Tax Foreclosure Auctions Undervalue Property And Return Insufficient Equity To Owners
After the US Supreme Court ruled that home equity theft is unconstitutional, almost all states created a process ostensibly to return excess proceeds from the sale of tax-foreclosed properties at auction to property owners. However, the auction sales price that can be claimed is often significantly lower than the fair market value (FMV) of a home, which legal experts contend prevents property owners from claiming the total equity to which they are entitled and denies them just compensation under the Fifth Amendment.