Supreme Court Considers How Much Compensation Local Government Owes From Home Foreclosure

A federal appeals court rejected the petitioner’s argument that the seizing of equity in the home violated the Eighth Amendment.

The Supreme Court in Washington on Feb. 17, 2026. Madalina Kilroy/The Epoch Times

The U.S. Supreme Court on Feb. 25 seemed to struggle with a family’s claim that a county unfairly held onto the equity built up in their Michigan home after selling the property for unpaid taxes.

During the oral argument, several justices questioned the family’s contention that it was entitled to recover the fair market value of the home that was sold at a government auction minus the taxes owed.