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Wayne County failed to tell foreclosed homeowners about federal lawsuit, judge rules
By Jenny Sherman at WDIV ClickOnDetroit (NBC) - Local News
· July 12, 2026
· 2 min read
Wayne County failed to notify tens of thousands of homeowners of its involvement in a pending federal class action lawsuit alleging “gross governmental abuse” in the county’s foreclosure process, a federal judge ruled last week.The lawsuit, filed in the U.S. District Court for the Eastern Distric...
Key takeaway That’s not a gift; it’s their money,” said Jason Thompson, interim co-class counsel in the case.
Why this matters in The Detroit
The federal judge's ruling has significant implications for Detroit residents who have been affected by the county's foreclosure process. Tens of thousands of homeowners who signed waivers may now be eligible to join the class action lawsuit and potentially recover surplus proceeds from foreclosure sales. This development could bring financial relief to many families who have already been hit hard by the loss of their homes. The county's failure to notify these homeowners of the pending lawsuit also raises questions about transparency and accountability in local government. As the county begins to contact affected homeowners, it will be important to monitor how effectively they inform residents of their rights and options. The outcome of this case could also influence future foreclosure practices in Wayne County, potentially leading to more equitable treatment of homeowners facing financial difficulties.
About this story
Original reporting by WDIV ClickOnDetroit (NBC) - Local News . The Detroit surfaces reporting from trusted publishers and adds local editorial context so readers can quickly understand what a story means for their community. We attribute every source, link to the original report, and follow a documented editorial standards policy. To understand how stories are selected and reviewed, read our about page .
For the complete original report, visit WDIV ClickOnDetroit (NBC) - Local News . Have a tip or correction? Contact our newsroom .
Category: local ·
Published: July 12, 2026 ·
Source: WDIV ClickOnDetroit (NBC) - Local News ·
Reading time: 2 min
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Frequently asked about this story
What is this story about? Wayne County failed to notify tens of thousands of homeowners of its involvement in a pending federal class action lawsuit alleging “gross governmental abuse” in the county’s foreclosure process, a federal judge ruled last week.The lawsuit, filed in the U.S. District Court for the Eastern Distric...
When was this published? This article was first published on July 12, 2026 by WDIV ClickOnDetroit (NBC) - Local News and curated for The Detroit readers.
Who reported this story? This story was reported by Jenny Sherman at WDIV ClickOnDetroit (NBC) - Local News. To learn more about how The Detroit selects and reviews stories, see our editorial standards .
Where can I find related coverage? See more local coverage from The Detroit, or browse our daily briefing and topic hubs .
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