Opinion No. 7258, Michigan Attorney General, May 6, 2011
The Michigan Attorney General has opined that a municipality cannot require purchasers of property that is foreclosed due to a property tax delinquency to pay delinquent utility-service charges incurred by former owners of the foreclosed property before the municipality will provide utility services to the new owners of the property. Under the general property tax provisions, a judgment of foreclosure extinguishes all liens and interests related to unpaid utility-service charges against the property. A municipality may, however, seek to recover the charges by including the delinquent charges in the cost of the property at the time it is offered for sale under the general property tax provisions or by instituting other lawful action against the former owners.