Property Taxes

It's tax time in the Atlanta metro area.  Here are some details about how this part of the purchase process and home ownership works:

1.  All taxes are based on a fiscal year. The bill covers January 1 through December 31.
2. Once the tax bill is posted by the municipality it is a lien against the property and must be paid at or before closing.
3. The taxes are prorated on the closing statement.  The closing statement is proof for IRS purposes of the amount paid by each party.
4. When a lender sends a 1099 at the end of the year showing taxes paid, this amount usually does not include amounts paid at closing but only amounts paid out of the escrow account to the tax commissioner.  Buyers and sellers need to consider how taxes were handled at closing when filing taxes.
5. If the taxes are under appeal at the time of closing a “lesser” tax bill is issued. another bill may be mailed much later when the appeal is settled; it must be paid or it will be a lien on the property.  New owners should pay and then contact the Sellers for their share.
6.  The GAR Purchase & Sale Agreement contractually binds the parties to assist in re prorating taxes after closing. 

If you have any further questions about this, please don't hesitate to contact me!

New Guidelines for Purchasing a Home After a Foreclosure

Fannie Mae released new guidelines for the waiting period for purchasing a home after a short sale, foreclosure, and bankruptcy.  In general, it appears that in an effort to streamline the process, they have made all waiting periods 4 years, which in some cases is an improvement and in others is a diminishment.

Fannie Mae announced that on August 16, 2014, they will be changing the waiting period associated with the purchase of a new home after a short sale or a deed in lieu of foreclosure, from a minimum of two years, to four years.

Right now, there is a staggered waiting period that allows a homeowner to purchase a new home with a Fannie Mae conventional loan two years after the finalization of a short sale or deed in lieu of foreclosure. In order to that, the buyer must provide a 20% down payment on the purchase of the new home and have had clean credit since the event.

However, on August 16, 2014, the waiting period for a homeowner to purchase a new home after a foreclosure becomes four years. The good news though is that new home buyers will be allowed to follow standard Fannie Mae guidelines and put as little as a 5% down payment down on the purchase of a home after a short sale.

In addition, if a homeowner can prove that the short sale was due to an extenuating circumstance (loss of job and/or wages), then the waiting period may still be reduced to two years. However, unless a buyer has strong documentation of this, the two year exception cannot be counted on.

In addition, they changed the guidelines with regards to foreclosure after bankruptcy:

Fannie Mae Waives Waiting Period on Foreclosure after Bankruptcy...

Old Rule:

Foreclosure – 7 years waiting period in most cases.

New Rule:

If you filed Bankruptcy and included your home in the Bankruptcy - the new waiting period is just 4 years from the date of Bankruptcy discharge. Not only is this an improvement from the previous 7 year standard, in addition home buyers are no longer penalized for the bank’s delay in getting the title transferred to a new owner.

Effective immediately.

5 Ways To Boost Home Value Without Remodeling

Google “ways to boost home value” and you’ll quickly find millions of articles about remodeling projects that should increase your home’s value.

But what if you don’t need—or simply don’t want—to do any remodeling, but still want to boost your home’s value?

There are plenty of ways to give your home a little extra oomph in the price department, particularly if you are preparing to sell, without digging deep into your wallet.

1. Create more space

When first touring homes with my husband, we saw two homes with nearly identical square footage, yet the first one seemed much bigger than the second. The excessive decoration and oversized furniture made the second home seem almost half its size. While many serious buyers are savvy enough to realize that extra space is hiding inside your massive armoire, a cluttered and stuffed home can turn off buyers early in the process when they’re flipping through hundreds of home photos and seeing a dozen homes in a day. Without that foot traffic, your asking price will slip.

Limit bulky furniture in smaller spaces, and take out furniture you purchased that has since been proven unnecessary. Minimize décor, especially along any horizontal surfaces, so the buyer’s eyes are drawn to the house, not your stuff. It should also go without saying, make sure your home looks clean and organized.

2. Get an eye for staging

Just like decluttering your space can make it seem bigger, a few staging tricks can make it seem better cared for, nicer and more modern. Take home stager tips and apply them to your home at any time.

For example, if you are preparing to paint the walls, keep them neutral and focus on adding changeable color through accessories. Pick a focal point, such as a stunning painting or a coffee table with intricately-carved designs and build around that. Designate a theme or common element, whether it’s a color scheme, pattern or design, and thread it throughout a room.

3. Add curb appeal

This step doesn’t have to involve replacing siding or repaving the driveway; simply pruning your bushes, planting a few perennials and cleaning up your lawn can go a long way. This works similar to number one: The more appealing your home is on first glance, the more foot traffic, the more potential for offers, the better chance you have of selling your house at or above asking price. It’s that simple.

4. Touch up the little things

Fix up nicks in the wall; make sure paint lines look clean and even; fix that sticky drawer. Any little fix that makes your home operate smoothly is a wise investment of both time and money.

Savvy buyers frequently walk around a house and compile notes on all the little things that are wrong and factor those into the offer. Plus, they may assume the rest of the house isn’t up to snuff either, so stay on top of basic maintenance as well. You want buyers to see that you have taken care of the place, so they feel they’re getting a bigger bang for their buck.

5. Reinvent a room

Sure, you could finish your basement or convert your attic into a bedroom, but that would be expensive. Instead, consider simply reimagining a pre-existing space. According to a recent survey by Better Homes and Gardens Real Estate, one in five Millennials would prefer “home office” be used when describing the dining room because that’s how they would actually use it. This isn’t going to be true of all buyers, but it’s a good lesson in how turning away from traditional space designations can turn buyers onto your home.

If you don’t have a home office, make one in a space that’s starting to see cobwebs. Even finding an armoire with a fold-out desk or converting a large shelving unit or closet into a desk can create an office space and make buyers feel that not only is this home more spacious, it’s more functional.

By simply rethinking how your home looks and how you use it, you can increase your home’s value when you sell without spending the big bucks.

Posted on May 30, 2014 by Ilyce Glink

5 Ways Credit Cards Can Impact Your Credit Score

Clark Howard (one of my faves!) recently wrote a great article about how credit cards can impact your credit score.  The whole article is great, but the bones of it are as follows:

Here are 5 ways credit cards can improve your credit score

Having multiple credit accounts in good standing. A low amount of credit accounts equates to a lack of credit history, so owning multiple credit cards helps. However, remember not to open too many at once, as it signals you’re in urgent need for a large sum of money at one time.

Maintaining a low debt-to-credit ratio. Remember, your credit score is not only affected by the debt-to-credit ratio for each individual card, but also the total ratio of all your loans. Make sure it stays under 50%, but aim for less than 30%.

If a high ratio is of concern, try asking for a credit-line increase and/or strategically split the balance between two cards. And don't close credit cards you don’t think you need anymore or don’t use often. These cards keep your available credit on the higher side, and removing one will instantly increase your debt-to-credit ratio.

Making regular payments. Keep your credit cards active, but don’t overuse them. And don’t leave them completely unused either. Use your credit cards with regularity, as it demonstrates to lenders that you can responsibly manage your credit.

If you have cards that are close to maxing out, pay those first. Pay monthly, even if it’s just the minimum payment to start. Make it your goal to never carry a balance. Also, if you find yourself in a situation where you need to pay down balances on multiple cards, focus paying more on the cards with which you’ve had the longest history of consistent payments.

Opening a secured credit card. If you have very poor credit and no pre-existing unsecured credit cards, consider applying for a secured card. A secured credit card is issued after you make a deposit, which is typically the same amount as the credit line. This credit line is then reported to the credit bureaus, which is why paying it off regularly for as little as 6-12 months will make a drastic difference.

Make sure the secured card you apply for reports to all three credit bureaus— Equifax, Experian, and TransUnion—and make sure you absolutely do not miss any payments and keep your balance at zero; otherwise, you will negate the point of owning a secured card to improve your credit score.

Applying for credit cards you actually need and will use. Invest some time researching what cards you’ll likely quality for and benefit from most. For example, avoid retail-store credit cards offers that incentivize you to open an account just to initially save 25% on your shopping.

On the other hand, applying for a great balance transfer card with a low introductory interest rate can build your creditworthiness by helping you decrease your debt-to-credit ratio and pay off your balance, for example. Just remember credit inquiries (i.e. when you turn in a credit card application) are added to your credit report, which can slightly lower your score if you apply numerous times in a short amount of time. This is because attempting to apply for new credit on multiple occasions indicates to lenders that you’re in financial trouble.

If you purchased a home in 2013: Homestead Exemption

It's that time of year again! I wanted to remind you to file for Homestead Exemption if you have not done so already.  According to Georgia law, if you purchased your home between January 1, 2013 and December 31, 2013 you may be eligible to claim a Homestead Exemption, which will reduce your property taxes.  Following is county-by-county contact information and deadlines for filing Homestead Exemption.  Be sure to confirm eligibility and requirements with your county of residence.

CHEROKEE: 2782 Marietta Hwy, Canton 678-493-6120

File Dates: By April 1, 2014

You must file in person.  Bring a copy of driver’s license & warranty deed.

www.Cherokeega.com

Office Hours: M-F 8:00am-5:00pm

COBB: 736 Whitlock Ave, Suite 100, Marietta                     770-528-8600

         4400 Lower Roswell Road, Marietta

                       4700 Austell Road, Austell

                                   File Dates: By April 1, 2014

File by mail or in person.  Bring warranty deed, identification, your license tag number and name of current mortgage company. Most new property owners will receive a form by mail or may be requested after January 1.  

www.cobbtax.org

Office Hours: M-F 8:00am-5:00pm

DEKALB: 4380 Memorial Drive, Suite 100, Decatur 404-298-4000

1358 Dresden Drive, Atlanta

2801 Candler Rd, Decatur

File Dates: January2 – April 1, 2014

** Should receive information in the mail sometime in January, if not call.  Return by certified mail with a copy of your warranty deed.  

www.co.dekalb.ga.us/taxcommissioner

Office Hours vary by location so call or check website for details

FORSYTH: 110 East Main Street, Suite 260, 770-781-2106

Forsyth Administration Bldg., Cumming, 30040

File Dates: By APRIL 1, 2014

You must file in person.  Bring a copy of driver’s license (address must match property address) & recorded warranty. Only those whose name(s) appear on deed can file.

Office Hours: M-F 8:30am-5:00pm

www.forsythco.com

FULTON: 141 Pryor Street, Suite 1047B, Atlanta 404-612-6440  

7741 Roswell Road NE, Suite 261, Sandy Springs 404-612-6440

3155 Royal Drive, Suite 175, Alpharetta 404-612-6440

 5600 Stonewall Tell Rd, Suite 224, College Park     404-612-6440

                                  File Dates:  By APRIL 1, 2014

File in person only!  Bring copy of warranty deed, photo ID, car tag number, social security number for self and spouse. You may be able to file by mail ONLY if your deed is already in the system.

www.fultonassessor.org

Office Hours vary by location so call or check website for details

GWINNETT: 75 Langley Drive, Lawrenceville (1st floor) 770-822-8800

File Dates:  By April 1, 2014

Should receive information in mail by end of January or call after February 1st to request an application by mail; to file in person, bring your warranty deed.

Office Hours: M-F 8:30am-5:00pm

www.gwinnetttaxcommissioner.com

HALL              2875 Browns Bridge Rd, Gainsville                            770-531-6720

                               You may also Fax to…                                              770-531-3968

                                   File Dates: Before March 1, 2014   

Tax Assessor's Office for the current tax year. You must be living in the property as of January 1 to qualify.

www.hallcounty.org

Please note that the above phone numbers, addresses and dates were verified as of December 2013.  The locations and dates are subject to change without prior notification.  Please be sure to contact your county for thorough information and requirements.