Lawsuit in DC Challenges Tax Lien Practice

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credit: Tim Boyle/Getty Images

credit: Tim Boyle/Getty Images

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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.

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