Wayne County, Michigan launched new foreclosure avoidance programs in mid-June aimed at homeowners who had fallen behind on property taxes. The programs, rolled out through the Wayne County Treasurer's Office, offered distinct payment plans designed to fit different financial situations — and, in most cases, to significantly reduce the 18% interest rate that would otherwise apply to tax delinquencies.

Why the Programs Mattered

Wayne County, which includes Detroit, has historically had one of the highest tax foreclosure rates in the country. During and after the pandemic, the Treasurer's Office worked to expand alternatives to foreclosure for homeowners carrying back taxes from 2021 and earlier. The programs launching on June 15 were part of that expansion.

Homeowners who lost homes through tax foreclosure often had no way to recover — the foreclosure process in Michigan historically allowed the county to keep all proceeds from a foreclosure sale, not just the amount owed. That changed after Michigan Supreme Court rulings and legislative action, but preventing foreclosures in the first place remained the best outcome for most families.

Three Main Plan Options

Homeowners carrying delinquent taxes could enter a new payment plan under three main options, each addressing a different kind of hardship.

Interest Reduction Stipulated Payment Agreement (IRSPA). This option reduced the interest rate on delinquent taxes from 18% down to 6%. That drop cut roughly two-thirds off the ongoing interest charges homeowners faced, which often meant the difference between a tax bill that could be paid down and one that grew faster than payments could reduce it.

Stipulated Payment Agreement (SPA). SPA created a payment plan over a 10-month period. As long as the resident made payments on the agreed schedule, the county would not foreclose on the home. The structure worked for homeowners who could afford steady monthly amounts but did not have a lump sum to pay all arrears at once.

Property Tax Assistance Stipulated Payment Agreement (PAYSPA). Offered through partnerships with local municipalities, PAYSPA required applicants to first get approval for a local Property Tax Exemption, typically tied to income. For homeowners who qualified, PAYSPA could reduce both the ongoing tax bill and the arrears. The program worked especially well for seniors and low-income owners who qualified for the Detroit HOPE program or similar local exemptions.

Who Qualified

Each program had distinct eligibility rules, but in general the programs were available to:

Homeowners occupying their primary residence in Wayne County
Owners who were behind on property taxes from 2021 or earlier
Homeowners able to document income and hardship
Residents willing to commit to a structured payment plan

Some programs, especially PAYSPA and the Detroit HOPE program, required income documentation. The 2022 HOPE program allowed an individual at risk of foreclosure with income of $34,000 or below to receive a 10% reduction on current-year taxes and access to other foreclosure assistance programs.

Federal Dollars Layered In

The June launch coincided with continued federal support through the Michigan Homeowner Assistance Fund (MIHAF), which had received roughly $242 million in federal HAF dollars. MIHAF had already sent more than $20 million to 5,500 Wayne County residents by the time the county rolled out its expanded plans, and the overlap between county programs and MIHAF meant that many homeowners could stack relief: a MIHAF grant covering some of the arrears, plus a county payment plan to handle the rest.

MIHAF dollars could cover delinquent property taxes, mortgage arrears, and utilities for households that had been affected by pandemic hardship. Wayne County staff coordinated with MIHAF application support to help homeowners figure out the right sequence for layering grants and payment plans.

Commercial and Rental Property Options

The county also offered a separate track for commercial property owners and landlords with up to five occupied rental properties. The Distressed Owner Occupant Extension (DOOE) could serve as a holding pattern on foreclosure while owners pursued the county's Pay As You Stay (PAYS) program. This helped smaller landlords who might otherwise have lost buildings that provided housing for renters.

How to Apply

Homeowners interested in any of the new programs were directed to contact the Wayne County Treasurer's Office directly. The office operated a website at fightmortgageforeclosure.com and separate pages through waynecountymi.gov for hardship extensions and payment plans. Walk-in appointments and phone support were also available, with outreach events held in different parts of the county to reach residents who might not come to a central office.

Documentation typically included proof of residency, identification, income documents, and the most recent tax bill showing delinquent amounts. Staff worked with applicants to identify whether an MIHAF grant, a county payment plan, or a local exemption was the best fit.

The Bigger Picture

Wayne County's expanded foreclosure avoidance toolkit represented a shift in how Michigan counties handled property tax delinquency. Rather than moving quickly to foreclosure once taxes were unpaid for three years, the county built in multiple off-ramps designed to help families stay in their homes. Combined with changes in state law, these programs meaningfully reduced the number of homes taken through tax foreclosure in the years that followed.

For homeowners facing delinquency, the key takeaway was not to wait. The sooner an owner engaged with the Treasurer's Office, the more options remained open. Waiting until foreclosure was imminent narrowed the choices considerably.

Wayne County Foreclosure Avoidance Programs Launch June 15