With control of both houses effectively in the hands of the Republicans, cleartosell.com looked for signs of an appetite for reform to the 100+-year old principles behind tax liens and the foreclosure that can follow.
There is little clarity on any tax reforms that the Republicans plan beyond wanting people to keep more of what they earn whilst recognizing the deficits that need to be met by taxation income. So it looks like a continuance of the dilemma of modern politics.
Although you would think that a Republican controlled legislature would move to streamline the real property tax collection process, we are mindful of the Democratic controlled White House. Even if there is a change of control of the White House in two years, we discovered a couple of instances of blustering over the morality of the tax lien laws that may impact any real change:
Firstly, just over a year ago, The Washington Post reported on changes that Democratic Mayor Vincent C. Gray had made to the tax lien process to protect people from loosing their homes over trivial tax debts. The changes did not reduce the liability of the homeowner to pay the back taxes and additions, but it did remove the opportunity for investors to take ownership.
And secondly, in 2012 The American Bar Association published, through its BiFocal Journal gave a damning account of how seniors and the disabled are at unacceptable risk of loosing their homes through tax deed foreclosure.
From what we can see, these are isolated protests that are not indicative of change that would negatively affect investors. But the early stages of a moral revolt against the tax lien system cannot be denied.
So for now, we can conclude that the landscape for tax liens and foreclosure will remain without change, but we will keep watching and report any proposals we find.
admin November 14, 2014
Posted In: Tax