Gov. Rick Snyder has signed legislation to help homeowners meet tax obligations and avoid foreclosure while at the same time establish “a more transparent foreclosure system” in the state.
The bills aim to reduce the foreclosure rate in Wayne County which is foreclosing on more than 76,000 residential, commercial and industrial properties — 62,000 located in Detroit.
“Helping homeowners overcome financial hardship and meet their legal responsibilities will help keep families in their homes in a responsible way, lessen the number of vacant buildings and improve public safety while generating tax dollars to provide vital services to city and county residents,” Snyder said. “Developing a more transparent foreclosure system also ensures previously foreclosed property does not return to the hands of delinquent taxpayers.”
Two bills, sponsored by former state Reps. Phil Cavanaugh and John Walsh, allow homeowners facing financial hardship to use a payment plan to meet tax responsibilities and avoid foreclosure. The payment plan will be created by the foreclosing governmental unit and agreed upon by the landowner. The bills also allow county treasurers to waive additional monthly interest accrued in delinquent tax cases once the payment plan is completed, allowing individuals to maintain ownership of their property.
“Thanks to this collaborative effort between Governor Snyder, the legislature, Mayor Duggan, and our office; we will be able to assist distressed taxpayers, stabilize communities, and address blight in a manner never before possible. This is a great day for Detroit, Wayne County, and Michigan,” said Wayne County Treasurer Raymond J. Wojtowicz.
Another bill, sponsored by former state Sen. Tupac Hunter, requires people interested in bidding on foreclosed property to register with the government unit holding the property at least 14 days before a property sale.
The requirement prevents bidders from purchasing homes and buildings if they are found to have outstanding tax payments, unpaid blight fines or a history of financial negligence.
A foreclosing governmental unit cannot accept purchasing bids from a person who did not register or does not meet sale requirements.
With the legislation, Duggan said, “more than 20,000 Detroit homeowners now have the ability to restructure their property tax debts to avoid foreclosure and stay in their homes.”
Meanwhile, a bill sponsored by state Rep. Jon Bumstead allows a foreclosing governmental unit for a county (other than the state) to acquire property owned by the State, the federal government, a land bank fast track authority or another governmental entity to facilitate the sale of tax-reverted property.
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