Fed Seizes Fannie & Freddie; Thoughts?

[jfg]

Mine costs that much but in the end it costs like 50 bucks because of the discount I get on my car insurance for having renters!

[Madison]

I wonder how many people lost their homes due to something I just had to deal with today....

For those that don't know, I signed the papers on my house 2 months ago. I've made one payment. I get a notice from the builder that a bank had bought the contract and I'd be paying the other bank from here forward. No biggie, happens all the time and is normal on a new home buy, and the bank is a big one that I've done business with before. Today I get the bill from the new bank, and it's quite smaller than what it's supposed to be. So I look over the details of the bill and the difference is the property tax. The new bank was estimating the taxes off of just the plot of land, not what the tax should be now that there's a house on it. The new bank got all the paperwork from the builder (including the tax paperwork!), so they should have had the numbers correct, and they are both very large companies, not rinky-dink mom-and-pop organizations. So you'd think they'd realize if I'm making a house payment, there must be a house on the friggin land now! Not to mention the paperwork had the taxes on it. If I had simply paid the bill I got today instead of calling them, chewing on them, and getting it fixed, I'd have a nice fat tax bill at the end of the year.

Idiots.

But I wonder how many people wound up screwed at tax time due to something like that.

[RugbyD]

I wonder how many people lost their homes due to something I just had to deal with today....

For those that don't know, I signed the papers on my house 2 months ago. I've made one payment. I get a notice from the builder that a bank had bought the contract and I'd be paying the other bank from here forward. No biggie, happens all the time and is normal on a new home buy, and the bank is a big one that I've done business with before. Today I get the bill from the new bank, and it's quite smaller than what it's supposed to be. So I look over the details of the bill and the difference is the property tax. The new bank was estimating the taxes off of just the plot of land, not what the tax should be now that there's a house on it. The new bank got all the paperwork from the builder (including the tax paperwork!), so they should have had the numbers correct, and they are both very large companies, not rinky-dink mom-and-pop organizations. So you'd think they'd realize if I'm making a house payment, there must be a house on the friggin land now! Not to mention the paperwork had the taxes on it. If I had simply paid the bill I got today instead of calling them, chewing on them, and getting it fixed, I'd have a nice fat tax bill at the end of the year.

Idiots.

But I wonder how many people wound up screwed at tax time due to something like that.

why didn't you just put away the extra $ you knew had to go to taxes in a savings account or CD so you could collect the carry until you had to pay the taxes?

[Madison]

why didn't you just put away the extra $ you knew had to go to taxes in a savings account or CD so you could collect the carry until you had to pay the taxes?

Didn't figure it was really worth it for the 3 months left this year. Not to mention I cut a check to the government every quarter already, so why would I want an additional bill at the end of the year? Yuck. Easier and cleaner for me to just pay it monthly and be done with it. But you're right, probably best to sock it away and draw some interest or something. I just don't think it's worth the effort, but it's something I figured I'd look into next year, this year is almost over.

It just made me wonder how many people thought they caught a deal or something, and then got hammered with a bill they couldn't afford come tax time is all.

[RugbyD]

why didn't you just put away the extra $ you knew had to go to taxes in a savings account or CD so you could collect the carry until you had to pay the taxes?

Didn't figure it was really worth it for the 3 months left this year. Not to mention I cut a check to the government every quarter already, so why would I want an additional bill at the end of the year? Yuck. Easier and cleaner for me to just pay it monthly and be done with it. But you're right, probably best to sock it away and draw some interest or something. I just don't think it's worth the effort, but it's something I figured I'd look into next year, this year is almost over.

It just made me wonder how many people thought they caught a deal or something, and then got hammered with a bill they couldn't afford come tax time is all.

i was thinking not so much this eyar, but if they kept doing it it going forward that could definitely add up over time.

[Madison]

i was thinking not so much this eyar, but if they kept doing it it going forward that could definitely add up over time.

True, I'm sure I'll sit down at some point and see if it's worth it to me. Just so few hours in the day nowadays, that just the convenience of not having to think, worry about it, or mess with it might be worth whatever fraction I'd lose in interest (plus rates are horrible right now). We'll see though. Thanks for pointing it out!

[Dan Lambskin]

why didn't you just put away the extra $ you knew had to go to taxes in a savings account or CD so you could collect the carry until you had to pay the taxes?

Didn't figure it was really worth it for the 3 months left this year. Not to mention I cut a check to the government every quarter already, so why would I want an additional bill at the end of the year? Yuck. Easier and cleaner for me to just pay it monthly and be done with it. But you're right, probably best to sock it away and draw some interest or something. I just don't think it's worth the effort, but it's something I figured I'd look into next year, this year is almost over.

It just made me wonder how many people thought they caught a deal or something, and then got hammered with a bill they couldn't afford come tax time is all.

i'm far from an expert on this, and i'm not sure if it's just Michigan all of US, but from what i understand (at least in Michigan) is the only time they can significantly raise your property taxes is during a change in ownership (i.e. a house who's had the same owner since 1945 may have a taxable value much lower than the state equalized value, so you may buy thinking your taxes are $2k per year and they end up being $3.5 K per year...which is only about $100/month but for some families that's a lot)

here's the quick blurb i saw, but someone who understands things better could give a better explanation

Because of Proposal A's taxable value cap, the taxable value of property may be significantly less than state equalized value (one-half of estimated market value). But in the year after property is sold, the taxable value of property will increase to the state equalized value. In estimating property taxes on property that will be purchased, use the state equalized value of the property, not the taxable value, or use one-half of the estimated purchase price.

[markj11]

i was thinking not so much this eyar, but if they kept doing it it going forward that could definitely add up over time.

True, I'm sure I'll sit down at some point and see if it's worth it to me. Just so few hours in the day nowadays, that just the convenience of not having to think, worry about it, or mess with it might be worth whatever fraction I'd lose in interest (plus rates are horrible right now). We'll see though. Thanks for pointing it out!

Here in MS, you're taxes are based on the property at the beginning of the year. So you only pay taxes on the land. My first house was completed in January and the whole year I only paid taxes on the land with no house.

[Tavish]

Historical giants continue to fold. Say goodbye to Lehman Brothers and from the looks of things AIG as well and BOA grabs Merrill Lynch.

[StlSluggers]

News is saying AIG might just get federal funds.