Tax Foreclosures Causing Hiccups for Homeowners as well as for Jackson County

Tax foreclosures are causing hiccups for homeowners as well as for Jackson County. High unemployment and the stormy economic climate are making it difficult for property owners to be current on property taxes. This has led to less revenue collection by the municipalities and its chain reaction of the administration suffering from budget cuts and being unable to fund essential services. The cycle of woes is vicious.

In March last year 107 houses were tax foreclosed with dues going back to 2008. Jackson County saw 226 properties being foreclosed upon due to unpaid taxes – it is a record in the history of the county.

Karen Coffman, the County Treasurer seeing vacant houses sighed saying that each home has a different tale of woe to tell. Coffman commented that the numbers were huge – the likes of which they have never seen previously

Meanwhile mortgage foreclosures have not abated and continue to dominate but tax foreclosures are slowly creeping up. Five years previously 43 units had been tax foreclosed upon but in 2010 the number increased to 152 units.

In 2010 there were 97 mortgage foreclosures and in 2011 till August there were 109 foreclosures.

Neeta Delaney of Michigan Foreclosure Task Force said that across Michigan State the scenario is more or less the same. Till now the task force has been focusing on battling mortgage foreclosures but now it has expanded its activities to include tax foreclosures also.

David Taylor the Assessor of Jackson City said nearly all the houses were lying vacant – a phenomenon that further added to the problem. Not only was revenue collection down but now the local authorities had to address the problem of safety and security of neighbourhoods. Empty houses attracted crime and criminals.

It is not only the individuals who run away from tax foreclosed house but banks too are doing the same thing lately. When the banks calculate that the spending on taxes and maintenance is not worth the effort since the property value has tumbled, they just shrug and walk off, leaving the blight to the locality.

A good number of houses are in such a derelict condition that they are marked as condemned.

The administration tries to repair the houses and sell it at auctions to somewhat recoup the losses. The homeowners are given up to three years to clear the dues. On special request another year may be granted to them. The taxes have to be cleared by March – dues plus interest.

At the first auction the house is sold to the highest bidder – the minimum bid being the due amount. But if it is not sold then another auction is held where the minimum bid is $50. Even then if the house is not sold the county is saddled with the house and unpaid dues.

The solution seems to be reducing taxes to affordable levels.

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