Checks are showing up in mailboxes across Detroit as Wayne County starts sending back millions to people who lost their homes to tax foreclosure. County officials say the first round of payouts, more than $3.8 million, has already gone out to eligible former owners and interest holders after courts signed off on their claims. For many Detroiters, the money is a slice of restitution after years of hardline tax enforcement that wiped out family wealth built over generations.
According to the Wayne County Treasurer’s Office, the payments followed motions approved by the Wayne County Circuit Court and capped an outreach push to alert potential claimants. Treasurer Eric Sabree told the county site, “This is money that belongs to the people,” as staff worked to make the claims process easier to navigate.
How the law changed
The payouts trace back to Michigan Supreme Court rulings that said counties cannot keep surplus proceeds from tax foreclosure sales and clarified that some former owners are entitled to whatever money is left over. Those Michigan Supreme Court decisions, along with guidance from the Michigan Department of Treasury, created a formal notice and claims process that residents must use to recover “remaining proceeds.”
How Wayne County’s claims process worked
Wayne County set up a dedicated online portal and hired a settlement administrator to handle notices and filings. People seeking money had to submit a notarized Notice of Intent, then later file a motion in circuit court. The county’s claims site lays out the timeline: Form 6156 was due March 31, 2025, Motion Notices were to be mailed by July 1, 2025, and motions had to be filed by October 1, 2025. A settlement administrator handled the notice mailings. The Wayne County foreclosure claims site and a Kroll Settlement Administration release describe the outreach and step by step procedures.
Who is owed and how much…