{"id":2573387,"date":"2026-02-25T07:47:02","date_gmt":"2026-02-25T12:47:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/high-court-could-decide-fate-of-foreclosure-sales-for-unpaid-taxes\/"},"modified":"2026-02-25T07:50:14","modified_gmt":"2026-02-25T12:50:14","slug":"high-court-could-decide-fate-of-foreclosure-sales-for-unpaid-taxes","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/high-court-could-decide-fate-of-foreclosure-sales-for-unpaid-taxes\/","title":{"rendered":"High court could decide fate of foreclosure sales for unpaid taxes"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhigh-court-could-decide-fate-of-foreclosure-sales-for-unpaid-taxes%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2573387&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The Supreme Court will hear Pung v. Isabella County, a Michigan tax-foreclosure dispute that could reshape how much a property owner is owed when a home is sold too cover unpaid taxes. Isabella County seized the Pung family\u2019s home to pay $2,242 in taxes and sold it at auction for $76,008, far below the propertyS estimated fair market value of about $194,400. Following the high court\u2019s 2023 Tyler v. Hennepin County decision, which limited governments\u2019 ability to keep profits from foreclosures, the Pungs argue they are entitled to roughly $192,000 in surplus proceeds. The county contends compensation should be based on the sale price, or on past norms tied to market value, and the Justice Department argues the Eighth Amendment does not apply, while the fifth Amendment supports surplus proceeds being handled fairly. A decision is expected by the end of June, and whichever way the Court rules could substantially affect the use of tax-foreclosure sales nationwide.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Supreme Court could decide the fate of foreclosure sales for unpaid taxes<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2511532\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>The <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/section\/news\/supreme-court\/\" type=\"category\" id=\"11310\">Supreme Court<\/a> will soon decide whether a <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/michigan\/\" type=\"post_tag\" id=\"655\">Michigan<\/a> county violated a family&rsquo;s constitutional rights by selling their property as part of a tax foreclosure for well under its market value, years after the <a href=\"https:\/\/amzn.to\/3YuVZYV\" >high court ruled counties<\/a> may not pocket the profits from those kinds of sales.<\/p>\n<p>Justices will hear oral arguments on Wednesday in <em>Pung v. Isabella County<\/em>. In this case, Isabella County seized the Pung family&rsquo;s home to pay $2,242 in unpaid taxes, penalties, and interest. The county then sold the property at auction for $76,008 despite its fair market value of $194,400. After the Supreme Court&rsquo;s 2023 <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/1446759\/supreme-court-unanimously-backs-94-year-old-grandmother-who-lost-home-to-foreclosure\/\" type=\"link\" id=\"https:\/\/www.washingtonexaminer.com\/news\/1446759\/supreme-court-unanimously-backs-94-year-old-grandmother-who-lost-home-to-foreclosure\/\">ruling in <em>Tyler v. Hennepin County<\/em><\/a>, in which the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/supreme-court-allows-texas-abortion-law-to-remain-in-effect-while-lawsuit-continues-against-it\/\" title=\"... Allows Texas Abortion Law to Remain in Effect While Lawsuit Continues Against It\">justices unanimously agreed<\/a> that local governments cannot pocket more than the amount of unpaid taxes in a foreclosure sale, a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/a-celebration-of-womanhood-transgender-competitor-wins-miss-nevada-usa\/\" title=\"A \u2018Celebration Of Womanhood\u2019: Transgender Competitor Wins Miss Nevada USA\">federal court ruled<\/a> the family was entitled to the profit of the sale after the unpaid taxes were covered, but not to the surplus based on the value of the property.<\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/supreme-court\/4470268\/trump-slams-supreme-court-tariff-ruling-in-front-of-justices\/\">Trump slams &#8216;unfortunate&#8217; Supreme Court tariff ruling in front of justices<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/supreme-court\/4469082\/supreme-court-protects-postal-service-undelivered-mail\/\">Supreme Court protects Postal Service from being sued over intentionally undelivered mail<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/supreme-court\/4467967\/trump-supreme-justices-rejected-tariffs-union\/\">Trump to come face-to-face with Supreme Court justices who rejected tariffs at State of the Union<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<p>The family&rsquo;s lawyers argued to the high court that they are entitled to roughly $192,000 in surplus rather than the $73,000 surplus they received, in a case which could transform the standard for tax foreclosure sales.<\/p>\n<p>&ldquo;When government takes more than it is owed, it <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.supremecourt.gov\/DocketPDF\/25\/25-95\/385968\/20251201104412403_25-95%20Merits%20Brief%20efiling.pdf\"><a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/taking-woke-education-to-court\/\" title=\"Taking Woke Education To Court\">crosses constitutional lines<\/a><\/a>. The Fifth Amendment mandates just compensation; the Eighth Amendment forbids excessive fines as punishment. Both clauses converge in this case,&rdquo; Pung&rsquo;s lawyers argue in their brief.<\/p>\n<p>The lawyers for the family argue the heart of the case is how much people are owed when the government seizes property after it is sold off for unpaid taxes, arguing it should be about the property&rsquo;s value and not the amount it is sold for at an &ldquo;inadequate&rdquo; auction.<\/p>\n<p>&ldquo;Historically, this has always been based on the property&rsquo;s &lsquo;fair market value,&rsquo; not the residue of an inferior distressed auction. The lower courts erred by measuring compensation from the County&rsquo;s auction, rather than from the property&rsquo;s known fair market value. The Constitution requires compensation measured by the owner&rsquo;s loss&mdash;not by the government&rsquo;s chosen disposal method,&rdquo; the brief said.<\/p>\n<p>Lawyers for Isabella County argued to the high court in their brief that they <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.supremecourt.gov\/DocketPDF\/25\/25-95\/391408\/20260112132632586_Pung%20v%20Isabella%20County%20-%20Respondent%20Brief.pdf\">should reject Pung&rsquo;s arguments<\/a> that the Fifth and Eighth amendments require them to rely on the property value, rather than the auction sale amount, to calculate how much the family is owed.<\/p>\n<p>&ldquo;English and American governments have seized and sold property to collect debts for centuries. And, for centuries, the majority rule has required the government to return surplus proceeds, if any, to the property&rsquo;s former owner. Petitioner&rsquo;s fair-market-value theory has no foothold in history or precedent,&rdquo; the brief said.<\/p>\n<p>&ldquo;The robust tradition of requiring foreclosing governments to pay surplus proceeds (and no more) to property owners shows that neither the Takings Clause nor the Excessive Fines Clause requires a greater amount,&rdquo; the county&rsquo;s brief continued.<\/p>\n<p>Lawyers for the county also warned that if the Supreme Court sides with the Pung family, they will &ldquo;effectively eliminate foreclosure as an option to collect government debts, and cripple state property-tax collection systems.&rdquo;<\/p>\n<p>&ldquo;Doing so would benefit those who do not pay their taxes while increasing the burden on those who do,&rdquo; the brief said.<\/p>\n<p>The <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/justice-department\/\" type=\"post_tag\" id=\"167\">Justice Department<\/a> also filed a brief to the Supreme Court in the case and will have time to argue on Wednesday, arguing that the Eighth Amendment&rsquo;s <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.supremecourt.gov\/DocketPDF\/25\/25-95\/386784\/20251208191320751_25-95_Pung_FINAL.pdf\"><a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/pornhub-sues-texas-over-age-verification-law\/\" title=\"Pornhub files lawsuit against Texas over age verification legislation.\">excessive fines clause<\/a> should not apply<\/a> because there is no &ldquo;fine&rdquo; in this case.<\/p>\n<p>&ldquo;When a government sells a taxpayer&rsquo;s property and refunds the surplus proceeds, the only money that the government keeps is what the taxpayer owes. That is payment for unpaid taxes, not punishment for some offense,&rdquo; the DOJ&rsquo;s brief said.<\/p>\n<p>While the DOJ claims the Eighth Amendment is not involved in this case, it <span style=\"box-sizing: border-box; margin: 0px; padding: 0px;\">argu<\/span>es that, under the&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/fifth-amendment\/\" type=\"post_tag\" id=\"2730\">Fifth Amendment<\/a>, a person is entitled to the surplus of a sale&nbsp;conducted &ldquo;fairly.&rdquo;<\/p>\n<p>&ldquo;The taxpayer may therefore challenge the procedural fairness of the sale by arguing, for example, that it was conducted with insufficient notice or opportunity for bidding. But if the sale was conducted fairly, the Takings Clause entitles the taxpayer to no more than the surplus proceeds,&rdquo; the brief said.<\/p>\n<p>&ldquo;Requiring governments to pay the difference between the foreclosure-sale price and the value at a hypothetical unrestricted sale would effectively deprive them of an age-old tool of tax collection,&rdquo; the DOJ added.<\/p>\n<p><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/supreme-court\/4469082\/supreme-court-protects-postal-service-undelivered-mail\/\" type=\"post\" id=\"4469082\">SUPREME COURT PROTECTS POSTAL SERVICE FROM BEING SUED OVER INTENTIONALLY UNDELIVERED MAIL<\/a><\/strong><\/p>\n<p>The Supreme Court will hear arguments in <em>Pung v. Isabella County<\/em> at 10 a.m. Wednesday, shortly after justices are expected to release at least one ruling in a case they heard earlier this term.<\/p>\n<p>A decision in the <em>Pung<\/em> case is expected by the end of June, when the high court&rsquo;s final opinions are likely to be released.<\/p>\n<\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>SCOTUS to decide tax-sale surplus rights<\/p>\n","protected":false},"author":2638,"featured_media":2573388,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/02\/AP26052102960974.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651,538],"tags":[4733,27605,73787,10964,74536],"class_list":["post-2573387","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","category-washington-examiner","tag-court","tag-foreclosure","tag-high-court-2","tag-taxes","tag-unpaid-taxes"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/02\/AP26052102960974.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2573387","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2638"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2573387"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2573387\/revisions"}],"predecessor-version":[{"id":2573391,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2573387\/revisions\/2573391"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2573388"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2573387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2573387"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2573387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}