Question about taxes after buying a foreclosed home???

[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!

[donaldduckmoore]

Based on the answer from SD county assessor, the value will be automatically reassessed once the property was purchased. While they may not be assessed at the sales price, it could be the fair market value. I don’t think that is REO specific also.

[donaldduckmoore]

Based on the answer from SD county assessor, the value will be automatically reassessed once the property was purchased. While they may not be assessed at the sales price, it could be the fair market value. I don’t think that is REO specific also.

[donaldduckmoore]

Based on the answer from SD county assessor, the value will be automatically reassessed once the property was purchased. While they may not be assessed at the sales price, it could be the fair market value. I don’t think that is REO specific also.

[donaldduckmoore]

Based on the answer from SD county assessor, the value will be automatically reassessed once the property was purchased. While they may not be assessed at the sales price, it could be the fair market value. I don’t think that is REO specific also.

[donaldduckmoore]

Based on the answer from SD county assessor, the value will be automatically reassessed once the property was purchased. While they may not be assessed at the sales price, it could be the fair market value. I don’t think that is REO specific also.

[sandiego]

From SDUT April 29, 2007

http://www.signonsandiego.com/uniontrib/20070429/news_lz1h29reasses.html

The reductions granted by Smith’s office, which are temporary and reviewed annually, apply to the assessed value, not market value, on individual properties. Assessed value is typically the purchase price plus no more than an annual 2 percent boost allowed under state law.

“If you bought in 2005, the market value very well may have dipped below the assessed value,” Smith said. “But if you bought in 2000, that won’t work for you because the assessed value is still so low.”

The article was written to address the issue of people applying for reassessment, not necessarily home purchases.

[sandiego]

From SDUT April 29, 2007

http://www.signonsandiego.com/uniontrib/20070429/news_lz1h29reasses.html

The reductions granted by Smith’s office, which are temporary and reviewed annually, apply to the assessed value, not market value, on individual properties. Assessed value is typically the purchase price plus no more than an annual 2 percent boost allowed under state law.

“If you bought in 2005, the market value very well may have dipped below the assessed value,” Smith said. “But if you bought in 2000, that won’t work for you because the assessed value is still so low.”

The article was written to address the issue of people applying for reassessment, not necessarily home purchases.

[sandiego]

From SDUT April 29, 2007

http://www.signonsandiego.com/uniontrib/20070429/news_lz1h29reasses.html

The reductions granted by Smith’s office, which are temporary and reviewed annually, apply to the assessed value, not market value, on individual properties. Assessed value is typically the purchase price plus no more than an annual 2 percent boost allowed under state law.

“If you bought in 2005, the market value very well may have dipped below the assessed value,” Smith said. “But if you bought in 2000, that won’t work for you because the assessed value is still so low.”

The article was written to address the issue of people applying for reassessment, not necessarily home purchases.

[sandiego]

From SDUT April 29, 2007

http://www.signonsandiego.com/uniontrib/20070429/news_lz1h29reasses.html

The reductions granted by Smith’s office, which are temporary and reviewed annually, apply to the assessed value, not market value, on individual properties. Assessed value is typically the purchase price plus no more than an annual 2 percent boost allowed under state law.

“If you bought in 2005, the market value very well may have dipped below the assessed value,” Smith said. “But if you bought in 2000, that won’t work for you because the assessed value is still so low.”

The article was written to address the issue of people applying for reassessment, not necessarily home purchases.

[sandiego]

From SDUT April 29, 2007

http://www.signonsandiego.com/uniontrib/20070429/news_lz1h29reasses.html

The reductions granted by Smith’s office, which are temporary and reviewed annually, apply to the assessed value, not market value, on individual properties. Assessed value is typically the purchase price plus no more than an annual 2 percent boost allowed under state law.

“If you bought in 2005, the market value very well may have dipped below the assessed value,” Smith said. “But if you bought in 2000, that won’t work for you because the assessed value is still so low.”

The article was written to address the issue of people applying for reassessment, not necessarily home purchases.

[jpinpb]

This came up on another thread, but I think I should post this here as well, since it is the more appropriate place for it:

Ok. With the conflicting information, I just went to the horse’s mouth. Jessica at the recorder’s office explained it to me this way:

Yes, you will pay the previous sales price bill if higher AT ESCROW. It takes 6 to 9 months b/c they’re busy for the assessor to come out and “officially” assess your house based on the price you paid for it and other homes that have sold in the area (comps) Then they issue a new bill. If the value of the home is less, then technically it won’t be a bill, but a CREDIT.

So, this makes more sense. Since more and more homes are selling for less, say a particular area, each home sale drags down the other, you certainly would have the comps to justify the price reduction.

Yes, you will have to pay the higher tax, but you’ll get it back once they get around to assessing it properly. She didn’t make it sound like a re-assessment, either. It was an assessment of your house at purchase, but they just are too busy to do it immediately. Nice to know it’s retroactive to date of purchase.

[jpinpb]

This came up on another thread, but I think I should post this here as well, since it is the more appropriate place for it:

Ok. With the conflicting information, I just went to the horse’s mouth. Jessica at the recorder’s office explained it to me this way:

Yes, you will pay the previous sales price bill if higher AT ESCROW. It takes 6 to 9 months b/c they’re busy for the assessor to come out and “officially” assess your house based on the price you paid for it and other homes that have sold in the area (comps) Then they issue a new bill. If the value of the home is less, then technically it won’t be a bill, but a CREDIT.

So, this makes more sense. Since more and more homes are selling for less, say a particular area, each home sale drags down the other, you certainly would have the comps to justify the price reduction.

Yes, you will have to pay the higher tax, but you’ll get it back once they get around to assessing it properly. She didn’t make it sound like a re-assessment, either. It was an assessment of your house at purchase, but they just are too busy to do it immediately. Nice to know it’s retroactive to date of purchase.

[jpinpb]

This came up on another thread, but I think I should post this here as well, since it is the more appropriate place for it:

Ok. With the conflicting information, I just went to the horse’s mouth. Jessica at the recorder’s office explained it to me this way:

Yes, you will pay the previous sales price bill if higher AT ESCROW. It takes 6 to 9 months b/c they’re busy for the assessor to come out and “officially” assess your house based on the price you paid for it and other homes that have sold in the area (comps) Then they issue a new bill. If the value of the home is less, then technically it won’t be a bill, but a CREDIT.

So, this makes more sense. Since more and more homes are selling for less, say a particular area, each home sale drags down the other, you certainly would have the comps to justify the price reduction.

Yes, you will have to pay the higher tax, but you’ll get it back once they get around to assessing it properly. She didn’t make it sound like a re-assessment, either. It was an assessment of your house at purchase, but they just are too busy to do it immediately. Nice to know it’s retroactive to date of purchase.

[jpinpb]

This came up on another thread, but I think I should post this here as well, since it is the more appropriate place for it:

Ok. With the conflicting information, I just went to the horse’s mouth. Jessica at the recorder’s office explained it to me this way:

Yes, you will pay the previous sales price bill if higher AT ESCROW. It takes 6 to 9 months b/c they’re busy for the assessor to come out and “officially” assess your house based on the price you paid for it and other homes that have sold in the area (comps) Then they issue a new bill. If the value of the home is less, then technically it won’t be a bill, but a CREDIT.

So, this makes more sense. Since more and more homes are selling for less, say a particular area, each home sale drags down the other, you certainly would have the comps to justify the price reduction.

Yes, you will have to pay the higher tax, but you’ll get it back once they get around to assessing it properly. She didn’t make it sound like a re-assessment, either. It was an assessment of your house at purchase, but they just are too busy to do it immediately. Nice to know it’s retroactive to date of purchase.

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