Inherited a Michigan House With Back Property Taxes? What Heirs Can Do
The short answer: If you inherited a Michigan house with unpaid property taxes, the county's foreclosure timeline keeps running on its own fixed dates. Taxes unpaid for a year are turned over to the county treasurer on March 1. The property forfeits the next March 1. Title passes to the county on March 31 of the year after that unless the taxes are paid or a plan is in place. Heirs usually have four options: pay the taxes, set up a county plan, sell and pay the taxes from the proceeds, or let it go and file for any leftover money. Which one works depends on the date, the equity and the heirs.
Inheriting a house is already a lot. Finding out the taxes are behind adds a deadline to it. The good news is that the process is predictable, the dates are published, and a house with equity usually has a better outcome than foreclosure. The first step is finding out exactly where on the clock you are.
Step 1: Find out where you are on the clock
Michigan's tax-foreclosure timeline runs on calendar dates set by the General Property Tax Act:
Year 1, March 1 — delinquent. Last year's unpaid taxes are returned to the county treasurer. A 4% administration fee and interest at 1% per month are added.
Year 2, March 1 — forfeited. The property forfeits to the county treasurer. A title fee (at least $175) is added, and extra interest of ½% per month is charged back to the prior March 1. Combined, interest now runs at 1.5% per month.
Year 3, March 31 — foreclosed. The foreclosure judgment takes effect. It's the last day to pay, and title passes to the county.
The treasurer's timeline has no pause for a death in the family or for probate. Call the county treasurer, explain that the owner has died, and ask for three things: which tax years are delinquent, the payoff good through a specific date, and whether the property has forfeited.
Wayne County Treasurer: (313) 224-5990
Macomb County Treasurer: (586) 469-5446
Step 2: Sort out who can act for the estate
Whoever sells or signs a county payment plan needs authority to act. If the house was in the deceased person's name alone, that usually means probate. The personal representative receives Letters of Authority from the probate court, which generally allow them to deal with the estate's real estate unless the court restricts it.
For very small estates, Michigan's assignment of property process is the only small-estate route that works when the person owned real estate. The 2026 limit is $53,000. With a house in the estate, many families will be over that line.
Probate takes time, and the tax clock doesn't wait for it. If you're within a year of a March 31 foreclosure date, open probate now, even before the family has agreed on what to do with the house. For the full probate and tax picture, see how to sell an inherited house in Wayne or Macomb County.
Step 3: Choose a path
1. Pay the taxes
If the family plans to keep the house, or can cover the balance while deciding, paying it off stops the clock. Get the payoff in writing for a specific date, because interest keeps accruing monthly.
2. Set up a plan with the county
Both counties offer programs, but read the eligibility carefully. They're built mostly around owner-occupants:
Wayne County's IRSPA plan cuts the interest rate from 18% to 6%, but requires the home to be owner-occupied with a Principal Residence Exemption, plus 10% down. Its SPA plan covers residential or commercial property with a 20% to 50% down payment. For 2026 foreclosures, the county asked for arrangements by March 13.
Macomb County offers hardship extensions and will work out payment plans, but its treasurer notes that rental properties are not eligible for extensions.
If an heir is living in the house, ask specifically whether they qualify. If nobody lives there, expect fewer options.
3. Sell the house and pay the taxes at closing
When there's equity, this is often the most practical path. Delinquent taxes are a lien that has to be cleared for the buyer to get clean title, so they're normally paid from the sale proceeds at closing. The estate doesn't have to come up with the money first.
The timing math matters. A market listing needs time to prepare, show, go under contract and close, and a buyer's financing adds weeks. If you're close to March 31, an as-is or off-market sale that closes quickly may net more than a listing that misses the date. That's a comparison to run with real numbers, not a rule. More detail: can you sell a house with delinquent property taxes in Michigan?
4. Let it go — and claim any leftover money
If the house has little or no equity and nobody wants it, letting it go through foreclosure is a real option. It's not the end of the money question, though. Since the Michigan Supreme Court's 2020 Rafaeli decision and the law that followed, a person with a legal interest in the property immediately before foreclosure can claim the remaining proceeds after a tax-foreclosure sale.
File Form 5743 by July 1 following the foreclosure. It must be notarized and sent by certified mail or personal service.
In Wayne County, the treasurer responds by January 31, and the claimant then files a motion in circuit court between February 1 and May 15.
Whether an heir or the estate files the claim depends on how title stood at the time. That's a question for a probate attorney, and it's worth asking early.
Property-tax items heirs should know
Uncapping. A transfer by inheritance normally uncaps taxable value. But residential property passing to a parent, sibling, child or grandchild of the deceased is exempt, as long as it isn't used for a commercial purpose afterward. Renting it out can cost you that exemption.
The Principal Residence Exemption. The deceased owner's exemption doesn't carry over to heirs who don't live in the house. If it comes off, the tax bill goes up by the school operating millage. Budget for it.
Where to get free help
Macomb: MSU Extension offers free foreclosure counseling, (586) 469-6430.
Wayne: Wayne Metro, (313) 388-9799, and Michigan Legal Services, (313) 964-4130.
Anywhere in Michigan: Michigan Legal Help (michiganlegalhelp.org) has plain-language guides to tax foreclosure and claiming leftover proceeds.
Frequently asked questions
What happens if I inherit a house with back property taxes in Michigan?
The county's tax-foreclosure timeline keeps running on its fixed dates. The property forfeits on March 1 the year after taxes are returned delinquent, and title passes to the county on March 31 of the following year unless the taxes are paid or a plan is in place. Heirs can pay the taxes, set up a county plan, sell and pay the taxes at closing, or let the property go and claim any remaining proceeds.
Can you sell an inherited house with delinquent taxes in Michigan?
Yes. The personal representative, or whoever holds authority to sell, can sell the house, and the delinquent taxes are normally paid from the sale proceeds at closing so the buyer gets clear title. The sale has to close before the foreclosure date.
Does probate stop a Michigan tax foreclosure?
The treasurer's published timeline has no pause for probate, so plan as if the dates are fixed. Contact the county treasurer as early as possible, and open probate promptly if the house was in the deceased person's name alone.
How much interest is charged on delinquent property taxes in Michigan?
Once taxes are returned delinquent, a 4% administration fee and interest at 1% per month are added. At forfeiture, a title fee of at least $175 is added, and an extra ½% per month is charged retroactive to the prior March 1, bringing interest to 1.5% per month.
Can heirs claim money after a Michigan tax foreclosure sale?
A person with a legal interest in the property immediately before foreclosure can claim remaining proceeds by filing Form 5743 by July 1 following the foreclosure. Whether that's an heir or the estate depends on how title stood, so ask a probate attorney.
Not sure where the house stands?
Send me the address. I'll help you work out where it sits on the timeline, what it's worth today, and what a sale would net after the tax payoff, as a listing, as-is or off-market. If paying the taxes and keeping it is the better move, I'll tell you that too. See how the county process works on the tax foreclosure options page, or see all your selling options.
Options first. Recommendation second.
Call, text, or email: (586) 238-3693 · aj@ajrittner.com
AJ Rittner · Real Estate Advisor
eXp Realty, LLC · 39555 Orchard Hill Place, Suite 600, Novi, MI 48375 · (586) 238-3693
Licensed Michigan Real Estate Salesperson since 2018 · License #6501416084 (Alexander Rittner)
This article explains how Michigan's property tax foreclosure and probate processes generally work. It is not legal, tax or financial advice. AJ Rittner is a licensed Michigan real estate agent and active real estate investor, not an attorney, accountant or tax adviser. Deadlines, fees and county programs change and vary by county. Confirm your situation with your county treasurer, and speak with a probate attorney before making decisions about an estate's property.
Sources (checked 21 Sept 2026): Michigan Department of Treasury, Foreclosure Process Timelines and Taxpayer Resources, michigan.gov/taxes; Michigan Treasury Form 5743; Macomb County Treasurer, Tax Foreclosure Prevention and Delinquent Tax FAQs; Wayne County Treasurer, 2026 Delinquent Tax Liens notice and Claims page; Michigan Legal Help, small-estate processes and claiming leftover money; SCAO Form PC 572; Michigan State Tax Commission, Transfer of Ownership Guidelines.
