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The Supreme Court is looking at a case that could have tremendous ramifications for property rights. Its ruling will determine whether the government is able to continue stealing from Americans using tax laws. When it comes to property rights, this one could be a game-changer.
This case will decide if it is constitutional for the government to seize and sell a person’s home to pay off overdue property taxes, without returning any excess proceeds to the homeowner. The practice, known as home equity theft, is legal in several states, including Minnesota, Michigan, and New York.
In each state, the process is different, but homeowners are usually bought out by private investors without their knowledge and receive letters after three years of overdue taxes, informing them that they have 90 days to pay their debts. If they fail to pay within that timeframe, the county treasurer gives the deed to an investor who takes the home, sells it, and keeps the profit.