Supreme Court sides with Michigan county in a tax foreclosure case
The justices said owners get surplus auction proceeds, but sent the case back to review whether the county’s foreclosure sale was fairly conducted.
- On Tuesday, the Supreme Court ruled against the Pung family, rejecting their bid for fair-market compensation after a tax foreclosure and holding that homeowners are entitled only to surplus proceeds, not total market value.
- Isabella County seized the family's ranch-style home to satisfy a $2,242 tax debt, selling it for $76,008; the buyer later flipped the property for $195,000, prompting the Pungs to argue the forfeiture was unconstitutional.
- Writing for the Court, Justice Samuel Alito stated the fair-market-value theory would impose "unprecedented burdens" on local governments, rejecting arguments that the forfeiture violated the Eighth or Fifth Amendments.
- Regarding the foreclosure process, the Court sent the case back to lower courts to determine if the sale was fair, given the Pungs' argument that Michigan's system artificially depressed the sale price.
- Following a 2023 Supreme Court decision that counties cannot keep tax sale proceeds beyond the owner's debt, advocates like the AARP highlight that states such as Oregon, Maine, and Massachusetts already require properties to be marketed at fair value.
76 Articles
76 Articles
A Cook County couple asked for a property tax payment plan. They lost their home instead
A new court ruling and a new law could help protect homeowners at risk of Cook County's tax sale system, and homeowners could qualify for compensation if they lost their home to a tax sale after Dec. 15, 2020.
Supreme Court unanimously sides with Michigan county in tax foreclosure fight over $2,200 debt
The U.S. Supreme Court ruled 9-0 against a Michigan family that argued Isabella County committed a constitutional violation by seizing and selling their home over a roughly $2,200 tax bill, then keeping the difference between the auction price and the property’s full market value. The unanimous decision, authored by Justice Samuel Alito, held that local...
Supreme Court Backs Michigan Local Government in Property Case
In a unanimous decision, the Supreme Court ruled in favor of Isabella County, Michigan, affirming that local governments are not obligated to pay homeowners the full fair market value for seized properties. The post Supreme Court Backs Michigan Local Government in Property Case appeared first on News Addicts.
Supreme Court Issues Unanimous Ruling
The Supreme Court unanimously sided with Isabella County, Michigan, on Tuesday, rejecting a family’s claim that local governments must pay homeowners the full fair market value of property seized and sold in tax foreclosure cases. In a 9-0 ruling, the justices said the Constitution does not require local governments to compensate former owners based on a property’s hypothetical market value when a tax sale is fairly conducted. The case centered …
Coverage Details
Bias Distribution
- 47% of the sources are Center
![[your]NEWS](/_next/image?url=https%3A%2F%2Fgroundnews.b-cdn.net%2Finterests%2Ffb6dc495f74049f513563c33352175eaa0ecd509.jpg%3Fwidth%3D60&w=128&q=75)
Factuality
To view factuality data please Upgrade to Premium
