Author Topic: The Supreme Court Takes Up ‘Home-Equity Theft’  (Read 224 times)

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Offline Elderberry

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The Supreme Court Takes Up ‘Home-Equity Theft’
« on: April 22, 2023, 12:47:17 am »
WSJ By Christina Martin 4/21/2023

Officials sold Geraldine Tyler’s condo to settle a tax debt—then pocketed an extra $25,000.

Geraldine Tyler never thought she’d end up in front of the U.S. Supreme Court—especially at 94. But she also never imagined the government would seize her Minneapolis home and sell it. Ms. Tyler is a victim of what’s often called home-equity theft, but this form of robbery isn’t criminal; in fact, it’s legal in a dozen states. The Supreme Court, which hears oral arguments Wednesday in Tyler v. Hennepin County, has the opportunity to end these predatory tax foreclosures once and for all.

Ms. Tyler’s trouble began when she moved into a senior residence in 2010 and fell behind on her property taxes. She ended up owing Hennepin County roughly $2,300. After tacking on penalties, interest and related costs, her debt ballooned to $15,000. To collect what it was owed, Hennepin County seized and later sold the one-bedroom condo for $40,000. You might think the county would settle the $15,000 debt and return the $25,000 balance to Ms. Tyler. But the county took all $40,000 and left her with nothing to show from her only significant asset.

Ms. Tyler fought back, and the justices will soon decide whether the government violated the Constitution by confiscating the total value of her former home.

More: https://www.wsj.com/articles/the-supreme-court-takes-up-home-equity-theft-tyler-fair-debt-property-private-investors-pacific-legal-fbec50cf?mod=djemalertNEWS