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How a Home Bargain Became a ‘Pain in the Butt,’ and Worse


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2018 Mar 15, 11:45am   2,201 views  3 comments

by Patrick   ➕follow (55)   💰tip   ignore  

https://www.nytimes.com/2017/07/07/business/dealbook/how-a-home-bargain-became-a-pain-in-the-butt-and-worse.html?rref=patrick.net

Across the country, people like Mr. Williams have found themselves in similar predicaments. Unable to obtain a traditional mortgage, they have signed a high-interest, seller-financed deal known as a contract for deed that works like an installment plan for housing. For many, these deals can quickly turn into money traps.

The deals also have added to neighborhood blight when the houses fall into further disrepair.

Contracts for deeds are difficult to track because the transactions are not recorded in many states. It can become difficult to determine who actually owns the property — and who is responsible for its upkeep and paying property taxes — often because the original contract is sold to several investors over time.


From last July, but interesting. I didn't know about "contracts for deeds".

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1   🎂 Tenpoundbass   2018 Mar 15, 11:58am  

Patrick says
often because the original contract is sold to several investors over time.


I think if a property is challenged and the county can't determine who actually owns it unless the owner's lawyer shows up to claim it.
Should be auctioned off.

I also support a Federal Property tax on 2nd SFH homes. And a draconian tax on 3 or more. Those third houses would either be back on the market for the American dream, or they will pay off the deficit within 5 years. That's the kind of tax I'm talking about.
2   Patrick   2018 Mar 15, 12:40pm  

The13thRussianBot says
I also support a Federal Property tax on 2nd SFH homes. And a draconian tax on 3 or more.


I think Georgism is a better solution. Just tax the land and not the result of productive activity like labor or commerce (no income tax or sales tax):

https://en.wikipedia.org/wiki/Georgism

Taxing land will not result in the production of less land. It's also impossible to hide land.
3   🎂 Tenpoundbass   2018 Mar 15, 12:41pm  

Remember the idea here is to foster home ownership for the Nuclear Middle Class.

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