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
Local reporting and county officials have estimated that thousands of sales could be affected. Roughly 5,600 parcels in Wayne County were flagged as potentially eligible, and the $3.8 million already distributed is only a slice of the total funds still under review. The Michigan Chronicle reported the eligibility estimate and detailed the county's efforts to track down people who may no longer live at the last addresses on file.
What to do next
Anyone who owned or held an interest in a Wayne County parcel that was foreclosed and sold before December 22, 2020, is urged to check their status through the county claims site or by calling the settlement hotline. The Wayne County foreclosure claims site and the hotline, 833-421-8123, provide forms and status updates. Completed notices were to be mailed or hand delivered to the Treasurer's Office at 400 Monroe, 5th Floor, Detroit, MI 48226, and motions are handled by the Third Judicial Circuit Court at the Coleman A. Young Municipal Center, 2 Woodward Ave.
Legal limits and resources
Legal analyses and court rulings make clear that recoveries are limited to the "remaining proceeds," the surplus left after unpaid taxes, interest, and fees are covered. They do not compensate former owners for broader losses such as lost equity. The Michigan Bar's eJournal and the court opinions also emphasize that the statutory process is the only way to claim those proceeds, and that documentation and meeting deadlines are crucial.
Housing advocates say that even with those limits, the checks matter. For some families, a returned surplus makes the difference on rent or medical bills. For others, it is a symbolic, if partial, correction to a system that pulled wealth out of Black Detroit homeowners at a disproportionate rate. For status updates, documents, and help with filings, residents can use the county claims site or call 833-421-8123 for assistance.
