Oakland County, Michigan, foreclosure taxes $38M class action settlement

Oakland County, Michigan, agreed to a $38 million settlement to resolve claims it violated the law through home foreclosure and by retaining excess taxes.

The settlement benefits individuals who formerly owned property in Oakland County, Michigan; who had their property foreclosed due to unpaid taxes; whose property was sold at tax auction for more than the amount necessary to cover unpaid taxes, interest, penalties and fees; and who did not receive a refund for surplus auction amounts between June 8, 2009, and July 17, 2020.

Oakland County is a Michigan county near Detroit. According to a class action lawsuit, the county repeatedly denied refunds to consumers who foreclosed properties resulting in excess auction sales.

Plaintiffs in the case argue they were owed refunds when their foreclosed properties were sold at auction for a sum higher than the delinquent balance owed for taxes, interest, penalties and fees. Instead of refunding customers for the excess sale balance, Oakland County allegedly pocketed this excess cash.

According to the foreclosure class action lawsuit, these actions violated the law. The plaintiffs sought a refund for the unpaid auction sale excess.

Oakland County hasn’t admitted any wrongdoing but agreed to a $38 million class action settlement to resolve these allegations.

Under the terms of the Oakland County, Michigan, foreclosure taxes settlement, class members can be reimbursed for the surplus produced from the tax foreclosure and sale of their former property. Class members can receive up to 100% of the excess tax retained by Oakland County. 

However, if enough class members file claims with the settlement, payments may be decreased on a pro rata basis so that each class member receives a proportional share of the net settlement fund based on how much they are owed.

Settlement payments may have tax consequences. Class members will be issued a 1099-S form for all valid claims and 1099-INT forms if these claims include interest payments. Class members may wish to consult with a tax professional about the consequences of settlement payments.

The deadline for exclusion and objection was Oct. 17, 2022. 

The final approval hearing for the Oakland County, Michigan, foreclosure taxes settlement is scheduled for Nov. 22, 2022.

In order to receive settlement benefits, class members must submit a valid claim form by Dec. 15, 2022.

Who’s Eligible

Individuals who formerly owned property in Oakland County, Michigan; who had their property foreclosed due to unpaid taxes; whose property was sold at tax auction for more than the amount necessary to cover unpaid taxes, interest, penalties and fees; and who did not receive a refund for surplus auction amounts between June 8, 2009, and July 17, 2020.

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

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

12/15/2022

Case Name

Final Hearing

11/22/2022

Settlement Website

OaklandCoSettlement.com

Claims Administrator

Bowles v. County of Oakland
c/o Settlement Administrator
PO Box 25188
Santa Ana, CA 92799
[email protected]

Class Counsel

Aaron Cox
THE LAW OFFICES OF AARON D COX

Defense Counsel

John Fleming
GIARMARCO, MULLINS & HORTON PC