People Losing Homes for as Little as $400 In Back Taxes

0 Posted by - July 11, 2012 - Career & Business, Economics, Money

foreclosure 0218 300x168 People Losing Homes for as Little as $400 In Back TaxesPeople are losing their homes over unpaid tax bills that, in some cases, add up to just a few hundred dollars.

Outdated state laws that allow local governments to sell tax liens on delinquent properties to investors in order to more quickly collect on overdue property taxes is sparking a second “foreclosure crisis,” a report from the National Consumer Law Center said Tuesday.

When homeowners don’t pay property taxes or other municipal bills, like water or sewer fees, local governments have less money to maintain services like schools, police and fire departments and road maintenance. By selling tax liens, those governments can collect on what it is owed.

CONTINUED at CNN Money.

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