08.20.08
Counties Should Use Tax Sales Against Irresponsible Lenders
As an educator, I often teach about the proverbial Government Rights, and the right of taxation. We all know that real estate taxes are a “first lien” on real estate. That foreclosure of real estate taxes will wiipe out even a first mortgage. Well, I believe its time for the Counties to exercise that right against neglectful lenders. In tens of thousands of cases, Lenders loaned more money than properties are worth, and then taken them back in foreclosure. Once the lenders foreclosed, it became their responsiblity for upkeep and maintenance on the home; including mowing the grass, keeping the property safe, and paying property taxes. When REO lenders fail to maintain properties and pay taxes, local communities suffer, surrounding property values are reduced, neighborhoods decline, and the county not only loses tax base, but ends up having to deal with the problems.
I recently saw a news report where a neighbor called the local tv station complaining about an unattended swimming pool at a foreclosed home. Its fence had fallen down, water had turned green with mold and slime, and stank due to lack of care. The neighbor had bothered to located the lender-now-owner that had foreclosed, explaining the problem, but to no avail. The tv station picked up the story as a human interest story, talking about the dangers to children and pets in the neighborhood, and pointing out that this was not an uncommon problem. After the tv anchor put the story out, the lender finally complied in fixing the problem. But this is just one case. In neighborhoods all over, foreclosed houses are a huge problem.
Using delinquent tax sales to sell properties to someone who will take care of them and start paying taxes makes sense. Filling the County coffers with money owed, makes sense. Counties should use tax sales and may even have a responsibility to do so, when foreclosing lenders are negligent in taking card of property. Counties please - take the properties tax forfeit so the public will not have the expense. Take the properties before the buildings deteriorate beyond repair so no one wants to buy them. It is your right. It is your duty.