A typically sad tax delinquent story. Post 49

sun-herald.com 09/10/07         By Elaine Allen-Emrich

Her home is going on the auction block

Woman needs $11,500 to save her home

NORTH PORT – Beverly Rosa promised her dying mother she would not put her ailing father in a nursing home. Keeping her word often meant being punched by her father as she cooked dinner. For years, she withstood abuse and other side effects of his dementia.

“He was real bad in the end,” said Rosa, who inherited her parents’ mortgage-free North Port home, but now is horrified she will not be able to keep it because she owes $15,000 in back taxes.

During this time, Rosa received notices from the Sarasota County Tax Collector’s office telling her she owed more than $3,000 a year in back taxes over the last three years,

Without a car or a job, Rosa found her way to a bank. Rosa explained she could put the home up for collateral, get a part-time job and pay for the taxes. Now on disability, Rosa receives $745 a month, which she uses to pay her electric, phone and water bills.

“The bank told me this could work and they might be able to secure me a loan if the house was in my name,” she said. “So I started the process. Then I was told I had to prove my brother didn’t want my house. I said he didn’t because he passed away seven years ago in California. The bank said they needed a death certificate. I was told that could take up to 12 weeks.”

Rosa said she can’t wait 12 weeks, not even a month. She was sent a notice that her house is being put up for auction on Sept. 11.

“Now, I’m going to lose this house over owning $11,509 in back taxes,” Rosa cried. “I’ve never been able to afford to pay the taxes because I don’t make enough on disability.”

Then she called the tax collector’s office asking for an extension.

“The first woman I spoke to was mean; she said ‘you should have paid your taxes, there’s nothing we can do,'” Rosa said. “I called back and talked to a nice lady, but she told me that an investment company paid my taxes. They are the ones who filed paperwork with the clerk’s office to auction off my home.”

“Usually people bend over backwards to get their back taxes paid,” she said. “They go to the United Way, churches, friends, family or other non-profit groups to get help … However, once the auction is started we can’t stop them; they (investors) have a statutory right.”

Klaber said huge investment groups, such as Mooring Tax Assessment Group LLC that is about to auction Rosa’s home, pays delinquent property taxes.

“The good part is the school district; city and county get their money right away,”

“I normally visit everyone before they lose their home,” Hill said. “I will go out and knock on their door and say ‘you’re about to lose your property’ – especially if it’s homestead property.”

However, that’s not what happened to Rosa.

Beverly Rosa can be reached at 941-423-1460.

See entire story:  http://www.sun-herald.com/Newsstory.cfm?pubdate=091007&story=tp1ch6.htm&folder=NewsArchive2

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Coach Mitch’s REFLECTIONS

Sadly, this tale is typical.

For all too many homeowners, tragic circumstances do not allow them to gather enough money to pay their property taxes.  I am sure that you can empathize.  We have all fallen on hard times.

The old saying is so true, “There, but for the Grace of G-D, go you or I.”  Who amongst us can predict what will happen to our lives were we to become seriously ill, have a debilitating accident or lose a job at just the worst time?

That is why I have steadfastly maintained that, as real estate investors, we must deal fairly with people.  They are already down – and out, we do not need to kick them also.

Empathy is not Stupid

Having empathy does not mean that you overpay or do anything that is not prudent for an investor to do. It does mean that you treat people with respect, listen to their tale, legitimately try to come up with a solution that lets them stay in the home or help them to move on to the next phase of their life.

Empathy is Smart

Don’t forget, you are the one in the driver’s seat.  You can save this persons home or make it easier for them to transition to the next part of their life because you have the cash or the credit or you have the phone number to call to get it.

Remember, most people will understand that you can only do a certain amount to help them. They will not like it, but they will understand, especially if you call to a higher authority.  “I wish I could pay you more. I would love too. But my partner controls the money and he won’t go anymore.  I’ve tried before.  I know his limits.”  Then give a little bit.  “Maybe I can get you an extra $500 in cash when you move out.  How does that sound?”

People are smart.

People know what is in their best interest. We typically do what is necessary, although many will cut their own nose to spite their face. You can substantially eliminate this foible by being empathetic.

Did you notice…

•  The reason that this situation occurred was bad financial planning; something that happens all too often.  Secondary schools do not teach basic credit and debt management.  Under the auspices of KIWANIS, I was turned down by the local high school when I attempted to teach a course on this important subject.

•  High taxes hurt people.  If the taxes were 33% less, then it would be easier to pay. Nowhere did anyone blame high taxes for the situation. As it happens, 33% is the amount of taxes that can be attributed to waste, fraud and abuse.   If government takes taxes, it has the obligation to spend correctly, efficiently and without favoritism.  Eliminate one third of the budget and you eliminate the entire federal debt.

•   There are no mechanisms within the Tax Collector’s office to help homeowners who can show grievous circumstances. We give substantial sums to welfare programs.  We house enormous numbers of people for free, for generations, but nothing is available for tax delinquents.

•  Public officials consistently blame so called “huge” investors for putting houses up for auction. Government creates the program, including establishing very high rates of interest meant to entice investors to purchase Tax Lien Certificates so that government workers can be paid.  However, when it comes to collecting, all investors are lumped into the Donald Trump category, implying we do not need the money and that we are all rich, greedy and non-caring persons – as opposed to the poor, needy, and always righteous government.

•   “But the good part is the school district, county and city get their money right away.”  Schools take 70% of the taxing resources of the town. That is so ridiculous!  In my town of 32,000, about 400 teachers control 70% of the towns taxing power.  How democratic is that?

See Coach Mitch’s “Ridiculously Simple System…” ™ for details.

Stay focused,