In Tyler v. Hennepin County (2023), a unanimous Supreme Court ruled that "home equity theft" is unconstitutional. If the government forecloses on a property for nonpayment of taxes or other debts, it can only keep as much of the value of the land as is necessary to repay the debt in question. The rest belongs to the property owner. Otherwise, the Court ruled, there would be a violation of the Takings Clause of the Fifth Amendment, which bars taking of private property without payment of "just compensation" (see my analysis of the ruling here).
