Case Summary:

On February 25, 2026, the Supreme Court heard oral arguments in Pung v. Isabella County, a case that examines the constitutional limits of "home equity theft" and could fundamentally change how local governments handle tax foreclosures.

The dispute began over a relatively minor tax bill of approximately $2,242 on a Michigan property. Despite a tax tribunal previously ruling that the owner was entitled to an exemption, Isabella County foreclosed on the home, sold it at auction for $76,000, and initially attempted to keep the entire amount. While lower courts ordered the county to return the "surplus" (the auction price minus the debt), the family argued they were still cheated because the home’s fair market value was roughly $194,400.

Core L ...