Appeals court rules federal courts can hear lawsuits in property tax foreclosure cases



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SAGINAW COUNTY, Mich. (WJRT) – A legal victory for people who have lost their homes in property tax foreclosures, as federal courts can now hear these types of cases.

It was in July when the Michigan Supreme Court ruled counties can’t keep the profits from property sales resulting from tax foreclosures.

The dust is still settling on how much money counties are going to have to pay back, and to whom.

It could be billions of dollars when you combine the totals from all 83 Michigan counties.

Attorney Phil Ellison says people who had their homes taken by the government in a property tax foreclosure had to file lawsuits in state courts. That changed yesterday.

“The ruling for a long time is that you could never go to federal court regarding takings claims,” Ellison says.

But the U.S. Sixth Circuit Court of

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