MI SB0386

Allows persons claiming interest in foreclosed property to contest the validity of delinquent taxes, interest, penalties, and fees on six specific grounds including lack of legal authorization, tax assessor acting without jurisdiction, property exemption, prior payment, fraudulent assessment, or indefinite property description.

Requires written objections to foreclosure be filed with circuit court clerk and served on the foreclosing governmental unit before the hearing date.

Establishes that circuit court must enter final judgment between the hearing and March 31 of the succeeding year for uncontested cases, or within 10 days after hearing conclusion for contested cases, with redemption rights expiring on March 31 or 21 days after judgment respectively.

Specifies judgment must detail property description, confirm fee simple title vests in governmental unit, extinguish most liens and interests (with exceptions for easements, oil/gas leases, and environmental restrictions), and document that proper notice was provided to all entitled parties.

Allows appeals to court of appeals on record-only basis with automatic stay of judgment; requires appellants to pay amount due to county treasurer by redemption deadline to stay foreclosure, with refund if judgment is affirmed or reversed on appeal.

Requires foreclosing governmental unit to cancel foreclosure by recording certificate of error if property was not subject to taxation, had indefinite description, taxes were paid, proper certificate was issued, notice was insufficient, or foreclosure violated bankruptcy court order.