Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: John Valentine
If I were that 76 years old man, I would have paid my property tax. Then I would not have lost everything dear to me through my own inattention or procrastination. Sure, the story is sad, but it could have so easily been avoided. How many demands for payment did he ignore?

Did you read the article?

"But under the watch of local leaders, the program has morphed into a predatory system of debt collection for well-financed, out-of-town companies that turned $500 delinquencies into $5,000 debts — then foreclosed on homes when families couldn’t pay, a Washington Post investigation found.

As the housing market soared, the investors scooped up liens in every corner of the city, then started charging homeowners thousands in legal fees and other costs that far exceeded their original tax bills, with rates for attorneys reaching $450 an hour.

Property owners in the District risk losing their homes over relatively small amounts in unpaid property taxes. Here’s a look at the process:

If you don't pay your taxes, the District sells a lien for the tax debt to an investor, usually a company. The investor gets a lien.

Families have been forced to borrow or strike payment plans to save their homes.

Others weren’t as lucky. Tax lien purchasers have foreclosed on nearly 200 houses since 2005 and are now pressing to take 1,200 more, many owned free and clear by families for generations.

Investors also took storefronts, parking lots and vacant land — about 500 properties in all, or an average of one a week. In dozens of cases, the liens were less than $500.

Coleman, struggling with dementia, was among those who lost a home. His debt had snowballed to $4,999 — 37 times the original tax bill. Not only did he lose his $197,000 house, but he also was stripped of the equity because tax lien purchasers are entitled to everything, trumping even mortgage companies."

Still taking the "noble" view that you wouldn't have been in a position like his?

81 posted on 09/08/2013 7:23:00 AM PDT by trebb (Where in the the hell has my country gone?)
[ Post Reply | Private Reply | To 11 | View Replies ]


To: trebb
Still taking the "noble" view that you wouldn't have been in a position like his?

Yes. If this unfortunate man had avoided delinquency, he never would have fallen prey to this situation.

People need to pay their real estate taxes; everyone knows the consequences of delinquency. Moreover, a high delinquency rate forces the city to raise rates for everyone, shifting the burden from the negligent to the diligent. I don't support that outcome.

I suport the notion of responsibility and alert self-interest.

I can certainly also understand why the city took the action it did, faced with an unsustainable delinquency rate. I rather suspect that all this publicity has resulted in DC folks waking up - and getting current on their real estate taxes. That's a good thing.

102 posted on 09/08/2013 3:37:58 PM PDT by John Valentine (Deep in the Heart of Texas)
[ Post Reply | Private Reply | To 81 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson