bukerhill richland home

Deborah Calley purchased this home on Bunkerhill Drive in Richland for $164,000 in 2011. Now, she is fighting to keep it from being sold at a Kalamazoo County tax foreclosure office after she let a $2,000 property tax bill go unpaid for three years. Calley claimed she was never notified she wasn't up to date on her taxes and didn't realize her home was entering the foreclosure process until the deadline to pay her back taxes had passed on March 31, 2014.

(Alex Mitchell | Kalamazoo Gazette)

RICHLAND, MI — When Richland resident Deborah Calley purchased a $168,000 home in 2011 with cash, she was relieved to finally have a place where she could spend the rest of her life, her attorney said.

But now, Calley is fighting to keep that home from being sold at a Kalamazoo County tax auction after one missed property tax bill in 2011 put her home in home in foreclosure.

Kalamazoo County officials, however, said they attempted to notify Calley seven times throughout the course of a year about her home entering the foreclosure process and that she didn't reach out to Treasurer Mary Balkema's office until it was too late to pay her roughly $2,000 property tax bill owed to the village of Richland.

Balkema said that while she'll do everything in her power to work with people who reach out to her to avoid foreclosure, she won't bend the law once deadlines to pay back taxes have passed.

"I'm not on a witch hunt," Balkema said concerning the county's tax foreclosure process. "That tax sale list would be two to three times larger if I just foreclosed on people and didn't offer help. But I can never tell what someone's personal situation is or what struggles they may be going through unless they tell me."

Balkema said property taxes from 2011 and earlier were due to be paid by March 31, 2013. Properties with remaining unpaid taxes at this date enter the beginning stages of the foreclosure process. In June 2013, Balkema filed a petition identifying all of the parcels that are subject to foreclosure for the nonpayment of 2011 and earlier taxes, including Calley's home on Bunkerhill Drive.

Court documents show Kalamazoo County, through its collection agency Title Check, LLC, first sent notification of foreclosure to Calley's home in July of 2013. The agency sent its final notice on March 6, 2014, which warned Calley she would lose her home if the fees remained unpaid as of March 31.

Between these notices, Balkema and her deputy treasurer Greg Vlietstra personally delivered a notice of foreclosure to Calley's home on Aug. 26, 2013, court records show. Calley's attorney said she didn't personally receive this notice, but both Balkema and Vlietstra maintain they made contact with a person who identified themselves as an occupant of the home. Both said they verbally informed the occupant of foreclosure and delivered a notice.

Kalamazoo County Corporate Counsel Thom Canny said Calley did not contact Balkema's office until this April, at which time it was too late to pay the bill. Calley, however, denied she received any notice of the foreclosure.

There was also a show-cause hearing held in January and an evidentiary hearing in February in Kalamazoo County Circuit Court at which Calley had the opportunity to dispute her foreclosure. She did not attend either, but maintains again that she was not notified.

Another notification disputed by Calley is the county's claim that Title Check sent a certified letter to her on Dec. 12, 2013 that said her property was going into foreclosure and reminded her of upcoming hearings and the payment deadline. The certified mail was returned to Title Check as unclaimed, something Balkema said is not uncommon, but fulfills the county's legal obligation.

"A lot of folks do not go to the post office to get certified mail because it's not usually good news," the treasurer said, adding that notice of foreclosure was also posted for three consecutive weeks in the Kalamazoo Gazette prior to March. "When I send out certified notices of foreclosure my requirements are fulfilled by law."

Canny said after hearing from Calley in April, Kalamazoo County officials did not have contact with her again until Aug. 15, at which time she filed a motion to set aside the circuit court foreclosure judgment just three days before her home was set to be sold at the county's annual tax auction for delinquent parcels.

Calley's motion, filed by Kalamazoo attorney Gary Tibble as part of a "limited appearance" on her behalf, states the she was still recovering from injuries suffered in a 2008 auto accident that resulted in "critical injuries and disfigurement and four years of rehabilitation," which created many hardships for Calley and led her to require assistance during her recovery.

The motion further states Calley had to be assisted when purchasing her home in 2011. Tibble said Calley was told her 2011 prorated property taxes would be included in her closing costs and would be transmitted to the village treasurer by her closing agent.

Circuit Court Judge Curtis J. Bell initially ordered Calley's home be removed from the tax sale until a ruling could be reached on her motion to dismiss judgment, but her home was quickly reentered in the auction list after the county appealed that ruling. Bell allowed the home to be listed in the auction, but only under the stipulation that the winning bidder could not close on the home until Calley's motion was resolved.

Canny said the high bidder purchased the home for "$80,000 to $90,000," but the transaction was later canceled at the buyer's request after the person learned of the ongoing dispute.

Balkema said she sympathizes with Calley's situation, but said she is not the only county resident who has lost her home this year due to unpaid taxes.

"I know at the end of the day it's awful to lose your house, it's absolutely horrible, it's usually people's biggest asset," Balkema said.

When asked if the county could legally end the foreclosure process and accept payment of Calley's back taxes, Canny replied, "I don't believe so."

Calley's current lawyer, Ven Johnson, who has offices in Detroit and Grand Rapids, only began representing her earlier this week after first hearing her story. He said it's his position that the county "absolutely" could allow Calley to pay her back taxes and accompanying late fees if it wanted to.

"This is a civil lawsuit. In a civil lawsuit if both sides agree to something fair under law, the judge will almost always go with outcome," Johnson said Wednesday. "If the county sat down and said, 'Pay us everything we're owed right now,' Deb will pay it immediately and it will be her house again."

But Johnson said he doubts the county would agree to let Calley pay her bill.

"The county is actually making money," Johnson said. "They're making money on foreclosure sale and they want that money to try to help the county close the debt that has occurred with other houses and other debts across county. It's absolutely wrong."

Canny said that while it's true that any profits from the tax auction go towards the county's operating expenses, that doesn't cause officials to aggressively look to seize taxpayers' homes.

Last year, Kalamazoo County garnered total revenue of $921,550 by selling 64 of 139 delinquent parcels on which $863,159 in back taxes were owed. The result was a net $58,391 profit.

Calley represented herself at a hearing on Sept. 8 in front of Kalamazoo County Circuit Court Judge Gary C. Giguere, but she is now working with Johnson to prepare final briefs. Both sides must present briefs in writing by 5 p.m. Friday, Sept. 19.

Reached by phone Thursday, Calley said she was busy working on court briefs to meet Friday's deadline and would try to provide comment by email, but had not done so as of late Thursday.

Giguere has said he will make his ruling on the motion by Oct. 11, according to Canny.

"You hear about this and think this is not equitable and this is not fair," Johnson said. "People can't even believe this is happening in America."

Alex Mitchell covers county government and taxes for the Kalamazoo Gazette. Email him at amitche5@mlive.com or follow him on Twitter.