Are Property Tax Payments An Indicator Of The Housing Market?
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Let’s face it, in tough times paying the mortgage is tough enough. But when property taxes are added to a tight budget things tend to break. Santa Cruz County in California is running into this issue. 1 in 10 households in the county are behind on their property taxes.
This is setting off warning signs in the county offices as a new wave of foreclosures could be on the horizon. Since many loans have the property taxes paid into an escrow fund and paid by the lender this number may even be higher than it seems on the surface.
“When you see people making a choice to not pay taxes, you know they’re in trouble,” said Ken Cole, recently named executive director of the county’s Housing Authority. “It’s a shame that there’s such a high percentage of people on thin ice.”
Most of those not paying property taxes are not paying their mortgages as well, Cole and other housing experts suspect, a signal that hundreds, if not thousands, are on their way to losing their homes.
Housing experts blame the nationwide real estate meltdown, which has not only depressed local property values but left homebuyers with rising mortgages they can no longer afford, coupled with a sagging economy that for many has meant less work and less income. San Jose Mercury News.
One word of advice I do have for homeowners this winter and spring is to appeal your property tax valuation. With home prices falling across the country homeowners need to stop paying extra taxes to authorities that are trying to maximize their own revenue. A simple form from your tax assessor can bring some significant savings to the household.
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Comment by Idaho Land on 30 December 2008:
What are your thoughts on how they relate to the value/market of undeveloped property?