If your property has been lost to tax foreclosure in Wayne, Oakland, Washtenaw, or Macomb County, Michigan, you may now recover surplus proceeds from Michigan tax foreclosure. Thanks to recent changes in state law, specifically MCL 211.78t, former property owners finally have a legal process to claim what remains after their delinquent property is sold at auction.
This new legal remedy can help thousands across Wayne, Oakland, Macomb, and Washtenaw Counties. But strict deadlines and legal steps apply. Here’s what every affected homeowner needs to know.
What Is MCL 211.78t?
Effective January 1, 2021, MCL 211.78t allows former property owners to file a Notice of Intention to Claim Remaining Proceeds from a tax foreclosure sale. This law responds to a Michigan Supreme Court decision in Rafaeli, LLC v Oakland County, which ruled that counties cannot keep surplus proceeds from tax sales.
If your home was foreclosed after property tax default, and it sold for more than the taxes owed, you may be eligible to recover the difference.
Who Can File a Claim?
You may qualify if:
- You owned a residential, commercial, or vacant property foreclosed due to unpaid taxes;
- The sale occurred after July 17, 2020;
- The auction sale price exceeded the tax debt;
- You file within the required statutory deadlines.
Step 1: File the Required Notice
To begin the process, file a Notice of Intention to Claim Interest in Foreclosure Sale Proceeds with the foreclosing governmental unit (FGU). This is typically the county treasurer.
The notice must include:
- Your name and address;
- The address and parcel number of the foreclosed property;
- A statement of your intent to claim remaining proceeds;
- Signature and date.
- Additional information required by the statute.
Where to File
Submit the notice directly to the appropriate County Treasurer’s Office:
- Wayne County Treasurer
- Oakland County Treasurer
- Washtenaw County Treasurer
- Macomb County Treasurer
It’s highly recommended to send via certified mail or hand delivery for proof of submission.
Step 2: File a Motion with the Circuit Court
Once your notice is on record, you must file a motion in circuit court to formally claim your proceeds.
Your motion must include:
- Reference to your timely filed Notice;
- Legal description of the property;
- Evidence of the foreclosure and sale;
- Your requested amount (if known);
- A description of your interest in the property;
- Whether there are any other claimants for the funds;
- Whether you still have any ownership interest or purchased the property from the foreclosure sale;
- And additional information required by the statute.
You must file the motion in the same county where the foreclosure occurred.
Critical Deadlines You Must Know
Timing is everything under MCL 211.78t:
- File your Notice of Intention within 60 days of the foreclosure sale.
- File your motion within 90 days of the sale.
Failing to meet these deadlines will bar your ability to recover any funds. The law does not allow extensions.
How Are Surplus Proceeds Calculated?
The county treasurer calculates the surplus by subtracting:
- Delinquent taxes;
- Interest;
- Penalties;
- Administrative fees;
- Sale costs;
From the final auction sale price. What remains is the recoverable surplus. You may receive all or part of this amount, depending on competing claims or liens.
Why Hire a Livonia Real Estate Attorney?
The process can be legally complex. A Livonia, Michigan real estate attorney ensures your Notice and court motion are timely and properly filed. An attorney can also:
- Investigate sale records;
- Challenge inaccurate calculations;
- Represent you in court;
- Maximize your recovery.
Need to Recover Surplus Proceeds from Michigan Tax Foreclosure?
At our Noble Path Legal PLLC, we help former property owners across Wayne, Oakland, Washtenaw, and Macomb Counties. If your tax-foreclosed property sold for more than you owed, you have a limited window to claim those surplus proceeds.
NOTE: For conflict of interest reasons, we are NOT currently assisting property owners in Wayne County with motions to claim remaining proceeds.
Contact us today to:
- Evaluate your eligibility;
- File your claim before the deadline;
- Protect your legal rights.
Don’t wait—your right to recover surplus proceeds from Michigan tax foreclosure expires quickly.
Click the button below to schedule a free consultation.