‘Could happen to anybody,’ warns homeowner after $492 bill spiraled into $10,000s – he faced losing house over rare law
AN OVERDUE tax bill of a couple of hundred dollars almost cost one man all four of his properties.
By the time Paul Meaney from Worcester, Massachusetts, learned about what was happening in 2018, it was almost too late to take action.
GettyA property owner’s mistake cost him tens of thousands of dollars to get his property back after nearly losing it for good[/caption]
GettyUnpaid city water and sewer fees saw Paul Meaney almost lose his property after he missed alerts about a tax lien and foreclosure process[/caption]
Meaney owned four properties located north of Boston that he regularly paid his bills on.
But one day, he received a bill for a series of overdue taxes on unpaid water and sewer fees worth $492.51.
Meaney had believed that the bills were covered by the lender with whom he had an escrow account, he told GBH News.
“I didn’t just fall off the turnip truck,” the stunned financial planner said.
“If this could happen to me, it could happen to anybody,” he warned.
As a result of the unpaid bills at one of his properties, Tallage LLC, an investment firm based in Boston, purchased the tax lien that was placed on the home by the City of Worcester.
The purchase was made in 2011 when Tallage paid the city $1,052.84, covering the taxes Meaney owed plus late fees and interest.
At the time the property was worth more than $270,000 and Meaney took Tallage to court to fight the foreclosure and loss of his property.
When speaking to the news outlet about the unpaid bills and the tax lien that was placed on his home, the property owner was adamant that he was completely in the dark.
“I did not know. We were in the middle of a family medical crisis at the time,” he said.
“I never saw anything, I had no idea this was going on.”
Meaney’s wife had been diagnosed with MS and that with other issues meant he failed to see the notices from the City and from Tallage about the bills, he said in a trial in Land Court over the issue.
Over three days each party said their piece and the court reversed the foreclosure ruling.
However, Meaney would have to pay $4,600 to get the title of his property back.
In addition to this, he had to pay “tens of thousands of dollars” to his legal representation, according to the news outlet.
“I understand [the] City of Worcester to some degree,” Meaney said following the incident.
“They are entitled to their money, but I don’t think everyone else should be completely wiped out in the process.
“And that’s the only system that exists.
“There’s got to be other remedies for them to get their money than to just throw these titles out to these dogs.”
However, at the time, city officials fought back claims that it was unfair action.
Tax Lien Law - Massachusetts
Homeowners in Massachusetts who fail to pay their taxes can lose their homes under state law.
Cities and towns in the state can file a lien against a property owner to receive back taxes.
This property can later be foreclosed if the debt continues meaning the owner no longer has a right to the title and ownership is taken over by the municipality.
The law states that the tax obligations of a property can be sold to third-party investors during the foreclosure process to get immediate revenue.
This action then passes on the job of collecting taxes and continuing the foreclosure process to the private investor.
Under the “Tax Lien Answer” form from the Land Court, delinquent taxpayers can “assert their rights” and offer to “redeem upon such terms as may be fixed by the court.”
Source: Massachusetts Government
“At a minimum, there’s 12 notifications before we even commence the tax lien process,” said, Thomas Zidelis, the city’s chief financial officer at the time.
“In terms of fair, that’s a matter of opinion. The statute allows for that as a means of collection.”
Many cities make use of the law that allows them to get third-party companies to take on issues of delinquency by paying for the title of the properties which can lead to evictions and foreclosures.
Homeowners who go through tax lien foreclosure lose their homes and the equity they accrued.
There’s got to be other remedies for them to get their money than to just throw these titles out to these dogs.
Paul MeaneyProperty owner
Cities in need of money are more likely to use this method, according to GBH.
Worcester, Lowell, New Bedford, Pittsfield, and Quincy recovered nearly $10 million in five years via the third-party investor process.
The city gets its money back while the investors can get a percentage of the titles or get large profits from the foreclosure of the property following the failure of the homeowner to pay back the debt.
Worchester City Hall did not immediately respond to a request for comment.
The U.S. Sun previously reported on a blind and disabled woman who has been made a “refugee in her own city” after her property was foreclosed despite her paying taxes.
GettyAfter a three day Land Court trial Meaney paid almost $5,000 to have the rights to his home back and was then forced to pay thousands more for his attorney[/caption]
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