Question about taxes after buying a foreclosed home???

[sandiego]

It is not $360 per month forever. It is a total of $8,640 ($360 x 24 months max). In addition, the RE taxes will be prorated in escrow so you won’t even pay a full portion of the first year. If you just picked up an REO at discount of 52% of its latest sales price ($270,000 in real dollars) and you are worried about $8,640 over 24 months, then homeownership is probably not for you.

Homeownership is full of “surprises”.

I used the term “several years” because I don’t know the age of the house or the term of the CFD/Mello Roos bond.

[hipmatt]

sandiego.. I’ve owned two homes, sold close to the peak in 2005. I’ve been renting since. I simply stated that this info is relevant, and by the responses, others agree. I will buy a home again, despite your snobby/sarcastic suggestion not to believe it or not, when I am good and ready. I will know when to buy and what to buy for the same reasons I knew when to sell. Its because I examine all of the facts that I can.

“Worrying” about things as you call it, has been a huge asset for my family. So when I purchase a home or two for less than half of the prices that I sold for in 2005, you can rest assured that the last thing people will be saying to me is that “homeownership is not for me”.

[hipmatt]

sandiego.. I’ve owned two homes, sold close to the peak in 2005. I’ve been renting since. I simply stated that this info is relevant, and by the responses, others agree. I will buy a home again, despite your snobby/sarcastic suggestion not to believe it or not, when I am good and ready. I will know when to buy and what to buy for the same reasons I knew when to sell. Its because I examine all of the facts that I can.

“Worrying” about things as you call it, has been a huge asset for my family. So when I purchase a home or two for less than half of the prices that I sold for in 2005, you can rest assured that the last thing people will be saying to me is that “homeownership is not for me”.

[hipmatt]

sandiego.. I’ve owned two homes, sold close to the peak in 2005. I’ve been renting since. I simply stated that this info is relevant, and by the responses, others agree. I will buy a home again, despite your snobby/sarcastic suggestion not to believe it or not, when I am good and ready. I will know when to buy and what to buy for the same reasons I knew when to sell. Its because I examine all of the facts that I can.

“Worrying” about things as you call it, has been a huge asset for my family. So when I purchase a home or two for less than half of the prices that I sold for in 2005, you can rest assured that the last thing people will be saying to me is that “homeownership is not for me”.

[hipmatt]

sandiego.. I’ve owned two homes, sold close to the peak in 2005. I’ve been renting since. I simply stated that this info is relevant, and by the responses, others agree. I will buy a home again, despite your snobby/sarcastic suggestion not to believe it or not, when I am good and ready. I will know when to buy and what to buy for the same reasons I knew when to sell. Its because I examine all of the facts that I can.

“Worrying” about things as you call it, has been a huge asset for my family. So when I purchase a home or two for less than half of the prices that I sold for in 2005, you can rest assured that the last thing people will be saying to me is that “homeownership is not for me”.

[hipmatt]

sandiego.. I’ve owned two homes, sold close to the peak in 2005. I’ve been renting since. I simply stated that this info is relevant, and by the responses, others agree. I will buy a home again, despite your snobby/sarcastic suggestion not to believe it or not, when I am good and ready. I will know when to buy and what to buy for the same reasons I knew when to sell. Its because I examine all of the facts that I can.

“Worrying” about things as you call it, has been a huge asset for my family. So when I purchase a home or two for less than half of the prices that I sold for in 2005, you can rest assured that the last thing people will be saying to me is that “homeownership is not for me”.

[lookingagain]

This post finally got me out of lurker status…

I was suprised when I read this, as I assumed that the tax rate was based on the purchase price. Since my wife and I are looking and waiting to buy a new home, there could be a possibility of a large difference in the amount of the property tax bill.

I am no lawyer, but in reading the tax code, it states that:

51. (a) For purposes of subdivision (b) of Section 2 of Article
XIIIA of the California Constitution, for each lien date after the
lien date in which the base year value is determined pursuant to
Section 110.1, the taxable value of real property shall, except as
otherwise provided in subdivision (b) or (c), be the lesser of:…
(1) the 1975 base rate +…
(2) Its full cash value, as defined in Section 110, as of the lien
date, taking into account reductions in value due to damage,
destruction, depreciation, obsolescence, removal of property, or
other factors causing a decline in value.

110. (a) Except as is otherwise provided in Section 110.1, “full
cash value” or “fair market value” means the amount of cash or its
equivalent that property would bring if exposed for sale in the open
market under conditions in which neither buyer nor seller could take
advantage of the exigencies of the other….
(b) For purposes of determining the “full cash value” or “fair
market value” of real property, other than possessory interests,
being appraised upon a purchase, “full cash value” or “fair market
value” is the purchase price paid in the transaction unless it is
established by a preponderance of the evidence that the real property
would not have transferred for that purchase price in an open market
transaction.

Maybe an REO is different (under the “market conditions” clause) and/or there are legalese details I am missing, but as I read this the Assessors valuation for tax purposes is what you paid for it regardless of that the previous owner’s tax basis was.

Cheers,
Richard

[lookingagain]

This post finally got me out of lurker status…

I was suprised when I read this, as I assumed that the tax rate was based on the purchase price. Since my wife and I are looking and waiting to buy a new home, there could be a possibility of a large difference in the amount of the property tax bill.

I am no lawyer, but in reading the tax code, it states that:

51. (a) For purposes of subdivision (b) of Section 2 of Article
XIIIA of the California Constitution, for each lien date after the
lien date in which the base year value is determined pursuant to
Section 110.1, the taxable value of real property shall, except as
otherwise provided in subdivision (b) or (c), be the lesser of:…
(1) the 1975 base rate +…
(2) Its full cash value, as defined in Section 110, as of the lien
date, taking into account reductions in value due to damage,
destruction, depreciation, obsolescence, removal of property, or
other factors causing a decline in value.

110. (a) Except as is otherwise provided in Section 110.1, “full
cash value” or “fair market value” means the amount of cash or its
equivalent that property would bring if exposed for sale in the open
market under conditions in which neither buyer nor seller could take
advantage of the exigencies of the other….
(b) For purposes of determining the “full cash value” or “fair
market value” of real property, other than possessory interests,
being appraised upon a purchase, “full cash value” or “fair market
value” is the purchase price paid in the transaction unless it is
established by a preponderance of the evidence that the real property
would not have transferred for that purchase price in an open market
transaction.

Maybe an REO is different (under the “market conditions” clause) and/or there are legalese details I am missing, but as I read this the Assessors valuation for tax purposes is what you paid for it regardless of that the previous owner’s tax basis was.

Cheers,
Richard

[lookingagain]

This post finally got me out of lurker status…

I was suprised when I read this, as I assumed that the tax rate was based on the purchase price. Since my wife and I are looking and waiting to buy a new home, there could be a possibility of a large difference in the amount of the property tax bill.

I am no lawyer, but in reading the tax code, it states that:

51. (a) For purposes of subdivision (b) of Section 2 of Article
XIIIA of the California Constitution, for each lien date after the
lien date in which the base year value is determined pursuant to
Section 110.1, the taxable value of real property shall, except as
otherwise provided in subdivision (b) or (c), be the lesser of:…
(1) the 1975 base rate +…
(2) Its full cash value, as defined in Section 110, as of the lien
date, taking into account reductions in value due to damage,
destruction, depreciation, obsolescence, removal of property, or
other factors causing a decline in value.

110. (a) Except as is otherwise provided in Section 110.1, “full
cash value” or “fair market value” means the amount of cash or its
equivalent that property would bring if exposed for sale in the open
market under conditions in which neither buyer nor seller could take
advantage of the exigencies of the other….
(b) For purposes of determining the “full cash value” or “fair
market value” of real property, other than possessory interests,
being appraised upon a purchase, “full cash value” or “fair market
value” is the purchase price paid in the transaction unless it is
established by a preponderance of the evidence that the real property
would not have transferred for that purchase price in an open market
transaction.

Maybe an REO is different (under the “market conditions” clause) and/or there are legalese details I am missing, but as I read this the Assessors valuation for tax purposes is what you paid for it regardless of that the previous owner’s tax basis was.

Cheers,
Richard

[lookingagain]

This post finally got me out of lurker status…

I was suprised when I read this, as I assumed that the tax rate was based on the purchase price. Since my wife and I are looking and waiting to buy a new home, there could be a possibility of a large difference in the amount of the property tax bill.

I am no lawyer, but in reading the tax code, it states that:

51. (a) For purposes of subdivision (b) of Section 2 of Article
XIIIA of the California Constitution, for each lien date after the
lien date in which the base year value is determined pursuant to
Section 110.1, the taxable value of real property shall, except as
otherwise provided in subdivision (b) or (c), be the lesser of:…
(1) the 1975 base rate +…
(2) Its full cash value, as defined in Section 110, as of the lien
date, taking into account reductions in value due to damage,
destruction, depreciation, obsolescence, removal of property, or
other factors causing a decline in value.

110. (a) Except as is otherwise provided in Section 110.1, “full
cash value” or “fair market value” means the amount of cash or its
equivalent that property would bring if exposed for sale in the open
market under conditions in which neither buyer nor seller could take
advantage of the exigencies of the other….
(b) For purposes of determining the “full cash value” or “fair
market value” of real property, other than possessory interests,
being appraised upon a purchase, “full cash value” or “fair market
value” is the purchase price paid in the transaction unless it is
established by a preponderance of the evidence that the real property
would not have transferred for that purchase price in an open market
transaction.

Maybe an REO is different (under the “market conditions” clause) and/or there are legalese details I am missing, but as I read this the Assessors valuation for tax purposes is what you paid for it regardless of that the previous owner’s tax basis was.

Cheers,
Richard

[lookingagain]

This post finally got me out of lurker status…

I was suprised when I read this, as I assumed that the tax rate was based on the purchase price. Since my wife and I are looking and waiting to buy a new home, there could be a possibility of a large difference in the amount of the property tax bill.

I am no lawyer, but in reading the tax code, it states that:

51. (a) For purposes of subdivision (b) of Section 2 of Article
XIIIA of the California Constitution, for each lien date after the
lien date in which the base year value is determined pursuant to
Section 110.1, the taxable value of real property shall, except as
otherwise provided in subdivision (b) or (c), be the lesser of:…
(1) the 1975 base rate +…
(2) Its full cash value, as defined in Section 110, as of the lien
date, taking into account reductions in value due to damage,
destruction, depreciation, obsolescence, removal of property, or
other factors causing a decline in value.

110. (a) Except as is otherwise provided in Section 110.1, “full
cash value” or “fair market value” means the amount of cash or its
equivalent that property would bring if exposed for sale in the open
market under conditions in which neither buyer nor seller could take
advantage of the exigencies of the other….
(b) For purposes of determining the “full cash value” or “fair
market value” of real property, other than possessory interests,
being appraised upon a purchase, “full cash value” or “fair market
value” is the purchase price paid in the transaction unless it is
established by a preponderance of the evidence that the real property
would not have transferred for that purchase price in an open market
transaction.

Maybe an REO is different (under the “market conditions” clause) and/or there are legalese details I am missing, but as I read this the Assessors valuation for tax purposes is what you paid for it regardless of that the previous owner’s tax basis was.

Cheers,
Richard

[cashflow]

Thanks to HM for posting this! We had no idea, but this makes sense…as the county assessor gets bombarded with requests to reassess a property that is now worth less…it will take them time to reassess even recently purchased properties. Something to consider while shopping, in fact I already checked out one listing that we looked at and looks like the county had assessed it in ’06 as being worth over $850K, which meant the current taxes were between 8k and 10K a month….this the new owner will take over until a request for reassessment is made….definitely not peanuts to add to your monthly homeownership costs!

Thanks again and great post!

[cashflow]

Thanks to HM for posting this! We had no idea, but this makes sense…as the county assessor gets bombarded with requests to reassess a property that is now worth less…it will take them time to reassess even recently purchased properties. Something to consider while shopping, in fact I already checked out one listing that we looked at and looks like the county had assessed it in ’06 as being worth over $850K, which meant the current taxes were between 8k and 10K a month….this the new owner will take over until a request for reassessment is made….definitely not peanuts to add to your monthly homeownership costs!

Thanks again and great post!

[cashflow]

Thanks to HM for posting this! We had no idea, but this makes sense…as the county assessor gets bombarded with requests to reassess a property that is now worth less…it will take them time to reassess even recently purchased properties. Something to consider while shopping, in fact I already checked out one listing that we looked at and looks like the county had assessed it in ’06 as being worth over $850K, which meant the current taxes were between 8k and 10K a month….this the new owner will take over until a request for reassessment is made….definitely not peanuts to add to your monthly homeownership costs!

Thanks again and great post!

[cashflow]

Thanks to HM for posting this! We had no idea, but this makes sense…as the county assessor gets bombarded with requests to reassess a property that is now worth less…it will take them time to reassess even recently purchased properties. Something to consider while shopping, in fact I already checked out one listing that we looked at and looks like the county had assessed it in ’06 as being worth over $850K, which meant the current taxes were between 8k and 10K a month….this the new owner will take over until a request for reassessment is made….definitely not peanuts to add to your monthly homeownership costs!

Thanks again and great post!

[Author]

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