HAVE HOUSING PRICES FINALLY HIT BOTTOM? MAYBE, MOST LIKELY NOT.

Have home prices hit bottom? Many experts don’t see the end until at least 2012. Foreclosures will continue because of the liar loans (stated income) were being made up until the end of 2006 and the start of 2007. Almost all of these loans will reset to a high interest rate and monthly payment at the end of five years from origination. Most of these “homeowners” will be bailing through the walk-away foreclosure process when the payments reset to the higher amounts.

As the foreclosures continue housing prices will continue to drop. As property values continue to slide the assessors and county governments will under pressure to avoid reducing property taxes to correct assessments.

One little thought of provision of the Prop 13 is that any property tax reduction for loss of value is temporary. In other words, any reduction of property taxes by appeal that you receive through the assessor’s office or tax appeals board only applies to the current year. Property taxes reductions are not carried over and have to be applied for again each year.

Since property values will most likely continue to slide for the next 3 to 4 years and not likely to get back to the 2006 level for the next six to ten years maybe you should educated on the property tax appeals procedure or buy the guide.
See LA Times