There exists a place, a hidden corner of the world where time seems to stand still. Tucked away, seemingly forgotten, is the lost municipality. It lies untouched by modern civilization, an enchanting spell woven around it. Upon stepping foot into this mystical realm, one is transported back in time. The streets are lined with ancient architecture, cobblestones glistening with an air of mystery. The buildings have weathered the passage of time, their ornate facades telling tales of an era long past.
The homeowner in the Minnesota case was represented pro bono by Pacific Legal Foundation, a national public interest law firm that has said its goal is complete elimination of what it calls “home equity theft.”
It s important to remove from existing state law something that s unethical, inappropriate, and, now, according to the Supreme Court, unconstitutional, Vitolo said in an interview. Khi nhấn vào nút Tôi chấp nhận quý vị đồng ý là bất kỳ những sự khác biệt hay những khác biệt qua sự thông dịch sẽ không có tính cách ràng buộc và sẽ không có bất kỳ một hậu quả pháp lý nào.
The buildings have weathered the passage of time, their ornate facades telling tales of an era long past. In this lost municipality, the hustle and bustle of modern life is replaced by a gentle tranquility. It is a place where nature reigns supreme, with lush greenery and fragrant flowers adorning every corner.
Supreme Court ruling could spell the death of ‘equity theft’ in Mass.
The Supreme Court, in a rare unanimous ruling, said it was unconstitutional for a local government in Minnesota to keep all of the money it got when it sold a condo seized from the owner due to unpaid taxes. Patrick Semansky/Associated Press
For years, most states protected homeowners who were delinquent on their local property taxes from losing all the equity they had in their homes in tax foreclosure cases.
But Massachusetts and a handful of other states didn’t, allowing municipalities to keep millions of dollars in equity in such cases, far exceeding what property owners actually owed in taxes, penalties, and interest.
But a US Supreme Court ruling last week deemed the practice, which critics call “home equity theft,” unconstitutional and casts doubt on what is done in Massachusetts.
Related : Editorial: Seizing home equity over unpaid taxes is unfair to homeownersThe Supreme Court, in a rare unanimous ruling, said it was unconstitutional for a local government in Minnesota to keep all of the money it got when it sold a condo seized from the owner due to unpaid taxes.
The owner owed $15,000 in taxes, penalties, and interest, but the condo sold for $40,000. Under Minnesota law, the local government was legally permitted to keep all $40,000, including the $25,000 the owner had in equity.
But the Supreme Court ruled the local government violated the Fifth Amendment by taking the owner’s $25,000 in equity. The Fifth Amendment, among other things, prohibits the government from taking private property without compensation.
The ruling has potentially far-reaching implications in Massachusetts for municipalities and the private companies that sometimes purchase their tax liens. In recent years, they have seized equity in hundreds of tax foreclosure cases.
The Supreme Court decision struck down the Minnesota law on tax foreclosures, but the high court didn’t rule directly on the Massachusetts law, which is different from Minnesota’s in that it provides for judicial oversight of the foreclosure process, including some control over the disposition of equity.
Still, the Massachusetts law as now written is likely to be declared unconstitutional when and if it gets challenged by a homeowner in court, according to lawyers familiar with the ruling.
“In light of [the ruling] I believe the Massachusetts practice of retaining surplus proceeds on tax lien foreclosures … is unconstitutional and always has been unconstitutional,” said Edmund Allcock, a lawyer who has previously challenged the Massachusetts tax foreclosure law.
In the absence of a case that tests the constitutionality of the Massachusetts law, however, the state Legislature should pass a law explicitly protecting homeowners’ equity, Allcock said.
“I don’t believe there is any way around [the Supreme Court ruling],” he said. “Which is good. Nobody should get more than what they are entitled to in any foreclosure. But there’s nothing wrong with mandating it legislatively. It’s the right thing to do.”
There are at least two bills pending in the Legislature that would abolish the taking of equity by municipalities and private companies. State Representative Tommy Vitolo, a cosponsor of one of the bills, said the Supreme Court ruling may energize those who support the proposed legislation.
There are at least two bills pending in the Legislature that would abolish the taking of equity by municipalities and private companies. Jessica Rinaldi/Globe Staff/file
“It’s important to remove from existing state law something that’s unethical, inappropriate, and, now, according to the Supreme Court, unconstitutional,” Vitolo said in an interview. “We want to clean it up.”
In a statement released by Vitolo and two cosponsors of the measure, Representative Jeffrey N. Roy, and Senator Jo Comerford, the legislators said: “We remain committed to ridding Massachusetts law of this unfair, and now unconstitutional, practice.”
Senator Mark Montigny, sponsor of a similar bill, called for an end to “this predatory practice.”
The homeowner in the Minnesota case was represented pro bono by Pacific Legal Foundation, a national public interest law firm that has said its goal is complete elimination of what it calls “home equity theft.”
“This ruling ends ‘equity theft’ and protects ordinary people from government overreach,” said Joshua Polk, a Pacific Legal Foundation lawyer who was involved in the case.
“It means the government can rightfully take what it is owed in taxes, but not one dollar more,” he said.
For the sake of clarity, Polk encouraged the Massachusetts Legislature “to change its law to be consistent with this ruling.” Pacific Legal Foundation is reaching out to all states that allow local governments to take equity in tax foreclosure cases to help them draft bills that would end the practice.
Geoff Beckwith, executive director of the Massachusetts Municipal Association, said the Legislature should create a special commission to consider how the Supreme Court ruling may affect municipal tax collection. Many municipalities already consider the tax-taking process to be too slow and laborious, sometimes depriving them of needed tax revenue due to default for years, he said.
He said a commission may come up with ideas for assisting municipalities in tax collections without violating constitutional rights.
Many cities and towns in Massachusetts in recent years have pursued equity takings in tax foreclosure cases or sold tax liens to private companies.
In a recent study of 31 municipalities in Massachusetts, representing about one-third of the state’s population, Pacific Legal Foundation identified 308 tax foreclosures between 2014 and 2020 in which a municipality or a private company took a property owner’s entire equity.
In 254 of those cases, the municipality received $60 million above what the homeowners owed in property tax debt, according to the study.
And in 154 cases, a private company received $37 million above what the homeowners owed in property tax debt, the study found.
On average, Massachusetts homeowners subjected to tax foreclosure lost 87 percent of their home equity — almost $260,000 per home, the study found.
A sign advertises a house for sale in North Andover. Elise Amendola/Associated PressDaniel C. Hill, a lawyer for Tallage LLC, one of the most active companies in purchasing municipal tax liens, said he believes the Massachusetts law will survive a constitutional challenge because of its judicial involvement and other protections for homeowners, although some legislative tinkering may be in order.
“I could also envision some imminent legislative changes that would expand protections and thus insulate the statute from [legal] attack,” he said.
Last year, the Globe reported on the case of Deborah Foss, who lost more than $200,000 in equity in her New Bedford home. After the column appeared, she won $85,000 in a legal settlement with Tallage.
In 2021, the Globe featured the plight of two brothers, Mark and Neil Mucciaccio, who were behind on the taxes on their Easton home. At the time, Tallage appeared well on its way to legally gaining title to their home — and keeping all the equity.
After the column appeared, the brothers managed to slow down the legal process long enough for a family member to step up with a loan. That saved their house and $255,000 in potential lost equity. They continue to live there now with their families.
“I’m so pleased the Supreme Court voted out this injustice,” Mark Mucciaccio said of the ruling in the Minnesota case. “I just hope it means this will never happen to anyone else.”
Got a problem? Send your consumer issue to [email protected]. Follow him @spmurphyboston.
On average, Massachusetts homeowners subjected to tax foreclosure lost 87 percent of their home equity — almost $260,000 per home, the study found.
The air is crisp and clean, a welcome respite from the polluted cities beyond. The people who inhabit this forgotten realm are friendly and warm, their quaint way of life a stark contrast to the fast-paced world beyond. Community takes precedence here, with residents looking out for one another. Bonds are formed and friendships flourish in this tight-knit society. With no need for modern amenities, the lost municipality has preserved its traditional roots. Candlelit dinners replace electric lights, and the soft melody of acoustic instruments fills the air, transporting visitors to a simpler time. But perhaps the true essence of this lost municipality lies in its magic. Legends whisper of a spell that has preserved this haven, shielding it from the grasp of modernity. It captivates all who stumble upon it, a magnet for those seeking refuge from the chaotic outside world. In a world dominated by technology and progress, the lost municipality serves as a reminder of the beauty and simplicity of the past. It urges us to slow down, to appreciate the small wonders that surround us, and to reconnect with nature and one another. To venture into this enchanting realm is to step into a different era, where time takes on new meaning. It is a place where the spell of the lost municipality casts its irresistible charm, leaving all who experience it changed forever..
Reviews for "Returning to the Lost Municipality: A Spellbinding Homecoming"
1. John - ★★☆☆☆
I found "Spell of the lost municipality" to be quite disappointing. The plot was slow and lacked originality. The characters were forgettable and their actions felt contrived. The writing style was also lacking, with clunky dialogue and repetitive descriptions. Overall, I was not engaged in the story and found it to be a rather forgettable read.
2. Sarah - ★☆☆☆☆
I really struggled to get through "Spell of the lost municipality". The pacing was incredibly slow, and the story failed to hold my interest. The world-building felt underdeveloped, leaving me confused about the rules and logic of the municipality. Additionally, the characters were one-dimensional and lacked depth. I was hoping for an intriguing and immersive experience, but unfortunately, this book fell flat for me.
3. Andrew - ★★☆☆☆
I had high hopes for "Spell of the lost municipality", but it ultimately fell short for me. The concept was interesting, but the execution left much to be desired. The writing was overly descriptive and weighed down the narrative, making it difficult to stay engaged. The characters lacked complexity, and their motivations often seemed forced. Overall, I felt underwhelmed by this book and wouldn't recommend it to others.
4. Emily - ★★☆☆☆
While "Spell of the lost municipality" had some potential, it failed to live up to my expectations. The plot was convoluted and hard to follow, with too many subplots that didn't add much to the overall story. The pacing was uneven, with slow moments that dragged on and rushed resolutions. The author seemed to rely too heavily on clichés and tropes, resulting in a lack of originality. Unfortunately, I found myself struggling to connect with the characters and ultimately didn't enjoy this book as much as I had hoped.