Nebraska man who lost his home over $588 debt is getting it back
A Nebraska man will regain title to his home years after losing it due to a $588 tax debt, one of his attorneys said Thursday.
Kevin Fair of Scottsbluff has been embroiled in a legal dispute since 2018, when he lost title to the home he owned for nearly three decades after failing to pay $588 in back property taxes. Scotts Bluff County sold the lien to a private investor, as permitted by Nebraska law at the time.
When Fair was unable to repay the money, along with interest and fees, the title went to the investor, although Fair was allowed to remain in the house while the legal dispute played out.
The Nebraska Supreme Court ruled against Fair in 2022, but a year later the U.S. Supreme Court ordered the state court to reconsider the case. In August, the Nebraska Supreme Court ruled that Fair must retain title to the house.
Fair’s law firm, Pacific Legal Foundation, said Fair and the investor resolved their dispute amicably, ending the legal battle.
The case confirmed that home equity “is protected by the Constitution,” said Christina Martin, senior attorney at the Pacific Legal Foundation. As for Fair, the ruling “in all likelihood protects him from homelessness,” she said.
A message seeking comment was left Thursday with a Scotts Bluff County attorney.
Fair and his wife Terry had already paid off the mortgage on their home in Scottsbluff, a city of 14,300 in far western Nebraska, in early 2010. But in 2013, Terry was diagnosed with multiple sclerosis and Kevin quit his job to care for her. The couple fell behind on their property taxes and owed $588.
The county placed a lien on the house and reported the violation in the newspaper. In 2015, the county sold the tax lien to the private investor, who paid taxes on the house for three years.
When the investor called on the exchanges to pay the accrued $5,268 in taxes, interest and fees, they were unable to do so. Scotts Bluff County transferred title and equity to the investor in 2018.
Kevin Fair’s lawsuit argued that while the state can collect on his debts, he cannot seize the house or its equity in excess of the amount owed — $54,000 in this case.
The victory in court is bittersweet for Kevin Fair. His wife died in 2019 and he suffered a stroke last month. Martin said he needs a driveway at the house to accommodate him. A GoFundMe account had raised nearly $10,000 as of Thursday afternoon.
Nebraska changed its law in 2023 so that homeowners no longer risk losing their wealth due to unpaid property taxes.