by Billy Binnon at Reason
Gloria Gaynor had almost finished paying off her house in Upper Darby, Pennsylvania. But she will not see a dime in equity.
In yet another example of what is colloquially known as home equity theft, a 91-year-old Pennsylvania woman has lost her home—and all of its worth—over a small tax debt. But the case just outside of Philadelphia is a particularly vivid illustration of a predatory and gruesome practice that the Supreme Court broadly ruled unconstitutional in 2023.
In 2020, Gloria Gaynor (not the disco queen) forewent her yearly trip to the tax office during COVID-19, recounted Jackie Davis, her daughter, to the local ABC affiliate for its excellent report on the story. Gaynor’s faculties noticeably declined around then, according to Davis. Even still, the Upper Darby resident returned in 2021 to pay her property taxes, her attorney said, under the impression that the pause in enforcement meant the government would apply her money toward the previous year. Instead, it went to 2021, and her debt from 2020 remained intact.
As these things go, it continued to grow. Her $3,500 bill ultimately reached $14,419 with penalties, interest, and fees. The government sold that debt to a real estate firm, the CJD Group, which then acquired the deed to the home.
The rub is that the home is worth over 17 times that. Yet Gaynor—who had nearly paid off the mortgage—will not see a dime in equity, despite that she owed the government $232,000 less than what the home is ultimately worth.
Regular Reason readers may be familiar with Tyler v. Hennepin County,…
Continue Reading