Legislation addresses impact of foreclosure on neighbors

Apr 20, 2012

County assessors would have to consider the impact of foreclosures and bank sales on the real estate market when they set the value of a property, under legislation that has passed the Missouri Senate.

Sponsoring Sen. Jane Cunningham, a Republican from St. Louis County, says that some assessors only consider voluntary sales when they decide how much a home would be worth in the real estate market for tax purposes. Properties in foreclosure and bank repossessions often sell for far less than their actual market value, which can bring down the price of surrounding real estate. Cunningham says a fair property assessment has to consider that deflationary effect. The measure now goes to the House.