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This is exactly what is happening when these states take people’s homes to cover delinquent real estate taxes.
For example, when 93-year-old Minnesota woman Geraldine Tyler failed to pay roughly $2,300 in property taxes, Hennepin County foreclosed on her Minneapolis condo and sold it for $40,000. Instead of refunding her the $25,000 that was left after paying the delinquent taxes and related costs such as penalties and interest, the government kept all of the money for themselves.