By: UCHC Staff
Published: March 18, 2025
If you lost your home due to tax foreclosure in Michigan, you may be entitled to surplus funds from the sale. A new law allows eligible former homeowners to claim a refund of excess proceeds from the tax foreclosure auction—but you must act fast. The deadline to file your claim is March 31, 2025.
What Are Surplus Funds?
When a home is foreclosed for unpaid property taxes, it is sold at auction by the county. If the home sells for more than the amount of taxes owed, that extra money—called surplus funds—may belong to the former homeowner.
A new Michigan law allows people whose homes were foreclosed due to unpaid property taxes in 2015 or later to claim this money back. If your home was lost to tax foreclosure and sold for more than your tax debt, you may be owed a significant refund.
Example:
Your home was foreclosed and sold at auction for $80,000
You only owed $10,000 in back taxes
The county keeps the $10,000 but the extra $70,000 belongs to you—if you file a claim
But if you don’t file, you may lose your right to the refund.
Who is Eligible for a Tax Foreclosure Refund?
To qualify for this tax foreclosure refund, ALLÂ of the following must be true:
Your home was foreclosed for unpaid property taxes
The foreclosure happened in 2015 or later
The home was sold at auction for more than you owed
You have not yet claimed your refund
If this applies to you, follow the steps below to claim your money before the deadline.
How to Claim Your Tax Foreclosure Refund
The process to claim your refund involves three key steps:
Submit Your Claim Form by March 31st
Download and complete Form 6156
Have it notarized
Submit it to the Wayne County Treasurer’s Office by mail or in person
Wait for Notification (By July 1, 2025)
The Wayne County Treasurer’s Office will inform you if there are funds available from the sale of your foreclosed property.
File a Court Motion by October 1st
If surplus funds exist, you must file a motion with the 3rd Circuit Court to formally claim your refund. A judge will review your case and determine if you are entitled to the funds.
Receive Your Check (Early 2026)
Once the court approves your claim, the Wayne County Treasurer’s Office will issue your payment within 21 days.
Need Help? UCHC assists former occupants for Free!
If you need help filing your claim, UCHC is offering free assistance
We’ll guide you through the claim process. We can answer your questions about Form 6156. Our team can connect you with legal support if needed.
Call the UCHC Tax Foreclosure Hotline: (313) 725-4560
Watch this step-by-step video guide to filling out Form 6156
Attend this Free Event to Claim Your Refund Faster
Join Outlier Media on Thursday, March 28, from 3:00 PM - 7:00 PM at Joseph Walker Williams Recreation Center for in-person assistance:
A Wayne County Treasurer’s Office representative will be available to accept forms
A notary will be on-site to notarize documents for free
Trained staff can help you fill out the form and answer questions
About United Community Housing Coalition (UCHC)
For over 50 years, UCHC has been helping Detroiters stay in their homes. We provide free legal aid, housing support, and tax foreclosure assistance to low-income residents.
Helping Detroiters Stay Housed. Always.
