The Lead Off
- The Ohio Supreme Court will review a case challenging whether Cuyahoga County can keep surplus value from foreclosed homes
- Plaintiffs say their properties were worth far more than their unpaid tax debts
- The case could impact how counties handle tax foreclosure sales statewide
COLUMBUS, OHIO (WOWO) — The Ohio Supreme Court has agreed to hear a case involving Cuyahoga County’s property tax foreclosure process, where homeowners argue the county kept homes worth significantly more than their unpaid tax debts without returning the surplus value.
The case centers on three former homeowners who lost their properties after falling behind on property taxes ranging from several hundred to several thousand dollars.
Property tax foreclosures at issue
Court records show Angelo Craig owed approximately $620 in unpaid property taxes before Cuyahoga County initiated foreclosure proceedings on his home. Similar actions were taken against Angela Taylor and Abraham David for tax debts of $4,655 and $3,384, respectively.
The plaintiffs are not challenging the legality of the foreclosures themselves. Instead, they argue that the county retained property value beyond what was needed to satisfy the tax debt.
According to the lawsuit, the homes were ultimately not sold at auction, meaning no proceeds were distributed to the former owners.
Legal claims before the court
The plaintiffs argue that the county’s handling of the properties violates constitutional protections related to takings and excessive fines under Ohio law.
Attorney Ben Flowers, representing the plaintiffs, wrote in court filings that the practice of retaining surplus equity is widespread and unconstitutional according to The Signal.
“This practice of taking ‘surplus equity’ violates both the Takings Clause and the Excessive Fines Clause of the Ohio Constitution,” Flowers wrote. “Yet this unconstitutional (and unconscionable) practice is widespread in Ohio.”
The lawsuit also claims that similar foreclosures have occurred in thousands of cases across the state, though specific data was not provided in court filings.
County foreclosure process
Under Ohio law, counties are permitted to foreclose on properties when property taxes go unpaid. Homes are typically auctioned, with proceeds used to satisfy tax debts and remaining funds returned to the former owner if a surplus exists.
However, in these cases, the properties did not sell at auction, according to court records. Auction minimum bids reportedly ranged between $12,000 and $27,000, but no cash buyers met those thresholds.
A spokesperson for Cuyahoga County declined to comment on the pending litigation.
Property values and debt comparisons
Court filings show that in some cases, the value of the homes significantly exceeded the unpaid tax amounts. One property reportedly had a market value of approximately $45,000 while the tax debt had grown to about $12,400.
Another case involved a home valued at approximately $90,000, with a tax debt of about $14,000 at the time of foreclosure proceedings.
Supreme Court review ahead
The Ohio Supreme Court will now determine how to proceed with briefing and potential oral arguments. A final ruling could clarify how counties must handle surplus equity in tax foreclosure cases moving forward.
The Takeaway
- The Ohio Supreme Court will review whether counties can retain property value exceeding unpaid tax debts after foreclosure sales or failed auctions.
- Plaintiffs argue Cuyahoga County kept surplus equity from homes that were worth significantly more than the taxes owed, raising constitutional concerns under Ohio law.
- The case could set a statewide precedent for how tax foreclosure proceeds and unsold auction properties are handled in Ohio moving forward.
