Abstract
Zombie mortgages and abandoned properties are costly problems for cities and counties across the country. The term "zombie mortgage" is meant to, and hopefully does, evoke images of undead mortgages that are nearly impossible to eliminate. In the legal literature, the term is used to describe the circumstance when a lender or mortgagee has initiated foreclosure proceedings, the homeowner has quit the premises, and the lender later abandons the foreclosure process, often without notifying the owner of record. I'lie mortgages, ac-companying fees, and real estate taxes are "zombies" because the affected homeowner cannot escape them by abandoning the property, even after notice of eviction. Generally, the a ffected homeowner cannot shed these "zombies" through bankruptcy, either. This Article argues that a tax-based tool known as differential property taxes could alter the status quo in a way that incentiviz.es owners or lenders to improve or dispose of the vacant property much more quickly than in the past and, thus, combat "zombie mortgages." I'liis Article analyzes the legality of differential taxation as a tool for combating vacant property and highlights the legal impediments faced in certain jurisdictions. Strategic implementation of differential property taxes could be another effective tool to use in the ongoing battle against vacant and abandoned properties.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 1135-1167 |
| Number of pages | 33 |
| Journal | University of Illinois Law Review |
| Volume | 2017 |
| Issue number | 3 |
| State | Published - 2017 |
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All Science Journal Classification (ASJC) codes
- Law
Cite this
Taxing zombies : Killing zombie mortgages with differential property taxes. / Weber, David P.
In: University of Illinois Law Review, Vol. 2017, No. 3, 2017, p. 1135-1167.Research output: Contribution to journal › Review article
}
TY - JOUR
T1 - Taxing zombies
T2 - Killing zombie mortgages with differential property taxes
AU - Weber, David P
PY - 2017
Y1 - 2017
N2 - Zombie mortgages and abandoned properties are costly problems for cities and counties across the country. The term "zombie mortgage" is meant to, and hopefully does, evoke images of undead mortgages that are nearly impossible to eliminate. In the legal literature, the term is used to describe the circumstance when a lender or mortgagee has initiated foreclosure proceedings, the homeowner has quit the premises, and the lender later abandons the foreclosure process, often without notifying the owner of record. I'lie mortgages, ac-companying fees, and real estate taxes are "zombies" because the affected homeowner cannot escape them by abandoning the property, even after notice of eviction. Generally, the a ffected homeowner cannot shed these "zombies" through bankruptcy, either. This Article argues that a tax-based tool known as differential property taxes could alter the status quo in a way that incentiviz.es owners or lenders to improve or dispose of the vacant property much more quickly than in the past and, thus, combat "zombie mortgages." I'liis Article analyzes the legality of differential taxation as a tool for combating vacant property and highlights the legal impediments faced in certain jurisdictions. Strategic implementation of differential property taxes could be another effective tool to use in the ongoing battle against vacant and abandoned properties.
AB - Zombie mortgages and abandoned properties are costly problems for cities and counties across the country. The term "zombie mortgage" is meant to, and hopefully does, evoke images of undead mortgages that are nearly impossible to eliminate. In the legal literature, the term is used to describe the circumstance when a lender or mortgagee has initiated foreclosure proceedings, the homeowner has quit the premises, and the lender later abandons the foreclosure process, often without notifying the owner of record. I'lie mortgages, ac-companying fees, and real estate taxes are "zombies" because the affected homeowner cannot escape them by abandoning the property, even after notice of eviction. Generally, the a ffected homeowner cannot shed these "zombies" through bankruptcy, either. This Article argues that a tax-based tool known as differential property taxes could alter the status quo in a way that incentiviz.es owners or lenders to improve or dispose of the vacant property much more quickly than in the past and, thus, combat "zombie mortgages." I'liis Article analyzes the legality of differential taxation as a tool for combating vacant property and highlights the legal impediments faced in certain jurisdictions. Strategic implementation of differential property taxes could be another effective tool to use in the ongoing battle against vacant and abandoned properties.
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UR - http://www.scopus.com/inward/citedby.url?scp=85019616422&partnerID=8YFLogxK
M3 - Review article
VL - 2017
SP - 1135
EP - 1167
JO - University of Illinois Law Review
JF - University of Illinois Law Review
SN - 0276-9948
IS - 3
ER -