He Fell Behind on His Taxes. So the Government Seized His Home, Sold It, and Kept the $258,000 Profit.
First the government seized Kenneth Michael Sikorsky’s home and all of its equity over a tax debt worth far less than what it took. Now a federal court has ruled that Sikorsky has successfully stated a claim for a taking—an early sign that the legal landscape is shifting since the Supreme Court weighed in on these sorts of seizures two years ago.
In 2012, the city of Newburgh, New York, foreclosed on Sikorsky’s house after he fell behind on his property taxes. The parties were later able to broker an agreement that allowed him to repurchase the home for the price of his outstanding debt. But he was unable to satisfy those regular installments, prompting the city to cancel the sale.
The government later found another buyer who could pay much more than the value of Sikorsky’s debt, which with penalties, interest, and fees stood at $92,786.24. The sale went through in June 2021 for $350,500.
The city then pocketed the profit: $257,713.76.
Sikorsky is far from the first person to experience this nightmare scenario. But his case coincided with a petition that would upend the practice nationwide. Geraldine Tyler argued that home equity theft was unconstitutional after Hennepin County, Minnesota, seized her Minneapolis condo over a modest tax debt, sold it, and kept the profit. This worked
Article from Reason.com
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