…And Local Municipalities
[this is a work in progress]
The Palisades Fire of 2025
What is equity stripping?
Equity stripping involving state actions to reduce home values is a concerning practice that can negatively impact homeowners. This form of equity stripping occurs when government entities implement policies or actions that effectively reduce the equity in residential properties.
One notable example is the practice of home equity theft, where some states have allowed local governments to seize properties for unpaid taxes and keep the entire value of the home, even if it far exceeds the tax debt. This practice was recently deemed unconstitutional by the U.S. Supreme Court in the Tyler v. Hennepin County case.
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