A homeowner in Ontario, California whose home was in foreclosure had started taking the home apart and selling the items on ebay and craigslist. Apparently a neighbor had seen the items leaving by the truck load and alerted city officials.
A number of the features were advertised for sale online - fixtures, baseboards, tile, grates, a sink, almost the whole house.
Maybe that doesn’t sound so bad right? it’s hers till the bank knocks right?
Wrong! In this particular case the home is what is considered a Historic Home and the homeowner had entered into a Mills Act Contract, which reduces property taxes in exchange for preservation and rehabilitation. In this specific case lowering the assessed value of $244,746 in 2003 to $139,000 in 2004.
After the homeowner could not get a fixed loan and with current payments shooting up to $6,500 the owner states she wanted to cut her losses and move on, claiming she was only selling items that she had installed herself…when she thought she would own the house forever.
City officials are quoted from the Daily Bulletin "With swift action, code enforcement has nipped it in the bud and kept too much damage from happening to the exterior"
The homeowner is quoted "They changed the locks on my home. I have things in my home. Until the bank takes it away, that’s my home … The city thinks they own you when you have a Mills Act contract. Where does it stop?"
1 response so far ↓
1 South Jersey // Jan 18, 2008 at 5:58 am
Wow. I’d like to see a follow up post as this progresses. Was she replacing the items with cheaper things or just destroying the house? I’m wondering if the Mills Act contract actually states they can reposses your home as opposed to fining you the difference in tax rates?
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