Oakland County foreclosure profits $940K class action settlement

Oakland County in Michigan has reached a class action lawsuit settlement after allegations it used the foreclosure process to make profits, a process that the Michigan Supreme Court recently ruled unconstitutional. 

The class, led by plaintiff Dover Glen Condominium Association, is labeled “The Lienholder Class.” It consists of any person or entity “identified in liens recorded with the Oakland County Register of Deeds on or before the date of foreclosure where the property was subsequently sold at a tax auction for more than the amount of tax, interest, penalties and other fees then due from 2016 to June 30, 2022.” 

The Dover Glen settlement explains to class members that their “liens would still be active and not discharged as a result of the foreclosure and subsequent sale. This settlement resolves any claim that Oakland County unlawfully extinguished the liens.”

A lawsuit — which began as ​​Rafaeli, et al. v. Oakland County — was filed in June 2015 against Oakland County, Michigan, alleging the county foreclosed on properties in order to satisfy outstanding unpaid property taxes. The county then allegedly sold the property for more than was due and kept the surplus. The case reached the Michigan Supreme Court, which ruled such a profitable operation by the county government was in violation of the state’s constitution. The ruling stated any surplus proceeds from a public auction of foreclosed property must go to the former owner.

The Dover Glen case, according to court documents, “mirrors the holding” in the Rafaeli Supreme Court case “but applies it to lienholders, such as Plaintiff condominium associations.”

Oakland County denies violating the law and is paying the foreclosure profits settlement to avoid the expense and risk of further litigation.

The county has set aside $940,000 into a fund to settle the class action lawsuit with lienholders who were shortchanged in foreclosure cases.

Of the settlement fund, $622,000 will be distributed to class members. The rest will go to attorney’ fees and administrative costs.

Each class member’s payment will be a proportionate share of the $622,000, based on the amount of their remaining underlying lien on the property.

Deadlines for class members to object or exclude from the settlement have passed.

A final approval hearing was held Nov. 22, 2022.

The claim deadline for the Oakland County foreclosure class action lawsuit settlement is Jan. 19, 2023.

Who’s Eligible

Any person or entity “identified in liens recorded with the Oakland County Register of Deeds on or before the date of foreclosure where the property was subsequently sold at a tax auction for more than the amount of tax, interest, penalties and other fees then due from 2016 to June 30, 2022

Potential Award

Varies

Proof of Purchase

Supporting documentation may include proof of payment records such as receipts and invoices.

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

01/19/2023

Case Name

Dover Glen Condominium Association, et al. v. Oakland County, Case No. 2:22-cv-11468, in the U.S. District Court Eastern District of Michigan Southern Division

Final Hearing

11/22/2022

Settlement Website

OaklandColienHolderSettlement.com

Claims Administrator

Dover Glen Condominium Association v. County of Oakland
c/o Settlement Administrator
P.O. Box 26170
Santa Ana, California 92799
info@OaklandCoLienholderSettlement.com
866-221-3101

Class Counsel

Jason J Thompson
Kathryn E Milz
SOMMERS SCHWARTZ PC

Defense Counsel

William H Horton
John R Fleming
GIARMARCO MULLINS & HORTON PC