Lawsuit: Oakland, Wayne Counties Collected Millions of Dollars in Improper Foreclosures

Class-action lawsuits filed this month in Oakland and Wayne counties allege government entities reaped millions of dollars from thousands of improperly taken properties in tax delinquency foreclosures.

The complaints said Oakland County Treasurer Andy Meisner and Wayne County Treasurer Raymond Wojtowicz failed to provide the former owners of the properties with due process, equal protection and just compensation.

One of the property owners in the class, Andre Ohanessian, told The Detroit News that he didn’t know until his neighbor informed him that a 2.7-acre lot in Orchard Lake Village property had been sold for $6,000 for alleged failure to pay taxes from 2011 to 2013.

The lawsuits allege that in some cases, property was auctioned for tens of thousands of dollars below market value. In Ohanessian’s case, the county received $82,000 for the sale of the lot, located in an upscale subdivision with $1 million homes and wooded lots. The winning bidder now lists the lot for sale at $349,000.

Ohanessian, 67, a jewelry wholesaler, told the newspaper that Oakland County officials knew where to find him. He said he had provided the treasurer’s office with a new address he moved to California.

The complaints say property owners are denied the right to argue why their properties shouldn’t be taken. Instead, treasurers conduct nonjudicial “show cause hearings.”

“The way it is now is the treasurer acts as judge, jury and executioner,” Aaron D. Cox, co-counsel for the plaintiffs, said.

Spokesmen for both treasurer’s office declined comment on pending litigation, but said property owners are contacted multiple times during foreclosure proceedings and are given a chance to work out payment plans.

A spokesman for Meisner’s office said that from September 2014 to March 2015, face-to-face meetings were held with 3,800 individuals to develop payment plans. Since December 2012, $61 million in delinquent property taxes have been recovered in 6,571 payment plans.

In Wayne County, 22,000 payment plans have been accepted, but another 30,000 properties are scheduled for foreclosure auction, Deputy Treasurer David Szymanski said.

Oakland County has received $22.5 million in net proceeds from foreclosed properties since 2006 according to the report. Szymanski told the newspaper he was unable to determine how much money Wayne County received to support general fund operations.