Possible claim for lost equity after a tax deed (post-Tyler)
Cont'l Res. v. Fair, 317 Neb. 391 (2024)
In plain words
After Tyler v. Hennepin County, the Nebraska Supreme Court held that an owner whose property was taken by tax deed for a much smaller debt may pursue a takings claim for the lost equity (Continental Resources v. Fair, 2024). Nebraska’s statutes on surplus after a tax deed were not reviewed in this pass.
Who is protected
Former owners of Nebraska property lost through a tax deed.
When it applies
- Only in Nebraska.
- Only after the foreclosure sale.
- Only if you are behind on property taxes.
What you can do
Talk to a lawyer about a takings claim
Bring your tax deed papers and proof of the property’s value.
Open the toolRead your state guide and find free help
Open the state page for the process, deadlines and legal-aid contacts in your state.
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Honest limits
- The court sent the claim back for more proceedings; it did not award money, and deadlines for such claims may apply.
- This is general education, not legal advice. Laws change and details matter — check the current official text or talk to a legal aid lawyer or HUD-approved housing counselor.
The law
- Court decisionContinental Resources v. Fair
Cont'l Res. v. Fair, 317 Neb. 391 (2024)
What it says: After Tyler, a takings claim for lost equity after a tax deed may proceed.
Read the official texthttps://www.courtlistener.com/opinion/10054821/continental-resources-v-fair/
Court cases
- Homeowner wonCited for this rightContinental Resources v. Fair
Cont'l Res. v. Fair, 317 Neb. 391 (2024)
after Tyler, an owner whose property was taken by tax deed for a smaller debt may pursue a takings claim for the lost equity
- Homeowner wonCited for this rightTyler v. Hennepin County
Tyler v. Hennepin County, 598 U.S. 631 (2023)
a government that sells a home for unpaid taxes and keeps the value beyond the tax debt takes property without just compensation
- Homeowner wonSame topicHall v. Meisner
Hall v. Meisner, 51 F.4th 185 (6th Cir. 2022)
a homeowner's equity in property taken for a smaller tax debt is protected property, and taking it without compensation states a federal takings claim
- Homeowner wonSame topicJones v. Flowers
Jones v. Flowers, 547 U.S. 220 (2006)
when mailed notice of a tax sale is returned undelivered, the government must take additional reasonable steps to notify the owner before selling the property
- Homeowner wonSame topicMennonite Board of Missions v. Adams
Mennonite Bd. of Missions v. Adams, 462 U.S. 791 (1983)
a person with a recorded interest in property is entitled to notice by mail or equally reliable means before a tax sale, and publication or posting alone is not enough
- Homeowner lostSame topicPung v. Isabella County
Pung v. Isabella County, No. 25-95, slip op. (U.S. June 23, 2026)
after a fairly conducted tax sale, the government owes the former owner the surplus from the sale price, not the property's fair market value
- Homeowner lostSame topicMartins v. BAC Home Loans Servicing, L.P.
Martins v. BAC Home Loans Servicing, L.P., 722 F.3d 249 (5th Cir. 2013)
a mortgage servicer acting for a properly assigned mortgagee may foreclose in Texas without possessing the original note, and an oral promise to modify a large loan is not enforceable
- Homeowner lostSame topicMilton v. U.S. Bank National Ass'n
Milton v. U.S. Bank Nat'l Ass'n, 508 F. App'x 326 (5th Cir. 2013) (per curiam) (unpublished)
an agreement to delay a Texas foreclosure falls within the statute of frauds and must be in writing to be enforced
Related rights
Right to redeem a tax sale until the tax deed application
Neb. Rev. Stat. § 77-1824
After your property’s taxes are sold at a Nebraska tax sale, you (or anyone with an interest) can redeem by paying the county treasurer the certificate amount, later taxes and interest. The right ends when the buyer files a tax deed application with the treasurer (at least three years after the sale in most cases).
Read this rightThe government cannot keep your home equity beyond the tax debt
U.S. Const. amend. VTakings Clause
If your home is taken or sold to pay property taxes, the government may collect what you owe, but it may not keep the extra value. Keeping the surplus is a "taking" of your property without just compensation, which the Fifth Amendment forbids (Tyler v. Hennepin County, 2023). You may be able to claim the surplus, but you usually must follow your state's claim process and deadlines.
Read this rightThe right to real notice before the government takes or sells your home
U.S. Const. amend. XIV, § 1Due Process Clause
Before a state or county sells your property — for example at a tax sale, or through a court foreclosure — the Constitution requires notice that is reasonably likely to actually reach you. If the government knows your address, publishing a notice in the newspaper is not enough. If a mailed notice comes back unclaimed, the government must take extra reasonable steps to reach you, if it practicably can.
Read this rightAfter a discharge, creditors cannot collect the wiped-out debt from you
11 U.S.C. § 524(a)(2)
A bankruptcy discharge wipes out your personal liability for most debts in the case. After that, the law forbids creditors from suing, calling or otherwise trying to collect a discharged debt from you personally. A court can hold a creditor in contempt if there was no fair doubt that its conduct was barred.
Read this rightRenters get at least 90 days' notice after a foreclosure
12 U.S.C. § 5220 note(Pub. L. 111-22, div. A, § 702(a)–(b))
If you rent a home that goes through foreclosure, the new owner must give you a notice to move at least 90 days before you have to leave. If you have a real (bona fide) lease signed before the foreclosure notice, you can usually stay until the lease ends. The exception is when the new owner will live in the home; even then you still get the 90 days' notice.
Read this rightFair handling of your escrow account
12 C.F.R. § 1024.17(c)(1)
If your servicer collects money for taxes and insurance (escrow), it must pay those bills on time as long as you are not more than 30 days behind. It must review the account every year and send you a statement. It cannot keep more than a small cushion (one-sixth of a year's payments), and it must refund a surplus of $50 or more within 30 days of the review. When you pay off the loan, it must return what is left within 20 business days.
Read this right