New England Farmer Sues Town for ‘Home Equity Theft’ in Federal Court
January 23, 2023 | Massachusetts
After a town in central Massachusetts dramatically seized more than what a farmer owed in property taxes, the farmer is suing the town in federal court for alleged “home equity theft.”
Alpaca farmer Alan DiPietro, an engineer by training who lives outside of Worcester, filed suit (pdf) earlier this month against the town of Bolton, claiming that the seizure constitutes an unlawful taking of his property in violation of the Massachusetts Constitution and the Fifth Amendment to the U.S. Constitution.
When Bolton took DiPietro’s home in December 2021, it had a market value of at least $370,000. The town subtracted his debt of about $60,000 and pocketed the remaining approximately $310,000 in equity.
Massachusetts law permits the government to keep the excess amount. The Pacific Legal Foundation (PLF), which is representing DiPietro, calls this home equity theft. Twelve states and the District of Columbia allow local governments and private investors to seize dramatically more than what is owed from homeowners who fall behind on property tax payments, according to PLF, which issued a December report on the practice, The Epoch Times reported…. (Excerpt from The Epoch Times)
