Homeowners with More Than One Property Face Foreclosure, Bankruptcy
- May 30, 2008
Las Vegas–Owners with a second or third home–including popular options like Las Vegas vacation condos and Florida retirement homes–are struggling with what the New York Times called a “tax time bomb.” Many will lose their extra homes to foreclosure and then face bankruptcy because of a large tax bill, the Times said. Congress offered some homeowners tax breaks after they lost their primary residence; but owners who default on second or third homes and rental properties receive no assistance.An outbreak of foreclosures involving second homes is currently occurring, according to bankruptcy lawyers; more may be on the way. There are roughly 7.5 million vacation homes in the U.S.–about 10 percent of the amount of owner-occupied properties, the National Association of Realtors said.From 2002 to 2007, the number of vacation homes increased 18 percent.