This story is part of Profits and Losses, a service journalism project informing Detroiters how to claim millions from Wayne County, which foreclosed on their homes — then auctioned the properties for a profit. It was originally published by Outlier Media.
In a move that has left many Detroit residents scrambling, Wayne County is facing pressure to return profits made from foreclosures. Despite the urgency, only a fraction of affected homeowners stand a chance to reclaim their funds in time. With just under two weeks remaining before the deadline, the county’s efforts are under scrutiny.
Thousands of Detroit homeowners are owed money after Wayne County profited from foreclosures deemed unconstitutional. However, only about 7% of those eligible have progressed towards reclaiming their funds. Treasurer Eric Sabree has stated, “this is your money,” yet many claim that the office has not provided sufficient support through the complex claims process.
The county has identified approximately 5,600 properties eligible for claims. However, fewer than 400 individuals have finalized the claims process, with the deadline looming on Oct. 1. One such individual, Lamont Bohannon, faced foreclosure in 2018 when his home was auctioned for $1,583 over the amount owed in taxes. Despite the challenges, Bohannon completed his claim, expressing frustration with the process: “It’s almost like they’re purposefully making it difficult to get people to just throw their hands up and walk away.”
Former Detroit homeowners have a collective claim to approximately $5.9 million from tax auctions held between 2015 and 2020. If the claims remain incomplete by the deadline, Wayne County retains the funds.
‘No help at all’
Sandra Burnett, whose home was seized in 2015 and sold for $3,600 more than the unpaid taxes, is one of many struggling with the claims process. Living on a fixed income and in poor health, Burnett discovered she was owed money only after being contacted by Outlier Media. The notice from the treasurer’s office never reached her.
Burnett’s efforts to reclaim her funds involved visiting a notary and delivering forms downtown, only to be met with further hurdles. Wayne County hired Kroll, a financial and risk advisory firm, to manage outreach, but their approach has been criticized. Certified letters, intended to inform claimants of their owed amounts, often failed to reach them, requiring a signature for delivery.
Donovan McCarty, director of the Housing Justice Clinic at Michigan State University, stated, “Claimants have been offered little or no meaningful guidance or assistance from the very government entities that illegally withheld their money in the first place.”
Despite efforts from Outlier Media and community groups to assist former homeowners, many like Burnett find the process daunting. She remarked, “They’re hoping that somebody will forget about it, and that’s just not right.”
Others share similar grievances, including Shawntone Davis, who struggled to reclaim funds after her home was sold for $2,400 over the taxes owed. Her experience has left her with a critical view of the process: “The Wayne County treasurer is no help at all.”
Wayne County Treasury spokesperson Adam Abusalah mentioned efforts to clarify the process via their website, but acknowledged the office cannot provide legal advice. Many claimants have struggled with finding the necessary information, often unavailable or hard to access.
A contractor falls short
Wayne County engaged Kroll under a $388,400 contract in February, just before the initial deadline to submit a claim form. Kroll’s outreach included billboards, but fewer than 2,900 claims were initiated, far below the expected 5,600.
State law mandated Wayne County to notify claimants by July 1 of their dues, which left many confused due to insufficient guidance. Certified mail, used for these notifications, often went undelivered, further complicating the process for claimants like Alicia Fernnadze. Despite her efforts, Fernnadze struggled to get the necessary information from both the Treasurer’s Office and Kroll, highlighting ongoing communication issues.
The Wayne County Treasurer’s Office has not commented on Kroll’s contract performance, and Kroll has not responded to requests for comment.
This article first appeared on Outlier Media and is republished here under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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