Wayne County may owe you money from a tax foreclosure sale, officials say

Former homeowners who lost property through tax foreclosure in Wayne County may be owed money — and many don't know it.

Following Michigan Supreme Court rulings, people whose tax-foreclosed properties sold for more than what they owed in back taxes may be entitled to surplus proceeds, which is the money left over after taxes and fees are collected.

"If it sells for more than the taxes and that 5% commission that the treasurer is allowed, they will be able to receive those funds," Wayne County Treasurer Eric Sabree explained.

Wayne County has already paid out millions of dollars tied to older foreclosures, but questions remain about how many former homeowners may still be unaware they could qualify.

Donovan McCarty of the Michigan State University Housing Justice Clinic said the issue is widespread, particularly for foreclosures tied to the 2015 to 2020 period.

"Incredibly common. These are people who haven't even thought about this house, maybe, for 10 years," McCarty said.

McCarty added that many people still don't know the money exists.

"There are absolutely people who are unaware that they are still impacted by this," he said.

Legal advocates say the foreclosure crisis affected thousands of families across Detroit and Wayne County over the years.

For people currently going through foreclosure, Sabree said there is a limited window to act.

"They have to fill out these forms, get them notarized, send them in on time, and then wait to see what happens in the auction. Otherwise, you're just leaving money on the table. It doesn't make sense," Sabree said.

CBS News Detroit has filed a Freedom of Information Act request with Wayne County seeking data on how many claims have been filed, approved, and remain pending, as well as where impacted homeowners may be concentrated.

County officials say anyone who believes they may qualify should visit the Wayne County Treasurer's website to review eligibility and claim information.