Michigan’s high court ruled their 2020 decision to return surplus auction funds to the owners of foreclosed homes applies from 2014 to today.
GRAND RAPIDS, Mich. — The state Supreme Court decided that surplus funds from auctioned foreclosed homes since 2014 must be returned to the homeowner if claimed, opening the floodgates on potential thousands of dollars’ worth in reimbursements.
The court is applying its 2020 decision retroactively—disallowing local government organizations from withholding surplus profits from the auction of foreclosed homes.
Before that decision, for example, if a homeowner owed $1,000 in taxes leading to the foreclosure of their home, local governments who auctioned the home for $20,000 were able to keep all $19,000 in surplus profit, leaving the homeowner with nothing.
Following the 2020 decision, claims made within two years of the foreclosure would have surplus funds reversed.
Now, foreclosures occurring before the 2020 ruling within the six-year statute of limitations are viable for claims as well if …