Equity Theft

[LuvOrlando]

Didn't know this was a thing all over the US or that the law changed things

 

[GAN]

It’s definitely unfair…

 

[tvguy]

Totally unethical.
Seniors actually having to pay more in property taxes than they paid for their houses was the whole motivation behind Prop 13 in 1978. It limits property taxes at 1% of the original purchase price. The tax can be raised, but by no more than 2% a year.

 

[ruadisneyfan2]

That's horrible. I hope this practice stops everywhere ASAP.

 

[kdonnel]

I always assumed that if your property was seized and sold to settle a tax debt that any additional profit from the sale after paying any debt and expenses associated with the sale was returned to the owner.

That is how the IRS handles seized property. Seems like that should be the rule for any government entity.

What happens after my property is seized?​

If the IRS seizes your house or other property, the IRS will sell your interest in the property and apply the proceeds (after the costs of the sale) to your tax debt. Prior to selling your property, the IRS will calculate a minimum bid price. The IRS will also provide you with a copy of the calculation and give you an opportunity to challenge the fair market value determination. The IRS will then provide you with the notice of sale and announce the pending sale to the public, usually through local newspapers or flyers posted in public places. After giving public notice, the IRS will generally wait at least 10 days before selling your property. Money from the sale pays for the cost of seizing and selling the property and, finally, your tax debt. If there’s money left over from the sale after paying off your tax debt, the IRS will tell you how to get a refund.

 

[hertamaniac]

The municipalities should offer a reverse mortgage ownership dilution as an option.

As far as senior taxing structure goes, I am pro for a reduced sliding scale in the education portion of the assessment once reaching a certain "senior" age. I'll arbitrarily pick 62. They have paid into the system more so than many others (duration and possibly aggregate) and likely don't have any children utilizing the public school system warranting their tax burden.

 

[kymom99]

The municipalities should offer a reverse mortgage ownership dilution as an option.

As far as senior taxing structure goes, I am pro for a reduced sliding scale in the education portion of the assessment once reaching a certain "senior" age. I'll arbitrarily pick 62. They have paid into the system more so than many others (duration and possibly aggregate) and likely don't have any children utilizing the public school system warranting their tax burden.

We have a homestead exemption at 65

 

[china mom]

I always assumed that the homeowner received the excess from the sale. I know if you default on your mortgage and the mortgage company sells your home for less than the loan amount, you are responsible for the difference and if your debt is forgiven by the mortgage company, the IRS can tax that relief. So, I guess I always assumed that if the opposite happened and there was a profit, it would go to the hapless homeowner.

 

[hertamaniac]

We have a homestead exemption at 65

We get a homestead exemption for any aged homeowner.

 

[tvguy]

We get a homestead exemption for any aged homeowner.

Same here in California. $7,000. So at 1% tax rate, you save $70 a year. Better than nothing, but kind of a joke.

 

[kymom99]

Same here in California. $7,000. So at 1% tax rate, you save $70 a year. Better than nothing, but kind of a joke.

Ours is 46,350.

 

[tvguy]

Ours is 46,350.

So how much does it actually reduce your property tax bill by?

 

[hertamaniac]

Same here in California. $7,000. So at 1% tax rate, you save $70 a year. Better than nothing, but kind of a joke.

I think ours (FL) is an additional $25K over the original $25K but only applied to appraised property value for educational taxation. If I'm incorrect, I'm sure someone can correct me.

I would like to see a true cessation of any private homeowner over 62 for taxation on public education related taxes.

 

[kymom99]

So how much does it actually reduce your property tax bill by?

I’m not old enough yet so not sure

 

[robinb]

This happened to a family member in Illinois about 2 years ago (before the SCOTUS decision). He owned his home outright but fell behind in paying his taxes. He owed about $4k and the county sold his home at fire sale prices (about $28k) at auction to some bottom feeder LLC from Florida. The county kept every cent. Said bottom feeder proceeded to rent his own home back to him and said that he could buy it back for $90k. He fell behind on rent too and was evicted from his own home with this disabled son The saddest part of the whole thing is that I would have given him the money to pay the taxes if he had only asked. He was foolishly too proud to reach out to me.

 

[cvjw]

As far as senior taxing structure goes, I am pro for a reduced sliding scale in the education portion of the assessment once reaching a certain "senior" age. I'll arbitrarily pick 62. They have paid into the system more so than many others (duration and possibly aggregate) and likely don't have any children utilizing the public school system warranting their tax burden.

In the county I live in (metro atlanta), at age 62, you stop having to pay the school portion of property taxes. Our property taxes are $5400 per year right now. When DH turns 62, they will be much less. Some neighbors only pay around $1000 a year once they have reached the age of 62.

 

[Skippy918]

In Texas, as long as you have homestead exemption, your property taxes freeze at age 65. I don’t know if it’s all the taxes or just the school district portion. The exemption amount varies depending on the taxing entity. Our bill has school, city, county, community college taxing entities.