Refinancing: Correct the Public Record?

[fe2o3ez]

The time is right to refinance my home, and I have called a couple places to get initial reads on my loan and property. When they pull up the details of my property from the public records, the details are sorely mistaken - too few bedrooms and baths, too many sq ft of livable space, and only about 1/3 of the actual acreage of my lot. Naturally, the mortgage companies are coming up with a guesstimated value of far below what is reasonable, even after market adjustments.

I am not worried that a proper appraisal would provide the sufficient numbers for a refinancing of the mortgage, when it is done. However, what are the implications of incorrect public records? I bought the house newly constructed, so I assume the builder filed incorrectly. Am I liable for any incorrect tax assessments if I dont correct? Would the builder be liable for incorrect permits? What will happen if I decide to make over an interior room and apply for a construction permit?

Let me know your thoughts... should I correct the public records?

Thanks!

[disneysteve]

I'm curious how the misinformation impacts your property taxes. If correcting it would lower my tax bill, I'd do it. If it would raise my tax bill, I might not be in such a hurry to update the records.

[jIM_Ohio]

I agree with Steve- only change records to lower tax bill.

[Seeker]

Originally Posted by fe2o3ez

The time is right to refinance my home, and I have called a couple places to get initial reads on my loan and property. When they pull up the details of my property from the public records, the details are sorely mistaken - too few bedrooms and baths, too many sq ft of livable space, and only about 1/3 of the actual acreage of my lot. Naturally, the mortgage companies are coming up with a guesstimated value of far below what is reasonable, even after market adjustments.

I am not worried that a proper appraisal would provide the sufficient numbers for a refinancing of the mortgage, when it is done. However, what are the implications of incorrect public records? I bought the house newly constructed, so I assume the builder filed incorrectly. Am I liable for any incorrect tax assessments if I dont correct? Would the builder be liable for incorrect permits? What will happen if I decide to make over an interior room and apply for a construction permit?

Let me know your thoughts... should I correct the public records?

Thanks!

Tax records should appear just exactly as the public records. If so, you're probably paying less taxes than you should be.

If the tax records indicate the correct stats, then it's very likely that you should correct the public records and there will not be any financial impact for the mistake wherever it originated.

If the tax records are incorrect, then it's likely that you can be financially liable for any differences.

I'm confused as to where exactly the mistakes first originated. You might want to check title as well. Borders and property lines need to be clearly defined. Building info also needs to be properly defined.

If the mistake was with the builders, but the state tax board and county assessor's office has the proper records that mesh with the reality, then it's very likely that the mistake is only at the city local level.

I'd get the records corrected wherever they are wrong. Sooner or later, this may come back to haunt you.

[jpg7n16]

I'll be one of the odd ones. I'd correct the info if it's wrong.

In my mind, it'd be better to pay the proper amount of taxes owed, whether that's more or less than what you're currently paying. Because I think that's the right thing to do.

For your sake, I hope it's less taxes.


But I'm not 100% sure how all that works - so it may change nothing at all.

[MonkeyMama]

I think it's fairly common and not sure I would bother unless I had a compelling reason to.

That said, the discrepancies you mention are a little larger than the "common discrepancies" I would expect. I suppose it also depends how much hassle it is to correct it.

[GREENBACK]

This occured in my area on a large scale a couple of years ago. People were having their properties assesed at obviously way overvalued rates. The result was their tax rates skyrocketed. Their was a large public outcry and the auditors office along with the state made the proper corrections. Unless I'm looking to sell anytime soon I hope they value my property as low as they can. I wouldn't concern yourself over a refi. When it's time to sell the appraisal should say it all. Not sure if backtaxes can be collected for a previously incorrect assesment but that doesn't seem right.