In a landmark decision, the Michigan Supreme Court ruled in 2020 that former property owners have the right to claim surplus proceeds from tax foreclosure sales. This decision impacts thousands of individuals who lost their properties due to foreclosures before and after December 22, 2020. Wayne County has established a process for these former owners to file claims by specific deadlines, ensuring they receive their rightful share of leftover funds. The ruling also addresses how surplus money is allocated and managed, providing clarity on where the funds originate.
The implications of this ruling extend beyond Wayne County, as similar lawsuits across Michigan aim to recover surplus proceeds for former property owners. The process involves submitting notarized forms, receiving notifications about potential claims, and filing motions with the circuit court. With resources available through various organizations, including the Wayne County Treasurer’s Office and nonprofit groups, affected individuals can navigate the claims process effectively.
Eligibility and Claims Process for Pre-2020 Foreclosure Sales
Former Wayne County property owners whose homes were sold at auctions prior to December 22, 2020, are eligible to claim surplus proceeds under the Michigan Supreme Court's 2020 ruling. These owners must complete and submit a notice of intention form by March 31, 2025. Once filed, the Wayne County Treasurer’s Office will notify claimants regarding any remaining funds by July 1, followed by a motion submission deadline of October 1 for the circuit court review.
To initiate the claims process, interested parties need to fill out a notice of intention form provided by the Michigan Department of Treasury, ensuring it is notarized. Submission options include certified mail or in-person delivery to the Wayne County Treasurer’s Office. After filing, governmental units will inform claimants whether surplus funds exist, detailing other possible claims against the proceeds. Subsequently, claimants must prepare and file a motion with the circuit court, attending a hearing before a judge to finalize their claim. This structured approach ensures transparency and fairness in distributing leftover funds from pre-2020 foreclosure sales.
Post-2020 Foreclosure Sales and Resource Availability
For those affected by foreclosure sales after December 22, 2020, the process remains straightforward yet distinct. Former property owners must submit notarized forms by July 1 of the foreclosure year. The funds for these claims come from unclaimed proceeds and interest charges on delinquencies, set aside specifically to address such cases. Resources like WayneCountyForeclosureClaims.com and a dedicated hotline provide essential information, while videos and guides further elucidate the claims process.
Individuals seeking to reclaim surplus proceeds from post-2020 foreclosure sales benefit from a simplified timeline and clear instructions. Notarized forms should be sent via certified mail or delivered in person, aligning with the specified deadlines. The Wayne County Treasurer’s Office has reserved portions of surplus funds generated over the past five years to honor these claims, ensuring financial support for former owners. Additionally, various entities offer supplementary assistance, including Outlier Media's text message service and comprehensive online guides. These resources collectively empower former property owners to understand their rights and successfully navigate the claims process, securing the financial compensation they deserve. Through collaboration between government offices and nonprofit organizations, the pathway to reclaiming surplus funds becomes more accessible and efficient for all involved parties.