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HOPE...a New Federal Program for Home Owners with Troubled Morgages

Monday, October 13, 2008
by Group One Realty Team - Real Estate One
HOPE for Homeowners, a federal program to allow the replacement of up to $300 billion in underwater U.S. mortgages with federally backed FHA financing, began accepting applications under a legislatively authorized expansion.
 
To qualify, borrowers must be spending more than 31 percent of their income on mortgage payments. Loans made this year are excluded, except for those completed on Jan 1. Borrowers must have made six months of payments on their loans.
 
Lenders must agree to participate and erase 10 percent of the Home's current value before the government will guarantee the mortgage. A concern among lenders is that investors in mortgage securities must take an immediate loss and can't recoup their lost money if home prices turn upward again.
 
The program is a "helpful step forward" in stabilizing the housing market and will help keep many families in their homes but it is not a cure-all, said Steve Preston, secretary of the U.S. Department of Housing and Urban Development, which administers the program.
 
Troubled borrowers should contact their lenders.

If you need help getting your property listed and sold, go to this link to get started.
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Ways Buyers Can Save Money at Close

Wednesday, January 9, 2008
by Group One Realty Team - Real Estate One

Seller Concessions:

Percentage of purchase price towards allowable costs (percentage depends on program and downpayment, see chart below).

 

In addition to concessions, sellers can pay for the following:

1. Seller can waive tax pro­-rations from the buyer on the purchase agreement.

2. Disburse Use and Occupancy fee's (if any) to Buyer at clos­ing.

3. Pre-­pay association fee directly to the association. By giving the buyer a paid receipt allows this cost to remain off the final HUD.

Conventional

Down Payment

Allowable Concession

0 - ­10%

3%

11 - ­24%

6%

25% or more

9%

FHA and Non­-Conforming

Down Payment

Allowable Concession

3%

6% for costs/3% for down­payment (through 3/31-­2008)

VA

Down Payment

Allowable Concession

0%

6%

Investment Properties

Down Payment

Allowable Concession

All down payments

2%

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Questions Frequently Asked of the Assessor

Wednesday, October 31, 2007
by Group One Realty Team - Real Estate One

What is the difference between the Assessed Value and the Taxable Value of my Home?

Each year the Assessing Office must calculate the SEV (Assessed Value) and Taxable Value of each property for the 31st of December.  You will ususally get your new tax assessment in early March.  In determining the SEV, the assessor identifies area neighborhoods and used to use a 2 year sales study to analyze market values within each neighborhood, comparing the sale price of a property to its assessed value.  That was just changed and the new 1 year sales study period for the 2008 assessments was 04/01/06 to 03/31/07.  A review of all arms length sales within each neighborhood for the required study period is used to determine individual Assessed Values on a global scale.

The Taxable Value is the value to which the millage rate is applied, thereby determining your taxes.  The Taxable Value on the property is said to be "capped" if the property owner has not had any additions or losses on the property or did not purchase it in the preceding year.  The Taxable Value is calculated by adding the CPI or 5% (whichever is less) to the prior years Taxable Value.  Proposal A intended to put a cap on the Taxable Value of property so that taxpayers wouldn't be as affected by a strong economy and significant increases in valuation, the intention was to make changes to the Taxable Valuation more gradual by tying it to the rate of inflation.

Sales prices in my neighborhood have been decreasing.  Will my property valuation decrease as well?

If you've owned your property for a significant amount of time, it is likely that your SEV exceeds your Taxable Value.  If this is the case, a decrease in market value as determined by city sales studies, would result in a decreased assessed valuation and SEV.  The Taxable Value however, is required by the Michigan Constitution to increase each year by the rate of inflation or 5%, whichever is lower.  In the case of a long time property owner, the SEV should decrease, while the Taxable Value would increase.  The Taxable Value cannot be higher than the SEV.

How does that impact my tax bill?

Because the taxes are based on the Taxable Value rather than the SEV, even with a decrease in the SEV, the taxes could still go up.

I just bought my house.  Will the assessed value automatically be half of what I paid?

By state law, a home's Assessed Value is not half its purchase price, but half of its market value.  The study period and process identified in paragraph 1 is used to determine market values.

I feel the taxable value on my tax bill is too high.  How can I get my taxable value and amount that I pay changed?  Is there a deadline to do this?

In closing, please note:  I have a pdf download providing even more information on property taxes that you can read by clicking here.  Don't forget that you can challenge your taxable value with the assessor by writing them a short letter  or call requesting to be be heard before the tax board of review.  .  Do this right away after you get your new assessment because you do not have much time to protest.  Should the determination they mail you fail to provide the intended results, then you can ask your assessor for an appeal letter bebore the State tax tribunal.  Call me if you have more quetions.  If you need comps showing the sale price of similar properties, just drop me a note requesting them.  I would be happy to safe you money on your property taxes or otherwise.  I also have new home listings or a free market or cma reports on your existing property.

 

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Metro Detroit Market Summary YTD August 2006 vs August 2007

Wednesday, September 26, 2007
by Group One Realty Team - Real Estate One

 

 Here is a market snap shot of August to date this year compared to last.  One positive sign is the chance of selling a Home in the next 120 days has actually improved in most markets over last year, more of an indication of fewer homes on the market than more sales, but still a healthy sign. The drastic drop in median home values for the City of Detroit is a reflection of the foreclosure/investor market (we are also trying to verify the MLS numbers to be sure they are correct). The median sales price drop reflects what we are feeling in home value shifts. Please call our office if we can be of any assistance at 734-996-0000.  Remember to get the lastest information and listings directly from the MLS click on this link.  For an idea on your homes current market value try this link.

 

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Ann Arbor Area July Real Estate Housing Statistics

Friday, August 10, 2007
by Group One Realty Team - Real Estate One
HOUSING MARKET HOLDS STEADY

The housing market will hold close to present levels in the months ahead, according to Lawrence Yun, the National Association of REALTORS® senior economist. "Existing-Home sales should be relatively stable over the next few months, holding in a modest range, with some pent-up demand growing from buyers who’ve been on the sidelines," he said.

"Mortgage disruptions will hold back sales over the short term, but long-term fundamentals are favorable. A modest up turn is projected for existing-home sales toward the end of the year, with broader improvement to include the new-home market by the middle of 2008."

The Ann Arbor Area Board of REALTORS® July Housing Statistics demonstrate the economic outlook of Lawrence Yun’s projections. When compared with July 2006, median residential and condominium sales prices are on the rise. New listings show a decline of 13 percent, while pending sales increased 21 percent and average list and sale prices increased by $2,730 and $3,970 respectively.

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June Ann Arbor Area Realty Statistics

Wednesday, July 11, 2007
by Group One Realty Team - Real Estate One

Statistics can give us a decent picture of what happened in the real estate market. They can also act as a guide in what to expect in today’s market.

While June 2007 residential sales are down about 10% over June of last year, there is strong activity in the summer market. 364 residentila properties were sold in June this year, compared to 404 in June 2006.  Reflecting an increase of 5% in the number of units sold in June 2006, 93 condos were sold in June of this  year.

Current market conditions have created a great time to buy.  The average residential sale price in Washtenaw County was $267,571 in June.  buyers have a rare opportunity to obtain maximum value for their investment dollar.  Inventory is plentiful, interest rates are stable and sellers are ready to move.  The following statistics were provided by the Ann Arbor Area Board of Realtors. 

June 2007

June Report

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