Michigan Tax Surplus Funds Kept by Counties - OVERTURNED

[Chris Seveney]

Had a member of my facebook group (Cody Cox) and an attorney from Wood and Lamping send me this. For those that did not know, in Michigan if there was a tax sale the surplus was kept by the County. So for example, if $5,000 was owed on taxes, you had first lien with a balance of $50k, and the property sold at tax sale for $30,000 - in most other states you would get the $25k (assuming no other superior liens) on your first position note. In Michigan, this was not the case, as the county would keep all that $. 

Well the state got sued and finally lost. This is critical for note investors as there are occasions where you are better off letting a property go to tax sale and collect the overage. Well now thankfully in Michigan you can.

https://www.freep.com/story/news/local/michigan/2020/07/17/michigan-supreme-court-tax-foreclosures-profit/5459650002/?fbclid=IwAR3znlEhdlpn6Wd2a0twISdfNBZN9VNvbdgzbJ3hnJbUxX86s1gWi6fXID0