Question about taxes after buying a foreclosed home???

[hipmatt]

I just called him and did some research. He did a lot of research, he went to the tax office, called the county, the city, the escrow company, agents, etc. They all had the same answer.

Basically, the homes are assessed every time they are sold, IF the sales price is MORE than before. Since they didn’t really plan on homes decreasing in value, and it would bankrupt the county, they don’t really have a plan to address the huge housing correction yet.

You basically have to fill out this form… http://riverside.asrclkrec.com/acr/forms/755P-AS3RS0%20Owners%20Request%20for%20Review.pdf
on this webpage..
http://riverside.asrclkrec.com/ACR/INassessment.asp#prop8
.. and ask for your home to be re-assessed. I know this sounds crazy, but in this declining market, you have to pay the SAME prop taxes that the guy before you did, regardless of how high his taxes were, until you can get your home re-assessed, which currently is taking a year due to high demand.

This is going to come as a shock to many, and as I start looking for homes, I will definitely look at what the last guy paid last year.

P.S. This has nothing to do with REO homes BTW, just that homes are declining in value. My friend said that there were 20 other people behind him who were shocked to find out that they have to pay taxes on an old sales price, until they can have it re-assessed.

[raptorduck]

That is exactly right. I knew about this. Most of the homes I have looked at, while they have lost a lot of value, were still in the money for the previous owner so my purchase price would have been above the last one and I would pay taxes on my price.

Those few that were less indeed I just pick up the old tax until I can ask for reassement during the window.

Prop 13 was passed to protect folks from huge jumps in values greatly increasing their property taxes and did not contemplate reductions. So while it provided for fixed modest incremental increases every year to assessed values, it never provided for fixed reductions if market values dropped. It was later that the legislature passed a law that allowed you to request a reassessment if market values dropped. That reassessment, by the way, is not permanent and resets after a while.

[raptorduck]

That is exactly right. I knew about this. Most of the homes I have looked at, while they have lost a lot of value, were still in the money for the previous owner so my purchase price would have been above the last one and I would pay taxes on my price.

Those few that were less indeed I just pick up the old tax until I can ask for reassement during the window.

Prop 13 was passed to protect folks from huge jumps in values greatly increasing their property taxes and did not contemplate reductions. So while it provided for fixed modest incremental increases every year to assessed values, it never provided for fixed reductions if market values dropped. It was later that the legislature passed a law that allowed you to request a reassessment if market values dropped. That reassessment, by the way, is not permanent and resets after a while.

[raptorduck]

That is exactly right. I knew about this. Most of the homes I have looked at, while they have lost a lot of value, were still in the money for the previous owner so my purchase price would have been above the last one and I would pay taxes on my price.

Those few that were less indeed I just pick up the old tax until I can ask for reassement during the window.

Prop 13 was passed to protect folks from huge jumps in values greatly increasing their property taxes and did not contemplate reductions. So while it provided for fixed modest incremental increases every year to assessed values, it never provided for fixed reductions if market values dropped. It was later that the legislature passed a law that allowed you to request a reassessment if market values dropped. That reassessment, by the way, is not permanent and resets after a while.

[raptorduck]

That is exactly right. I knew about this. Most of the homes I have looked at, while they have lost a lot of value, were still in the money for the previous owner so my purchase price would have been above the last one and I would pay taxes on my price.

Those few that were less indeed I just pick up the old tax until I can ask for reassement during the window.

Prop 13 was passed to protect folks from huge jumps in values greatly increasing their property taxes and did not contemplate reductions. So while it provided for fixed modest incremental increases every year to assessed values, it never provided for fixed reductions if market values dropped. It was later that the legislature passed a law that allowed you to request a reassessment if market values dropped. That reassessment, by the way, is not permanent and resets after a while.

[raptorduck]

That is exactly right. I knew about this. Most of the homes I have looked at, while they have lost a lot of value, were still in the money for the previous owner so my purchase price would have been above the last one and I would pay taxes on my price.

Those few that were less indeed I just pick up the old tax until I can ask for reassement during the window.

Prop 13 was passed to protect folks from huge jumps in values greatly increasing their property taxes and did not contemplate reductions. So while it provided for fixed modest incremental increases every year to assessed values, it never provided for fixed reductions if market values dropped. It was later that the legislature passed a law that allowed you to request a reassessment if market values dropped. That reassessment, by the way, is not permanent and resets after a while.

[an]

Wow, this is definitely news to me. This really put the damper on me hoping that rates would go up to force price to fall even further, even though monthly payment might stay the same.

[an]

Wow, this is definitely news to me. This really put the damper on me hoping that rates would go up to force price to fall even further, even though monthly payment might stay the same.

[an]

Wow, this is definitely news to me. This really put the damper on me hoping that rates would go up to force price to fall even further, even though monthly payment might stay the same.

[an]

Wow, this is definitely news to me. This really put the damper on me hoping that rates would go up to force price to fall even further, even though monthly payment might stay the same.

[an]

Wow, this is definitely news to me. This really put the damper on me hoping that rates would go up to force price to fall even further, even though monthly payment might stay the same.

[sandiego]

Do the math. The base tax rate is approximately 1%. If the home drops in value by $100,000, the base property tax drops by $1,000 per year.

If $1,000+/- per year is affecting your choice to buy, homeownership may not be for you.

[sandiego]

Do the math. The base tax rate is approximately 1%. If the home drops in value by $100,000, the base property tax drops by $1,000 per year.

If $1,000+/- per year is affecting your choice to buy, homeownership may not be for you.

[sandiego]

Do the math. The base tax rate is approximately 1%. If the home drops in value by $100,000, the base property tax drops by $1,000 per year.

If $1,000+/- per year is affecting your choice to buy, homeownership may not be for you.

[sandiego]

Do the math. The base tax rate is approximately 1%. If the home drops in value by $100,000, the base property tax drops by $1,000 per year.

If $1,000+/- per year is affecting your choice to buy, homeownership may not be for you.

[Author]

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