Hero Pace Tax Assessment Help

[Howard Klahr]

-20,000 assuming that's the as of today payoff amount.

No, No, No No
You are doing appraisals NOT CMAs. Market value is market value. The existence of debt on a property in any form does not affect the opinion of value.

Now on the other hand, if the property in question is aa comparable, you need to know if the price was impacted by a PACE loan and adjust accordingly since that might have affected the price paid. The value however is not impacted.

 

[Inland Insight]

Is it correct to assume the reason we do not adjust for the Hero program tax lien in most appraisal assignments is because we are valuing the unencumbered fee simple interest and not a partial interest? Therefore, the indicated value should not account for any division of ownership interest such as a mortgage or any other form of debt (tax lien)?

 

[Howard Klahr]

Is it correct to assume the reason we do not adjust for the Hero program tax lien

You don't make adjustments to the subject at any time in performing your analysis, PACE loan or not. You adjust the comparables to the subject. PACE loans become an issue not for the subject but rather for the comparables. What were the terms at the time of the transaction and how or if was the sale price affected.

 

[CANative]

Why is the title of the thread "tax assessment?"

It's a loan that's collected by the tax collector. It has nothing to do with assessed value or taxes. The remaining balance may be able to transfer to the new owner.

This is all contract analysis stuff.

 

[bnmappraisal]

Why is the title of the thread "tax assessment?"

That threw me off too

 

[PushinValue]

-20,000 assuming that's the as of today payoff amount. You already have support from one agent regarding a PACE program. Because the program is a lien you could possibly search "lien" in your MLS for further support. Every sale I have ever seen in MLS with a lien says "lien paid off at closing by seller" or will say " this property has a $,$$$$ lien which must be paid off at closing".

I would put "Hero Program" at the bottom of the grid and adjust -20,000 across the board. Your adjusting for the Hero/lien program not the ch&a unit unless your comp without a newer unit requires a positive adjustment therefore your giving the subjects unit ch&a value or present value but your still adjusting for the HERO/Lien.

Because its a hero lien/loan over time that $20,000 cost might end up costing $25,000 or more depending on length of loan and interest rate.

http://www.riverside4homes.com/blog/homeowners-beware-heropace-program/

I wouldn't do that...

This is an FHA loan?? Are you sure they lend with this program in place??

 

[jay trotta]

Why is the title of the thread "tax assessment?"

It's a loan that's collected by the tax collector. It has nothing to do with assessed value or taxes. The remaining balance may be able to transfer to the new owner.

This is all contract analysis stuff.

Agreed, the "Thread Title" thru me off also; so here it would be similar to a Sewer Tax assessment, looking back over the years vs banging everybody with a $30,000 upfront cost, the municipality's run it over a 10 year cycle (or more), some offer 20 year terms; it depends.