Supreme Court to hear ‘home equity theft’ case over elderly woman’s seized house

The Supreme Court is set to hear a case that has the potential to impact homeowners across the country. The case, Tyler v. Hennepin County, centers around allegations of “home equity theft” by the local government in Minnesota. The plaintiff, a 94-year-old woman named Geraldine Tyler, had her home seized by the county for unpaid taxes and was never given the excess proceeds from the sale of her property.

“When the government takes more than it is owed in taxes, that’s home equity theft,” said Pacific Legal Foundation senior attorney Christina Martin, who will be arguing the case on behalf of Tyler.

Tyler’s case is not unique, according to David Deerson, another attorney working on the case. He likens the problem to a “get rich quick” scheme for the government. The core issue in the dispute is whether the government violates the Fifth Amendment’s takings clause when it takes property worth more than the debt owed by the owner and whether that amounts to an excessive fine.

The Biden administration has filed a brief in support of neither party in the case, but contends that the federal government has a “substantial interest” in the outcome. A decision is expected by the end of the court’s present term in late June.

This case has garnered support from outside groups like the American Civil Liberties Union and the Cato Institute, who argue that lower-income and elderly citizens are more often at risk of forfeiting their homes. Stay tuned for updates on this important case.