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Livingston County lets state handle foreclosed property sales, avoids lawsuit

While more than half of Michigan’s counties have been named in a class-action lawsuit over profits from the sale of tax foreclosed homes, Livingston County is not among them.

The lawsuit names treasurers from 44 of the state’s 83 counties, claiming those counties owe money on foreclosed homes that were sold prior to July of 2020. That’s when the Michigan Supreme Court ruled that the profit from tax sales retained by counties that served as an FGU, or Foreclosing Governmental Unit, were required to be returned to the property owners.

However, Livingston County Treasurer Jennifer Nash tells GIGO News that about half a dozen counties, including Livingston, elected for the State of Michigan to serve as the FGU.

“The Property Tax Foreclosure law provided a choice for counties by which each county could elect to have the State foreclose property under the act, or could elect to have their own County Treasurer foreclose properties in accordance with the act,” said Nash. “At this point in time, there are 6 or 7 counties, including Livingston, that have elected the state as the FGU.”

The lawsuit is filed in the U.S. District Court for the Western District of Michigan in Grand Rapids.

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