The Wayne County “Show Cause” and Judicial Phase

Wayne County is unique due to its sheer volume of tax foreclosures. The process usually enters its most critical phase in January and February. During this time, the Wayne County Treasurer holds “Show Cause” hearings. This is your opportunity to sit down with a representative and explain why the property should not be foreclosed.

While these hearings offer a chance for a payment plan, the requirements are strict. Usually, you must pay a significant down payment (often 10-25% of the total debt) to enter a plan. If you miss even one payment, the plan defaults, and the foreclosure proceeds. By February, a judge typically signs the “Judgment of Foreclosure,” which sets the final deadline for March 31st at 5:00 PM.

How a Cash Sale Clears the Title in Wayne County

A tax lien is a “super-priority” lien in Michigan, meaning it sits in front of your mortgage. To sell the home, the lien must be cleared. When you work with Speedy Sale Home Buyers, our internal team works directly with the Wayne County Treasurer’s office to get an exact “payoff letter.”

We handle all the paperwork. You don’t have to worry about finding the money to pay the taxes first; the debt is handled at the closing table. This “one-and-done” approach ensures that the title is cleared, the county is paid, and the foreclosure is permanently halted. Because we buy houses in “as-is” condition, you don’t even need to clean out the property or make repairs to meet Detroit or Wayne County blight ordinances before selling.

Why Waiting Until the September Auction is a Mistake

Some homeowners believe they can wait until the Wayne County Tax Auction in September or October to “claim the surplus” from the sale. While a recent Supreme Court ruling (Tyler v. Hennepin County) suggests that homeowners are entitled to the surplus equity, the process of claiming that money is long, expensive, and legally complex.

If the county sells your $150,000 home for a $20,000 tax debt at auction, they might only sell it for $60,000. You would then have to hire an attorney to fight for the remaining $40,000, a process that can take years. By selling to a cash buyer before the March 31st deadline, you control the sale price and keep significantly more of your equity without the legal headache.

Take Action Before the March 31st Deadline

The most important thing to remember in Michigan is that there is no way to get your house back after March 31st. Once the clock strikes 5:01 PM on that day, the County Treasurer owns the property, and your rights are extinguished.

If you are currently sitting on a forfeiture notice or have been served with a foreclosure petition, the time to act is now. Speedy Sale Home Buyers can provide you with a no-obligation cash offer within 24 hours. We know the Michigan tax laws inside and out and can help you stop the process in its tracks.