Determine Property Taxes Before Purchase

As the rate of defaulted loans and foreclosures continue to soar in many locations, numerous counties have discovered that the rate of unpaid properties taxes is also on the rise. The metro Detroit area, in particular, is experiencing a record high rate of unpaid property taxes. Detroit is currently considered to be one of the worst housing markets in the United States based on the decline of housing prices and increase of foreclosures. The lack of jobs and weak economy in the greater Detroit area are considered to be the primary factors contributing to the housing crash in the area.

Fair cash value is what the property can be sold for between two parties without any duress. The assessed value of the property is what the city or county deems a fair assessment of what the property is worth. This is figured out by comparing your property to similar properties in the same area that have sold recently.

Property taxes are one of the single largest expenses faced by homeowners next to the mortgage itself. Many people get in trouble with their mortgage companies or wind up facing foreclosures because they are unable to pay their property taxes. Yet, most Americans do nothing to attempt to get these taxes lowered.

Sometimes the property value that you are given from an assessor seems off so you may want to disagree with the assessment. This must be done through written channels no more than 30 days after the assessment is received. It needs to be reassessed but if it isn't done in a timely manner the tax bill is based on 80% of the value. Once the second assessment is complete, you are either given a refund for the difference or charged the extra tax.

The property tax code further provides the chief appraiser the right to charge up to $15 for each residence, and up to $25 for each commercial property owner for this information. However, there are limits on the cost per page an appraisal district can charge. Practically speaking, the maximum charge is $1 to $2 for a residence. In Harris County, most homeowners can print this information from the appraisal district's web site once an appeal has been filed using the "I file" system.

So there you have three times when it may be opportune for you to challenge a property tax assessment. Don't be afraid, get your facts and figures straight and make your case and you will be surprised how easy it actually is to win.

When mortgage lenders do not include property taxes in home loans, borrowers are responsible for paying taxes directly to their state tax collector. If homeowners fail to pay property taxes on time, mortgage lenders can demand payment in full. Banks consider nonpayment of property taxes as loan default and can initiate foreclosure proceedings.

After the assessment is done, the homeowner generally has a particular period of time in which to appeal the assessment. A lot of homeowners think that there is no point in arguing with the tax authority and really never consider it any further. You should at least give the assessment a thorough review.