43 Michigan counties have agreed to pay millions of dollars to former property owners who lost their homes to tax foreclosure between 2013 and 2020.

This is a huge win for homeowners who were forced out of their homes due to financial hardship. The settlement will provide relief to hundreds of people who were struggling to make ends meet.

How did this happen?

In 2014, the law firm Lewis Reed & Allen filed a lawsuit on behalf of Wayside Church, a small congregation on Chicago’s south side. Wayside Church had lost its camp in Van Buren County to foreclosure in 2013, even though the property was worth more than the amount owed in back taxes. The camp was sold for $200,000, with proceeds going back to the county for a tax debt of less than $17,000.  The church argued that the county had violated the U.S. Constitution’s takings clause by taking the property without just compensation.

This led to a class-action suit for the practice which was eventually settled, and the counties have agreed to return 80% of the surplus from the sale of tax foreclosed properties to former property owners or their heirs. The total amount of the settlement is still being calculated, but it is expected to be in the tens of millions of dollars.

What does this mean for you?

If you lost your home to foreclosure in Michigan between 2013 and 2020, you may be entitled to a payment from the settlement. To find out if you qualify, you can file a claim online at www.taxforeclosuresettlement.com.

Claims must be filed by August 7, 2023. To file a claim, you will need to provide your name, address, and the property address that was foreclosed on. You will also need to provide proof of ownership of the property, such as a deed or tax bill.

If you have any questions about the settlement or how to file a claim, you can contact the settlement administrator at 1-888-555-1212.

This is a great opportunity for closure for homeowners who were unfairly treated by this practice. We encourage you to share this article with someone you know who was affected or to file a claim if you believe you are entitled to a payment.

 

More info at www.taxforeclosuresettlement.com