Foreclosure in 48025>Question Details

Maryb, Home Buyer in 48025

when a house goes into foreclosure does it automatically get reassessed for property taxes?

Asked by Maryb, 48025 Mon Feb 8, 2010

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When a bank takes a property back through foreclosure the house loses it's homestead and the taxes increase. Once you own the house you can appeal the taxes but the local taxing authorities only give you a small window of opportunity, typically only a couple of weeks, once a year and for most that time has passed so you'll have to wait until next year to appeal. There are several good tax appeal companies and law firms that charge reasonable fees to work through the appeal process, I wouldn't advise trying to do this yourself, leave it to the experts. I've had clients cut their taxes in half after the appeal.

Trent Dalrymple
Metro Mortgage Investments
Michigan Private Mortgage Lenders
26711 Woodward Ave., #301
Huntington Woods, MI 48070
(248) 547-3006
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0 votes Thank Flag Link Sat Mar 23, 2013
In my experience in SC with foreclosed home sales the assessed value does not automatically change. The new buyer can attempt to appeal the assessment based on their purchase price. However, it's unlikely that the assessment will decrease unless the home is in a neighborhood where there is a significant decrease in market value across the board. In other words, a large percentage of other like homes in the neighborhood are also foreclosures or short sales.

Page Wade
0 votes Thank Flag Link Mon Feb 8, 2010
Nothing is ever automatic :) It depends on each locality and the workings of their assessors office. It also depends on when the property transfer affidavit is filed.

At some point though, once a home is foreclosed at some point the homestead tax examption will get removed which results in higher taxes

Hope this helps
0 votes Thank Flag Link Mon Feb 8, 2010
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