Saturday, June 21, 2008

The Other Foreclosure Problem!

Abandoned homes continue to contribute to the urban blight in our inner city neighborhoods. Last year the City of Philadelphia enacted an aggressive plan to collect back property taxes from delinquent homeowners. The estimated amount of owed back taxes is $290 million, and the city has begun foreclosure proceedings on residents who aren't able to pay the taxes, although there is a nearly 12 month redemption period.
Barbara Pearsall is featured in this article about the process. She inherited the home and hasn't paid taxes since 1980, and now owes $27,000. She was allowed to go 27 years without paying taxes, and now the city wants the entire amount owed. Ms. Pearsall's home was foreclosed on last November and her redemptive period ends in December. What responsibility does the city have for allowing 27 years to go by without receiving any tax money from a resident? It appears that a compromise should be reached in this matter.

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