See how property tax foreclosure laws allow the government to take homeowners’ equity, beyond what they owe, in the 11 jurisdictions where home equity theft is legal. Select a state from the menu below to learn more from our partners at Pacific Legal Foundation.

Alabama
If an Alabama homeowner does not pay back their tax lien within three years, no matter how small, the government or purchaser of the lien keeps all proceeds from the sale beyond what is owed. Homeowners caught up in this process lose, on average, 99% of their equity. Learn more.
Arizona
If an Arizona homeowner underpays their property taxes, the county will place a lien on the property and auction it to private investors who reserve the right to collect property taxes. If the homeowner can’t pay the debt and fees the investor can take the entire home, no matter how small the debt. Homeowners caught up in this process lose, on average, 99% of their equity. Learn more.
Colorado
If a Colorado homeowner does not pay a tax lien within three years, the lienholder is entitled to take full title to the property and retain any profits from the sale. Colorado homeowners have lost a total of $52 million or more in equity due to this practice. Learn more.
District of Columbia
The District of Columbia permits home equity theft. Washington, D.C. sells tax liens to private investors, who can later file a foreclosure action and take title of a property, keeping all equity beyond what is owed. Learn more.
Illinois
Illinois counties sell tax liens to private investors, who can later file a foreclosure action and take title of the property, keeping all equity. Illinois homeowners have lost a total of $397 million due to this practice. Learn more.
Massachusetts
Massachusetts cities and towns can sell or keep tax liens on properties. The lienholder may file for foreclosure after 6 months, receive the deed to the property and keep any profits from the sale. Homeowners caught up in this process lose, on average, 82% of their equity. Learn more.
Minnesota
Minnesota permits home equity theft. Counties impose tax liens on properties and the county auditor forecloses liens after a three-year period, giving title to the state. Homeowners caught up in this process lose, on average, 90% of their equity. Learn more.
New Jersey
New Jersey permits home equity theft. Cities and towns sell tax liens on properties. The purchaser can later file a foreclosure lawsuit and acquire the profits. For the 650 homes in Pacific Legal’s dataset, homeowners lost a total of $115 million in equity. Learn more.
New York
New York permits home equity theft. Taxing jurisdictions place tax liens on properties. After a certain period, they may foreclose, take the title and keep or sell the property, acquiring any profits. For the 494 homes in Pacific Legal’s dataset, homeowners lost a total of $52 million. Learn more.
Oregon
Oregon permits home equity theft. Counties place tax liens on properties and may seek judicial foreclosure after a certain period of nonpayment. Homeowners caught up in this process lose, on average, 93% of their equity. Learn more.
South Dakota
South Dakota permits home equity theft. Counties may sell or keep tax liens on properties. After a lienholder applies for a tax deed, they receive absolute title. Homeowners caught up in this process lose, on average, 92% of their equity. Learn more.