In thinking about the need for new revenue for the city, my mind landed on the banks, who are rolling in cash. I have several questions about the banks and the foreclosures and the taxes on the foreclosed properties.
In several places I have seen case histories of those who lost their properties through foreclosure, then were charged taxes on these properties even though they could no longer had access to the properties. Taxes apparently accumulated long after they were ousted by foreclosure.
My question is this: Where are the taxes on foreclosed homes? The lenders foreclosing should be liable for the taxes, since they ousted the inhabitants and claimed possession of the property in fact. They claim the property, they own the taxes also? If you buy a property, you assume the liens which must be dealt with at time of purchase. The taxes should be assumed by the banks, since they take defacto possession of the foreclosed properties.
How much money could be generated by making the lenders pay taxes on the foreclosed properties?
The cities, towns and states could use this owed tax money, which should be paid by the defacto owner, not held in limbo by a paper technicality that allows the banks to stick the prior owners with the taxes, who now must struggle with this added debt after they lose possession of the property, that held fraudulent appraisals in the first place. The banks should step up and pay the taxes and penalties they owe on the properties they seized.
Pass some more penalties and tax the lenders for every empty home they own in this community. If they were taxed, maybe they would cut the rent or prices and get people in the houses. Empty homes in this community should cost those big owners some money.
Our governments need the money.