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I am purchasing a home that is in forclosure I live in michigan..........?

I bought a property in foreclosure for 80,000. It was purchased in 2004 for 180,000. Will my taxes be re-assessed at 80,000 or will I still be paying taxes on a 180,000 dollar home??? thats what i thought but i called the tax accessor this morning and she said they would be re-accessed at the new sale price......im so confused...

Public Comments

1. it will be the market value. So it will be atleast on the 180,000 or may be more.
2. your taxes are based on the SEV of the home and seeing as those dont change with sale price. your going to be paying the taxes of a 180,000 home
3. Someone from the tax collector's office should come out and give you a new property assessment. If they don't send someone, it is to your advantage to ask for one or this will never be settled. The assessor will look at the market values of the properties in your neighborhood. He/she will take into consideration the condition of your home and how old it is. For instance, if the homes in your neighborhood are selling for $180,000 or more, that's what they will assess your home at. Don't get too scared tho there is a great variation between what's charged per $1,000.00 across the country. As I recall, MI property taxes would be a lot lower than Cal/NY/ Colo/WA. etc. Whatever it is per year, just divide that by 12 and set that amount aside each month. I'd say you got a really good deal so you will be ahead no matter which way you go.
4. You imply that you are buying a home (future tense) and you say you bought a home (past tense). Here is some general advice. Most assessments are based on the value. This might be a true value or an approximation based on a formula for homes in a specific area. Many times the value for taxes is lower than the market might indicate. In some cases a property is valued for taxes at a level that is much higher. In those situations the owner can file a request that the tax entity re-evaluate the property and determine what the value should be. If the property sold recently it is very likely they will use that sale as a benchmark. Note that if the sale was not at arms length they can ignore the sale. There are many reasons for a property's value to have gone down. It could be that values in the area are lower as the economy is having problems. Or something could have happened to the property that depressed its specific value even if the area has not see a decline.