PROPERTY REASSESSMENT
IS MY PROPERTY BEING REVEIWED FOR A DECLINE IN VALUE?
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It has been widely reported that the property values of single-family homes and condominiums throughout most of the State have been declining. While the declines in Los Angeles County have not been as dramatic as those in other parts of the State, property values have dropped in most areas of Los Angeles County.
How does this impact your property taxes? In 1978, California voters passed Proposition 8, a constitutional amendment that allows a temporary reduction in assessed value when a property suffers a “decline-in-value.” A decline-in-value occurs when the current market value of your property is less than the assessed value as of January 1. The assessed value is the value shown on your most recent property tax bill.
Typically, an application is required to initiate a review of your property’s value by the Assessor. However, in 2008 the Los Angeles County Assessor’s Office did a proactive review of those single-family homes and condominiums that were purchased between July 1, 2004 and June 30, 2007. 318,000 properties were reviewed, resulting in lower assessments on 128,000 homes and condos. The average reduction in assessed value was about $73,000, amounting to an average property tax savings of $750. With the market still declining, we will again initiate a review in 2009. The number of properties in this review may approach 500,000 as we look at homes that sold between July 2003 and June 2008. In some areas, earlier purchases will be looked at. After April 1st, owners will be able to check this website to see if their home is part of the review.
We will complete this review by June, 2009 and notify in writing all those property owners whose property was included in the review. While Decline-In-Value applications are accepted from January 1, 2009 through December 31, 2009; if you purchased a house or condo in 2003 or later, we urge you to wait to submit your application until July when results of the proactive review are known.
If you own property other than a single family residence or condo, a Decline-In-Value application will be required for a review by the Assessor’s Office. An application is recommended if you believe the assessed value of the property shown on the 2008-09 tax bill is more than the fair market value as of January 1, 2009.
Summary of Key Provisions of H.R. 3221 – The Housing Stimulus Bill (as of 7/30/08)
H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:
- GSE Reform
- FHA Reform
- FHA foreclosure rescue
- Seller-funded downpayment assistance programs
- VA loan limits
- Risk-based pricing
- GSE Stabilization
- Mortgage Revenue Bond Authority
- National Affordable Housing Trust Fund
- CDBG Funding
- LIHTC
- Loan Originator Requirements
For more information, visit http://www.realtor.org/governmentaffairs
Senate passes foreclosure rescue
Did you hear the big news? Your Senate just passed the mortgage rescue bill to give homebuyers a TAX CREDIT of up to $8,000. This tax credit will stimulate home buyers to get off the fence and buy foreclosure resale deals now, which translates into shorter investor hold times, faster resales, and bigger banked profits.
Unlike earlier versions of this bill ($7,500 credits for foreclosure buyers only) this $8,000 tax credit is good for first time home buyers (or anyone who has not owned a home in the last 3 years). And it will be much farther reaching by affecting ALL types of homes.
Jul 11, 2008 5:55 PM (3 days ago) By JULIE HIRSCHFELD DAVIS, AP
WASHINGTON (Map, News) – A mortgage rescue to help hundreds of thousands of struggling homeowners avoid foreclosure and get more affordable, safer loans passed the Senate overwhelmingly Friday, but it faces a bumpy road amid continuing turmoil in the housing market.
The 63-5 vote reflected a keen interest by Democrats and Republicans to send election-year help to distressed homeowners with economic issues topping voters’ concerns.
The plan lets homeowners buckling under mortgage payments they can’t afford keep their homes and get more affordable mortgages backed by the Federal Housing Administration. Banks that agreed to take substantial losses on those distressed loans could avoid costly foreclosures and be assured of recovering at least some money.
The new program would let the FHA insure as much as $300 billion in new mortgages, helping an estimated 400,000 homeowners. Full Story
Short sale & consequences
Investors in second or multiple homes stand to be among the biggest losers from the housing downturn. That’s because proposed mortgage bailout programs don’t address second homes and investment properties. Many owners of multiple properties don’t realize that investments they thought would help them build long-term wealth may in fact leave them in bankruptcy and facing a sizeable tax debt.
MAKING SENSE OF THE STORY FOR CONSUMERS
- Homeowners who borrowed against the value of their second home, or who financed the purchase of their second home and subsequent homes by pledging their primary home or other properties as security, may be liable for taxes on the difference in value should they sell any of their properties for a price less than the value owed on the mortgage.
- Under the Mortgage Forgiveness Debt Relief Act, a homeowner doesn’t have to pay taxes on forgiven debt if the collateral behind the mortgage is owner-occupied. That provision doesn’t apply to a growing number of homeowners renting out their second home or investment property. Of some 7.5 million vacation homes, only about 10 percent are considered owner-occupied, according to the NATIONAL ASSOCIATION of REALTORS® (NAR). Many of these homeowners borrowed against the ever-increasing (or so it seemed) value of these properties to finance improvements or to buy other properties.
- There may be a way out for some, one bankruptcy lawyer counsels: Get a lender to agree that foreclosure “fully satisfies all obligations under the loan.” That might protect the seller from having to pay taxes on the forgiven debt – although one attorney said, “I sure don’t want to be the one litigating it” in court.
To read the full story, please click here:http://www.nytimes.com/2008/05/30/business/30tax.html?th&emc=th
To get your short sale handled by professional team of real estate consultants and foreclosure therapists call Best Hollywood Homes Team at 310-499-1305. We provide free & no obligation consultation based on your specific situation.
Property Tax SAVINGS
GOOD NEWS…. For anyone that purchased property between July 1, 2004 and June 30, 2007. Los Angeles County will be sending a letter to homeowners a value reduction for their properties and taxes….
Los Angeles County Assessor Rick Auerbach today announced completion of a decline in value review of homes in Los Angeles County. Auerbach said that due to the declining real estate market, it was his responsibility to review values to make sure homes are properly assessed.
“We looked at homes and condominiums that were purchased between July 1, 2004 and June 30, 2007, based on our analysis of market trends in Los Angeles County,” Auerbach said. “The review included 318,000 homes and condos. Our analysis will result in lower assessments on 128,000 homes and condos and will be reflected on the tax bills to be issued in October.”
The average reduction in assessed value is about $73,000, he added, amounting to an average property tax savings of approximately $750.
“In addition, this review will eliminate the need for many taxpayers to go through the formal appeal process,” Auerbach said. The 128,000 homeowners who will be receiving a value reduction will be notified in writing by June 30 of this year. If they disagree with the amount of the reduction they should contact the nearest Assessor’s District Office and discuss the results. If owners still disagree with the value, they may file an appeal with the county’s Assessment Appeals Board. The deadline for filing an assessment appeal is November 30.
Homeowners who purchased their properties outside of the time period for the review (July 1, 2004 to June 30, 2007) and believe that their property is assessed above its actual value as of January 1, 2008, should file the simple, one-page Decline-in-Value application. The form can be downloaded from the Assessor’s Website at http://assessor.lacounty.gov or an application can be requested by calling 888-807-2111.
have a WONDERFUL day
Louise Oshiro
Cal Counties Title Nation
New Email: louise@louise4title.com
(818) 439-7008
(310) 490-0003
