BANGOR, Maine — The saga of the Brown family and the city’s attempt to keep them in their house — and the Browns’ checks coming to the city tax office — appears to be approaching an end.
At Monday afternoon’s meeting of the City Council finance committee, which all nine councilors attended, the five councilors on the committee unanimously voted to take possession of the house at 110 Pearl St. after the Browns defaulted on an agreement they signed with the city in October 2010.
“I can’t support another extension of your due date because we set a bad precedent when we don’t hold citizens responsible for their taxes,” said Councilor Ben Sprague.
Sprague is not one of the voting members of the committee, but his position was shared by those who are.
“It’s a very hard truth, but I support it,” said committee member Geoffrey Gratwick.
All nine councilors made it clear Monday afternoon they would not vote to give the couple, who owe the city nearly $134,000 for a home loan and related taxes and payments, another chance to get their financial house in order.
Jennifer and Peter Brown attended the meeting with a $4,900 check that would have brought them up to date on their payment plan but since they requested a postponement of the $800 payment due May 18, the councilors opted not to accept the check.
David Little, Bangor’s tax collector and deputy treasurer, said while the city was legally entitled to take the $4,900 check and still begin eviction proceedings, councilors and city staff wanted to be fair and allow the Browns to use that money for their relocation expenses.
“There was no assurance they were going to be able to continue to make those payments and felt we’d be back here again in four months having the same discussion,” said Little.
The Browns, who are five years behind on their property taxes, did make a $400 payment to the city last month.
“That was used to offset the mortgage insurance,” said Little. “Because their payments hadn’t been made, the city was covering that out of other budget money.”
The 2010 agreement between the city and the Browns was initially for 12 months and called for monthly payments of $800 with $200 applied to taxes and $600 going to mortgage loans and property insurance.
The outstanding balance on the city-backed loan now stands at $133,874 and the assessed value of the home is $125,000.
“I have concerns that this long-range plan may not work out for your family,” said Joe Baldacci, one of three councilors who voted to give the Browns an extension at an April 2 meeting. “It’s my concern that this is not an affordable situation for you.”
The next step is for the City Council to issue an order to take possession of the property. There will be a 10-day window to reconsider that order and then the Browns will be given a 30-day notice to vacate the property.
“We’re probably looking at July before the house is empty and ready for resale,” said Little.
The workout agreement was a compromise between the city and the Browns over nonpayment of a $70,000 low-interest loan agreement the Browns and the city had entered into in 2005. Part of the loan had been made through Bangor’s Department of Economic and Community Development and was funded by a federal Department of Housing and Urban Development grant administered through the city.
The other part of the loan included the couple’s mortgage, which the city paid off when the original mortgage holder, Penquis CAP, started foreclosure proceedings for nonpayment. The city chose to take over the mortgage to avoid losing thousands of dollars it had lent the Browns.
“If it were a bank they had a mortgage with, the bank would lose their interest if we took the property,” Little said. “We just happen to be the bank in this case. It’s a very unique situation where we have all of the mortgage due on the property, plus unpaid taxes.”
While the city rarely takes possession of houses — Little says the city now possesses four and this is only the second time in his 19 years with the city where Bangor took a property that was occupied by a family — the city has legal entitlement to at least 100 properties.
“Looking at properties in Bangor with mature tax liens, which means they have at least three years of outstanding taxes due, we have 100 to 114 in Bangor currently,” Little said. ‘Legally we have title to those properties, but we don’t have possession.”
I really hope that the Bangor City Council sticks to their guns this time. They have given them so many chances. Enough is Enough!!
I agree! We elect these people to make the tough choices, not drag their feet forever.
Did anyone else find this “Looking at properties in Bangor with mature tax liens, which means they
have at least three years of outstanding taxes due, we have 100 to 114
in Bangor currently” SHOCKING.
Evidently paying your taxes for 3 years is fine in Bangor…what the heck is the city council and the Tax Assessors office doing? Playing angry birds?
And yet they showed up with a check for $4,900 – amazing the money you have when you are not paying your bills like your neighbors. Why weren’t you paying your monthly bill if you got that kind of money? Wonder how much money they have stocked away for a “rainy day.”
I thought the same thing. If they can produce a check like this when push comes to shove, why didn’t they produce 25% of it last month and avoid the mess? My opinion is that they are poster children for folks who play games with the tax authorities. If somebody can show me that they are working folks who just need a break, then I’ll adjust my opinion accordingly.
Have you not read any of the other articles or seen the news about the Brown’s? You should really follow up on what you say. The Mrs. has a job. The Mr. Brown has been trying to find a steady job for months. And is STILL doing little work wherever he can find it. Research before you talk on here.
Reasearch? How about you read my response before you write. I still wonder why, if they can produce a check for a huge amount on one day, why they couldn’t they produce 25% of that amount a week or so before.
Since you appear to be all knowing, maybe I should ask you. Why didn’t they keep to the agreement, rather than wait until a few days later to produce the money. Did they win the lottery and not have it before? Did you not want to give them a loan? Please enlightenme oh wise one with some places to find out why they held on to the money. Last month they owed 800 bucks, but didn’t pay. 2 weeks later they can pay 4900. Where’s the research that will answer that question?
This article literally makes no sense.
It is as clear as the day is long!
Finally.
Agreed. *Finally* the city council is growing a spine. I understand that they don’t want to appear as heartless, but as one other poster said, “enough is enough”.
I can’t imagine the city being viewed as heartless considering these people have had a free ride for years (of course there are some out there who think anything short of these people being able to stay there forever…for free as just being “mean”)
I’m going to step out on a limb here-THESE PEOPLE MIGHT BE ABLE TO PAY RENT ON SOMETHING…maybe…This is a classic example of what government is not here to do.
So property taxes on this house in Bangor are in the neighborhood of $22,000 a year???
No, milrate for Bangor is $19.20 per $1,000 of evaluation; so yearly taxes are roughly $2,400 based on $125,000 assessment. The reason they owe nearly $134,000 is the combination of the five years back taxes, non payment of a rehabilitation loan and non payment of the mortgage loan. The mortgage loan is in existance to secure the City’s interest in the rehab loan. Soon after the rehab loan was made and work completed, the holder of the mortgage started foreclosure proceedings. The City then bought the mortgage to protect the investment made in rehabing the place.
Thanks for clearning that up! Wow talk about good money after bad ….. these are tough times all the way around …. not good for lots of folks, but this just seems like excessive assistance … maybe its me …..
It’s not just you, Tam. These people have taken the meaning of welfare to a whole new level!
Wow, what a great “investment”.
Query: What if the city had not bought the mortgage and just let the mortgagee foreclose, where would the City’s tax liens have stood in the order of things – before or after the mortgage?
The city has dibs on forclosures if monies are owed to the citu. They could have taken the property but chose to loan more money instead. Bad choice Bangor. Your bad.
Can you please write the articles for the BDN from now on?
Thank you for doing what they could not.
I would be so embarrassed to have my irresponsibility/inability to pay for my home make the news…. just walk away. The City of Bangor should be embarrassed for taking so long to take action. Kleenex all around. Business is business, commerce is taking charge. The hubby’s favorite saying “it is what it is.” You can’t pay, make alternative arrangements. It’s pretty much of a mockery if you ask me. No one wants to be homeless, but a trailer in the willy puckers is a whole lot cheaper than this home and if that’s all you can afford, figure it out and do something you can afford. This whole story has always been bizarre. Poster family for what? Someone on Bangor’s City Council needs to have more to talk about than Ted Nugent on this one. Let Ted rent it while he’s in town for his concert!
The reason they didn’t “just walk away” is because they were getting a free ride. Five years of back taxes is going to be on the backs of their fellow citizens.
The city will recoup the taxes and the loans when they sell the house.
And I suppose you are in the market to buy a house? 100 to 114 properties owned by the city now? So, when in the next decade are they going to recoup?
If they price the homes right, and not get greedy, they can sell them very fast. The housing market in the area has actually been pretty good so far this year.
I believe the story says liens are on those properties – there may be families in them and behind their tax payments, but the city has not claimed these properties (they’ve only claimed 4 in 19 years), probably hoping these families will get their sh&^ together and pay their back taxes. The city is crapping their pants with this economy, probably hoping they don’t have to do this again for a whilebecause they will never recoup the city’s money in this housing market.
the house is worth less than the outstanding loans and back taxes. The city will not recoup all of the money they are owed when they sell the house.
I just can’t believe they got away with it for long……………… Subject: [bdn] Re: Bangor council to seek eviction of couple that owes city nearly $134, 000
Sad thing is, their Credit rating is probably better than most people who pay their bills in full and on time.
Very much agree with you.
What’s the market value of that place? Greater than $134,000 or less? Assessed at $125,000 . . .
Again? Good luck with that.
It would cheaper to give them the house than have to pay for low income housing for them.
I would donate my tent to the cause (that might be cheaper)…
I suspect giving somone a house would not be cheaper…no matter how slice it!
Great idea. Everyone in Bangor should stop paying their taxes. Then we can just give houses to everybody. That will be even cheaper.
How about Councilor Longo paying their bill to the city. He orchestrated the last extension and positioned himself as the champion of the poor. How much did he cost the taxpayers last month? PS does councilor Longo pay property tax?
Is paying property taxes in Bangor part of the requirements of having a seat on the council.
Every business owner in Bangor that lives in surrounding communities can’t. Can’t vote on your casinos, your arenas, etc.., yet, still bare the burden of increases.
Move. The reason businesses are in Bangor is that they get more business. The Bangor Chamber of Commerce, with many Bangor business members completely suipported the arena and casino, though th casino makes the city money, so I am not sure why you include it.
Nope just live in Bangor
It should be.
No,but it might be looked into.Also, on this point, one should be out of Mom’s highchair to have a “seat on the council”.
If you rent, you don’t pay property tax directly, but presumably the property taxes are rolled into the price of rent.
Did anyone really think Longo and Baldacci’s plan to let them stay in their home was going to work out? Hope is not a plan!
They can be Chuck’s bunk mates in his Mom’s Basement!
“Hope” and “Change” wasn’t that Obama’s mantra in the last election cycle?
(it does seem there are 2 Joe’s on this post…)
Nice Name!
Agreed!
They were given one more chance, good faith. sometimes it does work out.
I might not like their politics but Longo and Baldacci are good caring people and I trust them to do their best for Bangor.
As bad as these folks have been the elected officials have been worse. They’ve tried playing political games to make themselves look good for three years and now they all look bad. This should have been a staff decision back in 2010 not a political game played until mid-2012. The taxpayers are going to take a bath on this property. None of the Councilors, from 2010 to the present nine, will ever get my support for elective office again- not for the extensions but for politicizing what was a staff level business decision to foreclose for own their political self promotion. They knew better than City Staff and were going to be heroes by not foreclosing on these deadbeats even though in 2010 the only way themortgage was going to become current was if the deadbeats won the lottery and the City garnished the winnings. At least that was the way it was supposed work out but now they are all going to be looking to bury this loss as soon as possible. Let’s hope the paper has the fortitude to follow it through to the end and make the Council accountable for the loss this property will become to the taxpayers of Bangor
The city of Bangor has been extremely fair or should I call it kind.. Fair means it is fair for all parties. which we know it is not.
It saddens me to say this but they need to find another place to live that they can afford..
The city could use that money to loan others to fix and update their homes with that money.
Councilor Longo – Please show some compassion and allow these people to stay. Think of the children, have you no heart?
You can’t be serious. Are you?
They did allow them to stay. For five years without paying any sort of rent or payment. I’d consider that to be pretty compassionate.
I am not a cold-hearted person by any means, but they’ve had their opportunity to look for somewhere else to live- somewhere they can afford.
I wish the Council would be this judicious when it comes to enforcing code violations as well. This town is filled with trashy slums that landlords never fix up or perform even basic maintenance on. I’d like to see some of those rat traps shut down.
makes the rest of us look like chumps.
My question is how many more situations are there like this? My understanding is that many communities are extraordinarily slow in pursuing these sorts of cases. I wonder if Bangor has a long list of similar cases.
The article sait about 100 to 114 properties are up for forclosure due to taxes. so my guess is yes.
Please Bangor City Council stick to your guns.
Ooops sorry Councilor Longo, I didn’t mean to say guns.
It’s about time. I was furious at the article last month when they voted to give an extension. A tiger never changes their stripes!
They say “pay your taxes with a smile.” I guess that didn’t work.
And why is this even anybodys buisness but the family and the city of Bangor? There is no reason this should be broadcasted.. Come on people
It’s public business at a public meeting. I think they have to do it that way to be legal.
It is the business of everyone who pays taxes in Bangor.
As it should be.
If they can’t pay taxes, what is the condition of the house?
Product of the great recession, which I call a depression. Everyone needs a place to live and in this cold state a tent doesn’t cut it. What do we do?
The, or a government is there to help take care of and protect it’s people. In older days, we had poor farms and houses where the poor could help even if they couldn’t find a job. What do we do now when times are tough, there is work to be done, but not enough employment or money?
I suppose we can revolt and get crushed to death by government tanks. I figure they were current on payments when they got the rehab loan in 2005. As soon as they accepted that loan, they probably owed more on the house than they could possibly sell it for. The house will sell for more than enough to pay taxes and that first mortgage that the city bought from pen cap. It’s the rehab loan that won’t get paid in full. I have my doubts that the city is losing much more than they would have lost if they took this house 3 years ago. I think it became a loser for the city when the home values started tumbling downward.
They had the money in hand to pay things up to date, but the city refused? Dumb and wrong.
Oh, Longo finally gave up on the deadbeats, eh. How big did the bill get when he put the delaying tactics in? This should have happened a year ago, at least. They owe 134k and the council let them keep the back money to be fair? Sure is unfair to all of the citizens who pay their taxes.
Thats a nice looking car for someone who can’t pay their bills.
There must be something in your eye. That looks like an Oldsmobile Alero to me…
..it is….but it’s still better looking than the ever-so famous rusted out 1997 Dodge Caravan with two-tone primer colored door panels & plastic over one of the windows…just saying
This is absolutely ridiculous! $134K? that’s a bit over the top. people these days, you shouldn’t be spending money you don’t have! http://www.youtube.com/watch?v=4Zy23pvkobU
$134K is too much!
The city of bangor is looking at their house and is saying … “You know how much methadone that will buy!?”
Eventually, someone will do research on the percentage of these taxpayer subsidized low interest loans that actually improve the borrower’s quality of life over time vs how many are go down the sink hole…. Just one more example here.
I encourage you to do that research. You will be pleasantly surprised to be found wrong. The rate of default on these loans is right around 1%.
Time to boost these people-send them back where they came from with a bus ticket.I’ll pay for the ticket.
The next step is for the City Council to issue an order to take
possession of the property. There will be a 10-day window to reconsider
that order and then the Browns will be given a 30-day notice to vacate
the property.
“We’re probably looking at July before the house is empty and ready for resale,” said Little.
Does anybody besides LIttle really think the house will be ready for resale in July? Maybe I’ve grown cynical over this issue but I’d be willing to bet anyone that they’ll still be living there in July and the place won’t have a for sale sign out front until at least Christmas….
My guess is that in July this house won’t even be worth the 125K that it’s assessed at now. Good luck Bangor. You may need it.
screw bangor it’s nothin but a bath salt pit anyways
If it had been me I would have been ousted from my home years ago- I think people have bent over backwards for this couple- I feel badly for them , but they have had many chances. Time to bring it to a close.
Dear city of bangor,
As of this moment I will not be paying my property taxes. Don’t even think of calling me for at least 3 years. Then be prepared to wait until the 5th year before you even think about taking my home. I’ll then drag it out for another 6 to 12 months. Anybody have a moving truck I can borrow in approx 6 years?