HFS! Just Got My "Supplemental Tax Bill": $1750!!!!

[stopbush]

Bought the house in August. It was re-appraised from what the previous owner had paid.
I just got hit with an additional $1750, payable in two convenient payments. That's on top of
my ridiculous mortgage which runs over $2700 a month.

That's life in California where the feds take all of our tax money and send it off to the red states,
leaving the locals to gouge the shit out of us.

I'll be putting the house up for sale this week. Seriously. I'm hoping to relo somewhere cheaper and
rent for the next few years. The only good side is that my house has appreciated about $30,000 since
I bought it. If I sell it myself, I should do OK. Come to think of it, I *have* to sell it myself: a 6%
realtor fee would eat up all the profit from the sale.

[MissB]

1. $2700 a month?

Where is that falling over fainting smilie? Goodness. That mortgage makes the tax payment seem, um, small. I understand you live in California.

Come to Oregon. Many Californians do. Our real estate is quite a bit more reasonable.

[natrat]

6. i'm thinking mt shasta area might be nice-definitly cheaper than the bay

[eleny]

2. Best of luck with your sale!

They really took a bite out of your hide.

[GodlessBiker]

3. Were you aware of what the taxes would be when you bought the house?

Aren't real estate taxes calculated from the purchase price in CA? 1.25% of the purchase price per year?

[MindPilot]

4. 8 months and it's only gone up 30K? That ain't right.

Don't sell, refi; get that payment down a bit. If you sell now with only 30K of unrealized equity, it's going to cost you and IMHO if you try sell yourself without a realtor or at least an attorney you are really going to lose. If not money certainly your sanity. Just my 0.02.

[Jersey Devil]

5. Better check your mortgage first to see if it has a prepayment penalty

In many states (I am not familiar with Calif) it is legal to charge a premium for someone who pays off their mortgage within the first three years - ex: 3% of the mortgage in year 1, 2% in year 2 and 1% in year 3.

If you sell your house and have a prepayment penalty in your mortgage you may wind up losing money.

[Spangle]

7. Sounds like he is doing 'relo', which changes the rules..sorta

I believe relo pays the actaul cost of moving. Including the prepayment penalty. THe theory is that the person isn't moving 'just becaus', but because they are ordered to move. Another words, government type job and being transfered to a different location.

THe 'selling himself' doesn't mean 'for sell by owner'. It means they, not relo is selling it. Using what ever means.. including a real estate person. If that doesn't work out quickly enough, relo buys it.. and then they sell it.

[stopbush]

8. I have a rider with a two-year clause that says I must pay

a penalty on any amount of profit I make that's over 20% of the original loan amount.
In my case, that would mean any profit over $60,000...which I don't think I'll get close to.