Western Independent Banker - July/August 2008 - (Page 27)

By Theodore F. Bayer believe that the owner would not make timely payment. Because unpaid taxes become the obligation of the foreclosing lender (or purchaser at the foreclosure sale), a diligent lender will ensure that taxes are paid prior to delinquency to avoid penalties. Additionally, since most states prohibit the fi ling of an appeal challenging a property’s assessed value unless all taxes owing with respect to the challenged assessment have been paid – even when the property’s current market value clearly is lower than its assessed value – failure to pay also eliminates the ability to secure a lower assessed value. The Western Independent Bankers Self-Insurance In certain situations, the assessor will Group (WIBSIG) is a smarter solution to workers’ consider reducing a property’s assessed valcompensation. Designed specifically for WIB ue before issuance of the annual tax bill if member California banks, it meets the unique substantial, reliable evidence supports the challenges faced by today’s bankers. reduction. If negotiations with the assessor prove unsuccessful, however, a timely WIBSIG offers more than typical coverage: it’s valuation appeal must be fi led. Loan docua strategic blend of cost savings initiatives, claims mentation often provides a lender with the management and safety programs that give its right to engage, or to force the borrower to members more control over their comp. engage, the assessor in these pre-bill discussions and to fi le an appeal. CRM. Workers’ compensation that works for you. Appeal fi ling periods vary from state to state; failure to fi le before the applicable deadline precludes any further challenge to the assessed value for the affected tax year. Once an appeal has been fi led, the Assessor www.trustcrm.com has little choice but to consider reliable evidence that demonstrates that a property’s For more information, contact: Compensation Risk Managers of California, LLC assessed value exceeds its current mar2600 Michelson Drive, Suite 1620, Irvine, CA 92612 • Toll Free: 877-276-4747 ket value. The evidence must be current, Auto Dealers • Bankers • Contractors • Healthcare • Vintners compelling and well-presented in order to achieve the desired reduction in assessed value – and the resulting tax refund. A lender confronted with a distressed 373441_Compensation.indd 1 4/28/08 12:30:35 PM real estate loan is well-aware of the detriment of any resulting principal writedown. A savvy lender also recognizes the potential impact of unpaid property taxes and penalties – and understands that timely action is the only way to minimize this additional expense associated with almost every foreclosed property. Bank your comp. Theodore F. Bayer is principal with Ad Valorem Solutions LLC in San Francisco. He can be reached at (415) 951-6204 or tbayer@advaloremsolutions.net. Western Independent Banker July/August 2008 359575_Nationwide.indd 1 1/16/08 8:40:45 PM 27 http://www.trustcrm.com http://www.nationwidecompliance.com

Table of Contents Feed for the Digital Edition of Western Independent Banker - July/August 2008

Western Independent Banker - July/August 2008 Contents A Message from the President & CEO Getting Creative and Competitive with Leaders' Incentive Compensation Financial Covenants - What Good Are They Really? Homes Within Reach Revisiting Credit Quality and Risk Management Loan Yield Shock Wave - What Can You Do? What Lending Crisis? - Community Banks Flex with Lending Strength How to Fine-Tune ALLL During Uncertain Times Productivity, Technology and Export Growth Trump Housing's Fall in the Long Run - The Economy According to Brian Wesbury Distressed Real Estate Loans and Their Property Tax "Kicker" WIB Calendar Welcome New Members Index to Advertisers advertiser.com

Western Independent Banker - July/August 2008

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