Wayne County continues to process claims and pay out auction proceeds to former owners and interest holders.
Detroit, MI – Millions of dollars are now making their way back to Wayne County residents who lost property to tax foreclosure following important Michigan court rulings and changes in Michigan law that provide a path for former owners and interest holders to receive compensation from the sale of tax foreclosed properties.
In two major cases — Schafer v. Kent County and Hathon v. State of Michigan — the Michigan Supreme Court ruled that former property owners and interest holders may be entitled to receive money left over after their foreclosed property were sold at auction.
Under changes to Michigan law, these “remaining proceeds” are the funds remaining once unpaid taxes, interest, and administrative costs are covered. The Supreme Court rulings applied the changes in the law to foreclosure sales that took place before December 22, 2020 and opened the door for eligible residents across the state to file claims.
Since then, the Wayne County Treasurer’s Office has begun issuing payments to former owners and interest holders—whose claims have been approved by the Wayne County Circuit Court.
As of January 8, 2026, more than $3.8 million has already been returned to eligible claimants in Wayne County.
Because these rulings were new and unfamiliar to many residents, the Treasurer’s Office took a proactive approach to making sure people knew they might be eligible to receive remaining proceeds. The office carried out an extensive informational campaign designed to reach former property owners and interest holders who may be qualified to file a claim.
That outreach included targeted social media advertising, direct mail communication, billboards, TV and Radio ads, and multilingual materials aimed at making the process easier to understand. The goal was to remove barriers, spread awareness, and ensure that eligible former property owners and interest holders, many of whom are Wayne County residents, had a real opportunity to apply.
“This is money that belongs to the people,” said Wayne County Treasurer Eric R. Sabree. “When someone is legally entitled to proceeds from the sale of tax foreclosed property, we believe it’s our responsibility to inform people that those dollars are available and can be returned to them.”
“People can’t apply for something if they don’t know it exists,” Sabree said. “We wanted to make sure former property owners had clear information and a fair chance to claim what’s rightfully theirs.”
While many payments have already been issued, some claims are still working their way through the legal process. Under Michigan law, each claim must go through multiple steps and receive approval from the Circuit Court before payment can be released.
For claimants who have filed motions, the Circuit Court is committed to timely reviewing these claims and making final decisions. As court rulings are finalized, additional payments will be issued.
Even as these payments move forward, the Treasurer’s Office stresses that its top priority is preventing foreclosure in the first place. Through payment plans, tax assistance programs, and community partnerships, the office works year-round to help residents stay in their homes.
When foreclosure does occur, the Wayne County Treasurer’s Office remains committed to protecting the rights of property owners, including their right to any surplus funds from tax foreclosure sales.
More information about the remaining proceeds claims process—as well as property tax assistance programs to assist owners with avoiding foreclosure in the first place—is available at WayneCountyMI.gov/Treasurer.
