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Property values question

I see everyone saying that property values are going down, and I have no idea if our property is affected or not. If it goes down will a person be notified or do they wait till they get their homeowner's tax statement? If the home is mortgaged do your payments go down even with a fixed rate mortgage? Our homeowner's tax and insurance are calculated into the mortgage payment and pro-rated monthly. Will our monthly payment go down if our home is devalued? (It would be nice if SOME bill went down, but if we lose value in property that we've been paying on for years, that is bad, even though we have no plans to sell and move from here.)

 
pagan_mama

Asked by pagan_mama at 11:06 AM on Mar. 26, 2009 in Politics & Current Events

Level 7 (199 Credits)
This question is closed.
Answers (11)
  • *correction, your mortgage may go down by the amount your property taxes go down, of course divided into 12 months.

    QuinnMae

    Answer by QuinnMae at 11:15 AM on Mar. 26, 2009

  • The only answer I can give you is one from personal experience. Some friends of mine lost their home. Prior to losing their home 4 other homes in their neighborhood were foreclosed on. The foreclosures made the value of their home drop dramatically because the other houses were auction off at a fraction of their previously estimated value.

    heatherama

    Answer by heatherama at 11:13 AM on Mar. 26, 2009

  • I know that in some states that you can contest the property value on your property taxes. I believe you need some comps to do that. So if homes in your area are losing value and selling for less, that might work in your favor in regards to your property taxes (if you live in a state that allows this). Your mortgage won't go down, unless you happen to be one of those families that can't afford to stay in your house. I believe that under Obama's bailout deal to help homeowners, if you are behind in your payments and are facing foreclosure, you are eligible to renegotiate the terms of your mortgage, this includes the principal owed. This will screw the neighbors that can afford to make their payments, as they are not eligible for this type of renegotiation. So, in essence, it really does cost the middle class more to have Obama in office. If any of my info is wrong, I am sure an anon will be happy to prove me wrong.

    QuinnMae

    Answer by QuinnMae at 11:14 AM on Mar. 26, 2009

  • NO. Even if your home's value goes down, you will continue to pay whatever monthly mortgage payment you agreed to in your loan. That, however, is what those who ARE in financial trouble want...for mortgage payments to be renegotiated, for interest rates to be lowered on the balance of their loan, in order to match property values...and I am against it! We purchased a home within our means, based on ONE income, a sizeable down payment, and a 5.35% FIXED rate 15 year mortgage. The more people lower the property values in a neighborhood, the less desirable the neighborhood becomes.

    Also, I have never seen anyone volunteer to pay MORE for their home when home values were high...it's only when they're low that people begin to cry foul.
    LoriKeet

    Answer by LoriKeet at 11:15 AM on Mar. 26, 2009

  • Assessed value and salable value are very different things. While it is possible your property could devalue enough that your taxes go down, what is more likely is that housing prices were inflated far above assessed value before, and have now fallen more in line with the assessed values. The homes in our area are assessed in the $105-115k range, but the average housing price (until last fall) was $150-180k. Houses are selling now for around $120, but we're still assessed around $110.

    Most people, when talking about property values, are complaining that they can't sell their house for more money, not about the assessed value on record with the county.
    NotPanicking

    Answer by NotPanicking at 11:17 AM on Mar. 26, 2009

  • Foreclosed Homes are only one variable in a long line of reasons property depreciates. Things to consider
    More Sellers than buyers (Companies closing, high inventory)
    Over inflated prices of homes from 2001-2006
    Tougher to get mortgage loans today then it was during the "boom"

    IMO~The best way to find out what your property is valued at is to have it appraised. The appraisal costs money (roughly $200). Another way would be for you to contact a Realtor and ask them to perform a comparative market analysis on your home. That is where they take the number of homes in inventory (for sale) and the number of sold and look at the median sold price. Good Luck.
    grlygrlz2

    Answer by grlygrlz2 at 11:18 AM on Mar. 26, 2009

  • Our home has lost $100,000 of its value.

    -we are still responsble for the amount we contracted to purchase it for.
    -our property taxes are going up not down because rates have gone up in response to the current economic crisis.

    In todays economy tax districts are not very willing to "reassess" tax values. They can't afford the loss of revenue.
    yourspecialkid

    Answer by yourspecialkid at 11:27 AM on Mar. 26, 2009

  • If it goes down will a person be notified or do they wait till they get their homeowner's tax statement? It should show up in your statement.

    If the home is mortgaged do your payments go down even with a fixed rate mortgage? No. You borrowed ex amount of dollars and owe that. Buying a home is like the stock market in many ways. If my stock goes down it goes down and no one bails me out homeownership is the same way. There are some things in the bailout for those who are in trouble and their homes have lost value. I think it is wrong but we live in a nanny state what can be done.

    Our homeowner's tax and insurance are calculated into the mortgage payment and pro-rated monthly. Will our monthly payment go down if our home is devalued? You need to speak with you lender or escrow company.
    Anonymous

    Answer by Anonymous at 11:42 AM on Mar. 26, 2009

  • Some Tax Boards will automatically adjust your property taxes with the changes in value. But most won't. Think about it...
    Governments all across the country are hurting for money, laying off workers, shortening the school year, etc all to save money. Will these same governments willingly and automatically adjust your property taxes so they get less money from you? Of course not. Most will have a simple form you can fill out to request that your property value be checked and your taxes adjusted but you have to fill out the form and request it.
    As for your mortgage payment being adjusted (at least the escrow portion), yes, it would adjust once the new tax rate was known. The principal and interest portion will never adjust or change if you have a fixed mortgage, not even if your home value dropped to $1000.
    kaycee14

    Answer by kaycee14 at 11:57 AM on Mar. 26, 2009

  • You can appeal your property taxes, but your local government won't do it for you, you have to go through a process.
    stacymomof2

    Answer by stacymomof2 at 12:03 PM on Mar. 26, 2009