U.S. Supreme Court to Hear Michigan Foreclosure Case That Could Reverberate in Detroit

Real Estate attorney Alexander Lycoyannis was quoted in a Crain's Detroit Business article about a U.S. Supreme Court case, Pung v. Isabella County, that could reshape how Michigan counties handle tax foreclosure proceeds. The case examines whether governments may keep excess tax auction proceeds and whether counties must determine and return a property's fair market value. It implicates the Fifth Amendment's Takings Clause and Eighth Amendment's Excessive Fines Clause, and a ruling in favor of the Pung family could have significant implications for Detroit and Wayne County. Mr. Lycoyannis, who produced a Holland & Knight Real Estate Unlocked podcast episode previewing oral arguments, expressed he's interested in how far the Supreme Court will go in its decision.

"I'm going to be curious if the court is going to try to lay out some sort of process," he said. "Or if the court is going to say, 'Look, Isabella County, you've got to give them the fair market value (and) however you decide to do that is up to you.'"

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