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Ryan T asked:
I’m trying to figure out how much property tax income would go down in a given area, based on the amount of homes that are going into foreclosure.
I’m trying to figure out how much property tax income would go down in a given area, based on the amount of homes that are going into foreclosure.
Tags: Auction, Foreclosure, Purchase Price, Tax Income
August 16th, 2008 |
Tags: Auction, Foreclosure, Purchase Price, Tax Income
August 16th, 2008 at 10:46 am
That varies widely.
In very active sellers markets I have seen the prices at trustee’s sales of foreclosed properties go as high as 85% of what the property would have sold for in good condition and marketed properly.
In a buyer’s market where there is a glut of property on the market and a glut of foreclosure properties it is not uncommon for the purchase price at trustee’s sales to drop below 70% of what the property would sell for in good condition and marketed properly.
As a practical matter most people in foreclosure continue to refinance the home often with hard money lenders until the hard money lenders will not finance the property any more.
Generally that limit if 64 to 70% of the fair market value of the property.
Often there are no bidders willing to go that high at the trustee sale. the lender bids the loan amount plus accrued past due amounts plus penalties plus fees and gets the property back at the trustee sale.
August 19th, 2008 at 6:43 pm
While this tends to vary, the average is 20-25% below the market price in the area for that particular property.
August 22nd, 2008 at 8:38 am
It would depend on area. Riverside, California for example: 2006 list price of $620K is now down to $499K and still on the market. Homes in the area have been sold in auction (REDC / Hudson & Marshall) but are no yet recorded with the county recorders office. It’ll take another week or 2 before escrow closes and gets recorded. I believe the auctioneers are unable to get the price the bank/lenders are looking to get. Just yesterday, I received a postcard from Hudson & Marshall asking prospective buyers to outbid the current highest bidder.
As for you second question, read link below (Potential Tax Losses).
States Facing Budget Shortfalls As Housing Slump Hits Tax Take