However, you can pay all the taxes you want but this does not make you the owner so this is risky unless you have a good relationship with the owner.
If no one stops it, the foreclosure will come into effect on April 1. That does not mean you have to move out. The new owner is Wayne County and they will not evict you. Use this time to SAVE MONEY and explore your other options.
The house will probably go up for auction in September/October. Since your name wasn’t on the deed, you will have the chance to buy it back in the auction. The auction is risky because you never know what will happen, but it is possible in some cases to buy a house for as low as $500 with no back taxes. If someone else buys the home, you may be able to rent it from them. Even if they want you out, you may have until the end of 2015 until you have to move.