SCOTUS rules government can’t take more than what’s owed from property owners. Learn what states need to do to reform their unconstitutional laws.

States Are Ending Home Equity Theft

In the last few years, states have started to end home equity theft. Such reforms have consistently attracted support from a variety of groups across the ideological and political spectrum. For example, a 2021 bill in North Dakota passed unanimously. And when the Supreme Court heard a case challenging home equity theft in Minnesota, 26 amicus briefs on behalf of a wide array of groups, including AARP, the ACLU, AFP, Cato, Public Citizen, the National Association of Realtors, and the U.S. Chamber of Commerce, called for the Court to hold that the practice was unconstitutional. On May 25, 2023, the Supreme Court unanimously held that the government violates the Constitution when it takes home equity without compensation. Now, it is up to the states to fix their laws to comply with the Constitution and basic fairness. One model bill can be found here.