Michigan County Erred in Factoring Taxes in Foreclosure Surplus

Eaton County, Mich. improperly charged the estate of a former property owner for taxes that were not yet delinquent when calculating the surplus from a foreclosure auction, the state Court of Appeals held Wednesday.

A three-judge panel sided with the estate of Randy Mathias over a dispute involving the county treasurer’s inclusion of about $240 for April-September 2022 property taxes in the statutory minimum bid for the foreclosure auction. The court held these 2022 taxes did not become delinquent until March 2023.

Because the foreclosure judgment was effective in March 2021, adding these future taxes to ...