Man Shocked to Learn Government Takes His Home While He’s in Hospital

A New Hampshire man was shocked to learn the local government was seizing his home while he remained in the hospital after suffering a devastating stroke.

The government can seize homes and property for a variety of reasons, and unpaid tax bills can often lead to permanent forfeiture of the home.

Retired house painter John Jones, 66, who resides in Franklin, owed the city a little more than $5,000. While Jones was still recovering from his stroke, the Franklin City Council decided to confiscate his home, estimated to be worth around $50,000.

“I paid over $30,000 for this place and now they’re getting it for nothing. What a scam. That’s how they do it,” Jones told the newspaper. Concorde Monitor in an article published Friday. “They don’t really care.”

New Hampshire is most reliant on property tax collection, a recent Tax Foundation report found, making situations like Jones’s more common. This is because the state does not have an income tax or a generalized sales tax.

“This means that many local governments rely on property taxes as their primary source of revenue,” said Alex Beene, a professor of financial literacy at the University of Tennessee at Martin. News week. “As cold and cruel as this story seems, you can see the government’s reasoning. This taxpayer has repeatedly failed to pay, and now the government is coming to collect, and the only way to do that is to seize his assets. “

The local publication revealed that Jones was not alone in his predicament. Local governments across the state have seized the property of those with unpaid tax bills about 4,000 times over the past 10 years, according to deed transfer data.

“I didn’t even know any of this was happening because I was in the hospital,” Jones said. Concorde Monitor. “I was trying to stay alive.”

Low-income retirees are also among the most likely to be victims.

“Everything was fine until that day. I retired, took it easy and then I had this stroke,” Jones said. “I’m just waiting to die. That’s what I’m waiting for.”

Concorde Monitor found that many property owners were unaware that the city had taken possession of their property due to undelivered mail. The problem only got worse as the cities analyzed rarely waived late payment interest, forcing homeowners to owe more than they initially needed to pay.

And if you’re in the hospital when the notice is sent to you, it’s unlikely you’ll be able to make a payment on time.

“No one wants to see someone in the hospital struggling to survive, for the government to step in and take what little they have,” Beene said. News week. “Even though the government reserves the right to do so, most viewers would agree that an easier route could have been taken. Perhaps this was a last chance to pay in installments or an attempt to work with one’s family to ease the burden.”

When New Hampshire towns received aid from the federal government, they generally used it to give raises to their employees, not to pay off the outstanding debts of low-income residents. Concorde Monitor reported.

The situation was most intense in poor towns, as the paper found that in all 13 New Hampshire towns, people with the lowest average income had their property seized more frequently.

“Over the past seven years, Governor Sununu’s administration has shifted unprecedented cash – not costs – to cities, returning hundreds of millions of dollars in tax breaks to citizens,” the door said. -New Hampshire Governor Chris Sununu’s spokesperson Brandon Pratt. Concorde Monitor.

News week contacted Governor Sununu for comment via email.

Jones originally purchased her home in 2015 with cash and hoped to spend her final days there.

“My son, my daughter, they are magnificent. They are wonderful children,” he told the newspaper. “We have to leave something for the children.”

Jones earns just $850 a month, thanks to Social Security, after working for decades as a house painter. When he suffered his stroke, he was unable to pay more on his taxes and had to go back and forth between several hospitals for treatment.

In Franklin, residents have a week to pay their bills before the city files the necessary paperwork to own their home. Jones did not respond within a week and never requested an assistance package.

But on Jones’ side, he said he never received the initial alert and the mail arrived at City Hall, postmarked “return to sender, unclaimed.” .

“Unfortunately, there is no law stating that your home cannot be foreclosed on due to physical illness or a hospital stay,” said Kevin Thompson, financial expert and founder/CEO of 9i Capital Group. News week. “If you’re years behind on your taxes, they think you’ve been warned and your current situation doesn’t override years of overdue taxes.”

Michael Ryan, financial expert and founder of michaelryanmoney.com, said Jones’ situation highlights the importance of establishing proper legal documentation and having a designated representative as you age.

“While governments have the final authority to seize properties related to unpaid tax debts, there are generally protections in place to avoid leaving someone homeless too aggressively,” Ryan said. News week. “Red flags in John’s case, such as insufficient notification and the value of the house far exceeding the amount of the debt, raise concerns about compliance with procedures.”

Still, Ryan said the situation probably could have been avoided if Jones had appointed someone to oversee his affairs through a health care power of attorney or surrogate.

“Preparing these documents in advance and making your wishes known is absolutely essential, especially for older people or those with health problems,” he said. “This ensures you have an advocate who coordinates all aspects of your care and finances during vulnerable times when you cannot do it yourself.”

Once Jones finally discovered the state was seeking to seize his home, he and his partner Jessica Helfenstein wrote a check and were able to connect with the Homeowners Assistance Program, which provides federal funding for relief support in the event of a pandemic.

They were also able to apply for a senior citizen tax exemption, which will lower the value of their home and reduce property tax bills.

“I’m trying to die in peace,” Jones said. “But it’s a bit difficult when you’re dealing with aristocrats.”