Posted on: 24th Jul, 2009 08:02 pm
If a bank foreclosures on a home in North Carolina, they can only can get the balance of the loan minus the fair market value in a deficiency judgment. Not the sale amount after they foreclose. How do you determine fair market value for a home. Would that be tax assessment or something like zllow.com?
fair market value is by definition that value which is knowledegable, unpressured buyer will pay to the knowledgeble, unpressured seller and thus it becomes fair..
keep in touch......
keep in touch......
Hi peace,
You need the help of a professional like an appraiser or a real estate agent to determine the fair market value of your home. They use various methods to ascertain the market value of the home. The mostly use 3 ways to find the value: the comparative market analysis, square footage value and tax assessment formula.
The comparative market analysis is the most popular of the 3 ways. In this method, your home's value is determined using the local market data. The agent considers various factors like how much other houses similar to yours in the area have been sold for, how long those houses were listed on the market before they were sold etc.
If comparative analysis can not be used to find out the fair market value, the average price per square foot is used. The agent uses several factors related to your property and arrives at an average cost per square foot.
You can even use tax assessment value to get the fair market value of the home. In this method, the average sales price of the properties in your area is divided by the average tax assessment to get a multiplier. Then, the tax assessment value of a particular home is multiplied by the multiplier to determine the fair market value of the property.
Thanks,
Jerry
You need the help of a professional like an appraiser or a real estate agent to determine the fair market value of your home. They use various methods to ascertain the market value of the home. The mostly use 3 ways to find the value: the comparative market analysis, square footage value and tax assessment formula.
The comparative market analysis is the most popular of the 3 ways. In this method, your home's value is determined using the local market data. The agent considers various factors like how much other houses similar to yours in the area have been sold for, how long those houses were listed on the market before they were sold etc.
If comparative analysis can not be used to find out the fair market value, the average price per square foot is used. The agent uses several factors related to your property and arrives at an average cost per square foot.
You can even use tax assessment value to get the fair market value of the home. In this method, the average sales price of the properties in your area is divided by the average tax assessment to get a multiplier. Then, the tax assessment value of a particular home is multiplied by the multiplier to determine the fair market value of the property.
Thanks,
Jerry
The primary method of foreclosure in North Carolina involves what is known as non-judicial foreclosure. This type of foreclosure does not involve court action but requires notice commonly called a sale under the power of sale. When the mortgage is initially signed it will usually contain a provision called a power of sale clause which upon default allows an attorney to foreclose on the property in order to satisfy the underlying defaulted loan which is sometimes referred to as a bond. Because this is a non-judicial remedy there are very stringent notice requirements and the legal documents are required to contain the power of sale language in order to use this type of foreclosure method.
Power of Sale Notice Requirements:
Prior to initiating a foreclosure the attorney conducting the foreclosure must notice the borrower on the sale at least twenty (20) days before the sale and publish the notice of foreclosure sale date for once per week for at least two (2) weeks in a newspaper of general circulation in the county in which the property is located. The last publication can not be less than ten (10) days prior to the sale date. The notice must be posted at the courthouse at least twenty (20) days before the sale.
Notice of foreclosure as described above must be served on all occupants/owners of the property being foreclosed upon, and provide a legal description of the property.
The trustee or agent will auction the property to the highest bidder including the lender. Sales must occur between 10AM and 4PM on any day other than a Sunday or legal holiday or when the courthouse is closed. The foreclosure sale may be postponed up to ninety (90) days by posting a notice of postponement at the same location the sale was originally going to occur at.
Power of Sale Notice Requirements:
Prior to initiating a foreclosure the attorney conducting the foreclosure must notice the borrower on the sale at least twenty (20) days before the sale and publish the notice of foreclosure sale date for once per week for at least two (2) weeks in a newspaper of general circulation in the county in which the property is located. The last publication can not be less than ten (10) days prior to the sale date. The notice must be posted at the courthouse at least twenty (20) days before the sale.
Notice of foreclosure as described above must be served on all occupants/owners of the property being foreclosed upon, and provide a legal description of the property.
The trustee or agent will auction the property to the highest bidder including the lender. Sales must occur between 10AM and 4PM on any day other than a Sunday or legal holiday or when the courthouse is closed. The foreclosure sale may be postponed up to ninety (90) days by posting a notice of postponement at the same location the sale was originally going to occur at.