Michigan’s top court gives big victory to people trying to recoup cash from foreclosures

Associated Press

DETROIT (AP) — A Michigan Supreme Court ruling Monday could put thousands of dollars in the pockets of tens of thousands of people who lost their homes in foreclosure sales. For years, counties kept any profit from the sale of homes that were foreclosed on for failing to pay taxes, even if the leftover cash far exceeded the amount owed. Michigan’s top court said in 2020 that this is illegal and that governments can’t keep such profits. And now the court said the ruling applies retroactively. The Michigan Municipal League says local governments will have to cut services or raises taxes to comply.