Pages: 1

 

2008-09-17 09:12:36
cpt.fass1
The Cap'n Can Make it Hap'n
+329|7002|NJ
Ok I'm a mortgage broker I"ve been doing it for about 5 years.. I'm still in the business with a clean slate cause I've never put anyone into a loan that they couldn't afford. There is one thing that I can't figure out though. With the predatory lending and the governments pointing fingers at banking practices and with everyone out there saying the housing market is seriously inflated.

How come in every state that I've been doing business in they've been almost double property taxes?

Based off of what we know and the highest foreclosure market that we've ever had. How can anyone justify an almost double in these taxes. One of the guys who works for me taxes just jumped from 6k a year to 11k a year.  He's a truck driver and makes about 90k a year and his wife is a new attorney making around 70k. He's mentality about it, fuck it I'm mailing in the keys I"m not going to pay that much more on a house that I owe 525k on that's only worth around 350 right now..

It's seriously forcing more people into a desperate situation and I just want a reasonable answer for this?
2008-09-17 09:23:19
Kmar
Truth is my Bitch
+5,695|6906|132 and Bush

My property taxes went down. That might have something to do with depreciating home values though . They've also doubled our homestead exemption from 25k to 50k. I'm only paying taxes on about half of my home sales price. That's a good thing if I plan on staying for awhile (which I do).
Xbone Stormsurgezz
2008-09-17 09:32:58
cpt.fass1
The Cap'n Can Make it Hap'n
+329|7002|NJ
Lucky you.. Just kick me when I'm down..
2008-09-17 09:35:19
ATG
Banned
+5,233|6835|Global Command
They are trying to break us.
2008-09-17 09:47:18
Kmar
Truth is my Bitch
+5,695|6906|132 and Bush

cpt.fass1 wrote:

Lucky you.. Just kick me when I'm down..
Certain taxes are only paid when there is a home sale (one time). Doc stamps is an example in Fl. With declining sales there has been a dramatic drop in revenue. And a home in foreclosure probably isn't having it's property taxes paid. Guess where the civil service funding is being made up?
Xbone Stormsurgezz
2008-09-17 09:58:11
cpt.fass1
The Cap'n Can Make it Hap'n
+329|7002|NJ
Yeah but it's a catch 22 which is my problem with there current solution.. There's a gap in tax revunue with the foreclosed homes, but on the flip side they're going to cause more foreclosed properties with raising the taxes..

I've had problems getting people loans due to enormous taxes on a smaller loans and right now rates are really really low which should in theory get the housing market going again, at least with purchases.
2008-09-17 10:10:08
OrangeHound
Busy doing highfalutin adminy stuff ...
+1,335|6955|Washington DC

cpt.fass1 wrote:

How come in every state that I've been doing business in they've been almost double property taxes?

...

It's seriously forcing more people into a desperate situation and I just want a reasonable answer for this?
Property assessments are usually based on previous years sales comparisons.  Thus, taxes (which are based off assessments) lag 1-2 years behind the current real estate market.   The most recent tax bills are based on the peak of the real estate markets in most jurisdictions.
2008-09-17 10:18:27
cpt.fass1
The Cap'n Can Make it Hap'n
+329|7002|NJ
I'm very aware of that, but if the common denominator of the previous years are that it's inflated value based on fraud shouldn't that be taken into account?
2008-09-17 11:25:51
chittydog
less busy
+586|7141|Kubra, Damn it!

cpt.fass1 wrote:

I'm very aware of that, but if the common denominator of the previous years are that it's inflated value based on fraud shouldn't that be taken into account?
How do you verify that? Sale prices of comparable homes in the neighborhood are probably the most reliable source. And what does it matter if it's inflated or not? If people are paying $X for a house, then that's what they paid. Every other commodity is taxed on value or price paid, regardless of whether it's a fair price or not.

It sucks for people whose taxes have skyrocketed, but I don't see a better, fair way to do it.
2008-09-17 11:46:52
cpt.fass1
The Cap'n Can Make it Hap'n
+329|7002|NJ
Well the "fair" way to do it would be not to re-asses values into the housing dilemma works it's self out
2008-09-17 12:11:05
OrangeHound
Busy doing highfalutin adminy stuff ...
+1,335|6955|Washington DC

cpt.fass1 wrote:

I'm very aware of that, but if the common denominator of the previous years are that it's inflated value based on fraud shouldn't that be taken into account?
All real estate assessments are based on comparables, and they do not take into account (a) subjective speculation about whether or not the comparables are inflated or (b) current market conditions.  That said, governments sometimes change the tax rate to address (a) or (b).
2008-09-17 13:09:28
Kmar
Truth is my Bitch
+5,695|6906|132 and Bush

cpt.fass1 wrote:

I'm very aware of that, but if the common denominator of the previous years are that it's inflated value based on fraud shouldn't that be taken into account?
I'm with you one hundred percent on that. Mum was the word back then. I actually had a meeting with our county tax appraiser and he said the same thing. This is a person who is supposed to be for taxes..lol. Or at the very least he has to present an unbiased position.

I tell you, nothing is nearly as nefarious as the people going around with the "We buy ugly houses" signs. I'm sure you've seen similar signs on the side of the roads that say "STOP FORECLOSURE". They are getting people to sign over their deeds, pay them a fee to negotiate with the banks (usually a few thousand), and then pocketing all the profits in between the difference. Since flipping houses is no longer a viable source of income they play the role of investor and rob people blind. They are still exploiting the situation. In fact sometimes the original owners are still pursued even after the deal is done.. for other liens, hoa fees, etc. Stuff that should have been satisfied. That whole racket needs to be shut down.
Xbone Stormsurgezz
2008-09-17 13:21:01
Ilocano
buuuurrrrrrppppp.......
+341|6973

cpt.fass1 wrote:

Well the "fair" way to do it would be not to re-asses values into the housing dilemma works it's self out
Wait.  You have five years experience as a broker, and you are talking "fair" and holding off reassessment?  Since when has the Taxing Authority been fair?  Just have you friend request a reassessment.  If anything, he'll move up in the queue.

For myself, living in SoCal, hail hail to Proposition 13.


Edit: Get him to build a patio cover.  Get it approved, built, and then get a "go to the head of the line" reassessment card.

Last edited by Ilocano (2008-09-17 13:23:48)

2008-09-17 13:41:45
Diesel_dyk
Object in mirror will feel larger than it appears
+178|6300|Truthistan

cpt.fass1 wrote:

He's mentality about it, fuck it I'm mailing in the keys I"m not going to pay that much more on a house that I owe 525k on that's only worth around 350 right now..

It's seriously forcing more people into a desperate situation and I just want a reasonable answer for this?
This happened before in the 1980s. (Saving and loan scandal). People bought houses in a rising market, when the market crashed back then people found themself to be upside down in their loans. They found that they owed more thant he house was worth. take your friend and consider him as a rational business minded person who looks outside his window and sees the exact same house across the street from his house now selling for $150k less than he currently owes on his house. even though he may have made five years of payments it would be to his benefit to dump the keys on the banks desk walk across the street and buy that house and save $150k.

As for the taxes, the assessed values for the current year are based on assessments for the previous year. So as the housing bubble went up  up up so did the taxes. when the housing bubble burst, there would be a one or two year lag before the assessed value would account for the lower market values on the house.

Last edited by Diesel_dyk (2008-09-17 13:43:18)

 

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