In re Petition of Alger, Iron County Treasurers for Foreclosure
Fighting home equity theft in Michigan’s unlawful claims process
The Michigan and United States Constitutions demand that government pay the owner for property it takes, at a minimum, by selling the property and returning any surplus to former owners. No matter what claim processes lawmakers put on the books, once a government takes property, the government must pay for it.
In re Petition of Manistee County Treasurer for Foreclosure
Fighting home equity theft in Michigan’s unlawful claims process
Chelsea is asking the Michigan Supreme Court to finish what it started in Rafaeli and confirm her right to just compensation without complicated claims procedures and unreasonably tight deadlines.
Matthew Schafer, et al. v. Kent County, MI
Holding Michigan counties accountable to stop home equity theft
A court decision’s date doesn’t dictate the beginning or end of property rights. The Michigan Supreme Court in Rafaeli and the U.S. Supreme Court in Tyler v. Hennepin County both recognized that property interests at stake in government tax foreclosures are deeply rooted and pre-exist state law. Property cannot be taken without just compensation, no matter when the taking happens. Represented by PLF at no charge, Matt and other Kent County property owners are urging Michigan’s high court to finish what it started in Rafaeli and confirm their constitutional right to just compensation, regardless of when the government unlawfully takes private property.
DiPietro v. Town of Bolton, Massachusetts
Struggling alpaca farmer fights government-sanctioned home equity theft
Alan DiPietro has been raising alpacas and selling their fleece since 2008 in Bolton, Massachusetts, a small, pleasant town in the state’s Nashoba Valley Region. By 2014, Alan’s alpacas needed more land, so he bought 34 acres that spanned Bolton and the adjacent Town of Stow. The property was undeveloped, so the 50-year-old former engineer mowed some existing fields and installed natural fencing and other small structures necessary to run an alpaca farm.
Fair v. Continental Resources
Nebraska widower fights government-sanctioned home equity theft
The outside world came to a screeching halt for Kevin Fair in 2013. His wife, Terry, was diagnosed with multiple sclerosis and Kevin had to quit his job so he could care for her at their Scottsbluff, Nebraska, home where they’d lived for nearly two decades—the home was a wedding gift from Kevin’s mother.
Foss v. City of New Bedford, et al.
State’s tax takings law enriches private company with senior citizen’s home and life savings
Life has not been easy for Deborah Foss in recent years. The 66-year-old grandmother lives in Massachusetts on a small, fixed income from Social Security. She suffers from several medical conditions, including chronic lymphocytic leukemia, COPD, and neuropathy. Despite these struggles, Deborah cared for her ailing mother for the last 10 years of her life. Deborah hoped her 2015 purchase of a home would help put her hardships behind her. After her mother died, she used money from the sale of her mother’s house in Quincy, Massachusetts, and her life savings to buy a $168,500, two-unit home in New Bedford.
Hall v. Meisner
Michigan families fight to close state’s home equity theft loophole
When Tawanda and Prentiss Hall fell behind on their property taxes, they did what many financially strapped homeowners do: set up a payment plan with the local government. They didn’t want to lose the Southfield, Michigan home where they lived with their children. The Oakland County treasurer ended the plan, however, with the tax debt standing at $22,642, and foreclosed on their home. The Halls were shocked to learn that the foreclosure took from them not only the value of debt but every penny of equity they had built up in the house. Instead of selling the house at public auction, paying off the debt, and returning the surplus (minus interest and penalties) to the homeowners, the county used the Halls’ money to enrich a private company, Southfield Neighborhood Revitalization Initiative, LLC, managed by City of Southfield officials.
Johnson v. City of East Orange
New Jersey family fights government-sanctioned property theft
In 2014, Lynette Johnson bought commercial property in East Orange, New Jersey, for her son and daughter to run their businesses. Unfortunately, Lynette never received notice of her tax assessments, the eventual tax lien, and foreclosure. By the time her tax lien was foreclosed in 2018, she owed close to $20,000. The city sold the property to a private investor for $101,000 a few months later and kept all proceeds. According to data collected by Pacific Legal Foundation, homeowners in New Jersey have lost more than $140 million in this type of equity theft from 2014 to 2020. Lynette is fighting back with a lawsuit against government-sanctioned theft of the equity in her property.
Tyler v. Hennepin County
Victory! Supreme Court declares home equity theft unconstitutional
On May 25, 2023, the Supreme Court announced a unanimous decision in favor of Geraldine, ruling that home equity theft violates the Takings Clase of the Fifth Amendment. The Court explained that property rights are fundamental and cannot be erased by a state statute that redefines them out of existence. “The taxpayer must render unto Caesar what is Caesar’s,” Chief Justice John Roberts wrote in the decision, “but no more.”