your paying on a loan for your house of X amount of dollars and you get a statement from the county gov. stating your property is now worth X amount of dollars which is much less than what it eas purchased for. What happens to the difference. Have I suffered a loss. Will I still have to pay the amount I got the loan for. Please advise.
2007-05-30 16:04:37 · 11 answers · asked by arate 1 in Business & Finance ➔ Renting & Real Estate
Of course you still have to pay the amount you were loaned. But count your blessings...the county appraisal is the one they use when they assess your annual property tax.
2007-05-30 16:09:34 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You have most likely not suffered a loss. It is common for the county to appraise your property slightly less than it would actually sell. This is actually to your benefit when it comes time to pay your county taxes because you will pay on the county's appraisal amount.
Your loan is a separate agreement with the lender/bank. You will owe that as you agreed to buy the house for that amount, at that rate, for that amount of time, etc.
The only way you may have suffered a loss that I can see is if you purchased the house for an amount greater than the other houses in the neighborhood are selling for (comparing equal square footage and improvements).
2007-05-30 16:15:08 · answer #2 · answered by 1Yogini 1 · 0⤊ 0⤋
The county determines what you pay for property taxes. So, If they say it's less than what your loan is, that's good. Property tax is based on a percentage of what the county says it's worth, not what your loan amount is. Maybe your mortgage payment already includes your property taxes and homeowner's insurance. Check with your lender about that. As to your last question, yes, you have to pay the loan amount. You signed lots of papers that say so.
2007-05-30 16:21:59 · answer #3 · answered by healinghands5 2 · 0⤊ 0⤋
Each county gov appraises property at different rates. For example where I live the county appraises at 90% of "fair market value". This is so that as the market fluctuates because of available housing, interest rates, etc you wont be over taxed for your property. The county assessed rate should always be less than what you could sell it for. For example my house would sell for about $200K but the county assessed value is 179
2007-05-30 16:11:44 · answer #4 · answered by words of wisdom 2 · 0⤊ 0⤋
County tax assessors never seem to be very accurate when appraising a house for tax purposes. Be thankful that they are assessing your house for less than it is worth - you pay less in taxes. At this point it means nothing in regards to the actual market value of your home. If you should decide in the future to sell, that is one tool that the home appraiser may use to help determine the market value, but only one of several.
2007-05-30 16:08:39 · answer #5 · answered by Brian G 6 · 0⤊ 0⤋
What you are seeing on the tax bill is the assessed value. This is normally less than the appraised value of your home. The county assesses the value of your property and land at a fraction of what it's worth to calculate your property taxes every year.
2007-05-30 16:11:02 · answer #6 · answered by Talkstress 6 · 0⤊ 0⤋
YOu are talking apples and oranges here.
One is just for taxes and usually not the real worth. It is sort of an average for the area and takes NONE of the improvements in the house into the equasion.
The value may have indeed dropped, and you still have to pay the amount you borrowed, but the actual value and the tax assessment are not the same thing,
2007-05-30 16:08:37 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Of course you still have to pay the mortgage, as you agreed to pay. The county bears no responsibility for what YOU agreed to pay for a property.
That said, do not assume that the assessed valuation of your property reflects fair market value. Many times, the two valuations are worlds apart, and that does not affect the actual value for which you could sell the property.
2007-05-30 16:11:56 · answer #8 · answered by acermill 7 · 0⤊ 0⤋
the tax assessor or tax collector's appraisal has nothing to do with what you could sell the house for. be thankful that the county appraised your house less than you paid for it, because that is what your property tax is based on. this is customary for the county to appraise it for less. also property taxes is divide into two parts the improved portion, meaning the building and the land value.
2007-05-30 16:15:22 · answer #9 · answered by Anonymous · 0⤊ 0⤋
There should be an appeal process with the county to have it reappraised. It may be worth a shot, but with property, it is determined as much by market forces as anything else, rather than these target figures.
2007-05-30 16:14:21 · answer #10 · answered by Zombie Birdhouse 7 · 0⤊ 0⤋