06/02/2026
Michigan counties have repeatedly seized people's property, over often miniscule tax debts, wiping out homeowner equity, and keeping the profits.
The latest example is the Pung family, whose home was foreclosed on by Isabella County over a disputed $2,000 tax debt—even after a Michigan tax tribunal ruled they did not owe the tax. The county sold their $194,400 home at auction for $76,000, returned only the sale proceeds, and left the family short about $118,000 in lost equity. The buyer then quickly resold the property for nearly its full value.
The Pungs’ case, argued before the U.S. Supreme Court in February 2026, asks whether the Constitution requires the government to compensate homeowners for the full fair market value of property taken in tax foreclosure, rather than merely whatever price the government receives at auction.