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Man has house sold and left with nothing over $134 tax bill

M

mchammer187

Diamond Member
http://www.washingtonpost.com/sf/investigative/2013/09/08/left-with-nothing/?hpid=z1



On the day Bennie Coleman lost his house, the day armed U.S. marshals came to his door and ordered him off the property, he slumped in a folding chair across the street and watched the vestiges of his 76 years hauled to the curb.

Movers carted out his easy chair, his clothes, his television. Next came the things that were closest to his heart: his Marine Corps medals and photographs of his dead wife, Martha. The duplex in Northeast Washington that Coleman bought with cash two decades earlier was emptied and shuttered. By sundown, he had nowhere to go.

All because he didn’t pay a $134 property tax bill.
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The worst part is this though the guy owned his house outright yet

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.
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Absolutely disgusting that he doesn't receive the remaining equity.
 
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just read about shit like this. It's a hot new thing company's are doing. they buy up tax liens then forclose on the property.

they buy the tax lein, add in huge amount of fee's and sue.

its a major racket.


lol see the article explains it. its disgusting that it is happening.
 
As you stated; he refused to pay his taxes.

Local governments will send out notices every few months when the back taxes are not paid.

How many years went by that he did not pay the taxes on the property? 😕
 
EagleKeeper said:
As you stated; he refused to pay his taxes.

Local governments will send out notices every few months when the back taxes are not paid.

How many years went by that he did not pay the taxes on the property? 😕
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If the tax bill was only $134 it couldn't have been that long for a place that's worth $200k almost.
 
thraashman said:
If the tax bill was only $134 it couldn't have been that long for a place that's worth $200k almost.
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According to the article, after the tax lien is sold, the owner of the property is legally entitled to a six-month period to repay the lien (with interest) before the holder of the lien is able to foreclose.

Also, according to the article, the owner of the house forgot to pay the property taxes in 2006 and his son did not pay the full amount until 2009. That's three years of non-payment. As much as I want to feel bad for this man, three years of non-payment is a very long period.

Regarding the statement, "stripped of the equity because tax lien purchasers are entitled to everything," I am unsure if what the article is conveying is true. While tax lien holders may have preference over mortgage holders in order of repayment, laws are typically written so that neither tax lien holder nor mortgage holders receive a windfall during a foreclosure. The tax lien holder typically will sell the property, recover the amount they're owed, then the mortgage holder, and so on. It's unfortunate that the article did not cite a source for the statement.
 
Couldn't he have settled the tax lien? Usually the lien holder has to send x amount of notices before foreclosure. There would have been a trial as well. Seems like maybe the guy was trying to stand on principle and failed?
 
etrigan420 said:
Did you read the article and are purposely being a cock, or did you not read it and are accidentally being a cock?
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I read the article.

Taxes were not paid; Property owner ignores the notices for the property tax.
government files a tax lien.

Property owner ignores the notices for the tax lien.
Property gets sold due to the tax lien.


So why are you being so concerned about cocks; He was not raising any chickens that is indicated.
 
Since he didn't pay property tax for three years, it is acceptable for the local government to seize the house (although sending armed U.S. marshals smells like police state), but...

mchammer187 said:
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.
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Not getting the remained equity is insane! WTF! This is how 1% rapes the 99%.
 
Disgusting how these pieces of shit can do this. They should never have sold the tax lien and taken away his house for $134. What they did was completely wrong and inexcusable.

They need to expose the names of all the heartless bastards involved and publicly shame these people.
 
waggy said:
just read about shit like this. It's a hot new thing company's are doing. they buy up tax liens then forclose on the property.

they buy the tax lein, add in huge amount of fee's and sue.

its a major racket.


lol see the article explains it. its disgusting that it is happening.
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It's not new. In fact it's so old I thought this had all been stopped because of such stories. I'm surprised some places still allow it.

Fern
 
Thanks for the article very in depth and its part 1 of a three part series.

As far as the subject, shame on us. So much greed.
 
At first, I felt really sorry for this vet.

Then I realized how easy it is to find $140. You have shit in your house. Sell something.

I no longer feel sorry for the fellow.
 
I mean, what are these IRS people supposed to do? Break the law by not enforcing a law that does not have a "...unless it's like a hundred bucks, then forgive it" stipulation?
 
ThinClient said:
I mean, what are these IRS people supposed to do? Break the law by not enforcing a law that does not have a "...unless it's like a hundred bucks, then forgive it" stipulation?
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Fine take his house but at least give him the money the house sold for minus the back taxes.

Also the IRS would not take your house over $200. This is the city government.
 
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Well, to be fair, Obama isn't enforcing laws he doesn't like either, so that doesn't really seem to be a good defense anymore for doing or not doing something.
 
ThinClient said:
I mean, what are these IRS people supposed to do? Break the law by not enforcing a law that does not have a "...unless it's like a hundred bucks, then forgive it" stipulation?
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Put the house up for auction to satisfy the lien. The homeowner should get whatever is left over. The state can even take out administrative costs to pay someone to have the auction. There are other ways to do this without letting this legal theft take place. Greedy bastards but what I have come to expect from society.
 
mchammer187 said:
ThinClient said:
I mean, what are these IRS people supposed to do? Break the law by not enforcing a law that does not have a "...unless it's like a hundred bucks, then forgive it" stipulation?
Click to expand...

Fine take his house but at least give him the money the house sold for minus the back taxes.

Also the IRS cannot take your house. This is the city government.
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rudder said:
Put the house up for auction to satisfy the lien. The homeowner should get whatever is left over. The state can even take out administrative costs to pay someone to have the auction. There are other ways to do this without letting this legal theft take place. Greedy bastards but what I have come to expect from society.
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So what then is the incentive to anyone to pay their taxes on property that is clear, to the government

PS: the IRS can act the same way. Put a tax lien on your property and then sell off the lien.

Usually if you have a mortgage; the lender will then cover the taxes and start an escrow.
 
That's the one thing that I absolutely hate about property taxes. You work your ass off and pay your property off and if you miss one damn small tax payment, they take your stuff and can keep far more than just the owed taxes.

Just scrap this shit and put a sales tax or something else out there. Property taxes, for this reason, just suck!!!
 
Riparian said:
Regarding the statement, "stripped of the equity because tax lien purchasers are entitled to everything," I am unsure if what the article is conveying is true. While tax lien holders may have preference over mortgage holders in order of repayment, laws are typically written so that neither tax lien holder nor mortgage holders receive a windfall during a foreclosure. The tax lien holder typically will sell the property, recover the amount they're owed, then the mortgage holder, and so on. It's unfortunate that the article did not cite a source for the statement.
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Also calling BS on this.

Engineer said:
just scrap this shit and put a sales tax or something else out there. Property taxes, for this reason, just suck!!!
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You would hate the authoritarian policing needed to ensure sales tax revenues even more.
 
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I don't understand how they are legally allowed to take any of the money above and beyond what is owed + processing fees for the foreclosure and any subsequent sale.

The man owed $5k for the liens. The bought and paid for house is worth $197k (no mortgage is owed). Even if it only sells for $125k at auction, how does he not get at least $100k of that money once all is said and done?

Something doesn't make sense, and it certainly does suggest that the local government actions are borderline criminal.

Better yet, why couldn't the man and his son simply try to sell the home before the final deadline?
 
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