US Counties Still Stealing Homes Despite Supreme Court Ruling

US counties still stealing homes despite Supreme Court ruling

Despite a Supreme Court ruling, counties continue to seize homes for tax debts, revealing a troubling persistence of home equity theft in America.

At a Glance

  • U.S. Supreme Court declared home equity theft unconstitutional in Tyler v. Hennepin County.
  • Some counties still seize homes, selling them without just compensation for minor tax debts.
  • The Michigan Supreme Court’s decision mandated compensation for victims like Matt Schafer.
  • The Pacific Legal Foundation continues legal battles to enforce homeowners’ rights.

The Supreme Court’s Landmark Decision

The U.S. Supreme Court’s decision in Tyler v. Hennepin County affirmed the unconstitutionality of home equity theft, highlighting the protection of property rights under the Takings Clause. This decision underscores that states cannot override these rights through statutes. Nonetheless, the specificity with which the Court did not address just compensation calculations has left lower courts to interpret these guidelines.

The ruling requires states to ensure homeowners can recover surplus equity post-foreclosure, though some regions reportedly resist compliance. Legal loopholes remain in use to continue home seizures, often with excess proceeds retained by the local authorities.

Persistent Cases of Home Equity Theft

Cases like Tawanda Hall’s $308,000 home seizure for a $22,000 tax debt and Uri Rafaeli’s home loss over an $8.41 underpayment illustrate the ongoing misconduct. These instances display the gravitas of unconstitutional practices where counties seize property and sell it, pocketing excess profits. Prosecutors argue that the notification complexity fosters misunderstandings, leaving homeowners defenseless.

“They didn’t want our money,” Hall said, “They wanted the house. … They stole our home.”

Another alarming case involves Deborah Foss, who lost her home over a $9,626 tax debt while the authorities obtained $242,000 in proceeds. Intent on curbing such illegal seizures, advocacy groups strive for consistent enforcement of the Supreme Court’s decisions.

The Ongoing Legal Battles

The forced sales reveal financial ties to local initiatives, such as the Southfield Neighborhood Revitalization Initiative, where officials reportedly benefit from selling foreclosed properties. The legal pressure by groups like the Pacific Legal Foundation highlights the ongoing fight to ensure home equity theft’s unconstitutional status is uniformly recognized and acted upon.

These continual abuses prompt a call for reform and accountability within county sale processes, urging lawmakers to address and rectify legal inconsistencies undermining homeowners’ rights. Advocates stress the need to monitor state-level stalling techniques, ensuring Supreme Court decisions translate to genuine policy changes.

Sources:

  1. Government must repay victims of home equity theft, Michigan Supreme Court rules
  2. US counties still stealing homes despite Supreme Court ruling
  3. Politicians steal homes, despite Supreme Court ruling
  4. Supreme Court Ruling Will Protect Coloradans from “Home Equity Theft”
  5. Supreme Court Stops Equity Theft in Property Tax Foreclosures
  6. Ending Home Equity Theft
  7. Supreme Court Strengthens Federal Protections for Property Rights
  8. The Supreme Court Strikes Down Home Equity Theft
  9. Supreme Court rules for homeowner in ‘equity theft’ dispute

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