Former owners of Michigan property that one of 28 counties foreclosed for unpaid taxes between 2013 and 2020, and sold at auction for more than was owed, may qualify to claim generally 125% of their surplus proceeds, minus court-awarded attorneys’ fees, from the Fox and Arkona tax foreclosure surplus settlements. Claims are due November 23, 2026, and the final approval hearing is set for January 22, 2027.
Current Status
Claims are open through November 23, 2026. The court extended the original July 16, 2026 claim deadline to that date in an order entered August 25, 2026. The court preliminarily approved the Fox settlement on August 21, 2025, and the final approval hearing is scheduled for January 22, 2027 at 3:00 p.m. in Bay City. No payments will be made until the court grants final approval and any appeals are resolved.Free settlement alerts
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What Is This Settlement About?
Until late 2020, Michigan’s General Property Tax Act let counties sell tax-foreclosed homes and land at auction and keep any money left over after the unpaid taxes, interest, penalties and fees were paid — what courts call “surplus proceeds.” Federal courts have since held that this part of the law could not stand. Two class actions in the U.S. District Court for the Eastern District of Michigan, Fox v. County of Saginaw, No. 1:19-cv-11887, and Arkona v. County of Cheboygan, No. 1:19-cv-12372, alleged that the counties violated former owners’ rights by keeping that surplus.The counties deny wrongdoing, in part because the state statute in effect at the time did not authorize them to return the surplus. Both sides agreed to settle to avoid further litigation, and the court has not decided who is right. The settlement survived a later motion by plaintiffs to vacate the preliminary approval order, which the court denied in December 2025 while granting the counties’ motion to enforce the agreement.
Who Qualifies?
The class is all persons, and the estates of persons who are bankrupt or deceased, who owned property in fee simple in a participating county that, from January 1, 2013 through December 31, 2020, was foreclosed through a real property tax foreclosure and sold at tax auction for more than the minimum sale price, and to whom the county did not refund the surplus proceeds. Heirs of a deceased owner, and people authorized to act for an owner or an owner’s estate, can file.The settlement website lists 28 participating counties:
- Fox case (26 counties): Alcona, Alpena, Arenac, Bay, Clare, Crawford, Genesee, Gladwin, Gratiot, Huron, Isabella, Jackson, Lapeer, Lenawee, Macomb, Midland, Montmorency, Ogemaw, Oscoda, Otsego, Presque Isle, Roscommon, Saginaw, Sanilac, St. Clair and Tuscola.
- Arkona case (2 counties): Cheboygan and Monroe.
How Much Can You Get?
According to the court-approved notice, each class member who submits a valid claim will usually receive 125% of the surplus proceeds from the sale of their former property, less the attorneys’ fees and costs the court awards. Interim class counsel has asked the court for a fee of 20% of the amounts paid; its fee motion notes that 80% of 125% leaves most claimants with a net recovery of about 100% of their surplus. The court will decide the fee at the final approval hearing.The notice says a payment can be smaller, or nothing, in some situations:
- If someone else with an interest in the property sought the surplus through Michigan’s Public Act 256 process, the class member may receive nothing under the settlement, or a limited amount in some circumstances. The notice says it usually makes sense to file a settlement claim even if someone else has brought a Public Act 256 claim.
- If a county receives an unexpectedly large volume of claims, recoveries against that county may be reduced.
What Proof or Notice ID Is Required?
The claim form asks for the Unique ID printed on the class notice, the foreclosed property’s address, county, foreclosure year and tax or parcel identification number, and any previous names associated with the property. It also asks claimants to attach documents showing their interest in the property at the time of foreclosure, such as deeds, tax bills, mortgages or utility bills. Property held in a trust requires a certificate of trust; heirs must be a beneficiary or heir of the deceased owner; court-appointed representatives must identify the appointing court and case number; and people acting under a power of attorney must attach it. The claim is signed under penalty of perjury.The settlement website says that people who believe they are class members but do not have a Unique ID should contact the settlement administrator. The online claim portal blocks automated access, so OpenClassActions.com could not confirm whether it accepts claims without the Unique ID.
What Is the Deadline?
Claims must be submitted on or before November 23, 2026, under the court’s August 25, 2026 order. That order replaced the July 16, 2026 deadline printed on the original notice and claim form. The notice listed April 30, 2026 as the deadline to opt out of or object to the settlement.How Do You Take Action?
Claims can be filed through the online portal linked from the Submit a Claim Form page of the official Surplus Proceeds Settlement website, or by printing the claim form from that page and mailing it to the settlement administrator, RG/2 Claims Administration. The official website also posts the long-form notices for both cases, the settlement agreements and the court orders.What Happens Next?
Under the August 25, 2026 order, the motion for final class certification and final approval is due by December 7, 2026, and responses by December 28, 2026. The settlement fairness hearing is set for January 22, 2027 at 3:00 p.m. in Bay City, where the court will also consider the fee request. Payments go out only after final approval and the resolution of any appeals.Other Tax Foreclosure Surplus Settlements
Michigan is not the only state where counties kept the surplus from tax-foreclosure sales. OCA also covers the Oregon tax foreclosure surplus settlements in seven counties and the Minnesota tax forfeiture settlement.Sources and Verification
• Surplus Proceeds Settlement official website, including the class notices for both cases, the claim form and court documents• Fox v. County of Saginaw, No. 1:19-cv-11887 (E.D. Mich.) — Order Granting Stipulation Regarding Amended Deadlines and Postcard Notice, ECF No. 517 (August 25, 2026); Opinion and Order granting preliminary approval (August 21, 2025); Opinion and Order granting motion to enforce settlement agreement and denying motion to vacate, ECF No. 503 (December 23, 2025)
• Interim Counsel’s Motion for Award of Attorney Fees and Costs, Fox v. County of Saginaw, posted on the official settlement website
• Arkona v. County of Cheboygan, No. 1:19-cv-12372 (E.D. Mich.) — Order Granting Stipulation Regarding Amended Deadlines and Postcard Notice
Questions
Which Michigan counties are in the surplus proceeds settlement?
The settlement website lists 28 counties: Alcona, Alpena, Arenac, Bay, Clare, Cheboygan, Crawford, Genesee, Gladwin, Gratiot, Huron, Isabella, Jackson, Lapeer, Lenawee, Macomb, Midland, Monroe, Montmorency, Ogemaw, Oscoda, Otsego, Presque Isle, Roscommon, Saginaw, Sanilac, St. Clair and Tuscola. Cheboygan and Monroe are covered by the companion Arkona case; the other 26 are in the Fox case. Washtenaw County, a defendant in the Fox case, is not on the list.
How much does the Michigan surplus proceeds settlement pay?
According to the court-approved notice, each class member with a valid claim will usually receive 125% of the surplus proceeds from the sale of their former property, minus the attorneys’ fees and costs the court awards. Interim class counsel has asked for fees of 20% of the amounts paid, which its motion says would leave most claimants with about 100% of their surplus. Payments can be lower in some situations, including when someone else with an interest in the property pursued a Public Act 256 claim or when a county receives an unexpectedly large volume of claims.
What is the deadline to file a Michigan surplus proceeds claim?
Claims must be submitted on or before November 23, 2026, under an August 25, 2026 court order that extended the original July 16, 2026 deadline. The final approval hearing is set for January 22, 2027 at 3:00 p.m. in Bay City.
What do I need to file a Michigan surplus proceeds claim?
The claim form asks for the Unique ID printed on the class notice, the foreclosed property’s address, county, foreclosure year and parcel number, and asks claimants to attach documents showing their interest in the property at the time of foreclosure, such as deeds, tax bills, mortgages or utility bills. Heirs and representatives must provide additional documents. The settlement website says people who believe they are class members but do not have a Unique ID should contact the administrator.
When will Michigan surplus proceeds settlement payments be made?
Payments will be made only after the court grants final approval and any appeals are resolved. The final approval hearing is scheduled for January 22, 2027. The notice says the full process will take at least nine months from notice if there are no appeals.
