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

To: John Vosilla who wrote (88264)	9/6/2007 4:01:04 PM
From: bkcraun	Read Replies (2) \| Respond to of 306849

Couldn't help myself, had to leave the RE arena and short some AMZN at 86.30

To: John Vosilla who wrote (88264)	9/6/2007 4:37:54 PM
From: ClearSky	Read Replies (1) \| Respond to of 306849

The whole California property tax system is an interesting beast, and the aggressive use of all this land based financing during this runup has been amazing to watch. Entire communities are laced with these bonds and you are absolutely right, these have priority over everything and very short foreclosure timeframes. While buyers were technically informed, I doubt most remember the details of what can happen if these assessments are not paid, until additional penalties and fees start racking up. Will be interesting---I think cities and other agencies who sold the bonds will be torn between complying with their obligations and initiating foreclosure, but will need to move forward. Used to be the homeowner or lender would pay up quickly to avoid anything going to foreclosure, but I am not sure that the homeowners or the lenders will want to do that in this environment if there is no equity in the home. And bond payments are due usually every six month so there is no luxury of time in collecting these assessments. When delinquencies force everyone else's tax bills to go up as they can with some of these assessments like Mello-Roos, you're right, they will be calling their representatives. Scary. And all the property will be that much less attractive.