County treasurers use a variety of methods and numerous community resources to help people pay their taxes and prevent tax foreclosure. The Michigan Supreme Court recently ruled, however, that people who have property foreclosed for unpaid taxes have a common law right to any remaining proceeds from the sale of the property, after all the taxes, interest, penalties, fees, and costs have been paid. This decision is called Rafaeli after the person who began the case.
New legislation passed in December 2020 to amend state law to comply fully and fairly with the Michigan Supreme Court Rafaeli decision. The Michigan Association of County Treasurers supports the new laws.
Public Acts 253, 255 and 256 change current tax law to create a pathway to recouping the proceeds from a tax sale of their foreclosed property.