Berrien County treasurer reports 2023 tax-foreclosure auction results, outlines claimant process

Berrien County Treasurer Shelley White reported to the Board of Commissioners that the county’s 2023 tax-foreclosure process produced 110 parcels ordered for foreclosure, with 86 parcels ultimately taken to auction and governmental units acquiring several others.

White said she is required by statute to submit a written report to the board and to the state treasurer showing any remaining balance after sale costs and distribution of excess proceeds. "I am required by statute to report on the 2023 tax foreclosure year in auction," White said at the meeting.

Why it matters: The report details how foreclosure sales and subsequent excess-proceeds claims affect county accounting and former owners’ rights to claim surplus funds. White advised the board about claim deadlines and the long legal process that precedes foreclosure.

White described the disposition of the 110 parcels she referred to as the 2023 foreclosure group. She said 24 of those parcels were taken by governmental entities before auction—"4 going to Land Bank, 1 going to City of Niles, and the remainder the City of Benton Harbor took"—leaving 86 parcels that were sold at auction. White reported the sale amount for parcels handled in the auction was $1,538,352.66 and that the combined total paid for all properties (including those taken by municipalities) was $1,566,056.61, as she presented it to the board.

White said excess-proceeds claims for the year were paid out and reported an excess-proceeds payout figure and remaining net balance: "The excess proceeds claims for that year, we paid out 460,000 or $65.39 of that amount, leaving a net balance of $748,001.79 71," she said (figures as stated at the meeting). White also said the minimum-bid totals and the amounts actually paid were different because of added fees such as mowing.

Board members and others asked for procedural detail. One commissioner asked whether the county forecloses on very small tax debts (less than $100). White explained the timeline and notice procedures: foreclosure judgments are presented at a judicial hearing in February, property owners have until March 31 to redeem or enter payment plans, and the foreclosure process itself begins when a parcel is delinquent on March 1 and runs for about three years. "This is a the foreclosure process is a 3 year process. It starts as soon as they roll over delinquent to the county on March 1," White said.

White described the county’s outreach: owners receive certified and first-class letters to the owner and occupant and the county performs a 40-year title search to identify other parties with an interest (for example, banks or tax authorities) so they can be notified. She noted claimants for excess proceeds must file by July 1 for the 2023 foreclosure year, and that some pre-2020 cases remain in litigation. "They have until March 31 to either redeem, get on a payment plan," White said, and "we have to abide by that deadline of July 1 unless the Supreme Court Court of Appeals tells us different."

White described local outreach efforts and office hours in Niles and "South County" to help property owners understand options and how to file claims. Board members thanked White for the work and the outreach efforts.

Votes at a glance: The meeting also approved the minutes from the Aug. 28 meeting. Commissioner Tyler moved to approve the minutes; Commissioner Vollrath supported the motion. The chair called for the vote and members present answered "aye," and the minutes were approved.

What’s next: White said she will submit the written report required by statute and continue outreach and claim-handling for the 2023 foreclosure year. She also noted ongoing litigation over older cases originating in 2020 and earlier, which could affect some excess-proceeds distributions.

(Quotes and figures are reported verbatim from the county meeting transcript; dollar figures reflect the amounts as stated during the presentation.)