Supreme Court sides with Michigan county in a tax foreclosure case
Summary
The U.S. Supreme Court decided against a Michigan family trying to get more money from a tax foreclosure sale of their home. The Court said that sale prices at these auctions are normally lower than regular real estate sales, and changing that rule would make it harder for counties to collect unpaid taxes.Key Facts
- The Supreme Court ruled on a Michigan tax foreclosure case on June 23, 2026.
- The family’s house was sold for less than half its open-market value to cover unpaid taxes of a bit over $2,000.
- The family argued the home could have sold for about $200,000 through normal real estate sales.
- The county said auction sales usually have lower prices because they require full cash payment, not mortgage financing.
- The Court agreed it would be difficult to collect unpaid taxes if foreclosure sales had to match regular market prices.
- This decision follows a 2023 Supreme Court case where counties could not keep extra money from tax sales beyond what was owed.
- The previous case involved a Minnesota woman whose property sold for much more than her unpaid taxes, but the county kept the extra money.
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