ESCANABA, Mich. (WZMQ) – Delta County is securing legal counsel for two lawsuits.
The County Board of Commissioners met to discuss whether or not to seek legal counsel on Thursday. While board members did not discuss details of the suits, County Administrator Ashleigh Young told WZMQ 19 that they have to do with foreclosed homes, which can be auctioned off by the County.
In a written statement to WZMQ 19, Young said, “Delta County is responding to a complaint received regarding allegations that the County has wrongfully retained surplus funds from a tax foreclosure sale. The lawsuit specifically claims that the requirement for a claimant to file a notice to claim these surplus proceeds violates the Fourteenth Amendment of the U.S. Constitution.”
“It has been noted that the claimant in this lawsuit did not file the ‘Notice of Intention to Claim Interest in Foreclosure Sales Proceeds,’ designated as Form 5743,” Young continued. “This form is a requirement outlined in Michigan Compiled Law (MCL) 211.78t, which mandates that individuals or entities holding title to or an interest in a property at the time of its tax foreclosure must file this notice to assert their interest in any surplus funds resulting from a foreclosure sale.”
“Delta County is currently reviewing the allegations in the lawsuit in light of this state law and the claimant’s failure to file the required form,” Young stated. “The County will proceed accordingly through the legal process and remains committed to upholding all applicable laws and regulations pertaining to tax foreclosure proceedings.”
Because the matter is ongoing, Young says the County will not be making further comments on the details of the lawsuits but will provide appropriate updates to the public “as the legal process allows.”
The County Board voted to seek third-party counsel, as the County Prosecutor has too large of a caseload. Only Commissioner Kelli VanGinhoven opposed the decision, questioning why the department that received notice of the lawsuits could not verify if it had been served yet.
WZMQ 19 is looking into the situation further and will provide an update if new information comes to light.
