A Michigan family owed $2,242 in back taxes. The county took their home. It sold the house at auction for $76,008. A buyer later flipped it for $195,000. The family got almost nothing.

On Monday, the Supreme Court said that is the law.

The nine justices voted together. They ruled that homeowners are not owed the full price of a home sold at a tax auction. You get what is left. The government keeps its share.

Justice Samuel Alito wrote the ruling. He said forcing counties to pay full market value puts too much strain on local governments. It could break the tax sale system.

"The traditional rule, under which the taxpayer receives only the difference between the auction sale price and unpaid taxes, is 'just,'" Alito wrote.

But the court did not give the county a full win. The justices said the auction must be run fairly. They sent the case back to lower courts. Those courts will now check if Isabella County, Michigan, did that.

"The case isn't over," said Larry Salzman of the Pacific Legal Foundation. His group helped the family. "The Pungs won the right to continue their fight in the lower courts."

The Pung family lived in a ranch-style home in Isabella County. The county said they owed back taxes. When they did not pay, the county went to court and took the home.

At the tax auction, the house sold for $76,008. But the home was valued at nearly $200,000. A buyer picked it up cheap and flipped it for $195,000. The Pungs say they were cheated.

The family argued that the Fifth Amendment protects them. That part of the Constitution says the government cannot take your property without fair pay.

The court did not agree. Alito said tax auctions are built to be fast and simple. Requiring full market value would slow the whole process down.

Two justices, Clarence Thomas and Neil Gorsuch, wrote their own opinions. They said the whole tax seizure system might not be allowed under the Constitution. But they did not stop the ruling.

Michigan's rules did not help the Pungs either. The state does not let buyers walk through a home before the auction. Buyers must also pay cash within two hours. The family said those rules kept the price low.

The county's attorney, Matthew Nelson, said the sale followed every rule. "Communities need all property owners to pay their fair share," he said. "Foreclosure is a tool that needs to remain in their toolboxes."

This case follows a big 2023 Supreme Court win for homeowners. Three years ago, the justices ruled that counties cannot keep extra money from a tax sale. That case involved a 94-year-old woman in Minnesota. Her county sold her condo after she owed just $2,300 in taxes. The county kept the extra $40,000.

After that 2023 ruling, almost every state changed its tax sale laws.

The AARP backed the Pung family. The group noted that some states now require the government to hire a real estate agent before selling a seized home. That helps the owner get a better price.

In Texas, counties can also seize and sell homes for unpaid taxes. Monday's ruling makes clear that the big question is not the price the owner gets. The question is whether the sale was run fairly.

In South Texas, property taxes keep going up. Many families in Starr County and the Rio Grande Valley own homes passed down through the family. If they fall behind on taxes, the county can take that home. It can sell it at auction for whatever it gets.

The Pungs did not get the win they wanted. But the fight goes on. A lower court will now decide if the Isabella County auction was fair.

For now, the law is clear: fall behind on taxes, and the government can sell your home at auction. You get the leftovers.