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Staff reports Supreme Court ruling: counties need not pay fair-market value after tax-sale foreclosures, says court
Summary
County staff reported a U.S. Supreme Court decision in Pong v. Isabella County holding that the Constitution does not require counties to pay foreclosed homeowners fair‑market value; the court said the constitutional baseline is the auction sale price minus the tax debt, and the case is remanded on irregularities specific to Isabella County.
During staff reports at the June 24 session, Miss Gilbert briefed the legislature on a recent U.S. Supreme Court decision in Pong v. Isabella County, Michigan. The court ruled that constitutional due‑process protections do not require counties to compensate former owners based on the home’s fair market value following a tax‑sale foreclosure. Instead, the Court identified the constitutional baseline as the auction sale price minus the outstanding tax debt.
Miss Gilbert noted that Isabella County’s particular case remains in litigation because lower‑court proceedings will examine alleged irregularities in that county’s tax‑sale process. She characterized the ruling as maintaining longstanding practice but said local questions about compliance with county rules can still be litigated in lower courts.
The legislature did not take formal action on the matter; Miss Gilbert announced an executive session later in the meeting to discuss a separate personnel matter.
