Michigan Supreme Court takes case of foreclosure windfalls

DETROIT (AP) — A lawyer is warning that local governments in Michigan could face a financial calamity if forced to repay surplus cash from the sale of tax-foreclosed properties. The Michigan Supreme Court heard arguments Thursday over a law that allows treasurers to keep any surplus after overdue property taxes are paid from a property sale. Christina Martin, an attorney for two people in Oakland County, calls it "stealing." But John Bursch, arguing for Oakland County, says lawmakers can always change the law.