Let’s say that you buy a home in cash and have 100% paid off. Could you still lose it somehow?

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[–] 158 points 2 years ago (2 children)

If you don’t pay your taxes, yes

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  • [–] 5 points 2 years ago (1 child)

    Property taxes of most primary dwellings should not be a thing.

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  • [–] 13 points 2 years ago (1 child)

    This is how you get subscription-only fire departments.

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  • [–] 7 points 2 years ago* (1 child)

    Commerce and wealth-based taxes (income, sales, capital gains, etc) are sufficient to cover any and all social needs. Taxing people on their own possessions - especially those critical to living - is beyond unethical, it is evil.

    A property tax on a primary dwelling residence is unethical because it is not attached to any act of commerce. It is your home. It is your family's life and legacy. Property taxes do not care whether the owners are billionaires or do not have a penny to their name, so they harm the middle class and the poor while it's little more than an afterthought for the wealthy. Case in point: Hawaiians who are forced to sell their ancestral homes because they cannot afford property tax... because the "value" of their ancestral land is constantly and steadily increased by wealthy interlopers. This is just plain, old-fashioned banditry and theft - nothing more and nothing less... and if you advocate for it or justify it, you advocate for evil.

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  • [+] 103 points 2 years ago* (last edited 2 years ago) (2 children)
  • [+] 36 points 2 years ago (2 children)
  • [–] 6 points 2 years ago (1 child)

    In some states if you hire a contractor to do work, and they hire some guys and doesn’t pay them, those guys can put a lien on your house even if you payed the contractor. 😳

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  • [+] 11 points 2 years ago* (last edited 5 months ago) (2 children)
  • [–] 15 points 2 years ago

    It's good you have a good one, but the big issue with them is they have almost no oversight at all. They almost function as little privately owned fiefdoms with extremely broad powers over anyone under them. Yours might be good now, but there have been plenty of examples of a good HOA being bought by a corporation and then becoming tyrannical almost overnight. There's a whole industry of HOA management companies out there, and they are bad news. The last time I saw the statistic something like 80% of new construction in the US is managed by an HOA, too.

    Don't get me wrong, when they work right they serve a purpose, but the lack of laws and oversight of them is pretty scary when you look into it.

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  • [–] 76 points 2 years ago (2 children)

    My property tax is $1200 a year. Failure to pay that for a while (a year or three) could result in the state selling the house, keeping the overdue taxes, and paying me the rest (if there is any. Sometimes they get sold cheap).

    The state can also buy my house from me under eminent domain, to put in a rail line, or power lines, or some other utility. They'd owe me "fair value" for it, but they basically determine what that means, and it could be significantly less than what i could sell it in the market for (but to be fair, taxes are based on "fair value", and almost everyone quietly allows the state to low-ball their property value because of this).

    It can also be condemned. If it's egregiously not maintained and shows obvious signs of structural issues, or the property gets hoarded up and looks like a trash dump. This is much more common with commercial property.

    There's also civil asset forfeiture. If you're manufacturing and/or selling drugs/weapons/etc. (as a random example. Any crime counts really) on a property, it can be seized outright with no requisite compensation at all.

    HOAs ar often described as similar to asset forfeiture, but they're closer to a tax siezure. The HOA has to have in its charter that they can fine members for rule violations, and the process for an HOA is the same as for overdue taxes, but with unpaid fines. The authority for HOA is entirely contractual, you have to sign a contract agreeing to those rules.

    All of these are incredibly rare occurrences, and usually involve some sort of genesis, like an investor wants a specific property, neighbors hate someone, etc.

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    [–] 62 points 2 years ago (12 children)

    Yes. It happened to my friends. They both lost their jobs and couldn't pay the property tax on their fully paid-off house, so it was foreclosed and auctioned off.

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    [–] 32 points 2 years ago (4 children)

    One thing to keep in mind is that in the US, there's very few people or companies that actually own the land that they're on. Most of the time you have the rights to use the land for certain types of things, but not actually own it. The US government (federal on down) has various ways of seizing property for its own purposes.

    There's only a handful of people who actually own the land they live on. Most of them were granted the land by prior governments (mostly Spain) before the US was a country. Their ownership was grandfathered in and has passed via inheritance through the families. Several of those family plots are in Texas and Florida. Everyone else is just allowed to stay as long as they play ball with the rules.

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    [–] 32 points 2 years ago (1 child)

    You can get eminent domain'd or your house could be destroyed by natural disaster, house fire, etc.

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  • [–] 24 points 2 years ago

    Yep, you only think you own your home after it's paid off. Try missing a single property tax.

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  • [–] 24 points 2 years ago (2 children)

    Theoretically eminent domain still exists but it’s only used to replace black neighborhoods with highways

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    [–] 20 points 2 years ago

    Absolutely. You have to pay taxes on your property (in most states; there may be exceptions that I'm not aware of). If you don't pay your taxes for a long enough period of time, your property will be seized and auctioned off. Starting bids on property auctions are usually the back taxes; in less desirable areas--such as undeveloped land that with no utilities that's out in the middle of nowhere--that may be all it costs.

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  • [+] 20 points 2 years ago* (last edited 2 years ago) (11 children)
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    [–] 17 points 2 years ago

    A common way that I don't see mentioned here is that it is common to take out a loan using your home as collateral, something like a major business loan not panning out or a mismanaged personal loan can absolutely end up letting the bank seize your house to pay off the loan.

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  • There are typically property taxes you have to pay every year, unless exempt

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  • [–] 16 points 2 years ago

    You can be shot by the cops, in your bed, while asleep. Yes I think you can lose your paid-off house.

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  • [–] 15 points 2 years ago (2 children)

    Yes, if a large meteor landed on it, it would probably be destroyed.

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  • [–] 15 points 2 years ago

    This was the whole premise of Happy Gilmore. He became a pro golfer to save his grandma's house

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  • [–] 14 points 2 years ago
    [–] 13 points 2 years ago (3 children)

    I used to see stories in the legaladvice subreddit regularly about Housing Owner Associations putting legitimate liens on properties for not following the rules. Even when the rules were as ridiculous as "air-conditioning unit can't be visible from the street" or "only these specific plants can be grown and your lawn cannot exceed a few inches in height and must always be green" or "internal curtains must be pink or white".

    For a culture that prides itself on its freedoms, the miniature authoritarian regimes that HOAs embody are a great example of the evidence not matching the story.

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  • [–] 6 points 2 years ago

    Amen.. never buy a house in a HOA if you plan to actually keep and payoff said house. Even if its a "good one", they can and do change. All it takes is a vote for your $50/mo HOA to become $1000+/mo because they want to build a golf course or do custom street signs and a pool or whatever.

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  • [–] 6 points 2 years ago* (last edited 2 years ago) (5 children)

    HOAs started as a way to keep neighborhoods white only. Now it's a way for developers to have a super majority vote to keep giving themselves contracts and a way for control freaks to control their neighbors. They started as bad actors and now some are bad actors for other reasons.

    Not all HOAs are terrible but there aren't a lot of actual accountability in-spite of some laws to stop corruption and there's not a ton of benefits for most except perhaps for condos.

    For example, I wouldn't mind having an HOA that contracts rates for trash, lawn care, creates and maintains a park with some stuff for kids, maintains beautification of non-homeowner areas and maybe even has security patrols. You know, actual amenities to keep the neighborhood nice and convenient for the home owners. Not an HOA that makes sure that shampoo bottles in people's bathroom windows aren't visible, front doors have to match some aesthetic or have to approve decks and sheds for people's yards.

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    [–] 12 points 2 years ago (2 children)
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    [–] 9 points 2 years ago

    Every country pretty much. Lawsuit. Don't pay taxes. Owe money to someone personally. You don't get to hide your assets behind a home and get into financial trouble in other areas.

    This is also why homeowners typically live within the law. Too much to loose.

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