The Ile Camera
A Heritage Newspaper
Weekly Publication
Saving home is up to you
PUBLISHED: January 26, 2007
'Tis the season for foreclosures — but it doesn't have to be. Not if you as a homeowner do everything you can to make sure you don't lose your home.
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In case you didn't know, Wayne County — and Detroit — leads the nation in property tax foreclosures.
There are many reasons for this troubling distinction, and the decline of the auto industry — which has resulted in the loss of thousands of jobs — is certainly a major contributor to the decline of the local economy.
But the loss of jobs related to a once-thriving industry is still only part of the problem. Another equally serious part of the problem is, well, personal responsibility.
If you own a home, then you should know that property taxes need to be paid on that home. If you are unable to pay those taxes, or if you believe you will be late, then it is up to you to seek help and/or contact the Wayne County Treasurer's Office for assistance with your problem.
Believe it or not, the treasurer's office is not the Grim Reaper and has no interest in snatching your property. Our strong preference is that Wayne County residents keep their homes and not lose them to property tax foreclosure, and our office is doing whatever it can to make this a reality.
But to do this we need your help. If you're in trouble, we need to hear from you, and we need to hear from you soon. You can contact us one of several ways.
The address for the Office of the Wayne County Treasurer and Taxpayer Assistance division is 400 Monroe, Suite 530, Detroit, MI 48226. The telephone number is 1-313-224-6105. Online, visit www.waynecounty.com/treasurer.
How to avoid foreclosure
Always pay your taxes on time.
Property taxes are always due in July and December of each year. Current taxes are payable to your local treasurer's office in the city where your property is located. You need to contact your local treasurer's office for further information on current property tax billing dates.
There are different ways to pay your taxes.
Your property taxes can be paid in one of three ways: online, in person or by mail. Payment for delinquent taxes can be paid by personal check, (current delinquent tax year only), certified funds, cash in person, or online by an electronic debit from your checking or savings account. Our office does not accept credit card payments.
If your mortgage company pays your taxes out of an escrow account, be sure to check and make sure that they are making timely payments. Ultimately, you are responsible for timely payments, not your mortgage company.
When am I late?
Officially, if you did not pay your 2004 property taxes by March 1, 2005, then those property taxes are now recorded as delinquent and a $15 collection fee was added on Oct. 1, 2005, to each delinquent parcel that is listed under your name.
Also, it is now the responsibility of the Wayne County Treasurer's Office to collect the delinquent taxes, and interest immediately kicks in at 1 percent per month. There is also a 4 percent administration fee.
When am I "really" late?
Unpaid property taxes become delinquent on March 1 of each year and are forwarded to the county treasurer for collection. State law requires a 4 percent administration fee and 1 percent per month interest.
For example, unpaid 2004 property taxes were forwarded to the county treasurer as delinquent on March 1, 2005. On March 1, 2006, unpaid 2004 delinquent taxes were forfeited to the county treasurer. State law requires the addition of a $175 fee and $26 in recording fees. Interest is increased from 1 percent per month to 1.5 percent per month retroactively to the date the taxes became delinquent.
But seriously, when am I "really, really" late?
If your 2004 property taxes still aren't paid by March 1, 2007, then circuit court enters a judgment of foreclosure against your property.
The only way to retain ownership of your property at this point is to pay all of your delinquent property taxes, including fees and interest, by March 31, 2007.
If you don't? You're out of luck. This is your absolute last chance to get your property back. Period.
As of April 1, your property will be foreclosed, and you will lose all rights as owner of what used to be your property. Title to your property will be passed to the county treasurer.
So what happens now?
During the months of September and October 2007, your property will be sold at auction.
Former owners are allowed to register to bid on their property. However, they must follow the same rules and regulations as every other bidder. There will be no special privileges or allowances granted to anyone simply because they are the previous owners of a property about to be auctioned.
Options if you are facing foreclosure
Hardship extension
Except for a verifiable legal challenge proving that you do not owe the amount of delinquent taxes the county says you owe, applying for a hardship extension is just about the only way to hold onto your house while attempting to get caught up on your delinquent property taxes. Please refer to your handout material for details on how to apply for a hardship extension.
Important: If you believe you will need to apply for an extension, please keep in mind that this is only an extension, not an exemption. Even if you are granted an extension on the time allowed to pay your taxes, you are really only delaying the inevitable, and you will also be required to continue paying interest charges throughout the duration of the extension.
Contact treasurer's office
If you are facing foreclosure, trying to hide and act like it will all somehow go away is the worst thing you can do. What you need to do is get some help, and quick.
One thing you can do is contact the Taxpayer Assistance Section at 1-313-224-6105. Taxpayer assistance is an in-house division at the treasurer's office dedicated solely to assisting taxpayers in any way possible.
Once you have sought assistance, you may find out that it's not as bad as you think. But if you decide to ignore the problem, it will most likely turn out much worse than you could have ever imagined.
(Raymond Wojtowicz is the Wayne County treasurer.)
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