WALKER, Mich. — Every year in Michigan, cities, townships, and villages collect property tax bills. But when those bills go unpaid past March 1, the local government turns the delinquent accounts over to the county treasurer — and Kent County Treasurer Peter MacGregor takes over as the collection agent.
To make sure local governments, schools, community colleges, and other taxing entities still receive their expected funding without interruption, Kent County takes out a short-term note — essentially a loan — to cover the gap. As delinquent taxpayers pay up, plus fees and interest, and the county pays off the note.
This year, MacGregor has been authorized to take out a note of up to $30 million. Last year's delinquency total came in around $22–$23 million, and he expects this year's figure will be slightly higher — potentially reaching $23–$24 million.
While MacGregor points to the commitment to various "units" of government, he also expresses a commitment to keeping citizens in their homes. "If we can just communicate with each other and are honest with each other, that's the best route for these people. Life happens — you get a divorce, you lose a loved one, you get sick, you lose your job," he says. "The last thing I ever want to do is take someone's property away from them. Our foreclosure cases have gone down tremendously over the past five years because of being proactive. We look at it as foreclosure prevention."
Are Delinquencies Rising?
MacGregor points to several years of steep increases in taxable property values as a key driver of delinquencies. Under Michigan law, local assessors can raise a property's taxable value by up to 5% or the rate of inflation — whichever is lower. When inflation ran above 5%, that means 5% increases, compounding year after year.
Add in local and countywide millages — for veterans, seniors, parks, the zoo, law enforcement, and more — and property tax bills have grown significantly, making it harder for some homeowners to keep up.
"Property taxes are super high right now. It's a huge responsibility owning property," MacGregor notes. He says the county's delinquency peak was in 2008, at roughly $36 million, during the foreclosure crisis. It has trended lower since, but MacGregor says he's watching a gradual uptick in recent years.
The Three-Year Process: Delinquent → Forfeiture → Foreclosure
Many homeowners panic when they receive notices from the county, but the road from a missed payment to losing a home is a long one:
- Year 1 (Delinquent): Taxes go unpaid past March 1. The county takes over collection. A 4% administrative fee plus monthly interest is added.
- Year 2 (Forfeiture): The homeowner enters the formal "forfeiture" process. Legal notices are sent, properties are posted, and MacGregor's office begins outreach — including personal door-knocking by MacGregor himself.
- Year 3 (Foreclosure): By April 1 of the third year, the treasurer has the legal authority to foreclose through a judicial hearing. A judge must authorize every foreclosure.
"Forfeiture and foreclosure — they both look exactly the same and are both scary words. But they mean very different things, Jones at Home Repair Services explains. "Forfeiture means you're behind but still have time. Foreclosure means you're on the verge of losing your home." She says about 80% of calls to her office are simply people trying to figure out where they stand.
Help Is Available — But You Have to Ask
Kent County and its nonprofit partners offer several tools to help struggling homeowners:
Homeowners facing foreclosure can fill out a hardship deferral form to propose a repayment plan. MacGregor says his office works with 50 to 60 people per year through this process.
"How much can you afford? This is how much you owe. We work with every single person, and every person is different," says MacGregor.
Another avenue for help is Home Repair Services, which offers free financial coaching for homeowners struggling with property taxes — serving Kent County and seven surrounding counties, including Ionia and Muskegon. Coach Amber Jones helps clients in several ways:
- Understand where they stand in the forfeiture/foreclosure timeline
- Create a realistic budget to catch up and stay current
- Apply for hardship deferrals with the county
- Explore last-resort options, including DHHS assistance (income qualifications apply)
Jones also notes that Home Repair Services holds property tax education webinars at least twice a year, walking homeowners through what every line on their tax bill means.
Home for Generations Program
A newer program connecting delinquent homeowners with pro bono attorneys to help navigate probate — a common issue when a home is still in a deceased parent or grandparent's name. Homes not in the current occupant's name can lose the primary residence exemption, resulting in significantly higher tax bills. Homeowners who successfully transfer ownership can receive reimbursement for up to three years of overpaid taxes.
One Thing People Get Wrong: Property Taxes Don't End With the Mortgage
Both MacGregor and Jones emphasized a common and costly misconception:
"A lot of people think they've done what they need to do to stay in their home once the mortgage is paid off," says Jones. "Unfortunately, that's not always the case." Once the mortgage is gone, the property tax bill comes directly — and some homeowners are caught off guard.
MacGregor's office currently has roughly 297 properties eligible for foreclosure come April 1 — but he expects that number to shrink significantly over the next three weeks through outreach, payment plans, and deferrals. Last year, he foreclosed on just 28 properties, most of which were vacant or unbuildable lots.
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