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Property Tax Foreclosures

 

A May 25, 2023, Supreme Court decision highlights the unique issues surrounding property tax foreclosures. NCLC is providing a key resource page on property tax issues, including homeowner tactics to avoid or respond to a tax foreclosure--which involve different approaches and procedures than for a mortgage foreclosure.  

 

Resources

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open NCLC treatise

Articles & Reports

The following articles and reports are free to the public.

NCLC, What States Can Do to Reduce Property Tax Foreclosures (Oct. 10, 2023)

NCLC, Property Tax Foreclosures on Heirs' Property (Aug. 2023)

NCLC, Supreme Court Stops Equity Theft in Property Tax Foreclosures (June 2023)

 

Videos

The following videos are free to the public.

Remote video URL

Remote video URL

Many states will be re-writing their property tax foreclosure laws in the wake of the Supreme Court’s decision in Tyler v.  Hennepin County. This opens up a window of opportunity to broadly improve property tax systems. One of the most important ways to prevent tax foreclosure is to ensure that low-income and older homeowners have access to all available exemptions and discounts. Yet many older adults who are at risk of tax foreclosure have not taken advantage of all the existing tax relief options available to them. Heirs who have inherited a family home are even less likely to get access to these benefits.

This session will dive into the most impactful policy solutions to reduce the tax burdens on older adults, low-income people, and people of color, leaving you with actionable steps to work for change in your community. 

Speakers:

Additional resources

 

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2023 Supreme Court Ruling on Surplus After Tax Sale

The following court documents are free to the public.

Full text of Tyler v. Hennepin County (May 25, 2023)

Brief of Amicus Curiae in Tyler v. Hennepin County by AARP, AARP Foundation, and NCLC 

 

Key Weblinks

The following weblinks are free to the public.

How to Prevent Tax Liens and Tax Foreclosures from Depleting Wealth from Older Homeowners, Especially in Communities of Color (Sept. 2022) by Odette Williamson and Sarah Mancini, NCLC and Patti Prunhuber and Jennifer Kye, Justice in Aging

The Other Foreclosure Crisis: Property Tax Lien Sales (July 2012) by John Rao, NCLC

Frequently Asked Questions, about the Madeline Walker Act, RIHousing

How a Small Group of Investors Turned Distressed Baltimore Neighborhoods into Profit Centers (March 29, 2023), by Sophie Kasakove and Nick Thieme, the Baltimore Banner

Tangled Titles: Philadelphia Explores Heirs' Property Solutions to Boost Generation Wealth (Apr. 8, 2022) by David Slade, The Post and Courier

Picket v. City of Cleveland (N. D. Ohio Sept. 29, 2020) (order) (FHA and Ohio disparate impact and due process claims can go forward concerning abuses regarding water billing leading to tax liens and takings)

Picket v. City of Cleveland (N.D. Ohio Dec. 18, 2019 ) (class action complaint)  (various claims including FHA and Ohio disparate impact and due process concerning abuses regarding water billing leading to tax liens and takings).

Water/Color: A Study of Race and the Water Affordability Crisis in America's Cities (2019), by Coty Montag, Thurgood Marshall Institute at the NAACP Legal Defense and Educational Fund, Inc.

 

NCLC Conference Archives

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The following NCLC conference material is free to legal aid, NACA, and recent NCLC conference attendees.

 

Property Tax Foreclosures, Part 1: Overview and Constitutional Law Issues (Mortgage Conference 2022)

Property Tax Foreclosures, Part 1: Overview and Constitutional Law Issues (PowerPoint)

Excessive Fines Clause

Notice of Post-Sale Procedures and Right of Redemption

Tax Sale as Unconstitutional Taking of Homeowner’s Equity in Property

Property Tax Foreclosures, Part 2: Racial Justice Issues, Policy Solutions, Legal Defenses, and Bankruptcy Strategies (Mortgage Conference 2022)

Property Tax Foreclosures, Part 2: Racial Justice Issues, Policy Solutions, Legal Defenses, and Bankruptcy Strategies (PowerPoint)

Outline: Property Tax Foreclosures, Part 2: Racial Justice Issues, Policy Solutions, Legal Defenses, and Bankruptcy Strategies

Investing in Distress: Tax Delinquency and Predatory Tax Buying in Urban America

Nonprofit Legal Services Help Homeowners Struggling With Property Taxes Keep Their Homes

Using the FHA and ECOA to Combat Housing and Credit Discrimination (CRLC 2021)

Second Amended Complaint, Morningside Cmty. Org. v. Sabree (Mich. Wayne Cnty. Cir. Ct. Mar. 3, 2017)

 

Conference Videos

The following NCLC conference material is free to legal aid, NACA, and recent NCLC conference attendees.

 

Property Tax Foreclosures, Part 1: Overview and Constitutional Law Issues (Mortgage Conference 2022)

Property Tax Foreclosures, Part 1: Overview and Constitutional Law Issues (Video)

Property Tax Foreclosures, Part 2: Racial Justice Issues, Policy Solutions, Legal Defenses, and Bankruptcy Strategies (Mortgage Conference 2022)

Property Tax Foreclosures, Part 2: Racial Justice Issues, Policy Solutions, Legal Defenses, and Bankruptcy Strategies (Video)

 

Annual Conferences 

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The Consumer Law Educational Events Series includes the nation’s preeminent in-person conferences and trainings for consumer attorneys, produced by National Consumer Law Center (NCLC) and the National Association of Consumer Advocates (NACA). The series provides comprehensive training regarding critical issues in consumer law, including the latest developments and trends; strategies and tactics for effectively representing your clients; and opportunities to network with and learn from the leaders in the field.  

Click here for more information.
Registration is restricted to those representing consumers.

 

The following material is free to the public. For purchase options and more information on Surviving Debt, visit the NCLC Bookstore

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Image of the cover of Surviving Debt, 2023 edition, which has an illustration of a door opening and light pouring through

Surviving Debt  (2023 ed.)

Chapter 19, Property Taxes and Tax Sales

Overview Chapter on Property Tax Rights  (without legal citations)

Introduction

Reducing Property Tax Debt

Managing Seriously Delinquent Property Tax Debt

Contesting a Tax Sale

Setting Aside a Completed Tax Sale

Redemption Following the Tax Sale

Additional Resources

 

 

Requires subscription

The following material requires a subscription to the individual title or to NCLC's Consumer Law Practice Series.  For more information on subscription options, visit the NCLC Bookstore

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cover image of NCLC's Home Foreclosures

Home Foreclosures (2023 Second Edition)

Chapter 16, Property Tax and Tax Foreclosures

16.1 An Overview of the Process

16.2 Real Property Taxation Process

16.3 Preventing Property Tax Foreclosures

16.4 Redemption Following Sale

16.5 Fraud by Tax Sale Speculators

16.6 Private Collection and Enforcement of Tax Liens

16.7 Property Assessed Clean Energy (PACE) Tax Assessments

Appendix F Summary of State Real Estate Tax Abatement Laws

Appendix G Summary of State Tax Lien Foreclosure Laws