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Predatory Practices Screw Homeowners In 12 States
The poor, minorities, elderly, and disabled hurt most
Let’s say that you paid your property taxes but miscalculated the amount owed. So you underpaid by $8.41. That’s not that big a deal, right? Unfortunately for a Michigan man, the government seized his property over less than $10 owed instead of contacting him and giving him a chance to pay.
The man in question was 83-year-old Uri Rafaeli, a retired engineer. He bought a 1,500 sq. ft. home in 2011 for $60,000. He planned to use the rental income to fund his retirement. He made improvements to the house with this in mind.
The elderly man thought he had paid his taxes on time and in full, but received notice from the state in 2012 that he had underpaid his 2011 tax bill by $496. So he paid this amount. However, the state charged interest on this amount and Rafaeli did not realize that. So his check to Oakland County was short by $8.41.
Instead of contacting him with the full amount he owed, which it’s obvious he would have paid, the county seized and sold his property.
With all the improvements made, the property is estimated to be worth almost $130,000 according to Zillow.
