“because she no longer held any title to the property or even had a mortgage obligation anymore.”
The title was forcibly taken from her. But equity cannot be taken without due process.
As to a mortgage I have read numerous articles and briefs and only one article mentions a mortgage. All others refer to her equity.
If she was underwater before the seizure due to a mortgage and tax debt she should get nothing even if the mortgage was cancelled on seizure.
OTOH, the law should not be cancelling the mortgage to benefit the government.
Under Minnesota law she no longer held any title to the property or even had a TAX obligation anymore.
From my reading of the court decision, the Minnesota statute says she effectively forfeited the property in exchange for a cancelation of the tax obligation. It's not the court's problem that she didn't take into account the value of the property.