Michigan Property Tax Foreclosure Surplus Funds Settlement
A class action settlement has been reached for Michigan property owners who lost their homes to tax foreclosure and were not paid the surplus proceeds from the sale. Former property owners may file a claim by March 3, 2026.
What Is This Case About?
The lawsuit alleges that Michigan counties seized properties for delinquent taxes, sold them at auction, and kept the full sale proceeds — even when the sale price far exceeded the amount of back taxes, penalties, interest, and fees owed. Under this practice, a homeowner who owed a few thousand dollars in taxes could lose a property sold for tens of thousands of dollars without receiving any of the surplus. The lawsuit claims this amounted to an unconstitutional taking of property owners’ equity.
Who Is Eligible?
You may be eligible if you formerly owned property in Michigan that was seized through tax foreclosure proceedings and sold for more than the total amount of taxes, penalties, and fees owed. The county must have retained the surplus funds rather than returning them to you. Check the official settlement website for the specific counties and time periods covered.
How Much Can You Receive?
Eligible class members may recover a portion of the surplus proceeds from their foreclosed property sales. The amount depends on the difference between what your property sold for and what you owed in delinquent taxes and associated costs. Some former property owners may be entitled to significant payments.
How to File Before the Deadline
Visit the official settlement website to submit your claim. You may need to provide information about your former property, the foreclosure proceedings, and the sale amount.
- Claim Deadline: March 3, 2026
- Case Type: Property rights / tax foreclosure surplus
OpenClassActions.org is not affiliated with any Michigan county or the settlement administrator. This page is for informational purposes only and does not constitute legal advice.
File your claim at the official settlement website →
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