Homeowners Losing Property Over Unpaid $400 Tax Bill
Laws allow banks, local government to sell homes if owners fall behind
Tax debts as small as a few hundred dollars can mean losing homes, according to a report by the National Consumer Law Center.
State laws allow local government to seize and sell homes to banks if the owners have an outstanding tax bill of as little as $400, the Associated Press reports.
From the AP report:
The rules for property tax sales can be confusing, especially to elderly people who can't keep track of their finances and people in minority-heavy communities that were targeted by subprime lenders.
The NCLC’s report suggests that state governments should make it easier for homeowners to retake their homes after a tax lien and allow people to pay back taxes on an installment plan.
To read more about how the laws work against homeowners, click here.
In addition to the NCLC’s report, a study by the Federal Reserve suggests African Americans will face lasting financial damage from the crisis.