This episode discusses a Michigan property tax case before the U.S. Supreme Court that could reshape tax foreclosure processes and homeowner equity protections.
This episode of the #FactsMatter podcast spotlights a Michigan property tax case before the U.S. Supreme Court – Pung v. Isabella County – that could reshape how states handle tax foreclosures and protect homeowners' equity. Guy Gordon and Madhu Anderson, Senior Research Associate for Local Affairs, discuss the story of the Pung family from Isabella County. After inheriting a home, the family lost their longstanding homestead exemption due to an administrative error. Believing the exemption still applied, they didn’t pay the resulting $2,000 tax bill. The county eventually foreclosed on the home, sold it at auction for far below its true value, and the buyer later resold it for nearly $200,000. The Pungs received only about $73,000 after taxes, penalties, and interest were deducted — far below the home’s true value. Anderson’s recent brief, More Changes on the Horizon for Michigan’s Property Tax Foreclosure Process, focuses on changes to Michigan’s tax foreclosure process that should be made to address the issues raised by the case, including expanding homeowner education, easing the claims process for surplus proceeds, improving the transparency and competitiveness of tax…
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