County Treasurer: 'Investors Exploit Property Tax Law at expense of B/L communities

[Jonn Vidal]

https://dig.abclocal.go.com/wl...

[Bruce Lynn]

I take issue with most of these types of articles.

#1.   Everyone is made aware, multiple times normally when they purchase a house or property that property taxes are due and payable every year.

#2.  Just like any other tax payable, if you don't pay the taxes, bad things can happen.  Don't pay IRS your income taxes, there can be big fines, wage garnishments, liens, and perhaps even jail.  If you own a bar or liquer store and you don't pay the alcohol authority, you get shut down very quickly and may be even personally liable.   If you don't pay the payroll taxes, usually government entities are very quick to shut down that business and again may hold owners personally liable.    So if you don't pay property taxes....you could potentially lose the house/property.

#3.  Our government entities depend on those tax revenues to run their operations...to pay police, fire, teachers, road repairs, and so much more.  While we don't always agree with how the funds are spent, I would argue in many if not most cases there is never enough to do all the things we want to do and need to do...like upgrading water and sewer systems, building new airports, building new schools.  So when people don't pay their property taxes, everyone suffers.

#4.  Probably with property taxes moreso than any other taxes the system is set up to give people plenty of warnings and opportunities to pay or catch up.  Payment plans can take place in some areas.   Maybe more chances than they should get.  Some of the deliquent taxes can be borrowed from others, some borrowed from tax lien investors with 2-3 years to pay it back, and in redeemable deed states, people can purchase their property back from the investor up to 2 years later.  In many places multiple notices are sent out, court dates and notices sent out, and in many jurisdictions where I buy, someone has personally gone to the home and tried to talk to the owner or tenant to let them know what is going on and how to resolve it.  I also see payment plans offered.  No property I have ever purchased had 80 year old grandma in it, that was getting kicked out on the street.  I'm sure it happens, but I think probably pretty rare.

#5.  Many if not most of the properties sold or transfered in one way or another are blighted properties...that need work and cleanup.  Allowing investors to buy, often will get the property cleanup up, rehabbed, rennovated, etc.   Seemed like the cities were often ready to pounce on me as soon as the deed was filed and i became the new owner.  Funny how they took their sweet time to foreclose and the properties were vacant or in disrepair for years, but day 1 I'm getting noticed that they expect me to start cleanup.  That was my plan anyway, but all this often takes some time.

#6.   In my part of the world the foreclosures seem probably pretty equally weighted at least based on common naming conventions.  I'd guess if you studied Texas sales, the foreclosures are pretty representative of the population.   I'd almost bet that too with purchasers.  I was at 2 sales today....I would say the 4 biggest ethnic populations were represented portportionately at the 1st sale.  2nd sale was pretty small county with small population.  All bidders were old white guys from what I could tell, that includes me.  I would guess that county is pretty white though.  Rural farming community and I'm thinking all the foreclosures listed were from caucasian owners.

#7 Now I'm suprised they they have not mentioned women.  While we do have women bidders an most of the sales, and they are winners, I don't think it is normally 50/50 like the population.

While these are headline grabbing stories to write, I think for the most part it is a good system.  Just one of those things that needs to be taken care of.  Not always pretty, but seems to work.  I'd say if people think the system is unfair, easy to start a GoFundMe account and let people raise money privately to pay off the debt.