Supreme Court Rules on Tax Foreclosure Surplus

The Supreme Court just ruled that homeowners facing tax foreclosures are entitled to surplus funds from property auctions — but not if those auctions don’t yield the highest possible price. In a case involving Michael Pung, who lost his home over $2,000 in unpaid taxes, the Court sided with counties that sold his property at auction for $76,000 — far below its value — and upheld that the surplus belongs to him regardless of what the open market might have fetched. The justices emphasized that homeowners had other options to avoid foreclosure, like refinancing or selling themselves, and that the actual sale price, not hypothetical market value, determines compensation — as long as the auction is fair. But the fight isn’t over: Justices Thomas and Gorsuch questioned whether the foreclosure was even legally triggered in Pung’s case, and his lawyers are now pushing back in lower courts, arguing the county mishandled the debt. The Court’s ruling sets a clear precedent — but the real legal battle now centers on whether Pung even owed the tax in the first place. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/cf300de7545b3f2f