Real Estate Journal Online

What would you feel if one day, you opened your property tax bill and it reflected your $17,000 water bill lien – especially when the said lien is in question and is still being investigated? Perhaps the answer will be close to what Ayanna Yancey-Cato said, “Completely devastated” [1].

Ayanna Yancey-Cato is just one of the many Brockton, Massachusetts residents who were surprised to see their unpaid water bill in their property tax bill. A single mother of three, Yancey-Cato says of the fiasco, “I’m at a loss for words at this point. And now I have to deal with my mortgage company to make sure they don’t pay this and increase my mortgage.”

Around 6,500 Brockton residents are facing the same problem. And this is making them so frustrated as the said water and sewer bills –amounting to as much as $17,000 – are still being investigated by city-hired auditors. Last year, the residents complained about their bills and Abrahams Group of Framingham was hired by the city. A $97,000 audit of the Water Department is being conducted to check if bills were indeed accurate.

The audit is expected to conclude early April. Mayor Linda Balzotti says that if the audit proves that the bills were incorrect, residents will be reimbursed. However, city treasurer-collector Martin Brophy says they cannot retract the liens as a state statute says they must be added to the property tax bills. As a result, the residents have found themselves in a “catch-22″ wherein they must either pay a disputed bill or face eventual foreclosure on their home and potential sale of their home in a tax lien auction.

East Bridgewater Treasurer-Collector Marilyn Thompson, however, says exceptions can be made if a bill is at question. Thompson says, “We have put a hold on accounts that are in question because it will mess up escrow for banks … and it can cause problems for people. It’s just a way to work with a person who has a situation that’s being dealt with, without going to that next step.” Unfortunately, it appears that many of the homeowners whose liens have not been put on hold still dispute the findings and will have to make some tough decisions about how to pay these bills.

[1]http://www.enterprisenews.com/business/x1599391312/Brockton-water-bills-moved-to-property-taxes-for-6-500-homeowners