Wayne County · Research guide
Claiming surplus proceeds after a Wayne County tax foreclosure (the Rafaeli process)
The MCL 211.78t claim path for former owners and interest holders: notarized Form 5743 to the Treasurer by July 1 after foreclosure, before the auction even happens, the Treasurer's Form 5744 answer by January 31, and a motion in the 3rd Circuit Court between February 1 and May 15, with remaining proceeds defined net of the minimum bid, expenses and the 5% commission.
By Tax Sale Intel research desk
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Where the right to surplus comes from
When a foreclosed Wayne County property sells for more than the delinquency it was sold to satisfy, the extra money is not simply the county's to keep. Michigan's Supreme Court recognized a former owner's right to those remaining proceeds in Rafaeli, LLC v Oakland County, and the Legislature codified that right in section 211.78t of the General Property Tax Act through 2020 Public Act 256. The Treasurer's office describes the eligible group as persons who held title or an equity interest in the property at the time of foreclosure, and the process applies beginning with the 2021 foreclosures. A claimant, in the statute's terms, is a person with a legal interest in the property immediately before the foreclosure judgment took effect who follows this section's procedure to claim a share of any remaining proceeds.
Sources: Michigan Compiled Laws § 211.78t: Notice of intent to claim interest; remaining proceeds; Wayne County Treasurer: Claims & Auctions
Step one: Form 5743 by July 1, before the auction
Step one is a notice of intent, on the Department of Treasury's Form 5743, and its deadline surprises people: it is due by the July 1 immediately following the foreclosure, months before the September and October auctions even happen. A claimant who waits to see the sale result before starting has usually already missed it. The notice must be notarized and delivered to the Treasurer's office by personal service or by certified mail, return receipt requested. It asks for the parcel identification number and address, an explanation of your interest in the property, a description of any other interests you know of, including liens and mortgages, and a sworn statement that the information is accurate. The Treasurer's current example makes the timing concrete: a property foreclosed in March 2026 had a claim deadline of July 1, 2026.
Sources: Michigan Compiled Laws § 211.78t: Notice of intent to claim interest; remaining proceeds; Wayne County Treasurer: Claims & Auctions
Step two: the Treasurer answers by January 31
Step two belongs to the Treasurer. Not later than the January 31 immediately following the sale, the county must send each person who filed a timely notice a Form 5744 by certified mail, return receipt requested. That form reports the figures that decide whether there is anything to claim: the amount the property sold for, the sale cost recovery, which the statute fixes at 5 percent of the sale amount, and the total remaining proceeds, or the shortfall if the minimum bid and the county's other foreclosure and sale fees exceeded what the sale brought in. The form also tells the claimant, in so many words, that the next step is theirs: a motion in the circuit court case where the foreclosure judgment was entered.
Sources: Michigan Compiled Laws § 211.78t: Notice of intent to claim interest; remaining proceeds; Wayne County Treasurer: Claims & Auctions
Step three: the motion, February 1 to May 15
Step three is that motion, filed in the same circuit court proceeding as the foreclosure; in Wayne County, that is the 3rd Circuit Court. The filing window opens on February 1 immediately following the sale and closes on May 15. The motion must state the specific basis for your claim, describe your interest in the property immediately before foreclosure, attach documentation evidencing that interest, be verified with a sworn statement of accuracy, and be served on the Treasurer's office. At the hearing, the court determines the relative priority and value of each claimant's interest, and the burden of proof is on the claimant. Once the court orders payment, the county must pay the ordered amounts within 21 days of the order.
Sources: Michigan Compiled Laws § 211.78t: Notice of intent to claim interest; remaining proceeds; Wayne County Treasurer: Claims & Auctions
What remaining proceeds actually means
Remaining proceeds has a precise statutory meaning, and it is narrower than sale price minus back taxes. It is the amount paid for the property minus three things: the minimum bid, all other fees and expenses the county incurred in the forfeiture, foreclosure, sale, maintenance, repair, and remediation of the property that were not already in the minimum bid, and a 5 percent sale commission payable to the county. Section 211.78t is the exclusive mechanism for claiming that money, and the right cannot be transferred except by inheritance. Other lawsuits over the foreclosure face their own limit: an owner of an extinguished interest may not sue more than two years after the judgment became effective. The Treasurer's Claims & Auctions page also points people facing foreclosure to free legal help through the State Bar of Michigan's Legal Referral Center. This guide explains the process; it is not legal advice about any individual claim.
Sources: Michigan Compiled Laws § 211.78t: Notice of intent to claim interest; remaining proceeds; Michigan Compiled Laws § 211.78l: Actions by owners of extinguished interests
Sources and review dates
Check dates show when the Tax Sale Intel research desk reviewed these sources. They do not establish live auction availability. Research methods and interpretation are Tax Sale Intel’s editorial guidance, not legal, tax, title, or investment advice.
- Michigan Compiled Laws § 211.78t: Notice of intent to claim interest; remaining proceeds
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- Michigan Compiled Laws § 211.78l: Actions by owners of extinguished interests
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- Wayne County Treasurer: Claims & Auctions
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