Michigan Court of Appeals Remands Tax Foreclosure Surplus Cases for Further Review

The Michigan Court of Appeals remanded cases involving claims for surplus proceeds from tax foreclosure sales for further proceedings. The court concluded that, following the Michigan Supreme Court’s decisions in Schafer and Hathon, claimants must first utilize the statutory process provided by MCL 211.78t to recover surplus proceeds before challenging the adequacy of that process. On remand, the circuit courts must determine whether plaintiffs complied with the statutory requirements by providing notice to the foreclosing governmental units of their intent to seek remaining proceeds, and whether plaintiffs received constitutionally adequate notice that triggered their obligation to use the statutory mechanism. ...