Home Buying in 33189>Question Details

Rosy Ann G., Home Buyer in Miami, FL

Why Would Lender Not approve me because of Property taxes?....?

Asked by Rosy Ann G., Miami, FL Tue May 26, 2009

I found a home in Cutler Bay, fl, close to my approval amount from lender, saw the home already and I was ready to make an offer but wanted to consult with lender, The lender would not approve me because property taxes on the home that sold back in 2005 for $300,000, were $6000. I would have purchased this home now for $180,000.

Can someone help me understand why would property taxes of a home sold back in 2005 have to do with me buying this house at the current price of $180,000?? Why would lender not approve me?

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6
Rosy,
the main thing to remember is that taxes are based on assessed value and not purchase price. This is something mnay buyers are not aware of. Take for instance a short sale: Buyers think that taxes are based on the short sale or foreclosure purchase price, when in fact, taxes are based on assessed value. Also, please keep in mind that a property will be newly assessed after every sale, independent of the January 1st assessment date.
My name is Manon Mohammady and I am a Broker Associate with Coldwell Banker in Coral Gables. Please visit my web site http://www.ManonMohammady.com to learn more about me. Thank you.
Your real estate resource,
Manon
1 vote Thank Flag Link Tue May 26, 2009
This is a BIG problem for everyone today. The lender looks at last years taxes to estimate what your total monthly obligation will be. If the property had not sold until this year, then the taxes would be based on the old assessed value - which would have been quite high compared with the market today. Technically, until the new tax bills come out in October, there is no way to know what the new assessed value would be; if the house does not sell, then it's likely to be based on the higher value. If the house does sell, then it would be lower, or could be appealed based on the lower purchase price. You can go to http://www.MiamiDade.gov/pa, and use the property tax calculator to see what the new taxes would be, and you can certainly provide that info to the lender to try to appeal your case.
Web Reference: http://www.myriamsHomes.com
1 vote Thank Flag Link Tue May 26, 2009
Rosy Ann G.,
The folks below are correct. The taxes are based on last years obviously higher "assessed" values and if your buying a foreclosure, you can bet the prior owner lost homestead exemption which inflated the taxable amount by $25K. Regardless, I would encourage you to call me for a free private consulation. My firm is a direct lender and we offer many loan programs at very competitive rates.

regards,
Frank Olguin
Mortgage Banker
AmericaHomeKey Inc.
500 W. Cypress Creek Rd, Suite 330
Fort Lauderdale, FL. 33309
Folguin@americahomekey.com
office 954-771-7715 x104
cell 561-386-9731
pfax 954-379-4469
0 votes Thank Flag Link Fri Jun 12, 2009
Rosy,

In Miami-Dade County the taxes are not based on sale, especially if the sale is obtained through a foreclosure. What they do is, tax the property on teh assessed value, if there are not other comparables that have sold under a "normal" slae then they would use that assessed value.

You also have to keep in mind that property values are assessed at the beginning of the year so in essence you would be apying the remainder of the year at the $6,000 level.

I hope this helps you.

Javier Olmedo
Florida Realty of Miami
786-395-6986
Web Reference: http://www.olmedohomes.com
0 votes Thank Flag Link Tue May 26, 2009
WoW!

The same happened to me today! I am pre-approved and was looking forward to purchasing my first home in Homestead Florida and my lender would also not approve me because of the high taxes previously on the home!

"The Ribenboim Team", I just used the calculator link you posted and entered the amount of the home I wished I would have been approved for and taxes show as being about $1000 + less but this is only an approximate estimate not an actual one.

Honestly, I don't think my lender would budge if I appeal to them. They are pretty much set to "no".
0 votes Thank Flag Link Tue May 26, 2009
GREAT QUESTION:

It is all based on what you can afford and qualify for. Taxes are configured in debt / income ratio.

National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
Lynn911
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Tue May 26, 2009
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