SB 572 Summary

• Establishes a right of first refusal for the state to purchase tax-delinquent foreclosed property at the greater of minimum bid or fair market value within the first Tuesday in July following judgment.

• Requires foreclosing governmental units to hold at least 2 property sales between the third Tuesday in July and first Tuesday in November, with sales conducted by auction (including internet auctions) and properties sold to the highest bidder above minimum bid.

• Restricts bidding eligibility beginning January 1, 2012: persons with unpaid code violation citations related to blight elimination or nuisance abatement in the local tax collecting unit where the property is located cannot bid.

• Allows cities, villages, and townships to purchase unsold property at minimum bid before county purchase rights; unsold property after all sales transfers to local municipalities by December 30, or to the state land bank fast track authority if state is foreclosing unit.

• Requires proceeds from property sales be deposited into a restricted account and used in priority order: repay delinquent tax revolving fund, cover sale costs, cover foreclosure costs, cover property maintenance costs, and (if applicable) cover title defense and administration costs.