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The Times of India

World

TOI World Desk

A Michigan family lost a home of $194,400 over a $2,242 tax bill; the county sold it for $76,008

Michigan the United States Supreme Court Foreclosure Marc Samuel Alito Sonia Sotomayor the Sixth Circuit Sixth Circuit

The United States Supreme Court ruled that a Michigan family whose $194,400 home was sold at a public auction over a $2,242 tax debt is entitled to receive only the surplus cash from the sale, not the home's full open-market value. The judgment in Pung v. Isabella County sets a nationwide legal standard for measuring compensation after a fairly conducted tax sale. Writing for the majority, Justice Samuel Alito said that when local authorities seize and sell a home for unpaid property taxes, “just compensation” under the Fifth Amendment is based on the actual public auction price, not a hypothetical market value. The Court issued its decision on June 23, 2026, vacated the Sixth Circuit's judgment, and sent the case back for further proceedings.

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