NEW YORK, NY / ACCESSWIRE / July 19, 2023 / Sarraf Gentile LLP, a leading law firm focused on class actions and protecting people from government overreach, is investigating state and municipal taxing authorities who seize and sell property to collect unpaid taxes but keep the surplus equity, or the excess value of the property after the tax has been paid – a practice known as “home equity theft.”
Home equity theft is grossly unfair. For homeowners with unpaid property tax, the consequence can be devastating. States or municipalities can seize and auction off property to recover unpaid taxes. But some government agencies that sell a property to recover a tax debt simply keep the surplus equity or the amount in excess of the unpaid taxes. This practice effectively strips the homeowner of the value of their property above and beyond the tax debt, an action that may be in violation of homeowner rights.
In May 2023 the Supreme Court, in the case of Tyler v. Hennepin County, declared this practice unconstitutional.
Some of the states in which this practice may be happening, and which the firm is investigating, include: Alabama, Arizona, Colorado, Illinois, Maine, Massachusetts, Minnesota, Nebraska, New Jersey, New York, Oregon, South Dakota, and the District of Columbia.
According to Sarraf Gentile partner Joseph Gentile: “The heart of this issue is an abuse of power and the potential violation of basic rights. We believe that homeowners who have had their property seized and their equity unjustly taken deserve to be made whole. Our firm is dedicated to fighting for the rights of these homeowners and we’re considering filing class action lawsuits on their behalf. Our goal is to hold these states and municipalities accountable for their unjust taking and to ensure that those affected are appropriately compensated.”
If you or someone you know has been a victim of home equity theft involving property tax arrears, please contact Sarraf Gentile LLP for a free and confidential consultation.
Sarraf Gentile LLP is a nationally recognized law firm that focuses on class actions and other complex litigation to combat government overreach. The firm has a proven track record of holding powerful institutions accountable and recovering millions of dollars on behalf of clients and class members.
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SOURCE: Sarraf Gentile LLP