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SCOTUS will not hear bundle of four Michigan "home equity theft" cases

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The Supreme Court of the United States rejected four Michigan cases involving local governments keeping profits from selling property foreclosed for unpaid taxes

The legal challenge centers on how counties disperse profits from a home sold to cover unpaid property taxes.

The Supreme Court previously ruled the government cannot take more than what is owed.

Attorney Christina Martin of the Pacific Legal Foundation petitioned the United States Supreme Court to hear four Michigan cases in which county governments seized and sold property for unpaid taxes but retained the entire sale price - including the equity - above and beyond taxes, interest and fees owed instead of returning the surplus proceeds to the property owner.

Martin argues Michigan courts fail the homeowner in these cases.

She alleges that overly complex rules and short windows for appeal effectively strip homeowners of their profits before they can research their rights or consult with attorneys, effectively providing a loophole for counties to pocket home equity.

Monday, the Supreme Court released its Order List, showing the four cases were denied.

However, the Court will hear oral arguments in a similar case from Isabella County next month.

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