A wave of litigation in Michigan has focused on what happens when a county forecloses on a home for unpaid property taxes and then sells it for more than the tax debt. Historically, some counties kept the entire sale amount—even when it exceeded what the owner owed in taxes, interest, penalties, and fees—meaning former homeowners could lose not only the property but also any remaining equity (“surplus proceeds”). The Michigan Counties 2026 Foreclosure Settlement (with a reported total value up to $90 million) addresses foreclosures conducted by certain Michigan counties between 2013 and 2020, and it requires eligible people to submit proof and file by March 3, 2026 to seek a payment that varies based on their circumstances. The lawsuit was filed because plaintiffs argue it is unlawful for the government to retain surplus value beyond the tax debt, effectively converting private equity into public revenue without compensation. Its significance is that it seeks to reimburse affected former owners (and, in some cases, others with a legal interest in the property) and to reinforce the principle that a tax-collection process can’t be used as a windfall mechanism. These claims gained momentum after major court rulings—including the U.S. Supreme Court’s decision in *Tyler v. Hennepin County* (2023) recognizing that keeping surplus equity can violate constitutional protections—and have spurred similar challenges and settlements in other jurisdictions, increasing pressure on governments to return excess proceeds, revise foreclosure practices, and improve notice and claims procedures under state tax-foreclosure frameworks and constitutional limits like the Takings Clause and Excessive Fines principles