Yup. The cops' immunity needs to be changed drastically. If they do anything outside the scope of their lawful rights and responsibilities they need to be treated just like the rest of us: personally liable for their actions. That means if you search a car, arrest a suspect, harass a citizen - and you aren't absolutely, completely justified in doing so - then you lose your house. Why do these people get to play by different rules than the rest of us?
Are people's homes regularly confiscated if they break into cars or harass people?
I'm unaware of any legal code, federal or state, which contains "loss of house" as a scheduled penalty for a misdemeanor - or even a felony.