Property Taxes

The past few years have been good to most homeowners but, with the value of homes going up, property taxes have increased too. In the current declining market, you may be able to save a few dollars asking the County Tax Assessor to re-assess your property and get a temporary property tax reduction.

If you purchased your property within the past 10 years and your property taxes have risen along with the wave of property values, then you could qualify for a reduction under Prop 8.

You can get more information regarding tax re-assessment in this online PDF document: Prop 8 application.

Be careful about using your home like a bank Account

As property values have risen over the past few years, there has also been an enormous amount of money available for homeowners to draw on the equity of their home. Lenders have made it very easy to make equity loans and credit lines

Remember that what goes up must come down; this rule also applies to real estate values. Before you sign on the dotted line and make that loan, think it through: get multiple quotes and talk to your local real estate professional to check if that fantastic loan is really what it appears to be.

There are 500 notices of default in San Diego County as of today and an increasing number of those defaults are actually winding up in full foreclosure.

If you don’t need to have the money, leave it in your most valuable asset: YOUR HOME!

Appraisal of value

A valuation of property may be required for a number of reasons: estate planning, probate, tax purposes, divorce, etc.

An average full appraisal can cost between $350- $4.500, depending on the type of property being evaluated. However, a full appraisal is not always required: a “Broker’s Price Opinion” (BPO) may be an adequate and less expensive way to serve the purposes of your situation.

A BPO is an opinion of value made by a real estate professional, based on comparable sales within a 6 month period and supported by local market data. The cost of a Brokers opinion can be 25-50% of the cost of a full appraisal.

Before ordering an appraisal, ask your attorney or accountant what is actually required. If you need an opinion, feel free to give me a call at (619) 370-4015

Foreclosure

Money has been plentiful and interest rates have been irresistible for many homeowners.

With property prices rising fast during past years, the only way some families could afford a home was to acquire an interest only or an adjustable rate mortgage; some even needed both. Now those adjustable rate mortgages are doing just that: adjusting!

With the adjustments of rates, the payments are becoming unmanageable for many families: with 500 Notices of Default currently in San Diego County alone, the handwriting is on the wall, and more of the NOD’s are resulting in foreclosure than ever before.

If you or someone you know finds themselves in this unfortunate situation here are a few tips:

1. Don’t Panic!
   Solutions exist and professionals are available to help you.
   
2. Don’t ignore the problem. You need to acknowledge and address the issue as soon as you are aware of it, in order to maximize your chances to find solutions and minimize your losses.
   
3. Contact your bank as soon as you know you are going to have a problem making you payments.
   Remember that banks are in the money business, not the real estate business: the bank does not want your home. Banks make their money lending money and servicing loans, not managing and owning real estate. Most banks will be willing to work with you and offer some solutions
4. If you cannot work something out with the bank or obtain some kind of alternative financing, then you may need to sell your home.
   Do you owe more than the home is worth? It is still possible to sell your home and avoid foreclosure. This is called a “Short Sale”: you can place the property on the market and the sale will be subject to the approval of the lender. Don’t hesitate to contact and schedule an appointment: we can discuss the particular details of your personal situation as well the options that are available to you.

Do you have comments, suggestions or wish to ask a question?
Feel free to post a comment here, email me, or call me at (619) 370-4015.