foreclosed on property new tax base

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investusa_IHB

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California---I am a private lender and had a 2nd trust deed on a property. Due to non-payment, I foreclosed upon the property and took it back at the trustees sale. Does anyone know if I can keep the old tax bases and if so under what authority or how do I do it? Does refinancing have anything to do with it? Thanks!!
 
Welcome Trooper's friend investusa.



Okay, first rule of IHB, the more detail the better. So, you had the second trust deed, and took the home back at the trustee sale. So, what happened to the first?



This may get complicated, because I know that if you buy a home at the trustee auction, your taxes will be based on the price you paid. You can't keep the tax base, or assessed value, of the previous owners. With your situation, I need to know what happened to the first lien, and when the property was deeded to you. Because, normally for a 2nd trust deed, you would just be a chain of title issue, but the first always comes first. Did you take over the first lien? Was the first lien in foreclosure too?
 
I had a 2nd position on the property and due to non-payment I foreclosed on the property. On December 27, 2007, I took the property back at the trustee's sale for $1.00. So I was now the owner, the first was still in place (485K). Then this month I refinanced the property and paid off the first.
 
Well, I would double check with the county assessor's office to be certain, but as long as you didn't sign and record a grant deed when you did the refi, then your assessed value should be $1. By foreclosing on a second trust deed it would make you the owner. However, if the first went through a trustee sale, then you might have been left with nothing. I would double and triple check the paperwork from the refi for a grant deed, and if you do find one, it will have the "sale" price in it, and that would be your new assessed value for the property taxes. If you can't find it, and if this property is in OC, I can easily check for a grant deed. Depending on the location, I can also check other counties too. Just PM me, or let Trooper know, and I can help you out on that.



You also might want to check out <a href="http://www.foreclosureforum.com/mb/index.html">foreclosure forum</a> to see if the question has been asked there. If not, they might have a more confident answer for you if you post the question there. I have posted there before, and every time I have received a quick response.
 
I am sure the County would not assess a property value of $1.00. I would not let the first go to a trustee sale, so thats no concern. Thanks for the exchange I did post on foreclosure forum and I did get a good answer. Thanks
 
My guess would be that once you refinanced the first, due to the reconveyance, you would be assessed at that rate (at $485K). Now I'll have to go look it up on the foreclosure forum.
 
[quote author="IrvineRealtor" date=1209386637]My guess would be that once you refinanced the first, due to the reconveyance, you would be assessed at that rate (at $485K). Now I'll have to go look it up on the foreclosure forum.</blockquote>


Ugh... I checked. That was what I was afraid of. Sounds like investusa has a bit of work ahead of him.
 
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