Mortgage Loan Assumption » property

Property Tax in California, Proposition 13, is it assumable?

admin — Sat, 29 Oct 2011 08:24:09 +0000

Question by Richi: Property Tax in California, Proposition 13, is it assumable?
Who: The Smith Family

What: The Smith Family no longer wants to keep their home which they owned for over 30 years. In result their property taxes are about $ 1000 per year. They currently have a mortgage attached to the property but they want to sell it for exactly what they owe and they do not care about any sort of profit. They are willing to do anything the buyer wants to transfer the title of the home over.

Is there a way where they can transfer both the loan / deed of the property to the buyer while keeping property taxes low and protected by prop 13?

Please advise.

Best answer:

Answer by Gaspode
No. The new owner will pay taxes on the county assessor’s estimate of the market value of the property no matter what was paid for it.

If the buyer pays less than the property is worth, she/he will owe Federal tax on the difference between whaty was paid and the market value.

What do you think? Answer below!

Can we set up mobile home on our property if we have a mortgage?

admin — Mon, 03 Oct 2011 16:25:34 +0000

Question by stephshelium: Can we set up mobile home on our property if we have a mortgage?
We are doing a lease option on our current home as we are moving to another area to be closer to family. We have an FHA loan and will be leasing the property and the buyer has the option to purchase the property at the end of the lease. She wants a 5 year lease to insure she has time to repair her credit. I told her that was fine as that would help insure we have tenants to help cover our mortgage. However, she wants her mom close and wants to know if they can set up a home. Since they will be here 5 years, intend to purchase the home or assume the mortgage she wants to know if she can set up a small mobile home for her mother on the property. The mother will be paying cash and is aware that by no means can she use this land for collateral. She would be required to install a seperate septic tank since she could not tap in to the one with our home.

Is this allowed? The home will not in anyway effect he lien or anytime of leins against the property.

Also, will the second home, which will be in her name raise my taxes? I know she will have to get a registration and pay taxes every year like a car so would they tax me as well? It seems like that would be double taxing. Would that effect the value of my property to raise the taxes for me?

Any info would be greatly appreciated!

( And before anyone jumps off the deep end saying that assumptions don’t exist, I have an FHA loan and it is assumable and I do have the Truth in Lending with the assumption allowance in writing. The only requirements is that the owner have creditworthiness and be able to afford it by debt ratio.)

Best answer:

Answer by Botsy
Better check with your local building department, as many areas do not allow mobil, or manufactured homes,and those that do may have restrictions on size, location and how mounted, if with solid foundation and many other codes that may have to be followed.
Also, to have a second home on your property, under a different name, you may have to appear in front of the zoning board and sub divide the property, depending on the laws in your area.

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Latest Mortgage News: Commercial-Mortgage Bond Payments Fall Short as Property Values Decline

admin — Wed, 11 Aug 2010 03:20:23 +0000

Commercial-Mortgage Bond Payments Fall Short as Property Values Decline
Holders of commercial-mortgage backed securities have had $1.1 billion in interest withheld as plunging property values lead to reappraisals that eat into bondholders’ payments, according to data compiled by Bloomberg.

CarlFarbman