Tax assessment much lower

[racalv]

We paid 525,000 in 2005. They assess taxes here every two years. Just got the assessment and it says that it is assessed at 405,000. We owe 472,000. We have to move in June and have had the house on the market for about six months with two people look at it. Currently have it listed for 449. That means we would pay a HUGE amount at closing even if someone offered us 449 (which doesn't seem like it's going to happen) We have an adjustable rate mortgage that won't adjust until 2010 and have NEVER been late on a payment. I contacted the bank in January to tell them we had to move and we were getting nervous. They sent us a letter asking for last two years tax returns, pay stubs, etc. My realtor told me not to send that stuff in now. She keeps telling me to hold off until we're about 60 days from moving. Not sure why she is telling me that. I think we should lower the price to around 399 because there are foreclosures on my street for that price. My question is should we lower the price and then if we get an offer send all this stuff into the bank that they asked for in January or send it in now and say "What can you do to help us out here?" I am so confused, don't know what to do. We even have the house for rent since the rate doesn't adjust for another two years and after that we'll never be able to afford this place. I just don't know what to do. I have researched this so much that my husband is getting very frustrated because it is all I can think about. Should I send this stuff into the bank now and see what they say? Will they even do anything considering I have never been late on a payment. I can send in proof that we HAVE TO MOVE. Will that help??????

[mreedlaw]

Good afternoon and welcome to the forum...

Tax assessments are almost always signficantly lower that the value of the home - it would be the appraisal amount that you would need to focus on concerning a sale/refinance for the property. Please don't panic...there are almost always options out there...Michael

[Moe Bedard]

RaCalv,
As I recall you were being asked for the very same things as part of a Short Sale package back on Jan. 15th am I correct?........
Didn't you send this stuff in to the lender already? I thought you were in the process of asking for a Short Sale with your bank when you found that they weren't doing Deed in Lieu which you were also asking about before the move......the Short Sale was a better option for you.
How far did you get with the Short Sale package back in January.......they asked for those items so that you can be eligible for a Short Sale.....you need a Realtor that is well versed in Short Sale negotiation, because that is the reason the lender needs the Hardship Letter and Bank statements and all that from you.....those items should have been send back in January and then you would already have the approval for the Short Sale price which is done using a BPO for current solds in your neighborhood.....which you need to be competitive in this market for sure.
You need to ask the lender for a Short Sale package again and give them what they need to give you an approval so you can lower your sale price.
Keep us posted on the progress......

As Michael says the tax assessments are considerably less than the real value of property only a very few states assess on 100% market value...so the value that they have reflected maybe high on the tax assessment that they sent you and you could even in the problems that you are in protest with the county assessor.

Sending this to the lender would not result in any changes to your situation, so if it were my tax assessment I would protest the assessment for overvaluation due to the declining value in the area.

The data contained in that notice is immaterial to the lender or servicer and your situation.