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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (30804)	5/6/2005 2:18:27 AM
From: mishedlo	Read Replies (1) \| Respond to of 306849

Apparently the County does not act to foreclose on your home for five years so they find this the least expensive way to raise money. How long will that last? Mish

To: Elroy Jetson who wrote (30804)	5/6/2005 3:17:22 AM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

Elroy, as you probably know, there are a tons of institutional investors bidding down the interest rates to near zero at the tax certificate auctions all over these days, all in the hope the owner pays it off in the first few months as required by most lenders and they get there 5 or 10% penalty. These days the owner gets a interest free loan by not paying.

To: Elroy Jetson who wrote (30804)	5/6/2005 10:20:18 AM
From: GraceZ	Read Replies (2) \| Respond to of 306849

As I have spoken to new home owners I have learned that it is less expensive for them to incur the penalty for failing to pay the property taxes on time than it is to miss their mortgage payment, obtain a cash advance on their credit card or other means of conserving money Mortgage companies don't collect RE taxes with the monthly mortgage payment in CA? Here the taxes and homeowner's insurance is escrowed and paid by whomever services your mortgage. Only homes without a primary mortgage have taxes paid directly by the individuals.

To: Elroy Jetson who wrote (30804)	5/6/2005 2:38:09 PM
From: Ramsey Su	Read Replies (1) \| Respond to of 306849

With the huge increase in property tax revenue, California government at all levels found ways to spend even more while providing less. We should be flooding in surplus instead having the type of problems we are having in the City of San Diego. Just think there are people stupid enough to want to repeal prop 13, might as well just give the politicians your check book. Regarding prop tax foreclosures, the municipalities seldom worry about it since they are always senior to almost all liens. A mortgage is in automatic default if the borrowing is delinquent on property taxes. So when a borrower stops paying property taxes, it is usually the most junior lien holder who would step up to the plate and foreclosure, since they would be most at risk.