Quote:
Originally Posted by Putt4Dough
You are totally clueless. First of all someone offering financial advice should know the correct term is paid, not "payed"
Go to any bank or mortgage broker and ask them if a paid off bond has any "value" in their calculations for a loan. If an unpaid bond exists they will need to see your ability to pay it whether in cash or over time. One of the top three questions from any prospective buyer in Florida is "Does it have a CDD or bond, what is the amount?" They then add this to the purchase price.
Thinking a home with an unpaid bond has the same value or price as a home with a paid bond (no extra tax debt) is completely false.
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Thanks for the spellcheck. Let me get this straight since I'm totally clueless. A prospective buyer adds the cost of the bond to the purchase price ? Yes, if and only if it is a new house. A resale house in which it's bond is paid off is worth exactly what it's APPRAISED VALUE is, AND you do not pay one cent above it's appraised value because the owner prepaid the bond off and he wants to recoup his mistake. The bond at that point has no value because it doesn't exist, except in the mind of the owner that paid it off by decreased his net worth. Paying off the bond is not the same as partially prepaying his mortgage in which the seller can recoup upon the house sale due to the accelerated amortization.