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Treasurer: $917,955 set aside for excess-proceeds claims; Isabella County case could affect liabilities
Summary
Sanilac County Treasurer Trudy told the board the county set aside $917,955 in 2020 to cover retroactive excess-proceeds claims from tax foreclosures, has paid about $130,003.77 so far, and is monitoring an Isabella County case headed to the state Supreme Court that could require returning larger amounts.
County Treasurer Trudy told the Sanilac County Board the office set aside a liability of $917,955 in 2020 to cover possible retroactive excess-proceeds claims tied to prior tax foreclosures.
"You can see on this spreadsheet, the $917,955," Trudy said while summarizing the accounting for retroactive claims. She said withdrawals paid to date total $130,003.77 and that most retroactive claims are straightforward when the original owner files a claim; a handful of cases are more complex (for example, estates where the personal representative is involved). Trudy said legal expenses and title-search fees are reflected in the accounting and that three additional withdrawals are expected as some hearings are postponed into January.
Trudy warned that an Isabella County claimant seeking fair-market value has appealed and the matter is headed to the Michigan Supreme Court; if that court requires different relief, it "would affect us all" and could force counties to revisit prior payouts. In the meantime, she said current-year claims coming from auctions are handled year to year and the contingency set aside in 2020 has helped avoid an immediate budget gap.
Board members thanked the treasurer for being proactive in setting funds aside in 2020. Trudy noted that some potential claimants decline to file because expected recoveries (for smaller parcels) are small once filing costs are considered.
