When I bought my home, it was assessed at 90k. Now, two years later, the assessed value has dropped to 74k. Should I notify my mortgage company? Would it help me, or hurt me?
2006-10-10 02:13:49 · 10 answers · asked by Betty 2 in Home & Garden ➔ Other - Home & Garden
This assessment is from the county property tax assessor.
2006-10-10 02:55:18 · update #1
Unless you live in a depressed area, and with todays good markets and housing sales, I would find it doubtful there are any really depressed areas, then your property value should not go down. I can't help but wonder where you got the information that your house value went down. Typically when the word assessed is used it is in conjunction with property taxes, not the market value of your home. If your assessed value went down, thats a good thing and no, your mortgage company doesn't care one way or the other about the value of your home. They will probably suggest you refinance, IF your property value went down, which, as I said is unlikely. You can check your area for house prices, a like house compared to yours with approximately the same square footage, lot size and ammenitites online. Any local real estate office should have listings for you to use to get an idea of prices in your area or neighborhood.
And one more thing, don't confuse the tax assessment you may have received recently from your local property tax office, there is always a difference between taxed assessed value and market value. Tax assessed is usually lower than market value.
2006-10-10 02:26:16 · answer #1 · answered by rentahandyman 2 · 0⤊ 0⤋
The mortgage itself is not affected. What may occur, depending on the locality, is the tax escrow amount - or the amount they collect in addition to principal and interest to cover any local property taxes that must be paid. That could go down as the property value goes down. (Although for many homeowners who have no intent on moving soon - this may come as a welcome relief.)
Note, also, that the loss of value only affects you, not the mortgage holder. You owe that money no matter what. The only time the mortgage holder becomes concerned is if they foreclose and have to sell the house. If you sell the house, and the value is less than the mortgage, you will have to take money to settlement to clear the lien. If you refinance, you may risk paying PMI if your equity in the house is now below 20%. Your ability to obtain a home equity loan may be diminished as well.
2006-10-10 09:29:27 · answer #2 · answered by itsnotarealname 4 · 0⤊ 0⤋
I dont think it matters at this point unless you were going to sell the house. What you owe on the mortgage is what you owe. It doesnt change because the value of the house went down. Maybe you could get the taxes lowered??
2006-10-10 09:22:48 · answer #3 · answered by fancyface034 1 · 0⤊ 0⤋
At best, it's irrelevant. At worst, they may want you to step up your payments because you probably have more mortgaged than the home is currently worth. Banks don't like for you to have more of their money than they can recover by taking back your home and selling it quickly (that's usually 80% of the assessed value).
DO NOT notify them. It can not help you, and it may hurt you.
2006-10-10 09:21:31 · answer #4 · answered by FozzieBear 7 · 0⤊ 0⤋
It won`t do anything to your mortgage .What you borrowed is what you have to pay back plus interest.
Your home will go back up ,( I hope )then if rates go Down you should see if it is advantageous to refinbance at the lower interest rate.
Hope this helps .
2006-10-10 13:14:36 · answer #5 · answered by Anonymous · 0⤊ 0⤋
It would do you no good to let them know.... They already have an idea they stay on top of it all the time.. The only thing you can do is refinance your home to a lower interest rate....... You still owe what you did when you bought the house........ if you can you ride it out........
2006-10-10 09:27:33 · answer #6 · answered by Anonymous · 0⤊ 0⤋
It should help you a little bit because your property taxes should have gone down a little bit so your payments should go down a bit too.
2006-10-10 09:23:18 · answer #7 · answered by shominyyuspa 5 · 0⤊ 0⤋
you would still owe the same amount, you're what car dealers call "upside down" you owe more than your property is worth, ride it out until the value goes up again.
2006-10-10 09:22:20 · answer #8 · answered by Anonymous · 0⤊ 0⤋
IN TEXAS YOUR TAXES GO DOWN..... & YOUR PAYMENT SHOULD TOO... YOU SHOULD GET OFF THE ESCROW ACCOUNT & PAY IT YOURSELF, SO: 1. YOU KNOW HOW BAD THEY ARE PUTTING IT TO YOU. 2.YOU WILL FIND YOU HAVE TO FIGHT THEM ( APPRIALSAL DISTRICT) EVERY YEAR TO KEEP VALUE DOWN... THE ONLY VALUE THAT MATTERS IS THE DAY YOU SELL. SO TELL THEM EVERYLIE IN THE BOOK TO KEEP YOUR VALUE DOWN. 3. THE ESCROW SYSTEM IS A MECHANICAL FUNCTION THAT RAISES & LOWERS YOUR PAYMENT WITHOUT REGUARD TO WHAT IS GOING ON IN YOUR LIFE. YOU WILL HAVE FLEXIBILITY IF YOU PAY IT YOURSELF!
2006-10-10 09:42:07 · answer #9 · answered by Bonno 6 · 0⤊ 0⤋
Only if you are refinancing.....so I wouldn't say anything to them at this point until it goes up again.
2006-10-10 09:21:24 · answer #10 · answered by 2Good4U 4 · 0⤊ 0⤋