The high court ruled against a sweeping argument from a Michigan family whose house was sold for less than half its open-market value to cover an unpaid tax bill of just over $2,000. They argued the foreclosure violated their rights because the house would have fetched a higher price of nearly $200,000 if sold through typical real-estate channels.
The Supreme Court unanimously found that people aren't entitled to recoup a “hypothetical fair market value” of homes sold at auction to cover unpaid taxes. Auctions are designed to be a relatively quick way to collect unpaid taxes, and requiring local governments to get the higher fair-market value might be so complicated they have to stop using them, Justice Samuel Alito wrote.
