No lenders in this market!!

[Ultrarunner]

Originally Posted by skijmpr

Ultrarunner, thank you for the very useful information. So it sounds like, in the current declining market, someone who has lost value in their property, yet has a higher tax bill from having purchased at the peak right before the bubble burst, could ask for a reassessment and hope for a lower amount.

It also kind of sounded like from your one post that they sometimes make these adjustments automatically...is that true? (I know most states do this but I just wanted to check to see if CA does too) If so, what rules do they use for determining who gets adjusted and who doesn't? (or dare I ask such a vague question ) Thanks!

You can always file a formal appeal and present your case. Many appeals are settled or resolved without by mutual agreement a formal hearing.

I have benefited from several adjustments in my favor and I have never had to present a formal case.

The Alameda County Assessor has taken the initiative previously by automatically reviewing comparable sales data and unilaterally lowering Assessments. You also need to realize that lowered assessments can also later be raised as the market improves.

[Ultrarunner]

Originally Posted by cardinal2007

I thought that credit was for about $30.

The tax deduction for a condo is worth a lot more, with 10% down 315k at 6% the deduction is $18,900 more than my 401k deduction. At 34.3% effective tax rate from CA + Fed that comes out to $6482.70 saved. Of course I'm not voluntarily willing to pay $18,900 in interest to get that, that is money I'll would never see again, I pay less than that in rent in a year, but that is certainly money not going to the government that has to be made up somehow.

My point exactly... the tax deduction is for people who borrow money against their home... so being just a home owner is not enough to merit the deduction.

[Tallysmom]

Originally Posted by Ultrarunner

My point exactly... the tax deduction is for people who borrow money against their home... so being just a home owner is not enough to merit the deduction.

Like those of us who have been homeowners for 20 years and DIDN'T treat their home like an ATM.

I'm glad that I have mortgage under 100K, but unlucky that I don't really have much of a write off. And a home business doesn't always mean you can get a lot of deductions. Being that we own a janitorial company, we don't really qualify for a "home office deduction". So we don't take one. THAT came in handy when we were audited a few years ago.

But, unlike a lot of businesses, we are unable to finagle our taxes to not show a profit. (Another reason why NINJA loans proved SO popular!)

[DrippyDick]

Originally Posted by atish

It is next to impossible to find a lender right now who can agree to do loans with minimum down-payment. The loan amount is around $500,000 and I can do a maximum of 5% down. I have very good credit and satisfy all income requirements, etc. The only option most lenders I have spoken to are saying that I have is an FHA loan right now. I would want to avoid going that route because of long processing time and increased cost of the loan overall.

If anyone knows of any lenders who are willing to do this at this time I would appreciate the info very much!!

Thanks in advance!

Can't say that I'm not glad to hear your situation. It's people who put 0-5% down during the last few years that drove the prices skyhigh for the rest of us who saves for a 20% down before buying. And it's the same type of people who creates these credit meltdown, mortgage crisis that cripple our economy. So, I'm glad banks and lenders have finally decided to stop lending to all the people who shouldn't be buying a home. With the overly inflated prices in the Bay Area, the entire region is destined to correct another 10-20% before reaching stability. So, by putting 5% down, you'll have negative equity in the very near future. Even if the bank foreclosures on you, say after you lose your job next year due to the deteriorating economy, the bank will still lose money on the sale. So, I'd suggest banks to require 30% down payment on a house