Right to claim remaining proceeds after a tax foreclosure sale — file by July 1
MCL 211.78t(2)
In plain words
After Rafaeli v. Oakland County (2020), Michigan lets former owners claim the money left over when the county sells a tax-foreclosed property. You must send the county the state’s claim form (Form 5743) by the July 1 right after the foreclosure takes effect. Later, the county files a court motion and you can ask the court to award you the remaining proceeds.
Who is protected
Former owners of Michigan property foreclosed for taxes and sold.
When it applies
- Only in Michigan.
- Only after the foreclosure sale.
- Only if you are behind on property taxes.
What you can do
Get property-tax help
Get Form 5743 (Notice of Intention to Claim Interest) from the county treasurer or Michigan Treasury and send it by a trackable method.
Deadline: By July 1 after the foreclosure takes effect
Open the toolPut the deadline on your calendar
Missing this date can cost you the claim, so mark it now.
Deadline: July 1 after the foreclosure takes effect
Open the tool
Honest limits
- You get the sale proceeds left after taxes, fees and costs — not the home’s full market value (Pung v. Isabella County, 2026).
- The county may keep a fee from the proceeds.
- This is general education, not legal advice. Laws change and details depend on your papers and your court; check the current law or ask a lawyer or legal aid.
The law
- State lawClaim for remaining proceeds
MCL 211.78t(2)
Exact part: (2)
What it says: A claimant must notify the foreclosing governmental unit on the Treasury form by the July 1 after the foreclosure takes effect.
Read the official texthttps://law.justia.com/codes/michigan/chapter-211/statute-act-206-of-1893/division-206-1893-redemption-and-annulment/section-211-78t/
Court cases
- Homeowner wonCited for this rightRafaeli, LLC v. Oakland County
Rafaeli, LLC v. Oakland County, 505 Mich. 429 (2020)
a county that keeps tax-sale proceeds beyond the tax debt takes property without just compensation
- Homeowner wonCited for this rightHall v. Meisner
Hall v. Meisner, 51 F.4th 185 (6th Cir. 2022)
a homeowner's equity in property taken for a smaller tax debt is protected property, and taking it without compensation states a federal takings claim
- Homeowner wonCited for this rightTyler v. Hennepin County
Tyler v. Hennepin County, 598 U.S. 631 (2023)
a government that sells a home for unpaid taxes and keeps the value beyond the tax debt takes property without just compensation
- Homeowner lostCited for this rightPung v. Isabella County
Pung v. Isabella County, No. 25-95, slip op. (U.S. June 23, 2026)
after a fairly conducted tax sale, the government owes the former owner the surplus from the sale price, not the property's fair market value
- Homeowner wonSame topicJones v. Flowers
Jones v. Flowers, 547 U.S. 220 (2006)
when mailed notice of a tax sale is returned undelivered, the government must take additional reasonable steps to notify the owner before selling the property
- Homeowner wonSame topicMennonite Board of Missions v. Adams
Mennonite Bd. of Missions v. Adams, 462 U.S. 791 (1983)
a person with a recorded interest in property is entitled to notice by mail or equally reliable means before a tax sale, and publication or posting alone is not enough
- Homeowner lostSame topicMartins v. BAC Home Loans Servicing, L.P.
Martins v. BAC Home Loans Servicing, L.P., 722 F.3d 249 (5th Cir. 2013)
a mortgage servicer acting for a properly assigned mortgagee may foreclose in Texas without possessing the original note, and an oral promise to modify a large loan is not enforceable
- Homeowner lostSame topicMilton v. U.S. Bank National Ass'n
Milton v. U.S. Bank Nat'l Ass'n, 508 F. App'x 326 (5th Cir. 2013) (per curiam) (unpublished)
an agreement to delay a Texas foreclosure falls within the statute of frauds and must be in writing to be enforced
- Homeowner lostSame topicBFP v. Resolution Trust Corp.
BFP v. Resol. Tr. Corp., 511 U.S. 531 (1994)
the price received at a non-collusive foreclosure sale that complied with state law is reasonably equivalent value under the Bankruptcy Code
Related rights
Right to redeem tax-forfeited property until March 31 after the foreclosure judgment
MCL 211.78g
In Michigan, unpaid property taxes lead to forfeiture to the county treasurer and then a court foreclosure. You can still redeem by paying what is owed until March 31 after the foreclosure judgment (or within 21 days of the judgment in a contested case). Eligible owners can also ask the treasurer about a payment plan that stops the foreclosure.
Read this rightThe government cannot keep your home equity beyond the tax debt
U.S. Const. amend. VTakings Clause
If your home is taken or sold to pay property taxes, the government may collect what you owe, but it may not keep the extra value. Keeping the surplus is a "taking" of your property without just compensation, which the Fifth Amendment forbids (Tyler v. Hennepin County, 2023). You may be able to claim the surplus, but you usually must follow your state's claim process and deadlines.
Read this rightThe right to real notice before the government takes or sells your home
U.S. Const. amend. XIV, § 1Due Process Clause
Before a state or county sells your property — for example at a tax sale, or through a court foreclosure — the Constitution requires notice that is reasonably likely to actually reach you. If the government knows your address, publishing a notice in the newspaper is not enough. If a mailed notice comes back unclaimed, the government must take extra reasonable steps to reach you, if it practicably can.
Read this rightAfter a discharge, creditors cannot collect the wiped-out debt from you
11 U.S.C. § 524(a)(2)
A bankruptcy discharge wipes out your personal liability for most debts in the case. After that, the law forbids creditors from suing, calling or otherwise trying to collect a discharged debt from you personally. A court can hold a creditor in contempt if there was no fair doubt that its conduct was barred.
Read this rightRenters get at least 90 days' notice after a foreclosure
12 U.S.C. § 5220 note(Pub. L. 111-22, div. A, § 702(a)–(b))
If you rent a home that goes through foreclosure, the new owner must give you a notice to move at least 90 days before you have to leave. If you have a real (bona fide) lease signed before the foreclosure notice, you can usually stay until the lease ends. The exception is when the new owner will live in the home; even then you still get the 90 days' notice.
Read this rightFair handling of your escrow account
12 C.F.R. § 1024.17(c)(1)
If your servicer collects money for taxes and insurance (escrow), it must pay those bills on time as long as you are not more than 30 days behind. It must review the account every year and send you a statement. It cannot keep more than a small cushion (one-sixth of a year's payments), and it must refund a surplus of $50 or more within 30 days of the review. When you pay off the loan, it must return what is left within 20 business days.
Read this right