Deadline Nears for Detroiters to Reclaim Surplus from Foreclosed Homes: Thousands Eligible for Compensation After Landmark Ruling

Some stories hit deeper because they carry the weight of silence that’s lasted far too long. That silence—wrapped in years of systemic extraction and generational loss—is what thousands of Black homeowners in Wayne County have carried after losing their properties to tax foreclosure. Not just their homes, but the equity, the dignity, and the wealth that was built brick by brick, often across generations.

Now, there’s a window open. Not wide. But open. And it closes March 31, 2025.

Former property owners in Wayne County whose homes were foreclosed and sold at public auctions before December 22, 2020, have a chance to claim what should have never been taken without fair compensation. These residents can now file to reclaim the leftover profit made from the sale of their property—the money that remained after the county covered the taxes and fees owed.

This is not an act of generosity. It is a legal mandate.

The Michigan Supreme Court decided in 2020 that counties cannot keep excess funds from tax-foreclosed properties. That ruling was further clarified last year. The court made it plain—the decision is retroactive. Meaning, if your home was sold before 2020, and the sale brought in more than what you owed, you are entitled to claim that surplus.

Adam Abusalah, communications director for the Wayne County Treasurer’s Office, confirmed that approximately 5,600 properties may be eligible for these claims. That’s not just a number—it’s a trail of lost opportunities, stripped legacies, and for some families, a destabilizing rupture that reverberated far beyond bricks and mortar.

This is not theoretical. Two cases out of Oakland County laid bare the economic harm. One resident owed $285 in taxes. The property was sold at auction for $24,500. Another owed $6,000. The sale brought in $82,000. Those aren’t just discrepancies—they are financial extractions that violated both principle and property rights. These lawsuits helped shape the legal ground for the retroactive ruling that Michigan now stands on.

To start the process, former owners must complete a notice of intention form from the Michigan Department of Treasury. This form signals that they plan to make a formal claim. It does not secure the proceeds on its own—it simply starts the process. The form must be notarized and either mailed via certified mail or delivered in person to the Wayne County Treasurer’s Office at 400 Monroe St., Detroit, MI 48226.

Let’s be clear—this process is layered, but it is not impossible. Once the intention form is submitted, the Wayne County Treasurer’s Office will send out notices by July 1. Those notices will inform applicants whether surplus proceeds exist, whether others have also filed claims, and where to file the required motion in circuit court. That motion must be filed by October 1, and a hearing before a judge is required before any funds are released.

That step is where many people may pause. The legal system has rarely been user-friendly, especially for Black Detroiters who’ve been burdened by housing instability, legal inequities, and a historic lack of access to quality representation. But this process is built on public accountability, and nonprofit groups are stepping in to help residents navigate it.

Outlier Media, known for its community-grounded journalism, is one of those partners. They’re helping Detroiters figure out whether they’re owed money from past tax foreclosures. Their efforts include a text-based service—text REPAY to 67485—to reach residents directly and offer real-time support. More information is available at outliermedia.org/txt-outlier/repay/.

Residents can also turn to Michigan Legal Help, a nonprofit partially funded by the Michigan Supreme Court, which outlines the legal process in plain terms. Details can be found at bit.ly/MichiganLegalHelpSurplus. And for those looking to see if their old property is on the list of eligible sales, the Wayne County Treasurer has created a searchable database at bit.ly/WayneCountyAuctionSales. This includes addresses, sale years, and final amounts.

For properties foreclosed after December 22, 2020, the process differs slightly. Those property owners must still complete and notarize the form, but it must be submitted by July 1 in the year of the foreclosure. That deadline is strict.

The question many are asking is where the money will come from. Abusalah clarified that funds to pay out these claims come from unclaimed proceeds from foreclosure sales and interest charges on delinquencies. For the past five years, portions of these would-be surplus funds—originally directed to the general operating fund—have been reserved to pay claimants.

This approach recognizes that the money never belonged to the government. It belonged to the people who lost their homes. Detroiters know what that means—because they’ve felt it. The auction process was supposed to settle debts, not harvest profits off of pain.

Eric Sabree, Wayne County Treasurer, released a video to explain this process directly. That message can be viewed at bit.ly/EricSabreeSurplusProceeds. It offers insight into the steps and the timeline involved, all in an effort to help more residents take action before the deadline closes for good.

The deadline—March 31, 2025—stands as more than a due date. It is a reminder. There has been loss, yes. But there is still time to reclaim part of what was taken.

This is about more than just recouping dollars. This is about economic justice. This is about confronting systems that have quietly profited off of the dispossession of Black residents, often without so much as a notification that there was any money left over.

And let’s not act like this is new.

Detroiters remember what it felt like when foreclosures swept across neighborhoods. Residents watched homes sold for fractions of their worth, while communities were gutted, sometimes block by block. Families were left without homes, but counties walked away with profit. That disparity did not happen by accident. It happened because safeguards weren’t designed with the community in mind.

Now, with this court ruling, Michigan has acknowledged that mistake. But acknowledgment alone doesn’t deliver equity—action does.

That’s why community engagement matters. That’s why this process must be more than legal paperwork. It must be accessible. Transparent. Restorative. And culturally informed.

Wayne County residents who believe they may qualify should not wait. The steps are clear:

  1. Fill out the Notice of Intention form: bit.ly/NoticeofIntentionForm

  2. Get it notarized

  3. Submit it to the Wayne County Treasurer’s Office via certified mail or drop it off in person

From there, the next steps will come through an official notice by July 1. That includes court information and filing requirements.

This process won’t erase the harm. It won’t restore every lost home or every ounce of equity stripped from Detroit’s Black communities. But it is a path toward reclamation—a necessary one.

For more support, visit WayneCountyForeclosureClaims.com or call 833-421-8123. Additional help is available at bit.ly/MichiganTaxpayerResources and bit.ly/MichiganLawClaimsProcess.

This is a moment of restoration. For the families who were never told that their home brought in tens of thousands over what they owed. For the elders who lost their lifelong home over hundreds in debt. For the communities that were dismantled by a process that turned justice into arithmetic.

Now is the time to file. Now is the time to reclaim. Not just the funds—but the truth.

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