Colli Real Estate

Property Tax Exclusion leads to higher losses for banks in the U.S.

In the U.S., mortgage or finance crisis several recordings success. The main cause of the crisis is due to foreclosure properties tax leading to the loss of the election of U.S. banks. And the result made in the houses and lower prices on international financial markets. In Detroit, a house was sold for only one dollar (Buck).

In Detroit United States, a house that was located in the eastern part of the city, was acquired by the owner in November 2006 for 65 thousand dollars. Shortly after the house was locked by banking authorities, the owner of the house, sold for only a dollar since management was unable to pay rate.

To sell the house, the Bank authorities has established a sale, but nobody was prepared to buy the property. Finally, the house was sold at an incredible cost more than this, the bank paid $ 1000 and $ 2,500 as bonuses and commissions on sales, respectively, leading to a total cost of 10 thousand dollars only. The property was sold only After 19 days, regardless of the price representative and was bought by a local woman for investment only.

However, in the year 2009, the house would be sold for 4 thousand dollars because of its new tax rate. The depth of the crisis in the United States may be perceived by observing price property. Thus, we can achieve increases of many goods that are seized from tax in major U.S. cities.

To continue in the United States, the process of making a profit by reselling the property has been a long time. Previously, many people buy property for sale after a years to earn more money, but the plan leads to a significant loss in our current situation. Therefore, owners or ordinary investors suffer a lot.

The crisis in the United States of America, would result in more than one third of the property is excluded, which reduces the tax exclusion. In most American States, investors can not obtain even the money they have invested or spent to purchase the property. States that are most affected by the crisis, like California, Las Vegas, Los Angeles and Sacramento. Over 20% of the population, who bought their homes on the market after it bought less than 12 months and the second quarter more than half the transactions were arrested at rates less than the investment.

The other States of the United States of America where the crisis has put a greater impact include Detroit, Phoenix and San Francisco. Forbes has led, over a quarter of the assets to be sold by people who can not pay the mortgage and one third of assets are in danger of being kidnapped by the banks.

In 2008, between April and June, 43.8% of the properties were sold for a value below its purchase price and this happened in the city Memphis, Tennessee. The situation was worse in the city Detroit.

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