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Author: StockGoddess Big gold star, 5000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121596  
Subject: Homesteader's Exemption Date: 1/3/2012 10:40 AM
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DM bought a property and re-sold it to some folks on a land contract. The folks she sold it to moved their tax status to "Homesteader's" because they lived there for a couple of years.

Then they stopped making payments.

Eventually mom repo'd the property and rented it out after too many missed payments. Mom didn't remember/realize it was still set to "homesteaders" until this year when she gets a bill for 3 years back taxes (the "difference" between what she'd been paying and what a non-homestead rate would be). Ouch!

So a buddy of hers looks up the county law - turns out the people who set it to homesteaders are the ones who are responsible to un-set it, according to the law, and it looks like the ex-owners might actually be the ones responsible for the back-taxes, by law, because they didn't. Normally a closing attourney might have done this or pointed it out, but there was none because it was a repo...not a sale.

So - an interesting tax mess, to say the least. Doesn't seem like the old county law takes this situation into account.

Good times in the boonies....
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