Anyone heard of Home Equity theft?

[proximawave]

https://abc13.com/home-equity-theft-supreme-court-case-geraldine-tyler-hennepin-county/13299379/

Story from last year, but this is nuts. This is up there with civil asset forfeiture. Basically if there is any unpaid property taxes, the local government sells it at auction and even if there are any profits, they keep it.

 

[Lead Belly]

What they used to do was auction off the tax debt, thereby granting a lien on the property that accrued interest , until paid or property was sold.

Now they auction of the land deeds for unpaid taxes in many states. I bought some land that way that I've never visited by a lake in Az. Tax bill is due in Oct there, if unpaid by January- to auction it goes. It's easy to overlook a tax bill due to life circumstances, etc.

 

[G O B]

About 12 States still do that. Sometimes for very small debts.

 

[Axxe55]

About 12 States still do that. Sometimes for very small debts.

SAD THING IS MOST PEOPLE BELIEVE THEY ACUALLY OWN THEIR PROPERTY!COUNTY AND SCHOOL TAXES ARE STE-SPONSERED THEFT!

 

[Eli]

This is normal in a foreclosure - you lose it all.
Michigan is notoriously aggressive in collecting property taxes, I believe they're among the states that require payment twice a year. Some states auction property within months of an unpaid bill, with little notice; Texas usually takes years and there is a reclamation period.
After years of working in real estate, I've noticed there is a substantial percentage of the population that refuses to accept reality when it comes to losing their house. If you can't pay your mortgage, taxes, HOA, etc., you will eventually loser your house! Yet these people will lose substantial equity in their house because they refuse to accept they're going to lose it and don't sell it and walk away with a check.

Eli

 

[TheDan]

In TGT tradition here is a vaguely relevant video with no context, opinion, or value added by myself.

 

[Texasgordo]

In TGT tradition here is a vaguely relevant video with no context, opinion, or value added by myself.

Should have started another thread

 

[Eli]

In TGT tradition here is a vaguely relevant video with no context, opinion, or value added by myself.

This dolt is supposed to be an attorney? Seriously? He's clueless about the concept of foreclosure, and outright wrong about automobile repossession - when the repo man takes your car, you lose it all!
Oh, he's a TaXaTiOn iS ThEfT tard. No it makes sense.
It's not 'theft' if you lose your equity as a result of legal action that you can stop to at any point. Pay your bills, you won't have a problem - if you actually have equity, you can refinance or sell the property.
Good luck trying to enforce this ruling in Texas.

Eli

 

[TheDan]

This dolt is supposed to be an attorney? Seriously? He's clueless about the concept of foreclosure, and outright wrong about automobile repossession - when the repo man takes your car, you lose it all!
Oh, he's a TaXaTiOn iS ThEfT tard. No it makes sense.
It's not 'theft' if you lose your equity as a result of legal action that you can stop to at any point. Pay your bills, you won't have a problem - if you actually have equity, you can refinance or sell the property.
Good luck trying to enforce this ruling in Texas.

Eli

You seem to be very passionate about it.

 

[mroper]

This dolt is supposed to be an attorney? Seriously? He's clueless about the concept of foreclosure, and outright wrong about automobile repossession - when the repo man takes your car, you lose it all!
Oh, he's a TaXaTiOn iS ThEfT tard. No it makes sense.
It's not 'theft' if you lose your equity as a result of legal action that you can stop to at any point. Pay your bills, you won't have a problem - if you actually have equity, you can refinance or sell the property.
Good luck trying to enforce this ruling in Texas.

Eli

He is a lawyer in Michigan the State laws could be different there. He generally practices lemon law and dealer deception there.

 

[Dredens]

Like I always tell people, doesn’t matter if you rent or own, you still pay and answer to a landlord. Only difference being one is private and one is the government.

 

[thescoutranch]

In Texas, the county files a lien against the property for the tax debt. This lien wipes out all existing liens on the property, such as mortgages, second mortgages, hoa, etc..

If I remember right, the tax lien does not dissolve in IRS lien, so, if you purchase property at a tax lien sale, you inherit the IRS lien. (Not sure if this part is 100% right, but this is the way I remember it.)

At the tax sale, the opening bid is the taxes due on the property. Anything in excess of the opening bid, that surplus goes back to the property owner.

The property owner has six months to have the sale rescinded by paying a purchaser the amount paid at auction and an additional 25%. If the property is homestead, agricultural, or mineral rights, then the person who was foreclosed on has up to two years to rescind the sale by paying the auction amount, +25% above the auction price.

 

[Axxe55]

Like I always tell people, doesn’t matter if you rent or own, you still pay and answer to a landlord. Only difference being one is private and one is the government.

SADLY THIS IS VERY TRUE!