By Alexandra Dieck, Bodman PLC
In tax foreclosure proceedings, practitioners should proceed with caution when advising clients on county-approved repayment plans. The client may lose the property anyway.
In October, the Michigan Court of Appeals held that a county can still foreclose on a property despite the existence of a repayment plan between the owner and the county. See Lancaster & York, LLC v. Oakland County Treasurer, Mich App No. 333063, Oct. 17, 2017. The plaintiff in Lancaster owned two commercial parcels in Oakland County. After the treasurer filed certificates of forfeiture, the plaintiff entered into two repayment plans for the delinquent taxes, one for each parcel, with taxes totaling over $120,000. Less than two weeks later, the county sought a judgment of foreclosure for each parcel and subsequently foreclosed.
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