HELP ON TAX ISSUE PLEASE!

[William Donnelly]

So i've been in the process of buying a bank owned foreclosure for the past 6 months. I negotiated %40 off the original asking price. This is a duplex that was built as condo's and sits on individual tax parcels, along with 6 other tax parcels that are included in this sale. Obviously, the original developer planned on building 8 town homes, but after building the first 2, foreclosed.

After jumping many long hurdles to get the seller to apply for combining the parcels into one parcel, we finally get back the VA appraisal, and are told we need to make some minor repairs to get ready to close.

The bank and title office then "find" the title. After all this money and time invested, we discover that the taxes are not 2,400 a year. They are actually 7000 a year. This almost DOUBLES my monthly mortgage and escrow payment, which the VA requires.

After so much invested, it is really silly to walk away now, days before closing. I know most of you are thinking the same, go back and offer the seller much less. However, look at my first paragraph. I already negotiated %40 off, and they are completely unwilling and unable to go lower. 

After filing homestead in january, my taxes should go down. And then once the parcels are officially combined into one, my taxes should go down even more. I basically have to bite the bullet for about 6 months with these taxes. Or do I? Any insight or ideas would be very helpful.

[Susan Maneck]

Originally posted by @William Donnelly:

Originally posted by @Susan Maneck:

Originally posted by @William Donnelly:

Very good point! I will definitely look into this. I'll just have to wait until summer of next year, thats when the good ole state of Mississippi reassesses the taxes.

 If I were you I would take the appraisal down to the chancery court as soon as you close. It may not go into effect right away, but at least you will know. They will base your taxes on the appraisal not your purchase price, so be aware of that. 

Taxes are not my forte, as it is not usually a big part of general real estate reading. Anyone know any good real estate tax books? For dummies? lol This is a subject that can be very confusing. All some great tax advice! Thanks!

In terms of property taxes, it is pretty straight forward in Mississippi. Go to your county website and check the land-roll on your property and see how much they appraised your property for. If the VA appraisal is less, take that appraisal down to the Chancery Court ASAP and they should make an adjustment but it won't go into effect this coming year. You need to apply for you home-owners exemption between Jan. and April. If you miss the deadline you will be out of luck. You can't do it earlier and you can't do it later. I believe your home owners exemption only applies to the first 25K however.