Counties are reporting the number of tax foreclosures is up significantly
NORTHERN MICHIGAN -- County tax foreclosures are on the rise and in fact, in some counties, the situation is the worst it's ever been.
"Traditionally, over a 10 year span, we foreclose on less than 10 parcels," explained Mary Mitchell, the Emmet County Deputy Treasurer.
But in the past few years, it has been a mess. The county has taken over more homes and vacant lots than it ever has.
"30 from the year before, but that year, we were up almost 30 from the year prior to that," said Mitchell.
This year, Emmet County foreclosed on 63 parcels where about $500,000 in taxes were owed. The county collected a little less than $125,000 when it put the properties up for auction last month. The county still has 48 parcels to auction off and somehow try to collect $372,000.
But that won’t come easy. For example, on the foreclosure list, there’s a home that owes $56,000 in taxes. It didn't sell at the first auction, but it will go up for bid again on October 7th. The problem is somebody could purchase it for as low as $50, and you can see where the county is losing money.
“It's inevitable that this year, Emmet County will definitely be in the red when it comes to the auction results," said Mitchell.
And because of that, local townships and municipalities will likely have pay its part of the shortfall; money they got upfront from the county when taxes were due.
“This year, it's much more dramatic, and it impacts the local units dramatically, they don’t have those kinds of excess funds lying around," said Mitchell.
Wexford County foreclosed on 45 parcels this year, while Grand Traverse County had 12 pieces of property to deal with.
In Otsego County, like Emmet County, they're dealing with the highest number of tax foreclosures ever.
109 parcels have been foreclosed on with some $98,000 in tax money owed. The county has auctioned off 23 properties and still has 86 to go, hoping to collect more than $27,000 worth of taxes.
“Most generally, they always sell, but we don't always make the money off of them that we hope to," said Otsego County Deputy Treasurer Brooke Joyner.
And when you consider the costs of court and hiring a title search company of the foreclosed properties, Joyner says it means the county will likely lose money.
