Home Equity Theft: Seizing Property Over An Unpaid $8.41 Tax Bill
Is there any sane person out there who, when presented with, "Either you pay $8.41 that you owe in taxes or we take your home away," who would say, "Naw...I'm keeping my $8.41!"?
There's something terrible going on, and it's called, "home-equity theft."
Brittany Hunter writes at FEE of various Americans, who, typically through error, owe $10 or a $100 or a few hundred dollars in property taxes and have their homes seized by government and then sold:
In 2014, Uri Refaeli lost his home after it was foreclosed on and seized by Oakland County, Michigan. In 2011, Rafaeli purchased a small $60,000 property for his business, Rafaeli, LLC. To make matters worse for Michigan, the state also has a shady reputation for using this practice to its own benefit.While he had paid his 2012 and 2013 property taxes in full, he discovered that he had accidentally underpaid in 2011. When he made this realization and tried to correct his mistake in 2013, he forgot to account for the interest that had accrued on his back taxes. As a result, he underpaid by a measly $8.41. The county seized and sold his property for $24,500. Rafaeli never saw a dime of this money.
When it comes to outstanding debt, just like private companies, governments are eager to get what is owed and there nothing wrong with them attempting to do so. However, when they begin to go after more than they are owed, the situation becomes troublesome.
To make matters worse for Michigan, the state also has a shady reputation for using this practice to its own benefit. According to Pacific Legal Foundation (PLF), local governments pad their budgets with the money earned from this stolen property. Each year in Detroit's budget, there is a line with the estimated total revenue that the government is expecting to bring in from foreclosures of this very nature.
Earlier this year, it was discovered that Wayne County Treasurer Eric Sabree had violated Treasurer's office rules by funneling foreclosed properties to family members and well-established and connected businessman for a fraction of the cost.
Cui bono? Always gotta ask that.
Hunter continues:
Our country was founded on the fervent belief that individuals have the right to their life, liberty, and, as is especially applicable here, their property....Yet, practices like home equity theft and civil asset forfeiture, which allow law enforcement to strip individuals of their property without due process, have belittled this sacred principle and harmed many innocent people in the process. The confiscation of a person's property, especially over a few dollars of unpaid taxes, is thoroughly unAmerican. Private property should be protected by the government, not seized and sold off before an individual has an opportunity to remedy the situation.
The unconstitutional practice of home equity theft has allowed individuals to be stripped of their property without fair compensation.
Pacific Legal Foundation, "a national nonprofit legal organization that defends Americans threatened by government overreach and abuse," takes some of these cases.
By defending those victimized, they defend the rights of all of us.








Have you not seen the cases where:
• Oklahoma Highway Patrol officers drain the debit cards of people they pull over, because that money has to be derived from drug trade?
• Supercar was seized for going 5MPH over the speed limit, and an argument continues that this is Constitutional?
• Kelo v. New London was decided in favor of New London, that the city COULD transfer real estate from one private entity to another to obtain increased tax revenue?
I'm still surprised that the New London city council is still alive over that one.
Americans have ceded control of the country to selfish interests completely at odds with justice or fairness, and they flatly DO NOT CARE until something happens to THEM. Only then will they whine - for the government which allowed them to be victimized, or set them up to be victimized, to turn around and "save" them.
Radwaste at July 25, 2019 11:30 PM
You sound surprised, Raddy
Crid at July 26, 2019 12:35 AM
Until the government gives away their shit, the Free Shit Army will always be happy getting other people's shit for free.
On the other hand, that which is unsustainable will not last. I just don't want to be around when something gives, because it'll be ugly.
I R A Darth Aggie at July 26, 2019 7:27 AM
When the next Constitutional convention rolls around (which I'm guessing will happen when Social Security goes bankrupt), I'm proposing an amendment that says that all monies collected by any government unit from fines, fees or seizures must be returned in full to the taxpayers.
And as for New London, last I checked, the property that the city took is still sitting empty.
Cousin Dave at July 26, 2019 7:48 AM
There was a similar story out of this area last year.
https://www.kxan.com/investigations/man-loses-home-after-bastrop-co-leader-plants-no-trespassing-sign/
Bastrop County is east of Austin.
ahw at July 26, 2019 7:51 AM
ahw, I just read that, and wow. What a piece of work those people are.
Cousin Dave at July 26, 2019 8:12 AM
PLF does great work.
Szoszolo at July 26, 2019 9:15 AM
Yes, Cousin Dave. And BOLD about it, too!
ahw at July 26, 2019 9:40 AM
Well, if you're going to do a damn illegal thing, you should be bold.
I the olden days, they would have been tarred, feathered, then run out of town on a rail. In our more civilized time, they'll probably end up in jail. I'm not a lawyer, but there's all sorts of crimes being committed there.
I R A Darth Aggie at July 26, 2019 12:32 PM
I can't help but think this is a sign of a political system in decay...
Ken McE at July 26, 2019 3:16 PM
Thugs.
Feebie at July 26, 2019 6:38 PM
Those at great risk of losing their homes over taxes or fines are the elderly or poor who may have trouble keeping up with taxes and bills. If there were some compelling reason to seize property, like oweing tens of thousands of dollars, the proceeds of the sale should go back to the owner, not to the gov (minus that owed).
Chicago does this with towed cars if you owe lots on tickets--they sell and keep the money. What makes it even worse is that they will tell you they do not have your car.
cc at July 27, 2019 4:29 PM
It's an excessive fine. Timbs v. Indiana, decided this year, stated (finally) that the Excessive Fines clause of the 8th Amendment applies against the states. As Justice Gorsuch noted, it was amazing that in 2018 we were still arguing about that. But, the case is in the books now abusive practices like this clearly fall in that category.
Litigation to follow, one hopes!
Dennis at July 31, 2019 7:26 AM
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