Wednesday, April 23, 2014
AARP reports on tax-lien debt collection companies; more on reverse mortgages
The AARP is reporting that some municipalities or counties sell delinquent property tax debts to debt-collection companies, which then charge exorbitant interest on the debts and often movers to foreclose on homes, often belonging to seniors and even often without mortgages. The story by Bill Hogan is printed in the most recent AARP Bulletin and is here. Many of these problems have occurred in New York State.
Arlington County,, VA, where I live, requires two equal payments on June 15 and Oct. 5, and will assess heavy penalties for even one day of lateness.
AARP worked with the National Consumer Law Center on this report. I found another interesting paper at the NCLC, “Subprime Revisited: How Reverse Mortgage Lenders Put Older Homeowners’ Equity at Risk”, link here.
I would hate to have to make a living selling these products or collecting debts like this.