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

To: ClearSky who wrote (88260)	9/6/2007 3:47:17 PM
From: John Vosilla	Read Replies (2) \| Respond to of 306849

'Given that many buyers didn't budget for ARM adjustments, the property tax bills present a double whammy. Although homeowners can appeal part of their tax bills (ad valorem), they can't appeal special assessment portions of the tax bill (Mello-Roos, assessment bonds) which can be extremely high in some areas. These high tax bills now are making it hard for people and builders to sell homes because people are once again thinking through purchases and are concerned about high tax rates. Will be interesting--there are other issues like the accelerated foreclosure provisions on land secured financing (like Mello-Roos and assessment district bonds) that have yet to fully kick in and further complicate things for homeowners and lenders. While not a huge factor, it could add fuel to the fire in California later as property tax delinquencies rise.' You are a very smart person. Few if any people ever mention this anywhere. Those special assessment bond issues to fund infrastructure are a first lien on the property ahead of the mortgage. Add this accrual to unpaid RE taxes this could be a huge bite over 3-4 years of non payment. I wonder if our esteemed leaders in government on both the local and national level even have a clue what happens as this ownership society program unravels further..