When a homeowner doesn’t pay their property taxes, the government can seize and sell the property.
At issue in the Michigan cases: instead of keeping only what is owed (taxes, interest, and fees) and returning the leftover money to the homeowner, counties are keeping the entire amount.
“You have to file your claim for your money weeks before there is any money and weeks before your property’s even been sold, often before people even realize what's happened. And if you miss that deadline, the government takes a windfall at your expense.”
Christina Martin is the Senior Attorney at Pacific Legal Foundation, petitioning for a hearing before the U.S. Supreme Court.
It previously ruled that the government can’t take more than what’s owned when collecting tax debt.
Martin argues that Michigan courts ruled that counties need only offer a process for homeowners to claim the surplus equity.
“It doesn't matter that it's failing more than 95% of property owners and giving counties massive windfalls as if the Supreme Court decisions never happened. So, we're hoping the US Supreme Court will grant review and fix this unconstitutional situation in Michigan.”
The Pacific Legal Foundation has four Michigan home-equity-theft cases being considered, including one out of Bear Lake in Manistee County and one in Muskegon County.
The Supreme Court can take up to months to announce which cases it will take up.
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