Surplus Funds in Michigan: Are You Owed Money After a Foreclosure?
- Hazel Karen Nicolas Gonzales
- Jul 30
- 3 min read
If you lost your home in a tax foreclosure in Michigan in recent years, you may be entitled to surplus funds—and the deadline to claim them could be fast approaching.
Thanks to recent legal changes and growing public awareness, more Michigan residents are discovering that they may be owed thousands of dollars in unclaimed proceeds after their homes were auctioned off by the county. Here’s what you need to know about surplus funds in Michigan and how Surplus Refund LLC can help you recover what’s rightfully yours.
💰 What Are Surplus Funds?
Surplus funds—also known as excess proceeds—are the remaining balance from a foreclosure sale after the county has collected the amount you owed in property taxes or mortgage debt.
For example, if your home was sold for $70,000, and you owed $10,000 in taxes, the remaining $60,000 may be returned to you.
📜 A New Era in Michigan Law: The Impact of Rafaeli v. Oakland County
In 2020, the Michigan Supreme Court made a landmark ruling in the case of Rafaeli, LLC v. Oakland County. The court declared that counties violated property owners’ constitutional rights when they kept the full sale amount of tax-foreclosed properties—rather than just the amount owed.
This ruling opened the door for thousands of former property owners across Michigan to file claims and recover surplus funds from past tax foreclosures.
📍 What’s Happening in Detroit?
According to WXYZ Detroit, the City of Detroit has been actively notifying eligible former property owners who may be owed money after their homes were sold in tax foreclosure sales. In some cases, individuals are entitled to tens of thousands of dollars.
But here’s the catch:There are deadlines. If you don’t act quickly, you could lose your right to claim the funds permanently.
As of July 2025, many Detroit-area claims from 2020–2022 foreclosures are approaching their final filing windows. If you lived in Wayne County, Oakland County, or nearby areas, it’s worth checking now.
⏳ Why Many People Miss Out
Even though the law is on their side, many Michiganders never claim their funds because:
They don’t know they’re owed anything
They’ve moved and didn’t receive county notices
The paperwork feels overwhelming
They think it’s too late to file
At Surplus Refund LLC, we’re changing that by helping everyday people understand their rights and take action before it’s too late.
🛠️ How Surplus Refund LLC Can Help
We specialize in helping Michigan residents recover tax foreclosure surplus funds. Here’s how we support you:
Free property and foreclosure check to see if you’re eligible
Handle all paperwork and filing, including working with county or court offices
No upfront fees—we only get paid if we recover money for you
Peace of mind from working with a trusted, experienced team
✅ Who Should Check for Surplus Funds?
You may be eligible to claim surplus funds in Michigan if:
You lost a home to tax foreclosure after 2015
You were the recorded property owner before the foreclosure sale
You are the heir of someone whose property was foreclosed
You didn’t receive a full refund of the sale proceeds
📞 Don’t Wait—Find Out If You’re Owed Money
The window to claim these funds won’t stay open forever. Michigan counties are processing claims—but deadlines apply, and once they pass, the money can be permanently lost.
If you’re unsure whether you or a family member qualifies, contact Surplus Refund LLC today. We’ll review your case, explain your options, and help you move forward with confidence.
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