A homeless 66-year-old grandmother is suing a New England city for “home equity theft” after her home was seized for a tax debt and sold but her equity in the property was not refunded to her. The legal action takes aim at what some call “home equity theft,” which is widespread in Massachusetts, according to the Sacramento, California-based Pacific Legal Foundation (PLF), a public interest law firm that is representing the woman free of charge. PLF says it is committed to ending home equity theft across the country. The legal complaint (pdf) in the case, Foss v. City of New Bedford, was filed March 29 in Massachusetts Superior Court in Bristol County, Mass. In addition to New Bedford, Boston-based real estate investment company Tallage Davis LLC is named as a defendant. On its website, Tallage Davis characterizes its work as a public service, saying it “purchases past due obligations of municipalities and …