Ingham and Eaton Counties in Michigan Will Pay People Who Lost Their Properties to Foreclosure

The Michigan Supreme Court, in a recent ruling, stipulates reimbursing former owners the profits from foreclosure auctions conducted in previous years. This ruling will not financially affect Ingham and Eaton counties, as officials from both counties, anticipating this legal outcome, have been preparing for this event for years.

For this reason, the treasurers of Ingham and Eaton counties have retained the surplus from foreclosure sales, expecting this money to be returned to the original property owners. Alan Fox, Ingham County Treasurer, said, “I believe we have retained enough funds to cover all claims.”

The Michigan Supreme Court’s decision was expected following the 2020 ruling that deemed it unconstitutional for local governments to keep surplus proceeds from foreclosure sales. As a result, guidelines were established for former homeowners to claim profits from tax foreclosure sales exceeding the amounts owed.

It was also clarified that people who lost properties to tax foreclosures before 2020 could also claim these profits.

Bob Robinson, Eaton County Treasurer, noted that lawsuits related to the state Supreme Court’s ruling on tax foreclosure profits date back to 2017. He said, “We didn’t start foreclosing our own homes in Eaton County until 2016, so anticipating those lawsuits, I kept all auction surpluses in reserve.”

Robinson said in the same interview that the county has around $4 million in reserved profits. Before conducting its tax foreclosure auctions, the State of Michigan managed these sales for the county, but since 2005, Ingham County has been conducting its own tax foreclosure auctions.

Regarding the upcoming tax foreclosure auctions in Ingham County, Alan Fox said they will be held soon at the Lansing Center, with a total of 43 properties up for auction, 17 of which are vacant lots and 24 residential structures.

Mr. Fox concluded by saying that the number of tax foreclosure properties has decreased in recent years, as in 2023, there were 61 properties for sale at auction, and in 2022, there were 71 properties in the same situation.

Available Foreclosures: 

Ingham County: 43 homes available 

Eaton County: 23 homes available

By Elías DaSilva | 11 de Noviembre de 2024.