[bearishgurl]

[quote=davelj]If you can afford your mortgage (or don’t have one) and don’t need to move, the value of your house is largely irrelevant other than as some figure in a mental account.[/quote]

Yes, if your mental date to sell is down the road a few years or more, your mindset might be, “Let’s get this party started, the pain over with, the blood all washed out into the ocean.” Then when you are ready to sell, it will (hopefully) be a “normal” market.

That’s MY mindset.

Oh, and from what I can see, the buyers of these REOs are 10x the owner/neighbor than the previous ones who lost the property to foreclosure. With all the $$ and time these new owners are putting into their newly-acquired “bargains,” it can only HELP MY (future) BOTTOM LINE, by upgrading the ‘hood, one by one . . . It doesn’t bother me a bit that someone else got a great deal (I’m not actually in danger of going “underwater,” tho).

[bearishgurl]

[quote=davelj]If you can afford your mortgage (or don’t have one) and don’t need to move, the value of your house is largely irrelevant other than as some figure in a mental account.[/quote]

Yes, if your mental date to sell is down the road a few years or more, your mindset might be, “Let’s get this party started, the pain over with, the blood all washed out into the ocean.” Then when you are ready to sell, it will (hopefully) be a “normal” market.

That’s MY mindset.

Oh, and from what I can see, the buyers of these REOs are 10x the owner/neighbor than the previous ones who lost the property to foreclosure. With all the $$ and time these new owners are putting into their newly-acquired “bargains,” it can only HELP MY (future) BOTTOM LINE, by upgrading the ‘hood, one by one . . . It doesn’t bother me a bit that someone else got a great deal (I’m not actually in danger of going “underwater,” tho).

[bearishgurl]

[quote=davelj]If you can afford your mortgage (or don’t have one) and don’t need to move, the value of your house is largely irrelevant other than as some figure in a mental account.[/quote]

Yes, if your mental date to sell is down the road a few years or more, your mindset might be, “Let’s get this party started, the pain over with, the blood all washed out into the ocean.” Then when you are ready to sell, it will (hopefully) be a “normal” market.

That’s MY mindset.

Oh, and from what I can see, the buyers of these REOs are 10x the owner/neighbor than the previous ones who lost the property to foreclosure. With all the $$ and time these new owners are putting into their newly-acquired “bargains,” it can only HELP MY (future) BOTTOM LINE, by upgrading the ‘hood, one by one . . . It doesn’t bother me a bit that someone else got a great deal (I’m not actually in danger of going “underwater,” tho).

[bearishgurl]

[quote=UCGal]Napa’s assessor site has an example that would suggest this wouldn’t work.

http://www.countyofnapa.org/Pages/DepartmentContent.aspx?id=4294968559
[/quote]

Awesome link, UCGal.

Read your other link, too. It’s amazing to read that some people who buy property with a “significant other” (not a reg. domestic partner) still think that since they only own a “half-interest” that they are only liable for half the property tax – LOL!!

I run across this “tenants-in-common” form of property ownership frequently and my personal opinion is that it is a recipe for distaster.

[bearishgurl]

[quote=UCGal]Napa’s assessor site has an example that would suggest this wouldn’t work.

http://www.countyofnapa.org/Pages/DepartmentContent.aspx?id=4294968559
[/quote]

Awesome link, UCGal.

Read your other link, too. It’s amazing to read that some people who buy property with a “significant other” (not a reg. domestic partner) still think that since they only own a “half-interest” that they are only liable for half the property tax – LOL!!

I run across this “tenants-in-common” form of property ownership frequently and my personal opinion is that it is a recipe for distaster.

[bearishgurl]

[quote=UCGal]Napa’s assessor site has an example that would suggest this wouldn’t work.

http://www.countyofnapa.org/Pages/DepartmentContent.aspx?id=4294968559
[/quote]

Awesome link, UCGal.

Read your other link, too. It’s amazing to read that some people who buy property with a “significant other” (not a reg. domestic partner) still think that since they only own a “half-interest” that they are only liable for half the property tax – LOL!!

I run across this “tenants-in-common” form of property ownership frequently and my personal opinion is that it is a recipe for distaster.

[bearishgurl]

[quote=UCGal]Napa’s assessor site has an example that would suggest this wouldn’t work.

http://www.countyofnapa.org/Pages/DepartmentContent.aspx?id=4294968559
[/quote]

Awesome link, UCGal.

Read your other link, too. It’s amazing to read that some people who buy property with a “significant other” (not a reg. domestic partner) still think that since they only own a “half-interest” that they are only liable for half the property tax – LOL!!

I run across this “tenants-in-common” form of property ownership frequently and my personal opinion is that it is a recipe for distaster.

[bearishgurl]

[quote=UCGal]Napa’s assessor site has an example that would suggest this wouldn’t work.

http://www.countyofnapa.org/Pages/DepartmentContent.aspx?id=4294968559
[/quote]

Awesome link, UCGal.

Read your other link, too. It’s amazing to read that some people who buy property with a “significant other” (not a reg. domestic partner) still think that since they only own a “half-interest” that they are only liable for half the property tax – LOL!!

I run across this “tenants-in-common” form of property ownership frequently and my personal opinion is that it is a recipe for distaster.

[bearishgurl]

I wanted to add that there are three other documents that can be recorded AFTER the death(s) of a current Prop-13 eligible owner that would convey the property with it’s current Prop. 13 status intact. These documents are not interchangeable in that their use would depend on whether the last living owner died with or w/o a will and/or trust. Two of the documents must reference the property and its legal description and the names of the heirs and their relation to the decedent and would be filed upon the closing of a probated estate. One of these documents must reference the probate case no. and must be signed by the probate judge.

After the intestate estate is closed and one or more of these documents are filed, if there is more than one heir listed on the document(s), each heir then has the option of buying another heir out and quitclaiming their portion to the remaining heir(s), who will retain the Prop. 13 eligibility.

[bearishgurl]

I wanted to add that there are three other documents that can be recorded AFTER the death(s) of a current Prop-13 eligible owner that would convey the property with it’s current Prop. 13 status intact. These documents are not interchangeable in that their use would depend on whether the last living owner died with or w/o a will and/or trust. Two of the documents must reference the property and its legal description and the names of the heirs and their relation to the decedent and would be filed upon the closing of a probated estate. One of these documents must reference the probate case no. and must be signed by the probate judge.

After the intestate estate is closed and one or more of these documents are filed, if there is more than one heir listed on the document(s), each heir then has the option of buying another heir out and quitclaiming their portion to the remaining heir(s), who will retain the Prop. 13 eligibility.

[bearishgurl]

I wanted to add that there are three other documents that can be recorded AFTER the death(s) of a current Prop-13 eligible owner that would convey the property with it’s current Prop. 13 status intact. These documents are not interchangeable in that their use would depend on whether the last living owner died with or w/o a will and/or trust. Two of the documents must reference the property and its legal description and the names of the heirs and their relation to the decedent and would be filed upon the closing of a probated estate. One of these documents must reference the probate case no. and must be signed by the probate judge.

After the intestate estate is closed and one or more of these documents are filed, if there is more than one heir listed on the document(s), each heir then has the option of buying another heir out and quitclaiming their portion to the remaining heir(s), who will retain the Prop. 13 eligibility.

[bearishgurl]

I wanted to add that there are three other documents that can be recorded AFTER the death(s) of a current Prop-13 eligible owner that would convey the property with it’s current Prop. 13 status intact. These documents are not interchangeable in that their use would depend on whether the last living owner died with or w/o a will and/or trust. Two of the documents must reference the property and its legal description and the names of the heirs and their relation to the decedent and would be filed upon the closing of a probated estate. One of these documents must reference the probate case no. and must be signed by the probate judge.

After the intestate estate is closed and one or more of these documents are filed, if there is more than one heir listed on the document(s), each heir then has the option of buying another heir out and quitclaiming their portion to the remaining heir(s), who will retain the Prop. 13 eligibility.

[bearishgurl]

I wanted to add that there are three other documents that can be recorded AFTER the death(s) of a current Prop-13 eligible owner that would convey the property with it’s current Prop. 13 status intact. These documents are not interchangeable in that their use would depend on whether the last living owner died with or w/o a will and/or trust. Two of the documents must reference the property and its legal description and the names of the heirs and their relation to the decedent and would be filed upon the closing of a probated estate. One of these documents must reference the probate case no. and must be signed by the probate judge.

After the intestate estate is closed and one or more of these documents are filed, if there is more than one heir listed on the document(s), each heir then has the option of buying another heir out and quitclaiming their portion to the remaining heir(s), who will retain the Prop. 13 eligibility.

[bearishgurl]

[quote=La Jolla Renter]I have heard more than a few times now, that you can buy 49% of a house from an owner, move in, then a few years later deed over the other 51% and keep the old prop 13 tax rate. Obviously this would not work with traditional financing, probably only owner financing???

Anyone know of such a strategy?[/quote]

LJ Renter, I take it you are referring to a wrap-around deed. You have completely erroneous information.

The only way to “pass on” a Prop. 13 entitlement is through an inter-spousal transfer deed or an intra-family tranfer deed or quitclaim deed to tenant-in-common (someone who was already on title) or a child. The only “quitclaim deeds” of Prop 13-eligible property I have seen were from parent to children with the same last names. If your child does not have the same last name, you must use an intrafamily transfer deed, or hyphenate their name on a quit-claim deed if this is the name they commonly use.

Original joint tenants always retain the right to the prop 13 entitlement after the death of the other joint tenant.

Your Change of Ownership Report you file with the County Assessor under oath will state who the party is that you are deeding the property to and the details of the “sale” so they can determine if it was an “arm’s length” transaction. If you fail to file one of these forms and you have deeded your property to someone other than a person already on title, then the assessor will be notified of the change-of-ownership when they get wind of the transfer thru the recorder’s office and send their owner-of-record a COO form that they will have to fill out in order to get the tax bills sent to the correct owner. If they fail to return the form, the property will lose its prop 13 eligibility. I do not know how the assessor would decide how much taxes to charge after that but my guess is that they would use comparable sales to set a market-rate tax on the property.

[bearishgurl]

[quote=La Jolla Renter]I have heard more than a few times now, that you can buy 49% of a house from an owner, move in, then a few years later deed over the other 51% and keep the old prop 13 tax rate. Obviously this would not work with traditional financing, probably only owner financing???

Anyone know of such a strategy?[/quote]

LJ Renter, I take it you are referring to a wrap-around deed. You have completely erroneous information.

The only way to “pass on” a Prop. 13 entitlement is through an inter-spousal transfer deed or an intra-family tranfer deed or quitclaim deed to tenant-in-common (someone who was already on title) or a child. The only “quitclaim deeds” of Prop 13-eligible property I have seen were from parent to children with the same last names. If your child does not have the same last name, you must use an intrafamily transfer deed, or hyphenate their name on a quit-claim deed if this is the name they commonly use.

Original joint tenants always retain the right to the prop 13 entitlement after the death of the other joint tenant.

Your Change of Ownership Report you file with the County Assessor under oath will state who the party is that you are deeding the property to and the details of the “sale” so they can determine if it was an “arm’s length” transaction. If you fail to file one of these forms and you have deeded your property to someone other than a person already on title, then the assessor will be notified of the change-of-ownership when they get wind of the transfer thru the recorder’s office and send their owner-of-record a COO form that they will have to fill out in order to get the tax bills sent to the correct owner. If they fail to return the form, the property will lose its prop 13 eligibility. I do not know how the assessor would decide how much taxes to charge after that but my guess is that they would use comparable sales to set a market-rate tax on the property.

[Author]

Posts