How to Claim Surplus Funds from Old Foreclosures in Detroit

Recently, and thanks to a ruling from the Michigan Supreme Court, all property owners whose property has been auctioned in a foreclosure process due to tax debts, and who did not file a claim for surplus funds at the time if any were available, can now retroactively request their return. Furthermore, owners who had a foreclosure before 2020 can also file a claim.

This decision took the administrations of the different counties in Michigan by surprise, especially Wayne County, which is concerned that this decision could abruptly affect the county’s finances.

With this new ruling, the thousands of owners who were subject to a foreclosure due to having a property tax debt for three years will be able to claim the return of the money earned by the county from the sale of the property when it was auctioned. It is worth noting that the surplus funds are those amounts that remain after the county recovers the total sum of the tax debt owed by the former owner.

According to the vice president of the real estate data company Regrid, there are approximately 2,400 property owners in the city of Detroit whose property has been auctioned due to property tax debts. The total amount of money owed to them, based on estimated figures, exceeds 19 million dollars corresponding to the profits from foreclosures carried out from 2015 to 2020.

To initiate the process of obtaining the funds, property owners in the city of Detroit must contact the administrative authorities of Wayne County and must submit their respective claim by completing the form available on their website before March 31, 2025.

For those owners who have faced a foreclosure due to tax debts after 2020, they can claim surplus funds, if any were generated, by completing and returning the notarized form, either by mail or in person.

After filling out the appropriate form, depending on the case, the former owner will receive information from the county authorities explaining whether the sale left any extra profits after the foreclosure and auction of the property or if someone else has claimed them.

Creditors that the owner may have had before the foreclosure process was initiated against them can also participate in this process of returning surplus funds.

Available Foreclosures:

Detroit: 2,400 foreclosures available for claim.

By Elías DaSilva | 15 de Noviembre de 2024.