Philadelphia Overhauls Tax Delinquency Enforcement

Written on August 26, 2013 at 11:40 AM

Philadelphia, Pennsylvania suffers from one of the worst property tax delinquency epidemics in the nation. The issue has been going on for decades, and Philadelphia's property tax delinquency tab reached $522 million this April, according to city records. Despite the staggering tab, the city has made efforts to reduce delinquency and saw a reduced rate of growth for the first time since Mayor Nutter took office in 2008. In addition, the city also reduced the volume of delinquent accounts from 102,787 in April 2012 to 97, 310 in April 2013.

According to Philly.com, the latest figures suggest that the city's collection efforts are improving but have yet to yield major progress in the decades-long struggle to contain the delinquency epidemic. However, the Nutter administration has also initiated a series of reforms, suggesting the city government is grappling with the problem more urgently. The reform includes new leadership, new enforcement tools and new city and state laws to combat the long-running neglect of property tax collection. It will take major changes (and many years) to reverse the damage done on the city's devastated neighborhoods, diminished property values, depleted tax base, and suffering city and school budgets.

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Categories: Pennsylvania, Foreclosures, Real Property, Sequestration, Financial Services, Economy

Washington D.C. Collects $6.6M during Tax Sale, Still Owed $18M

Written on July 31, 2013 at 07:39 AM

The District of Columbia collected $6.6 million in back taxes through the sale of liens on 965 properties during its recently concluded tax auction. According to the Washington Business Journal, the annual sale also generated $11.8 million in surplus, as bidders competed for the lien rights to the most wanted properties. The surplus will ultimately be returned to the buyers.

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Categories: Foreclosures, District of Columbia, Financial Services, Economy

Study Shows Accuracy of Commercial Real Estate Appraisals Is Spotty

Written on May 09, 2012 at 11:30 AM

A new study by KC Conway, using thousands of securitized real estate bonds of properties that were foreclosed and liquidated, shows a wide discrepancy between the appraisal values and eventual sales prices of properties. According to The New York Times, in general, appraisals overvalue properties. Of the 2,076 properties examined in the study, 64% were appraised at values that exceeded the sales price, by a total of $1.4 billion, where 35.5% were appraised at less than the sales price, by a total of $661 million.

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Categories: Foreclosures, Real Property, Financial Services, Economy

Foreclosure Filings Down 16% from Q1 2007

Written on April 13, 2012 at 08:12 AM

The national foreclosure rate decreased 2% from the fourth quarter of 2011 to the first quarter of 2012, but a spike in short sales over the last couple of months could lead to a surge in foreclosure activity later this year. Still, according to GlobeSt.com, the low numbers, especially the 16% decrease from the first quarter of 2007, indicate that the nation is starting to see the light at the end of the tunnel of the foreclosure crisis, particularly in some of the hardest-hit states driving national trends.

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Categories: Foreclosures, Financial Services, Economy

Distressed Commercial Real Estate Continues Retreat

Written on March 19, 2012 at 12:24 PM

Distressed commercial real estate in the United States continues to fall from its $191.5 billion peak in March of 2010. According to The Washington Post, properties in default or foreclosure and real estate taken over by lenders totaled $166.9 billion in January 2012, down $4.7 billion since October 2011. Several factors are leading to the decline, including lenders extending debt obligations and commercial property values stabilizing, if not rising, making them no longer worth less than their loans.

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Categories: Foreclosures, Real Property, Financial Services, Economy

Trouble is Brewing for Office Market

Written on January 11, 2012 at 09:20 AM

Office properties across the nation are being foreclosed as large tenants move elsewhere or renew their leases at a significantly decreased rate. According to The Wall Street Journal, the office market may be the face of a new real estate crisis as many owners who have been able to keep their heads above water in the past are being undone by tenant contractions and the expiration of five-year leases that were signed at the peak of the boom. Rents across the nation are still well below what they were before the recession in 2007.

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Categories: Office, Foreclosures, Real Property, Financial Services, Economy

Huge Increase in Hotel Foreclosures Predicted for 2012

Written on November 10, 2011 at 07:20 AM

As debts come due with financing still available, hotel foreclosures are expected to have a huge increase over the course of 2012. According to Bloomberg Businessweek, the wave of commercial mortgage-backed securities needing replacement debt (about $21.7 billion on 232 hotels due in 2012) is going to be a monumental problem, with the end result being an unavoidable large amount of hotels being foreclosed.

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Categories: Foreclosures, Real Property, Hospitality, Hotels, Financial Services, Massachusetts, New York, California, Economy

Tax Valuations of Vacant Residential Lots in a Down Market

Written on February 25, 2011 at 06:21 AM

As a result of tax values of residential subdivision lots having been in decline for over two years, paired with the increased supply of homes in the market and prices declining, it does not make economic sense for builder/developers to put more homes into a marketplace that cannot readily absorb the existing supply of already built homes. Paradigm Tax Group can cut the tax liabilities these factors lead subdivision builders, developers and land owners to face through an aggressive property tax appeal program.

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Categories: Foreclosures, Real Property, Economy

'Special Servicers' Getting Creative

Written on December 08, 2010 at 09:51 AM

Real-estate firms known as special servicers are picking up the pace of working through bad loans and dealing with an influx of sourcing loans backed by commercial-mortgage-backed securities (CMBS). According to The Wall Street Journal, a total of $90.9 billion in loans are in need of work, compared to $73.8 billion at the end of 2009. The pace at which these loans are being resolved has picked up pace, with $27.9 billion recovered by special servicers in the third quarter, compared with $8.9 billion in the first quarter.

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Categories: Special Services, Foreclosures, Real Property, Financial Services

In Commercial Real Estate, Signs of Moderating Pain

Written on November 09, 2010 at 08:46 AM

New data points, such as the delinquency rate for securitized commercial real estate loans falling in October for the first time in more than a year, are painting a picture of slowly moderating pain in commercial real estate. According to The Wall Street Journal, the drop came as distressed loans were being liquidated at a more rapid pace with the biggest reason for the decline being the exit from bankruptcy of hotel chain Extended Stay America Inc.

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Categories: Office, Foreclosures, Real Property, Bankruptcies, Hospitality, Retail, Financial Services

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