tag:blogger.com,1999:blog-14963913.post7897779493033303275..comments2023-10-27T20:27:57.900-04:00Comments on Kid Dynamite's World: Reader Input - Delinquent Property Taxes?Kid Dynamitehttp://www.blogger.com/profile/17475987512856310577noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-14963913.post-1880607070898807742010-06-02T17:39:34.749-04:002010-06-02T17:39:34.749-04:00yes anon - that phenomenon was cited a lot about a...yes anon - that phenomenon was cited a lot about a month ago as a source of strength for the retail stocks - cause people were spending on goods instead of mortgages. it's kinda hard to really show conclusive data on it thoughKid Dynamitehttps://www.blogger.com/profile/17475987512856310577noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-26056020962619204422010-06-02T17:37:21.104-04:002010-06-02T17:37:21.104-04:00Another angle on delinquent mortgages that I haven...Another angle on delinquent mortgages that I haven't heard mentioned (although I'm sure it has been somewhere) is the boost to consumer spending this must be creating. Much of the money that would normally be sent to the banks to pay the mortgage is now instead being spent on consumer goods. I don't have the economic chops to figure out what exactly the impact is, but with nearly 5mm mortgages delinquent/in foreclosure, and the average monthly mortgage payment above $1k, it must be significant.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14963913.post-90241925155667531322010-06-02T10:31:49.329-04:002010-06-02T10:31:49.329-04:00Regarding Tax Liens, the exact mechanics vary wild...Regarding Tax Liens, the exact mechanics vary wildly from state-to-state. Some (such as Florida) are highly progressive/aggressive with their collection efforts (auctions totaled $1.2 Billion this year) with generous terms (up to 18%) and rights (superior lien position, right to foreclose after 2 years). Other states offer far less attractive terms, less rights, or refuse to sell liens at all (California). Some states are even more aggressive: in South Carolina or Indiana you can lose title to your property in one year. Iowa offers rates up to 24%. In theory the process benefits savvy investors and the local governments, but the general lack of uniformity in approach dampens some investor interest in all but the most desirable (New Jersey, Florida) states. And, as noted, some states will not sell liens at all. Mortgage companies hate them and lobby against them (having large first liens can wreck even more havoc with your LTV's) but the local governments can really benefit from having the cash on hand.Billy Abshierhttps://www.blogger.com/profile/15627534749227859013noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-32352710476156376242010-06-02T10:27:45.711-04:002010-06-02T10:27:45.711-04:00I may have read over this, but I would imagine tha...I may have read over this, but I would imagine that most of these in foreclosure were paying taxes through an escrow in their monthly payment and not getting a separate tax bill. So when they stop paying the monthly bill, they therefore aren't also paying taxes and insurance. Right?<br /><br />Along those lines, what's going to happen if one of these burns down if the insurance isn't being paid?Taylorhttps://www.blogger.com/profile/07713988433215125181noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-83512209925756673352010-06-02T10:14:38.270-04:002010-06-02T10:14:38.270-04:00anon. hah. yeah - i understand where you're c...anon. hah. yeah - i understand where you're coming from. well, there's no "incentive" at all on this blog - i don't get paid by anyone for anything, save for the generousity of readers donating to my tip jar, so it's certainly not a goal of mine to just click the "publish" button. <br /><br />in fact, it's kinda the opposite. when i write a post i like, I want to not "post over it," because, contrary to the fact that it is very easy to scroll down the page, or to get every post in Google Reader, i think i have a lot of readers who just check in once or twice a week, and may not take the time to scroll.<br /><br />so, i like to highlight posts that I think are worth reading. and i think the "I've Got a Bad Feeling About This," post was funny, intelligent, and worth reading.Kid Dynamitehttps://www.blogger.com/profile/17475987512856310577noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-9635435261791806572010-06-02T10:07:08.439-04:002010-06-02T10:07:08.439-04:00Hi KD,
I enjoy your blog, so I'm saying this w...Hi KD,<br />I enjoy your blog, so I'm saying this with appreciation...but isn't re-linking to articles that you just wrote within the past few hours/day and a half kind of like a band releasing a Greatest Hits album as its 2nd album? Is scrolling down on a computer screen so hard on your readers that you had to re-link to your "I have a bad feeling about this" article that you wrote < 12 hrs ago? Does 12 hrs count as an eternity nowadays? <br /><br />Or are you incentivized (somehow)to churn out new posts? <br /><br />Sent with love,<br />AnonAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-14963913.post-74178874504975132612010-06-02T08:19:46.947-04:002010-06-02T08:19:46.947-04:00I owned a lot of property in Phila for years and u...I owned a lot of property in Phila for years and used to attend sheriff sales for tax liened properties, so I can just speak for that municipality. Yes, a sale can be forced, but there are also very simple ways of delaying this sale by years. Usually, it involves no more than just contacting the tax bureau and letting them know you're working on it.<br /><br />Having said that, it could be completely different in more well-to-do suburban communities. They might move very quickly to auction off your property.<br /><br />My own guess is that for the 18 months to 2 years some of these folks want to stay in their houses w/o paying a mortgage, the tax issue would not be a problem.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14963913.post-30798324682492874432010-06-02T07:55:16.464-04:002010-06-02T07:55:16.464-04:00ocbear, sneakattacker, Yangabanga - but the holder...ocbear, sneakattacker, Yangabanga - but the holder of the tax lien can force a sale of the property eventually (i'm sure the length of time they must wait varies by state) - so even if the banks won't foreclose, it makes sense for the homeowner to pay the property taxes - or at least some of the property taxes - so they can continue their mortgage freeroll. right?Kid Dynamitehttps://www.blogger.com/profile/17475987512856310577noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-85660551937684862652010-06-02T07:19:51.622-04:002010-06-02T07:19:51.622-04:00Probably another reason is that the taxes were set...Probably another reason is that the taxes were set at inflated valuations. If the home is worth a fraction of what it used to be the tax is just an added insult when the bill comes.<br /><br />and if the banks are handling the tax escrow then I guarantee the taxes aren't being paid.<br /><br />so my guess is no one is paying. <br /><br />only difference is there are a lot more tools to recovering the tax money! good luck walking away from the sheriff!Yangabangahttps://www.blogger.com/profile/01602946300256374843noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-52311296593167714622010-06-02T07:16:55.026-04:002010-06-02T07:16:55.026-04:00I don't know about the business of buying tax ...I don't know about the business of buying tax liens. That was a big trend in the 90s. All of these city gubmints that couldn't collect back re taxes packaged them and sold them for pennies on the dollar to companies formed for the purpose of collecting on them. Great idea? Think again.<br /><br />If anyone has read Confidence Game, there is a section that deals w/MBIA's foray into this business. Apparently, private companies were no more successful than municipalities at collecting. It turns out that the axiom "if you can't get blood from a stone, just squeeze harder" didn't apply.<br /><br />And yes, the tax liability stays w/the property and most municipalities are slow to sell off delinquent properties, so folks who don't pay the mortgage have zero incentive to pay the re taxes.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14963913.post-46405930084906418862010-06-02T01:49:38.867-04:002010-06-02T01:49:38.867-04:00Banks weren't foreclosing in Detroit because t...Banks weren't foreclosing in Detroit because they'd have to pick up the tax liability. It's the "owner" that accrues the liability. By the way, if you really think anyone who isn't paying their mortgage IS paying their property taxes then I have a Greek bond I'd like to sell you. When it goes back to the bank so does the tax liability.oc bearnoreply@blogger.comtag:blogger.com,1999:blog-14963913.post-51473278056243296802010-06-01T22:13:28.333-04:002010-06-01T22:13:28.333-04:00yes Babar - exactly. it was given as a reason why ...yes Babar - exactly. it was given as a reason why they don't want to foreclose. if they foreclose, THEY eat the tax liability, they probably still can't sell the property, and they run the risk of it falling into a state of "disrepair."<br /><br />thus, extend and pretend goes on...Kid Dynamitehttps://www.blogger.com/profile/17475987512856310577noreply@blogger.comtag:blogger.com,1999:blog-14963913.post-4698316868217835942010-06-01T21:05:16.749-04:002010-06-01T21:05:16.749-04:00interesting. wouldn't this be a reason for ba...interesting. wouldn't this be a reason for banks to avoid foreclosure if they can't quickly sell the property -- eg to minimize the amount of time the deed is in their name? that way the tax liability stays with the current owner?babar ganeshhttps://www.blogger.com/profile/01898299856773302141noreply@blogger.com