A few years ago, I received a call from an elderly client (let's call him "Fred") in a panic. Fred told me that he went out to his lake cottage one spring for the first time since winter and found a notice of foreclosure pasted on the door indicating that the property had been foreclosed upon for non-payment of taxes. The appeal period had long expired. I asked Fred if he paid his taxes. He couldn't remember and said he thought he escrowed for taxes as part of his mortgage payment. Upon further inquiry I learned that he owned the property free and clear and that yes, he forgot to pay his property taxes. After some finagling I was able to make a deal with the County Treasurer to get Fred's property back so long as Fred paid all of the taxes, plus interest, within 48 hours. I did this by convincing the County Treasurer that Fred was elderly, had moved within the past few years and that the County had the wrong mailing address for purposes of notice. Fred was lucky. The County Treasurer accepted my story, although he didn't have to.
Residential and commercial real estate are two completely different markets, even in Michigan. And the economic downturn has affected each of them differently. While residential homes continue to be foreclosed on by banks, commercial real estate hasn't necessarily had the same outcome from the slump that the economy has been in, although it most definitely suffered. In fact, the economy in many cities and states is actually improving, resulting in a comeback for the commercial real estate market.