Report: Some lose homes over as little as $400

[Omaha Steve]

Source: AP-Excite

By DANIEL WAGNER

WASHINGTON (AP) - The elderly and other vulnerable homeowners are losing their homes because they owe as little as a few hundred dollars in back taxes, according to a report from a consumer group.

Outdated state laws allow big banks and other investors to reap windfall profits by buying the houses for a pittance and reselling them, the National Consumer Law Center said in a report being released Tuesday.

Local governments can seize and sell a home if the owner falls behind on property taxes and fees. The process helps governments make ends meet at a time when low property values and the weak economy are squeezing tax revenue.

But tax debts as small as $400 can cause people to lose their homes because of arcane laws and misinformation among consumers, says John Rao, the report's author and an attorney with NCLC.

FULL story at link.



Read more: http://apnews.excite.com/article/20120710/D9VU0CH80.html

[L0oniX]

1. Even when your home mortgage is paid in full you can still lose it.

Sick greedy bastards.

[FarCenter]

3. Normally the mortgage servicer collects the mortgage, tax and homeowners insurance as one payment

And then sends the tax payment to the municipality. That way, if you are current on the mortgage, you are also current on the taxes.

Some sleazy lenders do not forward the tax payment, which may result in a tax lein being placed. Some subprime lenders do not collect the tax as part of the payment, in which case the homeowner can get into trouble by not paying the separate tax.

Big banks are not so much in this business. Around here, it is real estate dealer/developer friends of the sheriff, judges, and other politicians who get the inside track and grab these opportunities.

[lovuian]

2. this is SO WRONG !!!

Thieves!