MI HB5724

State gains right of first refusal to purchase tax-delinquent property at the greater of minimum bid or fair market value within first Tuesday in July following foreclosure judgment, with cities, villages, townships, and counties having subsequent purchase rights for public purposes.

Foreclosing governmental units must conduct at least 2 property sales between third Tuesday in July and first Tuesday in November, with sales conducted via auction (including online auctions) and property offered to highest bidder above minimum bid or at no minimum bid for final sale.

Beginning January 1, 2011, foreclosing governmental units may require bidders to submit affidavits attesting they do not owe delinquent taxes in Michigan (with exception for principal residences and entities where person owns 5% or less); false affidavits constitute perjury punishable by up to 1 year imprisonment or $5,000 fine.

Unsold property transfers to city, village, or township by December 30 following final sale for public purposes (including urban homestead programs), with all property taxes and certain liens canceled as of December 31 following transfer.

Sale proceeds deposited into restricted account used to reimburse delinquent tax revolving fund, pay sale and foreclosure costs, cover property maintenance costs, and (for counties) transfer remaining balance to general fund after 18 months; Department of Natural Resources and Environment gains access and lien rights for environmental remediation on contaminated facilities.