Tax Question?

[donkey]

Looking at the paper this week I can’t help but notice that there were four pages of foreclosures this week alone. Here is the question. Come Dec. 20 and the tax comes due and the bank now owns these hundreds of parcels and homes, who is going to come up with all this tax money? Will liemar make a deal with his Simon Legree buddies in the banks and forgive them for the year and give some lame excuse as he tries to con us once again, or maybe just a big discount or reduction in evaluation? Bet you they won’t pay full value, if anything. The sad part is either way we are going to come up short of funds with his way of operating the county. Our commissioner doesn’t have the compassion to figure out that in bad times you have to adjust, bite the bullet and reduce cost. His spoiled, rich boy, upbringing is going to destroy our way of life here. This utter lack of being able to see past the end of his nose is going to hurt all the home grown first. He will have to raise taxes to support this extravagant outlook for the county and who does he hurt the most? The ones that have a little property left to us, not rich but trying to hang on and keep from selling off any for taxes. I’ll tell you one thing we all know Harold wouldn’t have us in a mess like this.

[november]

I always thought that any back taxes/taxes owed are paid by the person who purchases the home. And if it's not purchased on auction day, then the bank holds the property and when it finally sells, all back taxes have to be paid. I could be wrong, but that is my understanding.

[donkey]

If that's the case then we are in big trouble

[challenger99]

If the bank owns the property they are responsible for paying the taxes. However, they can go to the taxing authority and request deferral until such time as they sell the property then the bank will add the back taxes to the closing price and pay the taxes, usually successful in obtaining the deferral.
Since the property has been forclosed the bank will usuallly ask for a reduced value assessment and thus lower taxes, this action is also usually successful.
At any rate, it is a very confusing time for the local taxing authority since it almost impossible to 1) determine when taxes will be paid and 2) how much tax they will actually receive. Very hard for local Gov't to budget.

[donkey]

What you are saying is the bank's butt is covered and the tax payer holds the wrong end of the stick once again.

[Oh my]

challenger99 wrote:

If the bank owns the property they are responsible for paying the taxes. However, they can go to the taxing authority and request deferral until such time as they sell the property then the bank will add the back taxes to the closing price and pay the taxes, usually successful in obtaining the deferral.
Since the property has been forclosed the bank will usuallly ask for a reduced value assessment and thus lower taxes, this action is also usually successful.
At any rate, it is a very confusing time for the local taxing authority since it almost impossible to 1) determine when taxes will be paid and 2) how much tax they will actually receive. Very hard for local Gov't to budget.

Being too lazy to do the research, but I wonder if this is covered by a provision in the Stimulus - states were given money to cover Education and Public Service jobs ?

Seems like this would be a problem in many locales. But you do have to wonder why the Banks, or whoever the current Title holder is, don't pony-up and pay to avoid the shortfall in the County Revenues. Course with so many of these Titles being held by the ERMS (?) good luck to any local govenrment chasing them for payment.

[Oh my]

challenger99 wrote:

If the bank owns the property they are responsible for paying the taxes. However, they can go to the taxing authority and request deferral until such time as they sell the property then the bank will add the back taxes to the closing price and pay the taxes, usually successful in obtaining the deferral.

Since the property has been forclosed the bank will usuallly ask for a reduced value assessment and thus lower taxes, this action is also usually successful.

While I can understand the thinking here, especially since this could represent a significant maintainance cost for holding these titles, but I have to wonder isn't this a cost of doing business and a reason for banks to be properly capitalized - wondering if this doesn't fall under TARP and not the Stimulus.

Here's another thought that may speak to the agnst of this thread, is the same recourse (reduced value assessment) available to the individual property owner with property currently up for sale ?

[Oh my]

Oh my wrote:

<quoted text>
...Course with so many of these Titles being held by the ERMS (?) good luck to any local govenrment chasing them for payment.

MERS Losing! Stop Your Foreclosure, Share with Others
by War on Error
Sat Oct 17, 2009 at 01:19:12 PM EST
http://www.dailykos.com/story/2009/10/17/7943... !-Stop-Your-Foreclosure,-Share -with-Others

MERS, MERSCORP, and/or Mortgage Electronic Registration Systems is finally being exposed. Foreclosures ARE being stopped....

[donkey]

If the banks doesn’t pay the taxes causing hardship on the rest of us why can't the county confiscate the properties and sell them, taking out expenses and taxes and refund what’s left to the bank. Bet the banks would come up the tax money then.

[hmmmm]

UCB took 200 million in taxpayer stimulus money which promptly went into the pockets of the directors. The people of this county could use some of that back.

[GWB]

donkey wrote:

Looking at the paper this week I can’t help but notice that there were four pages of foreclosures this week alone. Here is the question. Come Dec. 20 and the tax comes due and the bank now owns these hundreds of parcels and homes, who is going to come up with all this tax money? Will liemar make a deal with his Simon Legree buddies in the banks and forgive them for the year and give some lame excuse as he tries to con us once again, or maybe just a big discount or reduction in evaluation? Bet you they won’t pay full value, if anything. The sad part is either way we are going to come up short of funds with his way of operating the county. Our commissioner doesn’t have the compassion to figure out that in bad times you have to adjust, bite the bullet and reduce cost. His spoiled, rich boy, upbringing is going to destroy our way of life here. This utter lack of being able to see past the end of his nose is going to hurt all the home grown first. He will have to raise taxes to support this extravagant outlook for the county and who does he hurt the most? The ones that have a little property left to us, not rich but trying to hang on and keep from selling off any for taxes. I’ll tell you one thing we all know Harold wouldn’t have us in a mess like this.

Really good question when it comes to who is left holding the perverbial bag with regards to budget short-falls. Probably something that should be looked into carefully to see if the Banks are double or even triple-dipping us.(TARP $, interest rates and making up for their tax short-fall.)
All I can think is that most answering this thread have decided YOU,"Donkey", are deserving of slack regarding your additional baiting comments in reference to Lamar.
Don't get me wrong now. I'm not the biggest fan of Lamar, but "Harold"???? You are obviously a douche-bag with another agenda other than what your question addresses. Nice try but NO CIGAR. You should have stuck to your original question instead of trying to tie it in with your REAL agenda.
This gives me hope that the people of the area are tired of the SSDD mentality, such as yours.

[Oh my]

GWB wrote:

<quoted text>
...All I can think is that most answering this thread have decided YOU,"Donkey", are deserving of slack regarding your additional baiting comments in reference to Lamar.

Was trying to ignore it hoping that this thread might develope into something resembling an intelligent conversation. Perhaps if we speak in hushed tones there still may be hope.

[Boodoodle]

Oh my wrote:

<quoted text>
Was trying to ignore it hoping that this thread might develope into something resembling an intelligent conversation. Perhaps if we speak in hushed tones there still may be hope.

Sorry. I just HAD TO say something.

[ADOP Inc]

By Advocates for Clean & Open Government inc

Why is it you dim wits always resort to name calling when a good discussion is going on? At least we didn’t have a tax increase when Harold had the reigns and he was frugal to the point of squeaking.

[Kindly Explain]

hmmmm wrote:

UCB took 200 million in taxpayer stimulus money which promptly went into the pockets of the directors. The people of this county could use some of that back.

UCB got $180 million in TARP money, which they pay interest on. No stimulus money... Please explain how this went into the directors' pockets. I bet you can't, because you just make this stuff up.

[challenger99]

Excellent questions being raised, I'll try and at least provide some info if not answers.
If the taxing authority does not grant the defferal the bank will pay the taxes. However, in this case the taxing authority almost always reduces the market and therfore assessed value of the property thus reducing taxes.
Payment of taxes and any maintenance required are considered normal operating expenses and are taken into account by the bank when they sell. It is only the outstanding mortgage vs selling price that impact a banks requirment for maintaining required capital ratios.

If you are trying to sell your property, you will be told that you have received a reduction. Most taxing authorities have reduced the market value of taxable property and thus the assessed value for tax purposes. The problem is that once this was apparent to the receipients of the tax dollars they deceided they could not operate on the reduced tax revenue so they increased the tax rate. Result-this year taxes equal to or higher than last year.
Stimulus Grants are available, in significant amounts, if properly applied for. Grants you might be interested in include schools, police, fire and local infrastructure projects. For example,Union County School District received $340,830.25; Union County received total Stimulus funding of $865,340 (this includes the School Grant); Colditz Trucking of Blairsville received $615,167 to resurface part of Route 384 in Habersaw County: City of Hiawassee received Grant to "repair/modify" sewer system;Towns County Sheriff received $535+ Grant.
Hope the above helps.

[challenger99]

Sorry for some of the spelling errors, been a long day and fingers don't always hit the right key.

[Oh my]

challenger99 wrote:

Sorry for some of the spelling errors, been a long day and fingers don't always hit the right key.

Thank you.