  Jt1 Member Username: Jt1 Post Number: 10742 Registered: 10-2003 |
Does anyone know how taxes are assessed on purchased foreclosures. Does the city still just assume 50% of purchasing price for assessing taxes or is it done differently for foreclosed purchases. Thanks | ||
Mrsjdaniels Member Username: Mrsjdaniels Post Number: 298 Registered: 08-2005 |
my understanding is that taxes are based a valuation rate...the SEV (state equalized value) sell price and value are too diff things | ||
Jt1 Member Username: Jt1 Post Number: 10743 Registered: 10-2003 |
So it is possible to buy a place for say $200K and come to find that the the SEV for tax sake could be much higher? I understand how this works when homes are sold at expected rates but the foreclosure market is new to me. | ||
Novine Member Username: Novine Post Number: 240 Registered: 07-2007 |
Not an exact answer but maybe an email to him will get you it: http://www.markijlal.com/archi ves/2007/10/skip_these_3_exits _on_i696.htm | ||
Dougw Member Username: Dougw Post Number: 1982 Registered: 11-2003 |
Interesting site, Novine, thanks. Jt1 -- basically, typically the city will not automatically lower (or raise) your taxes based on the purchase price. You'll need to contest your assessment after you purchase the house, which is a fairly standard process (although you may have to appeal after the 1st round). I don't think it's any different for foreclosures versus buying any other house where the assessed value is too high. There was some discussion of how to get your assessment lowered on this thread: https://www.atdetroit.net/forum/mes sages/107211/116471.html | ||
Lefty2 Member Username: Lefty2 Post Number: 648 Registered: 07-2007 |
This is a crime I have been bitching about ad nauseum. Purchase price should be SEV, The price you pay is the value, it is the free market value, not what someone paid sometime somewhere nearby awhile ago. This is a scam perpetrated on the citizens of Michigan. There needs to be a ballot measure on this issue. Anyone on board? | ||
Mcp001 Member Username: Mcp001 Post Number: 3066 Registered: 11-2003 |
No argument there. But there are a few of us right now who are fighting battles on other fronts at the moment (i.e. service tax "repeal", the recalls of certain representatives). | ||
Renfirst Member Username: Renfirst Post Number: 98 Registered: 12-2006 |
It's completely unfair, but the one thing you can not negotiate when it comes to a foreclosure is the taxes. As frustrating as it may be when it comes to taxes, the prices on foreclosures (REO's) right now in the city and suburbs is truly shocking. I never thought I'd see such deep discounts. Asset managers are looking to clear out as much inventory as they can in the state, and November and December are great times to make offers (they've got to make their 4th quarter look as good as it can)... We've got a free seminar on Wednesday if you're interested... www.renovatefirstworkshop.com. Geared to the homebuyer (not the investor) looking to purchase a foreclosure for their primary home, the workshop/seminar focuses on how to purchase and renovate foreclosures... (sorry for the plug, but it's a free event, no books or tapes to buy, lol) (Message edited by renfirst on November 10, 2007) | ||
Kjwick Member Username: Kjwick Post Number: 57 Registered: 11-2003 |
So, the city will most certainly reject any contest of the SEV after purchasing a foreclosure. My understanding is that almost always, the State of Michigan will almost always over-ride the City and you will win your contest. Has anyone had any experience on the state level getting their SEV lowered to reflect the foreclosed purchase price? | ||
Clarie Member Username: Clarie Post Number: 6 Registered: 11-2007 |
Where is the best place to find a listing of forclosed homes? How about VA and FHA forclosures? | ||
Renfirst Member Username: Renfirst Post Number: 99 Registered: 12-2006 |
Clarie, VA and FHA foreclosures can be found on www.homesales.gov The best place for finding a foreclosure depends on what kind of foreclosure you're looking to purchase. I hate that you have to pay, but you can try one of the many foreclosure websites out there these days... it's not always the most accurate information, but it's a great way to see what's out there. If you've got access to a real estate agent with experience in foreclosures, they can assist in locating bank owned or REO properties. If you know what you're looking for let me know, I can e-mail you a list... We work with the top REO agents in the tri-county area... We're currently updating the page, but our website's got a couple of our partner's listings... www.renovatefirst.com ... there are some pretty good properties, Boston Edison, Arden Park, Indian Village etc... The Sunday paper's got a foreclosure section as well. I don't think that many REO agents use it, but it's free and you may find what you're looking for. I'll say it again, the next two months are a great time to consider purchasing a foreclosure. | ||
Lefty2 Member Username: Lefty2 Post Number: 658 Registered: 07-2007 |
'In this market' the best place to find foreclosures is to look at realtor.com in you area zip code. Buying after the banks take a hit makes more sense then buying at foreclosures auction many times, but if you have the cash on hand buying at auction can be very profitable too. look at the county web sites for foreclosures also. | ||
Novine Member Username: Novine Post Number: 243 Registered: 07-2007 |
"Purchase price should be SEV, The price you pay is the value, it is the free market value, not what someone paid sometime somewhere nearby awhile ago. " Come on, what's to keep people from running scam sales to deflate the price? The same has been done in the past to overinflate prices. A single sale does not make a market and that's why foreclosure sales are only part of what's used to determine fair market value for homes in a neighborhood. | ||
Spartacus Member Username: Spartacus Post Number: 266 Registered: 07-2005 |
I agree that the purchase price is the best indication of value, but the local taxing authority is not bound by this. In fact, there is a State Tax Commission Bulletin that states: "Proposal A does NOT authorize the assessor to AUTOMATICALLY set the assessed value of a property which has sold at 1/2 of the sale price. An individual sale price may NOT be a good indicator of the true cash value of the property due to a variety of reasons (such as an uninformed buyer, an uninformed seller, insufficient marketing time, buyer and seller are relatives, and other possible reasons)." I can tell you that one of the other reasons would be a distressed seller. Any appraiser will tell you that the price a distressed seller will sell for is not the best indication of true market value. http://www.michigan.gov/treasu ry/0,1607,7-121-1751_2228-7878 --,00.html | ||
Dougw Member Username: Dougw Post Number: 1989 Registered: 11-2003 |
True, it shouldn't be an automatic reassessment. For example, sometimes a home is sold to a relative at a cheap price. But if a buyer can prove that they paid fair market value for the home, for example if the home was listed on the MLS at the same price for 2 months with no takers, then the assessor SHOULD reassess the home at 1/2 the sale price. Period. (And this is basically what the state assessor does as far as I know.) I've heard that the city assessor's office is in a bit of denial right now about how far the true market values of foreclosed homes have really fallen. | ||
Graceful Member Username: Graceful Post Number: 5 Registered: 10-2007 |
Quick question: I bought my house earlier this year in January. If I wanted to contest the taxable value of my home, can I do it next year or was I supposed to do it right after I purchased my home? | ||
Novine Member Username: Novine Post Number: 246 Registered: 07-2007 |
Under Prop A, your home will be reassessed this year to reflect the pop-up from the previous Taxable Value to the current SEV, which becomes the new Taxable Value. That will be set on December 31, 2007. At that point, you can go through the process to get an appointment with your local Board of Review to appeal your assessment. Since your TV will equal your SEV, in your case an appeal could lead to a direct reduction in taxes. This year, you're enjoying a lower taxable value, based on the previous owners length of ownership, which keeps the taxable value below the SEV. Next year is when the pop-up kicks in and you'll see the full impact on your tax bill. | ||
Lombaowski Member Username: Lombaowski Post Number: 73 Registered: 11-2004 |
Good info in here. Thanks to everyone providing the background. | ||
Southwestmap Member Username: Southwestmap Post Number: 934 Registered: 01-2005 |
I have a question. My next-door neighbors of two years have a classic housing bubble/ARM case. They bought the house for absolutely top dollar in November 2005: $112,000 - very high for a Vernor/Junction single-family frame. Anywhere else though, with three-car garage (an old barn, I think) a huge deep porch and shiny copper-penny condition, it would have been worth three times as much. They had poor credit but she got a mortgage with only 5% down from a lender that has since gone out of business. She is the owner, but is out of work. Now they have divorced and the husband is staying in the house while she is moved in with another guy. The former husband told me that when the mortgage ratchets up (this month) he will let it go back to the bank. He is very sick (end-stage liver disease) and will move out. This is all bad news for the neighbors who have to worry about vandalism and squatters, etc. There are many issues of trash in the back, floodlights shining in my house, former step-daughters and their boyfriends with keys, etc. My question: does anyone know how I can find out what bank or business is the current mortgager? I've read posts on this forum that indicate neighbors have talked to banks about properties in foreclosure. I will want to be in touch with those people as soon as he is gone, but really can't ask him directly. I've checked on the Wayne County Land Records site but only the out of business lender is listed. | ||
Danny Member Username: Danny Post Number: 6806 Registered: 02-2004 |
Lost your job, can't pay your utilities, can't pay your mortages, declare bankruptcy, foreclose your house, get put out in into the streets, become a homeless bum and taking time to recover. In America "YOU EARN WHAT YOU KEEP! YOU LOSE IF YOU DELAY!" " ALWAYS COME UP WITH A GAME PLAN AND PROBLEM SOLVE BECAUSE SOCIETY IS CHANGING AND YOU MUST GO WITH THE CHANGE, OR DIE!" | ||
Dougw Member Username: Dougw Post Number: 1991 Registered: 11-2003 |
Hope that answers your question, Southwest. ;) Actually, I think you have a couple options to finding out who the current mortgager is: 1. If you know a good realtor of whom you can ask a favor, see if they can look up the ownership information in their system or in the MLS. This information is definitely available to them when the house is on market, and I think it is even when it's not on the market although I'm not positive. 2. Go to the Wayne County Land Records site http://www.waynecountylandreco rds.com/ . It sounds like you tried this, although did you just do a free lookup by owner name, or did you pay the $5 to look up by address? The free name search will not show the transfer of the mortgage from the bankrupt lender to the new lender. This is the "Assignment" deed, and you'll only see it if you do the paid lookup by address. If you've already looked up by address, it's possible that the Assignment has not happened yet, it will often happen just before the foreclosure deed (Sheriff's Deed) appears. You may have to check again when it gets closer to foreclosure. | ||
Dougw Member Username: Dougw Post Number: 1992 Registered: 11-2003 |
A third option is to find someone who has a realtytrac.com (or similar) account. These show foreclosure notices a bit earlier than they show up on the Wayne County deeds site, and they should also show the current lender. I have an account with them, if you're desperate you could try emailing me the address (dway at mailcan dott com) and I could look it up. | ||
Southwestmap Member Username: Southwestmap Post Number: 935 Registered: 01-2005 |
Thanks, Dougw. You are correct that I only used the free look-up at the Land Records site. It is worth money to me to know who to contact as this drags on. I'll keep checking. I think they must have a few months before the sheriff is at the door. | ||
Dougw Member Username: Dougw Post Number: 1994 Registered: 11-2003 |
Also, if you're really serious about securing the property when it forecloses, you'll want to buy a couple of cheap motion detector chimes. You can put the detectors in the vacant house, and put the chime unit in your house, and you'll know if someone is rummaging inside the house in the middle of the night. Then you can take appropriate action (call 911, call neighbors, slash tires, etc). (I'd also recommend putting electrical tape over the red light on the detectors so they're not noticed and then taken.) | ||
Renfirst Member Username: Renfirst Post Number: 126 Registered: 12-2006 |
Southwest, Until the lender sends a notice of default, only the borrower and the lender know the details. While the initial lender may be out of business, the note was sold to another lender. Typically the bank waits 2-3 months after the first late payment to send an official default notice, which is then recorded with the county... They're in "pre-pre foreclosure"... Believe me, they'd love for you to help them out, so if you're interested in purchasing the property, talk to them. Many times, especially this time of the year, the bank will be willing to short sale the property and take a loss... You'd have to submit an offer with supporting documentation that shows it's in their best interest to sell you the property. (Message edited by renfirst on November 19, 2007) | ||
Dougw Member Username: Dougw Post Number: 1996 Registered: 11-2003 |
quote: The one bit of good news is that when the foreclosure happens, at least you'll be able to fix the floodlights. ;) Foreclosure is often a good time to do that landscaping you always wish the neighbor did... | ||
Renfirst Member Username: Renfirst Post Number: 128 Registered: 12-2006 |
Southwest, I forgot to also mention that they potentially could be in the house for another 8-12 months while the home goes through the foreclosure process... From notice of default to sheriff's auction, you're looking at 4-6 months, and if no one buys the property at auction, the lender takes it back and they sit on it for another 6 months during the redemption period... The homeowners at this point could give a care about the property ... they've stopped payments, and know they're going to be kicked out, so the house begins to show signs of distress... Anticipate having your neighbnors around for another year unless someone makes an offer to purchase the property before the lender takes it back... This is why the lenders now more than ever are willing to take a loss and accept a short sale while the property is still in "pre-foreclosure"... they'll most likely have to hold on to the property for a year, lose interest payments, and pay for taxes, maintenance, etc... | ||
Southwestmap Member Username: Southwestmap Post Number: 936 Registered: 01-2005 |
Thanks to you, too, Renfirst, for the insight into the process. I don't want to buy that house, though. I'd just have to fix it up and sell it. My hope is that a nice Mexican family will buy it. Its still a great family house and not yet in very bad shape. He will be gone soon, it appears. He is pretty sick. However, the ex-wife, whose name is on the house will be back. Pretty big worry as her girls and their boyfriends probably need a place to live. Living in an apartment in near Cass tech now. Doug is right. One of the reasons I want to get to know the bank is that i want to be able to remove some of the floodlights and replace them with downlights that keep the light on the ground and porch instead of in my house (10 feet away). Did not mention earlier that the husband (now ex-husband) with end-stage liver disease until recently had a going marijuana business running from his house. Dozens of pretty good looking citizens stopped by day and night and came out with Burger King and McDonald's bags. Maybe for medical uses. But the man was pretty worried about being robbed. Two floods on the alley garage doors. Two floods on the alley gate. Three floods on the garage wall in backyard. One flood on the back porch. One flood high on the rear wall of the house. Can you imagine? Absolutely no privacy for me and the neighbor on the other side. Also, many threatening signs. Water meter reader would not enter his side yard to read my meter. Lots of subsequent trouble for me with the Water Department! This is life in the city. | ||
Lefty2 Member Username: Lefty2 Post Number: 690 Registered: 07-2007 |
Before you buy, get an INSPECTION by a certified inspector, this will pay for itself threefold! guaranteed. | ||
Renfirst Member Username: Renfirst Post Number: 130 Registered: 12-2006 |
Southwest, My only advice if you plan on purchasing to flip is to have an exit strategy. It's essential in this market, as most lenders have tightened lending guidelines... |
