Assume that the city foreclosed on a piece of property with a fair market value of $5,000. It has an assessed value for taxes of $4,000. The outstanding amount of taxes and penalties due on the property totals $3,500. Normally, the city would value the foreclosed property at

Question

Quizplus · Accepted Answer

Since the outstanding amount of taxes and penalties due on the property is $3,500, the city will value the foreclosed property at the same amount to cover their expenses. This is also known as the minimum bid for the property if it were to be sold at a tax auction. Therefore, the correct choice is B.

Assume That the City Foreclosed on a Piece of Property