Surplus Proceeds Settlement

  United States District Court
for the Eastern District of Michigan

SUMMARY

If you had property foreclosed by the following counties from 2013 through 2020, you may be entitled to a settlement payment:

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.

  • When these counties foreclosed on properties for tax nonpayment, they sold the properties at auction and kept the difference between the taxes owed and the sales proceeds. The lawsuit being settled alleged that the counties violated the former property owners’ rights when they retained these “surplus proceeds.”
  • Generally, if you owned a property that was foreclosed on by one of the counties listed above from 2013 to 2020, and the property sold for more than the unpaid taxes, fees, and costs, you are a member of the class. Class members can make a claim for a payment under the settlement. The deadline for making a claim is March 3, 2026. Forms, instructions, and an online claims portal are available on this settlement website.
  • Under the proposed settlement, class members can generally recover 125 percent of their properties’ surplus proceeds, minus any attorneys’ fees and costs. This number is subject to certain potential adjustments.
  • You may read the full terms of the Settlement Agreement here.

Read the Notice carefully. Your legal rights are affected whether you act, or don’t act.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT
SUBMIT A CLAIM FORM BY MARCH 3, 2026 If you are a member of the Class or an heir to a Class Member, you must submit a completed Claim to be eligible to receive a Settlement Payment. You may do so online here.
EXCLUDE YOURSELF BY DECEMBER 19, 2025 You may request to be excluded from the Settlement, and if you do, you will not receive a Settlement Payment. The deadline to exclude yourself from the Settlement is December 19, 2025, with the possibility of an extension beyond that date as in the Notice. Excluding yourself from the Settlement is usually the only way to retain your right to sue Defendants on your own over the claims alleged in the lawsuit.
EXCLUDE YOURSELF BY FILING A SURPLUS PROCEEDS MOTION BY OCTOBER 1, 2025 If you are a member of the Class, then you also have the right to pursue a claim for surplus proceeds in the Michigan court case where the property you owned was foreclosed. You may do so by filing a surplus-proceeds motion by October 1, 2025, using the Michigan Supreme Court approved motion form CC 541. If you file a surplus-proceeds motion and do not withdraw it before October 31, 2025, you will not receive a Settlement Payment under this Settlement (but you may receive surplus proceeds in the Michigan state court case). For more information, see the discussion of Public Act 256 proceedings below.
OBJECT BY DECEMBER 19, 2025 You may write to the Court and comment on the Settlement. If you object, you are still eligible to file a claim for benefits under the Settlement. Instructions on how to object to the Settlement are contained in this Notice.
GO TO THE FAIRNESS HEARING The Court has scheduled a hearing to evaluate the fairness of the Settlement and Lead Counsel’s request for attorneys’ fees and reimbursement of costs to take place on May 20, 2026, at 2:00 p.m. (the “Fairness Hearing”). You may attend the hearing at your own expense, but it is not necessary. You may ask to speak in court about the fairness of the Settlement if you did not exclude yourself as detailed in the Notice.
DO NOTHING You will not receive a Settlement Payment if you fail to timely submit an Eligible Claim and you will give up your right to bring your own lawsuit about the claims in this case, but you will still be bound by all decisions the Court makes in this matter addressing these claims.

Your rights and options —and the deadlines to exercise them— are explained in detail in the Notice.