If you lost property to a tax foreclosure in Michigan and the county sold it for more than the taxes owed, this settlement could mean a significant cash payment for you—or your heirs.
Two class action settlements have been reached with 28 Michigan counties over claims they unlawfully kept surplus proceeds from tax-foreclosed property sales. Eligible former owners may be able to recover 125% of the surplus proceeds, minus certain fees.
To be paid, you must submit a claim by March 3, 2026.
Why This Lawsuit Exists?
When Michigan counties foreclose on property for unpaid taxes, they sell the property at auction. The lawsuits allege that instead of returning the extra money left over after taxes, fees, and costs, some counties kept those funds.
Former property owners sued, arguing this practice violated their rights. The counties deny wrongdoing but agreed to settle to avoid continued litigation and create a process for returning surplus proceeds.
Who Is Eligible?
You may qualify if all of the following apply:
You owned property in fee simple in one of the 28 listed Michigan counties
The county foreclosed on the property between January 1, 2013, and December 31, 2020
The property sold at auction for more than the unpaid taxes, fees, and costs
The county did not refund the surplus proceeds to you
Heirs and Other Eligible Claimants
You may also file a claim if you are:
An heir or successor of a former owner (with documentation)
A joint owner, estate, trust, or entity that held title at foreclosure
Eligible Michigan Counties
Alcona, Alpena, Arenac, Bay, Clare, Cheboygan, Crawford, Genesee, Gladwin, Gratiot, Huron, Isabella, Jackson, Lapeer, Lenawee, Macomb, Midland, Monroe, Montmorency, Ogemaw, Oscoda, Otsego, Presque Isle, Roscommon, Saginaw, Sanilac, St. Clair, and Tuscola.
How Much Can You Get?
Regular class members:
125% of the surplus proceeds from the sale of your property
(minus attorneys’ fees of up to 20% and approved costs)Limited class members:
If another claimant filed a competing surplus motion, you may receive
125% of the remaining surplus after the court awards the other claimant
Payments may be reduced proportionally if total claims in a county exceed that county’s maximum settlement liability.
Your Options
| Option | What It Means | Deadline |
|---|---|---|
| Submit a Claim | Receive a settlement payment | March 3, 2026 |
| Exclude Yourself | No payment, keep right to sue | December 19, 2025 |
| File a State Court Motion | Seek surplus in Michigan court instead | October 1, 2025 |
| Object to the Settlement | Tell the court your opinion | December 19, 2025 |
| Do Nothing | No payment; bound by settlement | — |
How to File a Claim?
To get paid, you must submit a claim form by March 3, 2026.
Ways to file:
Online claim form, or
Mail a completed PDF claim form
Mailing Address:
Surplus Proceeds Settlement Administrator
c/o RG/2 Claims Administration
P.O. Box 59479
Philadelphia, PA 19102-9479
What Documentation Is Required
You must provide proof showing your ownership interest at the time of foreclosure, such as:
Deeds
Tax bills or mortgages
Utility bills
Trust certificates
Probate or heirship documents (for heirs)
Payments will be issued by check, and may be issued jointly or to an estate where applicable.
If a Michigan county foreclosed on your property and kept money it shouldn’t have, this settlement gives you a chance to recover more than the surplus that was taken. Claims require documentation, but the potential payout can be substantial.
Missing the deadline means giving up your right to recover through this settlement.
