Article
Property Tax Delinquency And Foreclosure: No Affidavit, No Mercy, Mercy Me
A recent Sixth Circuit decision examines whether property owners are entitled to surplus proceeds when their homes are sold at tax foreclosure auctions for amounts exceeding the underlying tax debt. The case raises fundamental questions about how just compensation should be measured under the Fifth Amendment—specifically whether delinquent taxpayers should receive the fair market value of their property or merely the discounted auction price realized at a forced sale.
Cadwalader, Wickersham & Taft LLP