The rise in the real estate market values increased the taxes levied upon homes. As a result, homeowners are now not only experiencing serious declines in property values and negative equity, but property taxes are substantially greater than the current value of the home. Tax assessments and rates for homeowners reflect the value of the homes as of a year or sometimes two years ago placing an even greater burden upon the homeowner. Over the summer of 2008 basic necessities of food and gas suddenly spiked to historic levels. These increases placed serious financial impacts on the borrower’s income and financial abilities.

Real estate tax increases have extended the burdens on the homeowners, and have actually caused major shortfalls to municipalities. As many homeowners and property owners have either abandoned their properties or have lost their properties to foreclosure, municipalities are burdened with unpaid tax bills, maintenance of abandoned properties and no accountability. As lenders have taken possession of properties through the foreclosure process, many have actively refused to record their transfer of ownership. By not recording their deeds the lenders have effectively postponed the burden of any maintenance costs and real estate taxes off until such time that the lender has actually sells the property. The burden shifts to the municipality to carry the burden unknowingly on behalf of the lender. If the municipality issued building violations, those violations and judgments are posting against the former property owner further aggravating and eroding the borrower’s financial well being.