Man shocked to find out government’s taking his house while in hospital

A New Hampshire man was shocked upon finding out the local government was seizing his home as he stayed in the hospital after suffering a devastating stroke.

The government can seize homes and properties for a variety of different reasons, and unpaid tax bills can often lead to one’s home being taken away for good.

Retired house painter John Jones, 66, who resides in Franklin owed just over $5,000 to the city. While Jones was still recovering from his stroke, the Franklin City Council decided it would be taking away his home, estimated to be worth roughly $50,000.

“I paid over $30,000 for this place and now they get it for nothing. What a scam. That’s how they do it,” Jones told newspaper Concord Monitor in an article published Friday. “They don’t really care.”

New Hampshire has the highest reliance on property tax collection, a recent Tax Foundation report discovered, making situations like Jones’ more common. This is because the state doesn’t have an income or widespread sales tax.

“That means many local governments rely on property taxes as their main source of income,” Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek. “As cold and heartless as the story appears, you can see the government’s reasoning. This taxpayer failed to pay repeatedly, and now the government is coming to collect, and the only way to do that is to seize property.”

The local publication found Jones was not alone in his plight. According to deed transfer data, local governments within the state seized property for those who had unpaid tax bills roughly 4,000 times in the last 10 years.

“I didn’t even know any of this was going on because I was in the hospital,” Jones told Concord Monitor. “I was trying to stay alive.”

Retirees with a low income are some of the most likely to fall victim, too.

“Everything was good until that day. I retired, took it easy and then I had that stroke,” Jones said. “I’m just waiting to die. That’s what I’m waiting for.”

Concord Monitor found many owners remained unaware the city had taken ownership of their property due to undelivered mail. The problem only worsened as the towns analyzed rarely waived any interest on late payments, causing homeowners to owe more than they originally needed to pay.

And if you’re in the hospital when the notice is sent to you, it’s unlikely you’ll be able to make any payment on time.

“No one wants to see someone in the hospital struggling to live, have the government swoop in and take what little they have,” Beene told Newsweek. “Even if the government reserves the right to do so, most viewing the story would agree an easier path could have been taken. Perhaps it was a final shot at paying in installments or an attempt to work with his family to lessen the burden.”

When New Hampshire cities did get relief payments from the federal government, they typically used it to give employees raises, not toward any outstanding debt owed by low-income residents, Concord Monitor reported.

The situation was the most intense in poor cities as the newspaper found across New Hampshire’s 13 cities that those with the lowest average income saw property seized more frequently.

“Over the last seven years, Governor Sununu’s administration has downshifted unprecedented cash – not costs – to cities and towns, returning hundreds of millions of dollars in tax relief to citizens,” spokesman Brandon Pratt for New Hampshire Governor Chris Sununu told Concord Monitor.

Newsweek has reached out to Governor Sununu for comment via email.

Jones originally purchased his home in 2015 in cash, and hoped to spend his final days there.

“My son, my daughter, they’re beautiful. They’re great kids,” he told the newspaper. “You have to leave something for the kids.”

Jones only brings in an income of $850 a month, courtesy of Social Security, after working for decades as a house painter. When he suffered his stroke, he was unable to make any further payments to his tax bill and went back-and-forth between several hospitals getting treatment.

In Franklin, residents have a week to pay off their bills before the city files paperwork to take ownership of homes. Jones didn’t respond within the week and never asked for an assistance program.

But on Jones’ end, he said he never got the initial alert, and the mail ended back at city hall, with a “return to sender, unclaimed” postmark.

“Unfortunately, there is no law stating that your house cannot be seized due to physical ailment or hospital stay,” Kevin Thompson, a finance expert and the founder/CEO of 9i Capital Group, told Newsweek. “If you are years late on your tax payment, they believe you have had fair warning, and your current situation does not take precedence of years of past due tax.”

Michael Ryan, a finance expert and the founder of michaelryanmoney.com, said Jones’ situation highlights the importance of establishing proper legal documentation and having a designated representative as you age.

“While governments do have authority to ultimately seize properties over unpaid tax debt as a last resort, there are typically protections in place to prevent leaving someone homeless in an overly aggressive manner,” Ryan told Newsweek. “Red flags in John’s case, like insufficient notification and the home’s value far exceeding the debt amount, raise concerns over whether procedures were properly followed.”

Still, Ryan said the situation could likely have been avoided if Jones appointed someone to oversee his affairs through power of attorney or a health care proxy.

“Preparing these documents in advance and making your wishes known is absolutely essential, especially for seniors or those with health concerns,” he said. “It ensures you have an advocate coordinating all aspects of your care and finances during vulnerable periods when you cannot do so yourself.”

Once Jones finally found out the state was looking to seize his home, he and his partner Jessica Helfenstein signed a check and were able to connect with the Homeowner’s Assistance Program, which offers federal funding for pandemic relief support.

They’ve also been able to apply for an elderly tax exemption, which will bring the value of their home down and keep property tax bills lower.

“I’m trying to die peacefully,” Jones said. “But it’s kinda hard when you’re dealing with aristocrats.”