The supreme Court probably just ended tax sales of homes. The Court ruled the government must compensate owners for equity beyond the value of the tax owed.
(www.thegatewaypundit.com)https://www.thegatewaypundit.com/2024/12/unconstitutional-man-loses-home-600-debt-thats-not/This will effectively mean there is no money to be made by buying a house for the delinquent taxes. Typically what happens is lawyers line up at the courthouse for homes that have a couple of $1,000 in back taxes owed when there's a ton of equity in the home and then the lawyers get awarded the whole home including the equity which they then sell to make tons of money while the poor homeowner who was to financially despondent to be able to afford the taxes also loses their equity. Well the supreme Court just ruled that the government cannot award the whole equity in the home to the purchaser of the tax debt. Because the government can't confiscate things like equity without just compensation to the owner.
This will take much of the profit out of tax sales and save a lot of people in their homes. The government will still be able to sell the tax obligation so if an owner owes say 4,000 and investor can buy that tax debt from the government for whatever they want to pay for it maybe they'd want to pay $1,000 thinking that they might be able to collect $4,000 from the homeowner through normal debt collection practices. But with the threat of the home itself being sold gone there's much less leverage against the homeowner to pay the taxes.
This also means homeowners might be able to do interesting tax protests for property taxes without the threat of losing all their equity in their home.
