HOME EQUITY THEFT
An Outrageous Crime Perpetrated By Government Against the People
GEORGE WILSON ADAMS CPA MBA
July 29, 2022
MAY 25, 2023 UPDATE:
VICTORY!
I am extremely pleased to announce that today the U.S. Supreme court struck down a Minnesota law that allowed for home equity theft. The name of this landmark case is Tyler v. Hennepin. It is especially exciting that the decision of the high court was UNANIMOUS. Even the leftist radicals on the Supreme Court were forced to acknowledge the blatant illegality of home equity theft schemes, which violate the Taking Clause of the U.S. Constitution. This important case will likely have a profound effect on the laws of other states that currently allow for home equity theft, including Maine..
The Crime
What happens if you don't pay your property taxes? What if adverse, even tragic, personal circumstances make it impossible for a home-owner to pay property taxes due? In twelve states in this country, including Maine, the answer is that the local town or city government can steal your home. The town will foreclose on your home for unpaid property taxes, subsequently sell the property, and may keep the entire sale proceeds. If a private individual or company ever committed such an egregious act of theft they would face felony charges and prison time.
Homeowners who lose their property through this process will not receive the residual balance of sales proceeds after property taxes are paid. This is a direct violation of the taking clause of the Fifth Amendment to our federal constitution, which states:
"…nor shall private property be taken for public use, without just compensation."
Here is an interpretation of the takings clause followed by a 2019 article in the MaineWire.com :
https://pacificlegal.org/what-is-the-takings-clause-of-the-5th-amendment/
For a majority of people the equity in their home represents most of their life savings. Many people spend decades of their lives working to build up home equity. The theft of the entire amount of home equity by government in order to pay property taxes is an outrageous offense. Unpaid property taxes, cumulative fees and interest typically constitute a small percentage of the total amount of home equity.
In the 38 states that do not steal home equity, properties acquired through foreclosure are sold at auction and the residual balance of the sale price (after paying back taxes and fees) is then remitted to the former home-owner. This is how things should be.
Widespread litigation is now occurring in the twelve states that steal home equity for unpaid property taxes. In the landmark Supreme Court case of Knick (issued on June 21, 2019) the high court specifically allowed property owners to sue in federal court to preserve their rights.
The Consequences to Victims
Victims of home equity theft may face bankruptcy and the loss of most or all of their assets accumulated over decades of work. A large percentage of victims are elderly and live on fixed incomes and will never be able to recover financially. We live in a corrupt society eager to give free money to people who refuse to work, while ignoring the harm home equity theft causes to former hard-working home owners who are typically law abiding citizens.
Here is a link to a story about a victim of home equity theft that puts a face to this tragedy:
https://pacificlegal.org/john-stossel-highlights-home-equity-theft-schemes/
The Solution
Change the law here in Maine. Clear, concrete proposals for fixing our laws on this subject can be found here:
https://alec.org/model-policy/statement-of-principles-on-ending-home-equity-theft/
Limited Relief for Some Mainers
Maine has targeted property tax relief for indigent individuals who can prove they are financially unable to pay their property tax bill. For further information see:
George Adams
Certified Public Accountant Master of Business Administration
Tel: (207) 989-2700 E-Mail: GeorgeAdams@IntelligenceForRent.com
450 South Main Street: The HQ of IQ
Brewer, Maine 04412-2339
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