Home Selling in 55423>Question Details

Antonio, Both Buyer and Seller in Minnesota

I PAY 205,000 DOLLARS FOR MY HOME I OWEN THE BANK 198 AFTER 4YRS @ 6% AND AFTER ALL THIS MESS WITH THE HOMES

Asked by Antonio, Minnesota Sat Nov 8, 2008

GOING DOWN MY HOME IS ONLY WORTH 165K ACCORDING TO THE MARKET I STILL PAY TAXES FOR A 210K HOME thats what the city charge me is there a way i can work something with my bank? why should i pay 209k for a home that is worth 165K

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9
There is a lot of good advice here. We have had several clients go to the county as suggested and request a tax abatement. Some have been successful, others not. Some have been able to get the value for tax purposes reduced some, but maybe not to where the current market value is, but it's at least a help for the current market. The value of your home will improve over time, those losing value now are those having to sell...most are opting for a short sale versus trying to sell at a higher price and not sell or face foreclosure. Many individuals who purchased in the past 5-6 years are in the same situation you are where their tax value is higher than market value. Again, a tax abatement is the best chance to lower your tax liability in the short term.
0 votes Thank Flag Link Thu Dec 18, 2008
Antonio,

Like stocks and bonds, you don't lose money on your house unless you sell it. If you buy a share of stock at $200 and it drops to $150, you haven't lost a dime unless you sell at the lower price. Hang onto the house and keep current.

There isn't much you can do with the county about 2009 taxes but when you receive a notice for next year's taxes you should really consider disputing the value at the county. I think you will find however that you will pay about the same amount as before anway. If the county's house are suddenly worth less the county isn't going to just start spending less, they will may lower the overall values but will raise the rates to keep revenue about the same. You should still fight it though.

Good Luck.

Cameron Piper
Web Reference: http://www.campiper.com
0 votes Thank Flag Link Sun Nov 23, 2008
Right now, you're probably thinking "I should have rented". Especially if you only planned to be in the house for 4 years. Maybe just keep the house. Good Luck
0 votes Thank Flag Link Mon Nov 10, 2008
Good Afternoon Antonio,

You should be able to get an application for a tax abatement form your assessors office. The previous posts are correct with you have to pay on what you borrowed, if you can not make the payment anymore than you should call your bank and ask for the home retention department and see what they can offer you to modify your loan,. Your interest rate is already very low. Good luck with working things out
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Mon Nov 10, 2008
Hi Antonio,

There is good advice here. I’m not sure I can add to it, but I do have my concerns about the current assessed value situation. One thing to consider is that assessed values have always been behind market values. Of course, when market values were going up at a much higher rate than assessed values no one ever complained about paying lower than appropriate taxes!

It seems to me that the county budgets are not going to change, so as market values fall and assessed values decrease, won’t the counties have to adjust the mill rate so that they take in the same amount of property tax revenue? Now, when values, market and assessed, rise again will they lower the rate or will we be paying the higher rate on a higher value? Does anyone else get the idea that the government always wins?

My 2 cents,
Gregg
Web Reference: http://GoWithGregg.com
0 votes Thank Flag Link Mon Nov 10, 2008
Antonio - In 10 years, when the value is $400K, will you expect your mortgage company to INCREASE your payments or balance due? Of course not. Don't confuse your loan with your house - one you owe, the other you live in.

Your mortgage is just a loan. The bank made a loan to you. The reason you have to pay it back is because you promised. If you don't, they can take your house, sell it, apply what they get to the balance of your loan... and then, while you don't live in the house, they can sue you to pay them the rest of the money you still owe them.

It's just like a car. You buy a car, perhaps you get a loan. You wreck the car... you still owe the same thing for the loan.

It's too late to renegotiate the price of your home. You bought it 4 years ago.

You make a valid point about the assessment... I would follow up on the advise below.
0 votes Thank Flag Link Sun Nov 9, 2008
Yes, my colleague listed here is correct about the taxes. As for your mortgage, you cannot change the conditions of your loan because that's what your house was worth when you bought it. There are programs out there to assist home owners in adjusting their loan amounts and/or interest rates, but those programs are for people in financial trouble, and you have to prove you do NOT have the money to cover what you currently owe.
0 votes Thank Flag Link Sun Nov 9, 2008
Antonio
Below is the link from the county assessor's website.
They also have phone numbers to call for assistance.
There are many people in the same boat, so I would try to file an appeal.
If you need help I would contact a local Realtor for the comparable sales you'll need to back up the appeal.

Good luck! Don't waste time.


Assessor 's Office
E-Mail
Assessor.AO@
co.hennepin.mn.us
Phone: 612-348-3046
FAX: 612-348-8751
Address
A-2103 Government Center
300 S 6th St
Minneapolis, MN 55487
Office hours: 8:00 - 4:30
0 votes Thank Flag Link Sun Nov 9, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Your house is an investment. There is always risk associated with investments. They can fluctuate in value going up,down, or nowhere. Many people have seen their retirement accounts in the stock market shrink in value the same percentage as what you home's value has lost. However, at least your home provides a roof and protection from the elements during its down period while you wait for the next up cycle, which unfortunately could be some years. If you can remotely afford the payments, the bank is not likely to cut you a break by approving a short sale if you decide to sell. However, you should protest the tax with the assessor's office. Other than that, my advice is to enjoy the home and let the market do what its going to do
0 votes Thank Flag Link Sun Nov 9, 2008
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