Michigan Supreme Court says counties can't profit from tax foreclosures

[alp227]

Source: Detroit Free Press

LANSING — In an opinion with significant ramifications for Wayne County and all of Michigan, the Michigan Supreme Court ruled Friday that local governments can’t keep the profits from property sales resulting from tax foreclosures, but must return the excess proceeds to the former owners.

State law allowing county treasurers to keep money left over after overdue taxes are paid from the proceeds of a property sale is unconstitutional, the court ruled.

The court overturned an earlier ruling by the Michigan Court of Appeals.

During arguments last fall, John Bursch, an attorney for Oakland County, said more than $2 billion could be at stake if the court declared the law unconstitutional.

Read more: https://www.freep.com/story/news/local/michigan/2020/07/17/michigan-supreme-court-tax-foreclosures-profit/5459650002/

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Full decision: Rafaeli, LLC v. Oakland County

[yaesu]

1. They have been getting away with this extortion for decades. nt

[bucolic_frolic]

2. Foreclosure is sort of like bankruptcy, so yeah

remaining equity returns to those who own it or owned it, after creditors are paid. Never should have been anything else.

[roamer65]

3. That's a great ruling for MI.

[Sherman A1]

4. K&R

[BadGimp]

5. How big of a crime ring is this?

What do we think is the size of this crime nationwide if only 1 county in Michigan stands to lose $2 billion?

Oakland County Michigan: population 1.258 million (2019)

- a simple calculation suggests that they are talking about $1,590 per resident - what am I missing?

https://www.google.com/search?sxsrf=ALeKk03rXjS7Pi7lWT6irFh47wcZCDYcFQ%3A1595051256915&ei=-IwSX7K5N4zY-gTI0J_QAw&q=population+of+Oakland+County%3F&oq=population+of+Oakland+County%3F&gs_lcp=CgZwc3ktYWIQAzIECCMQJzICCAAyBAgAEEMyAggAMgIIADIGCAAQFhAeMgYIABAWEB4yBggAEBYQHjIGCAAQFhAeUGBY_ghgnSJoAHAAeACAAYsCiAGEBJIBAzItMpgBAKABAaoBB2d3cy13aXo&sclient=psy-ab&ved=0ahUKEwiylcT8jNbqAhUMrJ4KHUjoBzoQ4dUDCAw&uact=5