T
he Michigan Supreme Court ruled
that Michigan counties can no longer
keep profits from foreclosure auc-
tions, according to the July 17 ruling.
The state Supreme Court’
s ruling is the
result of a lawsuit filed earli-
er this year against Oakland
County by 85-year-old
Southfield resident Uri Rafaeli.
Rafaeli accidentally underpaid
property taxes on a home
owned by his business by $8.41
in 2014, causing the county to
foreclose on the home. When the property
sold in an auction for $24,500, the county
kept the profits.
Because state law dictates that counties
should keep these profits, the matter now
goes on to the state legislature, which will
replace the current law with a new one.
Foreclosures in Michigan are managed
by county treasurers. In Oakland County,
that role belongs to Meisner. He is currently
running a primary campaign for Oakland
County Executive against David Coulter,
who currently holds the position. Coulter’
s
office said it was appointing a special com-
mittee to investigate Meisner’
s management
of property tax foreclosures.
Oakland County Board of Commissioners
Chairman David Woodward (D-Royal Oak)
and Republican Caucus Chairman Michael
Gingell (R-Lake Orion) put out a statement
against Meisner following the ruling last
Friday.
“The Oakland County Board of
Commissioners is gravely concerned that
County Treasurer Andy Meisner violated the
constitutional rights of an elderly homeown-
er, and other residents, as determined by the
unanimous Michigan Supreme Court today,
”
the statement reads. “This carelessness and
ineptitude will likely cost Oakland County
taxpayers more than $34 million. In light
of this ruling, the Board will have to eval-
uate what steps need to be taken to protect
taxpayers and ensure the treasurer does not
make this mistake again.
”
But Meisner said he’
s just been doing his
job. State law has dictated since 2002 that
counties should keep foreclosure profits, he
said, and treasurers currently have no discre-
tion under state law to prevent a foreclosure
for small unpaid property tax balances.
Meisner is currently drafting a bill with State
Rep. Robert Wittenberg that would give
treasurers the ability to pull a property from
foreclosure if it has a small balance.
“I’
ve been very proactive as a treasurer
to try to improve this law while at the same
time, as the county treasurer and somebody
that swore an oath to administer the law and
to be a fiduciary for the county, I’
m obligated
to take the county’
s position under the law,
”
Meisner told the Jewish News.
Furthermore, Meisner doesn’
t foresee this
ruling costing Oakland County much money,
let alone the $34 million mentioned in the
Board of Commissioners’
statement. He said
the money that’
s come into the county from
the sale of tax-foreclosed properties has gone
into a restricted account in the general fund.
About 90 percent of the money collected as
a result of this policy is still there, according
to Meisner.
“The short version is there’
s not a major
fiscal impact on the county,
” he said. “It’
s
money that’
s been largely set aside. And as
soon as we figure out the new law, I am mak-
ing job No. 1 getting that money back to the
previous owners in accordance with the law
that the legislature adopts.
”
Meisner, who has held the role of treasurer
since 2008, said he ran for the office because
of his family’
s own experience with financial
vulnerability in Oakland County during his
childhood.
“That’
s not only an element of my life’
s
experience but it certainly is an element of
my faith as a practicing Jew,
” he said.
He hasn’
t received any details on the Board
of Commissioners’
investigation into his
practices yet. In the meantime, he said he
plans to stay compassionate and flexible.
“I’
m looking forward to … a new law that
incorporates the lawsuit and the finding of
the Michigan Supreme Court and to do it in
a way that’
s fair to property owners, to the
local cities, villages and towns in the county
and the state,
” Meisner said.
Michigan Courts Rule
Against Oakland County
on Foreclosure Auctions
Jews in the D
PIXABAY
26 | JULY 30 • 2020
Andy
Meisner
Ruling stems from an $8.41 foreclosure
case involving Treasurer Andy Meisner.
MAYA GOLDMAN CONTRIBUTING WRITER