WASHINGTON — A lawsuit that seeks to stop tax-lien investors from taking homes through foreclosures has been filed in federal court in Washington.

The Washington Post reports the lawsuit was filed Tuesday in the name of Bennie Coleman. Coleman, a 78-year-old veteran, became a symbol of the city’s often-abusive tax collection system after losing his home over a $134 bill. Attorneys are seeking compensation for Coleman and others whose homes were taken in recent years

RELATED: D.C. Mayor ‘Outraged’ By City Program Forcing Homeowners To The Curb

The Post reported Sept. 8 that homeowners were losing properties over relatively small overdue bills. The paper reported that the city for years placed liens on properties when homeowners did not pay their tax bills and sold the liens at auction. Some investors used legal fees and interest to turn $500 tax bills into $5,000 debts.

(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)


Leave a Reply

Please log in using one of these methods to post your comment:

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

Listen Live