Michigan Sees Rise In Tax-related Foreclosures

A higher number of homeowners living in Michigan are facing foreclosure due to tax-related issues, according to Michigan Radio.

State data shows more than 13,000 tax-foreclosed properties were put up for auction last week, a figure that has increased "tenfold" over the past year, United Community Housing Coalition told the publication. According to UCHC executive director Ted Phillips, the economy is playing a large role in the increase, but the inability to pay back taxes and the associated fees is a contributing factor.

"In past years there's been a half a dozen out of town investors that have purchased the property," Phillips told Michigan Radio. "We've been at this now long enough to see properties that were purchased at the auction that are now coming back onto the auction because the investors don't pay the taxes, don't keep the property up."

The large amount of foreclosed properties has forced the state to hold the auctions online.

The latest report from RealtyTrac shows the foreclosure rate in August climbed 4 percent, revealing that Americans are still struggling to pay their bills. The unprecedented rates have urged the government to create a number of debt relief programs, including modification, refinance and foreclosure prevention campaigns.