Alicia Fernnadze moved into her childhood home in 2013, after her parents moved to a different place across town and offered her the home.
She found it hard to keep up with Detroit's property taxes, and, in 2017, she lost her home because of $3,000 in unpaid property taxes, Koby Levin reports for Outlier Media
As a result, her then-3-year-old daughter had to change her care arrangement, Fernnadze had to go live with family members, put down the family dog because it couldn't move with them and she lost her family home, Outlier reports.
In the past decade, many homeowners in Detroit and Wayne County have had a similar experience.
The city and county inflated property tax assessments, leading to bigger tax bills, which ultimately forced thousands out of their homes.
The foreclosed homes were then auctioned, which resulted in a profit for the county because it was able to sell the houses for more than the taxes owed.
That's unconstitutional
Now, as a result of a 2020 Michigan Supreme Court ruling, Wayne County is under orders to reimburse former homeowners for some of what they lost. Behind some of the efforts to reach people who are owed is Detroit's Outlier Media.
Levin said the organization is mainly focusing on properties they think were owner occupied.
"If you think about just the homes where we think someone was living there, we're talking about $20 million that folks stand to collect," Levin said.
According to Levin, the people they are contacting, on average, are owed $8,000 by the county.
Contacting those affected
So far, the county has mailed postcards and started a more formal effort to tell people who may have been affected, like billboards in recent days advertising assistance.
"But, you know, the website that they launched was registered on February 24, like we're just seeing those billboards now," Levin said. "The deadline is just a couple of weeks away, so the county has not been around for most of this process."
With the deadline approaching, volunteers at Outlier Media are calling people and offering their assistance.
"Detroiters, especially folks who were touched by the foreclosure crisis, often have a sense that something deeply wrong took place, like they feel like there was an injustice in their lives," Levin said. "So, they're actually not that surprised to learn that they're owed money about this."
The recovery process
As for the payouts, Levin said they would probably be insufficient to recover the properties lost, citing Fernnadze's case. Her childhood home is now worth $66,800. That's more than eight times the money the county owes her.
"Ultimately, we're still talking about a tremendous loss of wealth in the city," Levin said. "We're talking about the city being tilted towards a city of renters instead of a city of owners."
While Levin hopes that some of the people owed money may be able to use it to reclaim the properties lost, many are still dealing with the shame and pain of losing a family property and the difficulty in getting it back.
"The foreclosure crisis was a huge blow for Detroiters, and that recovery process is really only just starting," Levin said.
What to do if you were affected
If you are one of the many impacted, first fill out the Notice of Intention to Claim Interest in Foreclosure Sale Proceeds From Sales Occurring Prior to December 22, 2020 form. This will have to be notarized and submitted to the Wayne County Treasurer's office in person or through mail by March 31.
According to Levin, the form is not complicated to fill out, and Outlier Media has resources to help.
Successful applicants should receive a response from the Treasurer's office on July 1, after which they should file a certified motion. There is a $20 filing fee and court and the court and case number should be on the response from the treasurer.
Then, proof of motion is filed with the court and a hearing date is set. No more than 21 days after the court orders the payment, the claimant should receive the amount. If the property has liens attached to it, the payment could go to the lien holder.
For more information and help, look at Outlier Media's reporting on this issue.
Hear the full conversation with Koby Levin on the Stateside podcast.
[Get Stateside on your phone: subscribe on Apple Podcasts, Spotify, YouTube, or YouTube Music today.]
