Cutting back on foreclosures -- the tax-sale kind
June Arney reports today about a bill to cut down on the number of homes subject to tax sales:
Responding to cases in which local governments -- primarily Baltimore -- have foreclosed on homes over small debts, including unpaid water and sewer bills, legislators have coalesced around a bill that would increase the threshold for debts that can trigger a tax sale, cap attorneys fees and provide a safety net for the needy. ...As drafted, the bill would increase the minimum debt that could trigger a tax sale from $100 to $250, and cap attorney fees at between $1,300 and $1,500, depending on the status of the case.
Readers with good memories will recall that The Sun brought to light the fact that "at least 400 city homes were lost over debts other than property taxes during a recent three-year period." Much of the foreclosure-prevention focus has been on mortgages, but the city's tax-sale numbers show that homeowners lose their property over unpaid water bills, alley repaving charges and other fees, too.
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Comments
State/Federal should give some incentives to encourage first time owners and 2008 home buyers.
Posted by: MDnewhome | March 7, 2008 9:04 PM
No need for incentives - just line up for foreclosure auction.
Posted by: JoJo | March 8, 2008 8:34 AM
MD first time home buyers already get a break on taxes, titile, and recordation fees. Rates are also at incredible lows! Why should the government give MORE money to buyers right now?
Let's not forget that if people are allowed to buy a home, they will, regardless of if they can afford it or not. Excessive federal subsidies only encourage people who are teetering on the brink of being able to afford a home, and why would you want to encourage those people to buy a home? (It's like rewinding a VHS tape.... you're going to end up seeing the same thing all over again)
Posted by: Jonathan Benya | March 8, 2008 8:40 AM