Cityscape

Tax foreclosure 'disaster' could begin in April for Detroit homeowners not on payment plans

March 19, 2022, 6:57 AM


Past examples of abandoned Detroit homes not on the tax rolls. (File photos: DepositPhotos)

A pandemic reprieve for Detroiters facing housing insecurity is about to change.

For the first time since spring 2020, Wayne County in two weeks plans to start foreclosing on occupied residential properties delinquent on taxes. Around 16,000 homes were at risk of tax foreclosure in the county, though Treasurer Eric Sabree predicts that far fewer occupied homes will be seized.

The county recently extended a payment plan deadline to March 31 for owners to avert foreclosure. If not enrolled by then, the home will head to auction in the fall. (Signup link and video below.)

More than 4,000 owner-occupied homes are at risk, according to Detroit Free Press columniust Nancy Kaffer, who notes that Sabree "could ask a Wayne County Circuit Court judge to halt the tax foreclosures" to head off what she calls "a disaster."

Another 7,200 rental properties with tax-delinquent landlords were marked for foreclosure as of last month. Those tenants need relief, too, and should be included in any consideration. ...

The treasurer expects that 1,200 to 1,500 occupied homes will likely be foreclosed, numbers he seems to consider an improvement, but will still displace thousands of residents.

Sabree has asked the court to halt foreclosures before. He can do it again.

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However, the editorial page columnist notes:

Sabree said last week that he has no choice but to foreclose on thousands of occupied homes this year, pointing to a report by the Wayne County Legislative Auditor General that found his office regularly missed state-mandated deadlines in the foreclosure cycle, and what he says is pressure from fellow treasurers around the state to resume the seizure of tax-delinquent homes. 

Learn here and below about Wayne County payment plans to avoid foreclosure.

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