Wayne County Property Foreclosure Proceeds Settlement

If you owned or had an ownership interest in a property in Wayne County, Michigan, that was foreclosed and sold at auction before December 22, 2020, you may qualify to submit a claim for the remaining proceeds due to a class action settlement.

Wayne County has agreed to distribute remaining proceeds from foreclosure sales to settle claims related to the alleged retention of surplus funds from tax foreclosures.

This settlement follows decisions by the Michigan Supreme Court in the cases of Schafer v. Kent County and Hathon v. State of Michigan, which determined that property owners may be entitled to any surplus proceeds from foreclosure sales.

Who is eligible to claim a class action settlement payment?

Class members are individuals or entities who:

• Owned or had an ownership interest in a property in Wayne County, Michigan.
• Had their property foreclosed and sold at auction before December 22, 2020.
• Remaining proceeds exist from the sale after the total amount due to the government was paid.

How much is the foreclosure lawsuit payout?

Payment amount will be determined by the following:

• The sale proceeds amount from the foreclosure auction of the homeowner's property.
• The amount the homeowner owed the government in fees plus costs and expenses due to the foreclosure.
• This amount will be deducted from sale proceeds.

How to claim a foreclosure settlement payment

Class members must complete the Notice of Intent to Claim Interest in Foreclosure Sales Proceeds (Form 6156), by the deadline of March 31, 2025. The PDF claim form must be downloaded and printed. Completed forms must be notarized.

The completed and notarized form must be sent by certified mail, return receipt requested, or hand-delivered to the Wayne County Treasurer by the deadline of March 31, 2025.

Mailing Address: The Wayne County Treasurer, 400 Monroe, 5th Floor, Detroit, MI 48226

Is documentation required to submit a claim?

Yes, claimants must provide proof of their interest in the property at the time of foreclosure and claim forms must be notarized.

• Warranty Deed date and record details
• Quit Claim Deed date and record details
• Mortgage date, amount, and record details
• Property Lien date, amount, description, and record details

Important dates

• Deadline to File a Claim: March 31, 2025
• Deadline for Wayne County to provide claimant with a notice of foreclosed property details: July 1, 2025
• Claimant deadline to file circuit court motion: October 1, 2025

What happens next?

• Wayne County will provide each approved claimant with an official notice by July 1, 2025 that will contain foreclosed property details, which are necessary to file a motion with the circuit court.
• Claimants must file a motion with the circuit court by October 1, 2025, outlining the claimant's interest in some or all of the remaining proceeds from the foreclosed property.

When is the payout date?

The payout date for the settlement has not been specified at this time.

Why is there a foreclosure class action settlement?

The class action settlement addresses claims that Wayne County retained surplus funds from tax foreclosure sales, which should have been returned to the property owners. The Michigan Supreme Court rulings in Schafer v. Kent County and Hathon v. State of Michigan clarified that property owners are entitled to any remaining proceeds from such sales.

Sources

1] [Official Settlement Website