Foreclosure Agreement in Grand Rapids and Kent County Could Yield Thousands of Dollars to Former Homeowners

With the approval of a federal judge, an agreement in Kent County could lead to some former homeowners receiving thousands of dollars after authorities seized their homes due to unpaid taxes and sold them for profit.

Through an agreement with a federal court, Kent County will return the surplus funds from the sale of foreclosed properties to their former owners, both in the city of Grand Rapids and the county at large. This agreement comes after the Michigan Supreme Court’s decision, which declared that the state law allowing counties to retain all proceeds from foreclosure sales was unconstitutional.

There was a specific case that led to this decision, following the uproar caused by the news that a citizen lost their property over a tax debt of $8.41 in Oakland County; a property that was later sold for $24,000. After this, major media outlets highlighted the news and echoed the issue of foreclosures for minor tax debts, leading state legislators to begin considering changes to the law, but these were not made before the Michigan Supreme Court’s decision.

In their latest statements, a Kent County spokesperson noted that most foreclosed properties do not sell for the amount of taxes owed. A few foreclosures that reach their conclusion help cover the costs of other foreclosed homes that sold for less than the taxes owed.

With the new law, counties across Michigan must now return any surplus to former homeowners whose homes were sold in foreclosure processes, leading some counties to face more than $100 million in surplus funds they have to reimburse; and although figures were not disclosed, the agreement approved by the federal judge will reduce this amount.

Peter MacGregor, Kent County Treasurer, stated after the agreement: “This agreement resolves significant ongoing litigation in Kent County while providing a way for taxpayers to recover their surplus proceeds, for which we are grateful for the court’s decision, which helps to fully resolve this issue.”

It is noteworthy that for many former homeowners whose homes went to auction due to foreclosure to be eligible for this agreement, they had to file claims in the spring and summer of the previous year.

Available Foreclosures: 

Kent County: 150 homes available.

Oakland County: 200 homes available.

By Elías DaSilva | 06 de Noviembre de 2024.