Faith

TX Church Outraged After Getting ‘Deceptive’ $170,000 Tax Bill on Foreclosed Property it Purchased

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Image Credit: 401K 2012

Free Deliverance Church was in for a rude awakening when the house of worship recently purchased a $25,000 foreclosed property in Dallas, Texas. While the initial buy seemed like an excellent deal, the tax bill that followed was stunning.

The congregation was billed an extra $170,000 in property taxes, despite their belief that the land came with no hidden fees. As a result of the surprise monies owed, church leaders claim that this sum is unfair and cannot be afforded.

“The problem, the church has subsequently discovered, is that while the back taxes were erased when the land first went into foreclosure, the property went un-purchased for decades and the post-judgment taxes just piled up and up over all those years,” The Consumerist reports.

The main issue is that the property at the center of the dispute is called “struck off property.” This essentially means that the building foreclosed and then went to auction. When it didn’t sell there, it went back to the government. This particular property had purportedly been sitting for quite some time.

Generally, people get a good deal at auction, but in this instance that simply wasn’t the case, as taxes had accrued. Now, the church is accusing the government of deceiving the congregation by concealing the massive tax bill until after the sale was completed.

“Then the true sale is not what they’re out there making the bid for. They clearly know that these taxes are owed and it’s a part of the sale. So it’s deceptive trade practices,” charged Annie Rolfe, whose father the Rev. Morris Rolfe leads the church. “You are selling a product that you that the citizen or the consumer has to be responsible for more and you’re not discussing that. And you’re saying to them, ‘You find out.’”

Watch the CBS report, below, for more:

CBS DFW has more about the drama that is unfolding between Free Deliverance Church and the local government:

The councilmember for this district, Scott Griggs, tells CBS 11 News there is a unique property tax problem on this land because it was foreclosed on so many years ago. He says while the original back taxes were eliminated in foreclosure, fresh new “post judgment” taxes were added every year since.

According to the Rolfes, that could be twenty years. The Rolfes claim the city never told them about it, though they asked. Griggs is trying to get the city to forgive the taxes but can’t do it alone.

Other taxing bodies, like county government, the school district, and the hospital district must also go along.

Rev. Rolfe pledges to fight the government on the expense, as he believes it is unfair for the church to be stuck with a bill that church leaders purportedly knew nothing about.

(H/T: CBS DWF)

Comments (55)

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  • Alex404
    Posted on June 19, 2012 at 8:20am

    Question?? The government took title to the property after forclosure. They were the owners. How can they owe taxes “literally to themselves”?
    The government owes taxes to themselves? Gee! Have they paid the taxes on all the other property they own?

    Report Post »  
  • JUSTANOTHEROPINION
    Posted on June 19, 2012 at 7:55am

    If it looks to good to be true, it probably is. Don’t blame local government, after all, they’re just following Obamas example of leadership.

    Report Post »  
    • loriann12
      Posted on June 19, 2012 at 8:12am

      If it didn’t sell and went back to the government, why didn’t the government pay the taxes? If the government owns it, they are responsible for back taxes. If I had a house and let it sit because it wouldn‘t sell and didn’t pay the property taxes on it, you could sure bet they’d come after me. I bought a house from someone who died in November, but I didn’t buy the house until April. I got charged property tax based on the fact that no one lived in here on January 1st, so it wasn’t my homestead. Remove that homestead deduction, and taxes are EXPENSIVE!

      Report Post »  
  • VirginiaJim
    Posted on June 19, 2012 at 7:48am

    Statute of Frauds in virtually all states resolves this problem. A person or company or government cannot sell a purchaser property for valuable consideration (money) when they know it does not have value. If, as stipulated, the government KNEW the property hadn’t any net value (the taxes exceeded the fair value of the property), they committed a civil fraud. The penalty of a civil fraud is to return the money to the church. If the government INTENDED to commit a fraud, then its criminal fraud.

    If it is true, the Church asked “are there obligations that attach to the property” and the government knowingly and falsely withheld that information for their benefit….well….

    Report Post »  
  • RightUnite
    Posted on June 19, 2012 at 5:39am

    I call BS….

    Report Post »  
  • lukerw
    Posted on June 19, 2012 at 2:39am

    Due Diligence requires that… YOU… investigate all outstanding claims against a Property.

    Report Post » lukerw  
    • Zipit
      Posted on June 19, 2012 at 7:46am

      True! But deception is nonethelessless, deception. Having a reasonable expectation that your government would inform any prospective purchaser’s at an auction that the property came with an outstanding tax bill, is a pretty good argument in court!

      Report Post »  
    • Taquoshi
      Posted on June 19, 2012 at 8:22am

      According to the Rolfes, that could be twenty years. The Rolfes claim the city never told them about it, though they asked.

      While the buyer should do research, lack of disclosure on the part of the seller, is also involved here.

      Report Post » Taquoshi  
    • battles
      Posted on June 19, 2012 at 11:11am

      My lesson here is to never buy auctioned property. From many other stories on the web, I have also learned to never talk to the police (exercise right to remain silent, get lawyer if arrested or detained). Never answer any questions from prosecutors (take 5th). As much as possible, avoid all dealings with government.

      Report Post » battles  
  • bigdaddyt46
    Posted on June 19, 2012 at 2:29am

    The comment has been reported. Thank you

    Report Post » bigdaddyt46  
  • Winedude
    Posted on June 19, 2012 at 2:05am

    Owed taxes should have showed up in a preliminary title search. If the church failed to purchase title insurance, tough luck suckers. It looked too good to be true and it was. The fact that this happened to a church, in Dallas, Texas makes me laugh with unbridled mirth…couldn’t have happened to a more deserving collection of suckers.

    Report Post »  
    • battles
      Posted on June 19, 2012 at 11:20am

      Mocking and laughing at the unfortunate calamity and misfortune of others? I think that you should prepare yourself for a dose of the same.

      Report Post » battles  
  • Gregg Weber
    Posted on June 19, 2012 at 1:28am

    I wonder if there was some past disagreement between the city and this church. Someone trying to get even with this church, or any church in general.
    To answer that question; see if the city has tried the same thing on all the other forclosures in it’s boundary. If this church is the only one then discrimination based on religion might be looked at.

    Report Post » Gregg Weber  
  • Diane TX
    Posted on June 19, 2012 at 1:10am

    Did they buy Title Insurance? If they did, the title company should have researched and found the back taxes due when they checked if there were any liens on the property.

    Report Post »  
  • Chancellor
    Posted on June 19, 2012 at 12:06am

    It’s called “Full disclosure” and what the sellers, The Local Government, did was illegal.

    File on it right away for you only have 90 days or the law says you are responcible

    after that!

    Report Post » Chancellor  
    • Detroit paperboy
      Posted on June 19, 2012 at 12:20am

      Two words…..title insurance .

      Report Post »  
    • Chancellor
      Posted on June 19, 2012 at 12:28am

      3 words……..Not in Texas! Look it up full disclosure rule…….In New York you even

      have to disclose if the house or land is haunted

      Report Post » Chancellor  
  • Papadoc
    Posted on June 19, 2012 at 12:05am

    How does the local government assess taxes on its own property? The local government is the seller, the taxer, the record keeper, and the collector. The church should not only sue to have the sale voided (dumping the property back on the ungrateful city), but sue for unethical business practices including compensatory and punitive damages.

    Report Post »  
    • stumpy68
      Posted on June 19, 2012 at 12:39am

      If the Government owned the property
      does that mean the Government is arrears ?
      It appears to me that the owner during the time the taxes were accessed
      should be responsible for them.

      Report Post » stumpy68  
  • Larry E
    Posted on June 18, 2012 at 11:31pm

    Obviously since the government is doing this it’s got to be okay. A government run scam from not having to disclose due property taxes on foreclosed property to social security is okay. Just don‘t none of you civilians attempt this or you’ll be on trial for at least false and misleading practices, not to mention fraud.

    Report Post »  
  • Maxim Crux
    Posted on June 18, 2012 at 11:29pm

    The government should have paid their taxes

    Report Post »  
  • MrObvious
    Posted on June 18, 2012 at 11:27pm

    If the government owned it, then the government owes the back taxes, to itself.
    Send them them the bill.
    Problem solved.
    lol
    If only life were that simple.

    Report Post »  
  • 13th Imam
    Posted on June 18, 2012 at 11:23pm

    Everythings bigger in Texas?

    Report Post » 13th Imam  
    • battles
      Posted on June 19, 2012 at 11:29am

      I would argue that yes, everything is bigger here in Texas. But Dallas is called and locally known to be the ‘only Yankee town in Texas’, so that is why they are having such scams in government there.

      Report Post » battles  
  • Merrymix
    Posted on June 18, 2012 at 11:13pm

    In Kentucky, even brokers and agents are responsible for any known deception on the Seller’s part in not disclosing adverse conditions to the Buyer. One of the questions on the Seller’s Disclosure is whether or not there are any existing or threatened legal actions affecting the property. It also asks if the Seller is aware of any condition which may result in an increase in taxes or assessments. Get a good Realtor and a real estate attorney. The church should win this one easily enough.

    Report Post » Merrymix  
    • 2012hey
      Posted on June 19, 2012 at 10:09am

      Normal disclosure rules don’t apply when you buy foreclosed properties at auction… that’s the risk

      Report Post »  
  • Amy
    Posted on June 18, 2012 at 11:09pm

    I agree, it is deceptive. You buy property, then – pow – you are paying someone else’s taxes owed from years back. There awta be a law – or at least some type of insurance to guard against it.

    Report Post » Amy  
  • taxpro4u03
    Posted on June 18, 2012 at 10:44pm

    “What causes that?” —> Question with boldness… you will find the answers HERE — but don‘t take anyone’s word for it — “Trust but Verify” — http://www.apfn.org/apfn/bcolony.htm

    Report Post »  
  • lassiegirldawn
    Posted on June 18, 2012 at 10:44pm

    First mistake purchasing something form the government, second mistake, trusting the government, third mistake, believing the government would give you a deal that they wouldn’t steal for their selves. If it was that good of a deal, I am sure some politician or their family member would have gobbled it up.

    Report Post »  
  • PROSECUTE_PUBLIC_SERVANTS__FOR_CONSTITUTIONAL_TREASON
    Posted on June 18, 2012 at 10:42pm

    The criminals are the gov. The gov. is an organized criminal enterprise preying upon workers. Total free loaders. It’s a sick world of wicked leaders.

    Report Post »  
    • matrixcheck
      Posted on June 19, 2012 at 12:59am

      Don’t forget WE ARE THE PUBLIC we own the “government owned land” we are the public that makes up the government. Let us hold the individuals responsible for their actions.

      Report Post »  
  • PROSECUTE_PUBLIC_SERVANTS__FOR_CONSTITUTIONAL_TREASON
    Posted on June 18, 2012 at 10:40pm

    In America you and I believe we are free. Not true. You and I are free range chickens. We get to pick our area to feed on; then the taxman shows up along with the bankers for banker interest. All our eggs are taken everyday. You are exhausted by the end of the week from work. You pickup your net earnings with just enough to fund your bills. It’s sad. People really believe we are free and we are slaves. We are in bondage. The gov. and bankers back around 1970′s even put most of the women in America to work. Today you are no better off than if your wife never went to work. Inflation and tax increase inflation ate up all the womens work.
    Christians are mainly to blame folks. They have failed to be salt and light to the world as the Bible states. Christians have ignorred God’s Word and refuse live righteously. Their daughters dress like tramps in church. Their sons have a filthy mouth. The dads have failed to be spiritual leaders. If this is not you, you are the exceptional Christian.

    Report Post »  
    • lassiegirldawn
      Posted on June 18, 2012 at 10:47pm

      The only thing that is going to save this nation is some good old fashion knee mail

      Report Post »  
    • taxpro4u03
      Posted on June 18, 2012 at 10:50pm

      Goes back FARTHER…. Identify WHO the Hyksos peoples were/are… :-0 1st Council at Nicea in 325a.d. can shed a LITTLE light on it… The nullification of the Magna Carta circa 1215 a.d. by da Pope a lil more…

      Report Post »  
    • grannyjojo
      Posted on June 19, 2012 at 12:06am

      You are rediculous.

      Report Post »  
  • HorseCrazy
    Posted on June 18, 2012 at 10:39pm

    this realtor and owner of much property says if it looks to good to be true it is. this is what a little research and some title insurance is for. folks be careful and by the way don’t use auctions unless you have a clue what you are doing and if you use a realtor get a decent one.

    Report Post »  
  • Woodiedg
    Posted on June 18, 2012 at 10:34pm

    Back taxes should have been paid by the owner of the property. Who was the owner, the local government, they owed the taxes that were delinquent. The Church only owes from the date of their ownership. the Local government needs to sue itself for the 170,000 in back taxes.

    Report Post »  
    • MetalPatriot
      Posted on June 18, 2012 at 11:02pm

      That’s what I thought. Whatever person or entity that has the title is responsible for the taxes, otherwise, how can property accrue taxes if it’s not “owned”?

      The post about us being slaves has become so true. I’ll be the first to admit, it’s not an entirely uncomfortabe life compared to ANYWHERE else.

      I don’t even believe I truly know what being free is or what it means. Not trying to be apathetic, just honest.

      How many of you know and live true freedom?

      Report Post » MetalPatriot  
  • Inlandmar2
    Posted on June 18, 2012 at 10:27pm

    A little research goes a long way. Maybe someone should have asked the question – Why hasn’t the property been sold before if it is such a good deal?

    Report Post » Inlandmar2  
  • Searchingforthelight
    Posted on June 18, 2012 at 10:24pm

    That is why you always check the title for construction, tax, and judgements. And that is why you always purchase title insurance.

    Report Post »  
    • freeberty
      Posted on June 18, 2012 at 10:31pm

      Exactly right Searching,

      Very lazy/shoddy work done by the church to end up in this position

      Report Post »  
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