Michigan Counties Settle Lawsuit Over Tax Foreclosure Overages

Nearly 30 Michigan counties settled a class suit accusing them of unlawfully retaining the surplus proceeds from tax foreclosures, according to documents filed in federal court.

Under the agreement eligible claims will receive 125% of the funds generated by the foreclosure sales that exceeded how much the former owners owed in property taxes. The counties will pay for the administrative costs to enforce the settlement without dipping into the settlement funds.

“Rather than continuing to pursue protracted and uncertain litigation, Plaintiffs and their counsel negotiated a Settlement that provides certain and meaningful relief,” the unopposed motion, filed Tuesday, said. ...