FILING FOR HOMESTEAD EXEMPTION IN 2010
Tuesday, January 26, 2010
Filing for one’s Homestead exemption is easy and saves you money, every year you own the property as your primary residence, on your real estate taxes! Many Counties send you paperwork that allows you to file without going to the courthouse. But if you have misplaced their correspondance, here’s what you need to know:
Most Counties require Homeowners to provide their Warranty Deed book and page, proof of residence, social security numbers, driver’s license and car tag info.
Below is where to go for more information and/or to file:
Fulton County - deadline is April 1, 2010 404-612-6440
http://www.fultonassessor.org/Forms/HtmlFrame.aspx?mode=content/Exemptions.htm&taxyear=2007&ownseq=1&jur=&LMparent=180
DeKalb County - deadline is March 1, 2010 404-298-4000
http://web.co.dekalb.ga.us/taxcommissioner/index.asp?pg=homestead
Gwinnett County - deadline is March 1, 2010 770-822-8800
http://gwinnetttaxcommissioner.manatron.com/Tabs/Property/HomesteadExemption.aspx
Cobb County - deadline is April 1, 2010 770-528-8600
http://www.cobbtax.org/Forms/HtmlFrame.aspx?mode=content/Exemptions.htm&LMparent=189
Clayton County - deadline is April 1, 2010 770-477-3311
http://www.co.clayton.ga.us/tax_commissioner/exemptions.htm
Cherokee County - deadline is April 1, 2010 678-493-6122
http://www.cherokeega.com/departments/department_section.cfm?displaySection=Homestead%20Exemptions.txt&departmentid=30
Henry County - deadline is April 1, 2010 770-288-8180
http://www.co.henry.ga.us/taxcommissioner/PropertyTaxExemptions.shtml
Posted in: Intown Atlanta Real Estate News
Let’s Do A Short Sale!
Thursday, January 21, 2010
Are you crazy? A Short Sale? Do you know what one is and how difficult it is to close a short sale transaction?
Let’s start with the basics:
A short sale is when a lender is asked to accept a payoff on a loan for less than it is legally entitled. Why on earth would a lender agree to this? The lender can hold the borrower responsible for every penny owed! Yet, more and more lenders are now reluctantly approving short sales because they see this as a way to possibly mitigate their loss.
Lenders are very much aware of how the real estate market has suffered from our recent economic downturn. They know many have lost jobs, or had reductions in their income, which can lead to a borrower’s inability to make their mortgage payment.
Lenders also know that foreclosing on a property in Georgia, while a much easier proposition than many states since we are a “non-judicial foreclosure state”, is a costly and fairly long process. And once a foreclosure is completed, the bank owns a property they must then maintain, insure, etc. Which then causes the bank to up its reserves which then upsets its shareholders… which is not a good thing. So, lenders have begun to recognize that in some instances, short sales will actually minimize their loss.
If you are a financially distressed Seller, please note that a short sale will damage your credit. It is debateable if the damage to your credit is less, equal to, or greater, than being foreclosed upon.
If you are a Buyer who has successfully survived the arduous short sale process, you usually obtain a property for a good price… although many properties bought via a short sale will require work because, after all, the Seller who could not afford the mortgage payment is probably not interested in maintaining the property. So you at least will have deferred maintenance to catch up on soon… which requires more money.
You still want to proceed with pursuing a short sale? Here’s what you need to do:
If you are the borrower/Seller, here are five, basic questions you need to be able to answer “yes” to in order to potentially qualify for a short sale:
1) Has the value of your home dropped?
The bank will want to see a CMA (Competitive Market Analysis), or BPO (Broker Price Opinion), that shows a deteriorating market has cause your property value to fall below the outstanding balance of your first mortgage. (The second mortgage and open equity lines are another story.)
2) Are you in default with your lender?
If you are in default, the lender is more likely to consider a short sale. But do not withhold paying the mortgage payment due if you can pay it, thinking that your non-action will hasten the lender’s wiliness to do a short sale. On the contrary, if the lender sees you have assets and can afford to pay the mortgage due, they are less likely to work with you.
3) Can you submit a ‘hardship letter’ that explains why you are unable to continue making mortgage payments?
Viable explanations include: job loss: divorce; death; medical emergency; an interest rate adjustment that caused an increase in your mortgage payment to a level that was impossible to meet; and bankruptcy.
Examples that do not constitute a hardship would be: you just bought at the wrong time and the prices of homes in the neighborhood are now lower than what you paid; you are expecting more children and need a larger home; you’ve decided you do not like maintaining a home, so you want to move to an apartment; you don’t like your neighbors.
4) Can you show you have no assets?
The lender will want to see your past two year’s tax returns and a current financial statement.
5) Do you have a Buyer who has made a bona fide, written, offer to purchase?
If the lender does agree to a short sale, the lender could have the right to issue you a 1099 for the ‘shorted’ difference due as a result of a provision in the IRS code concerning debt forgiveness. Seek an attorney’s and your CPA’s guidance on this to determine the amount of a short sale’s tax consequence and whether you can afford to pay possible taxes due.
And, please remember that a short sale is not good for your credit rating.
If you are someone who is bent on pursuing a short sale purchase, hire an agent who understands the short sale process, ( like a few of us at Fourteen West, REALTORS), and be prepared to wait, wait and wait a bit longer for the lender to respond to your offer, much less to close on the transaction.
Other important ‘details’ involved in a short sale:
The process gets far more complicated if there is more than one lender currently involved with the property. Second mortgage and equity line holders are typically the ones that stand to lose the most, so they will not be cooperative. Think about it - the first mortgage is usually not getting all they are entitled, so it stands to reason that the second mortgage holder will get zero/nada/nothing. You think they are going to be cooperative?
You can attempt to minimize the damage to a Sellerr’s credit rating by convincing the lender not to report the short sale as a ‘black mark’ on the Seller’s record. Encourage the lender to report the indebtedness to be marked as ‘paid - settled for less than originally owed’. If successful, this will be far better than a foreclosure on your record… but it is still negative and will have an effect for a number of years.
Remember - Time Is Of The Essence! Do everything you can to get the lender to move as quickly as possible. We oftentimes recommend a short sale specialist to assist our Sellers with the process. This specialist is not a licensed real estate agent; but is paid a flat fee out of the sale proceeds. Their job is to consistently stay on top of the situation/lender to keep the process moving.
The Mortgage Forgiveness Debt Relief Act of 2007 does afford Sellers who go the short sale route a tax break by changing the way the forgiven mortgage amount is viewed for tax purposes. Consult with your CPA for details.
- Scott Askew
Posted in: Intown Atlanta Real Estate News
Thinking Of Buying Your First Home? Eight Reasons Why You Should Own!
Friday, January 15, 2010
If you are like most first time home buyers, you have probably wondered what is the big deal of owning the place where I lay my head to sleep? You have probably had family members and a number of your friends telling you that you should stop making your landlord rich and to go out and mortgage yourself to the hilt in the name of ownership! But you are intimidated.
To help you get over your reservations, below are eight sound reasons why you should buy your home NOW:
Appreciation
Real estate, like many things, has its ups and downs. However, over the years, real estate has consistently appreciated. Many of us consider our homes as a savings account, part of our retirement, and a hedge against inflation. In fact, if you were to go to The Federal Housing Finance Agency’s website (http://www.fhfa.gov) and look at their House Price Index, you will find that, in general, since 1995, the average home in Georgia has appreciated 67* percent!; since 2000 the value has gone up 24* percent!
*compared with FHFA assessment of value as of 2nd quarter of 2009; (values started rising again in the 3rd quarter); Also know that the Atlanta region was not as negatively affected with the 2008/2009 downturn as badly as the entire Georgia region;
Capital Gain Exclusion
If you live in your home for two of the previous five years, you can exclude from taxes up to $250,000 for an individual, and $500,000 for a married couple filing jointly, of the profit/gain when you sell your property! You do not have to reinvest the cash you get from a sale to avoid/defer taxes! There is no age restriction! You could, subject to some limitations (see your CPA), buy your ‘primary’ home and sell every two years and pocket your profit tax free!
Equity Loan Vehicle
Got credit cards? They charge interest on outstanding balances from 16% and up, and you cannot deduct the interest expense on your tax returns. Not so with an Equity Line! Many of us have taken out Equity Lines and then deduct the interest (which is typically much lower) on our tax returns. Valid reasons for Equity Lines include: school tuition, home improvements, medical emergencies, and opening your own business. Your lender will require a new appraisal be completed which shows you have built up the necessary equity to warrant an Equity Line. Another reason for making as large of a down payment as possible when you first buy!
Mortgage Interest Deduction
Your home mortgage is fully deductable on your tax return. Interest is the majority of your monthly mortgage payment!
Pride of Ownership
The number one reason people buy their first home and continue to own from that point forward? Pride of Ownership! Owning your own home gives you a sense of stability and security. You can also do what you want with the interior, and barring Deed restrictions or Homeowners’ Association Rules, play loud music to your heart’s content and/or paint the exterior to suit your taste! Feeling good also means you made an investment in your future!
Property Tax Deductions
Yes, you do have real estate taxes to pay when you own your home. But, the real estate taxes paid are fully deductable for income tax purposes!
Federal Tax Credits
Up to an $8,000 credit for purchasing your first home. WOW! BUT - you must be ‘Under Contract’ no later than April 30, 2010 and close the transaction by June 30, 2010.
Value
With the recent ‘correction’ the real estate market has experienced, you should be confident that you are buying a property for a value that will only go up!
Posted in: Intown Atlanta Real Estate News
Handy Helpers - Common Household Items page four
Friday, January 08, 2010
This is part four of our introduction of different uses for commone household items. Enjoy!
Liquid Soap
1) Get a better manicure by soaking fingernails in a soapy solution; rinse; apply polish. (This will cause the polish to adhere better to the nail and spread smoother.)
2) Pre-treat oil-based laundry stains such as lip-stick and grease.
3) Soak grimy tools in soapy water to soften dirt; then rinse/wipe off.
4) Kill pet fleas by washing pets in soapy bath water.
Marshmallows
1) Prevent ice cream drips from a cone by placing a marshmallow in the bottom of the cone before adding ice cream.
2) Keep brown sugar soft by adding a few marshmallows to the bag before closing it
Mayonnaise
1) Condition your hair by massaging mayonnaise into your hair and scalp; put on a shower cap; wait several minutes then wash out with shampoo.
2) Relieve sunburn pain by smearing mayonnaise liberally over the sunburned area.
3) Remove bumper stickers, pin sap and road tar by rubbing mayonnaise over the entire sticker or area; let it sit for several minutes and wipe off!
4) Clean/brighten/whiten yellowing piano keys by wiping the keys with a little mayonnaise (using a soft, clean cloth); waiting a few minutes; wiping with a slightly damp, soft cloth and buff dry.
Milk
1) Clean patent leather shoes by rubbing them with a soft cloth moistened by a little milk. Let dry then buff to a brilliant shine.
2) Remove ink stains on clothing by soaking the stained area in milk. (It can happen quickly or may take an overnight soaking.)
3) Repair fine cracks in china plates by boiling them in milk. Place the damaged plate or cup in a pan; cover in with milk; and bring to a boil. As soon as it starts to boil, lower the heat and simmer for about 45 minutes.
4) Use milk if you have nothing else when shaving.
Oatmeal
One of the best poison ivy and chicken pox itch relievers is an oatmeal bath. Grind 1 cup oatmeal into a powder. Put oatmeal powder into a clean, old stocking or cheese cloth; tie into a knot and place the bag under the faucet as warm water fills the tub.
- Scott Askew
Posted in: Intown Living