If that's the loophole, then how does it not apply just as well to all searches and seizures? Why can't cops just show up at a house, search it, take whatever they want, and leave it up to the owner to prove they're the owner or try to fight it in court after the fact? Of course, that's a rhetorical question, because that exact thing does routinely happen.
So the cops just have to declare that they believe the property has been used for illegal purposes, then they can search your house and take whatever they want. That's not much of a barrier.