Our market needs inventory! We need listings, homes for sale. Currently around 7200 homes on the market. To compare we almost got to 12,000 in July 2010 when demand was much less. If you know homeowners who are thinking of selling specifically in Central Austin, Westlake and neighborhoods off of Wm Cannon and Escarpment please let me know. This is 'text book' with 1) rents going up, 2) lower supply of homes, 3) consideration of buying weighed against renting. Read on, very interesting (i know i know, but "Greece")...
http://bottomline.msnbc.msn.com/_news/2012/01/23/10217301-home-buying-could-soon-beat-renting#.Tx3gHCL36HE.email
Monday, January 23, 2012
Saturday, January 14, 2012
Challenging Times part 2
A friend has a house to sell. This person bought this home while married and is now divorced. It is a short sell (on the market for less than what is owed to the bank/lien holder). A sensible offer has been submitted by a qualified buyer and my friend has accepted. The lien holder reviewed the offer and has also accepted this 'short sell'. Now the other / "ex" must also accept for this offer to close. This "ex" refuses to sign off (possibly out of spite due to the unfortunate side of a divorce and issues around a marriage that has ended). This sale is now dead and the house will go into foreclosure affecting BOTH sellers credit (I wonder if the "ex" not willing to sign off realizes this?????).
The one who wanted to see the home sold via a "short sell" should consider this since it will likely go into foreclosure; write a brief summary of 'why' it went into foreclosure and send to the 3 major credit reporting agencies. This note to the credit reporting agencies won't keep the credit score from being damaged but will explain to future 'credit pulls' what the foreclosure was all about.
The one who wanted to see the home sold via a "short sell" should consider this since it will likely go into foreclosure; write a brief summary of 'why' it went into foreclosure and send to the 3 major credit reporting agencies. This note to the credit reporting agencies won't keep the credit score from being damaged but will explain to future 'credit pulls' what the foreclosure was all about.
Challenging Times part 1
Friend/Client called with a question for their parents. The parents live in another state. This particular state has been one hit the hardest, always being mentioned as one of the top 4 states with highest depreciation of real estate values. While Austin/Metro Austin has been experiencing troubles since November 2008, this market has been "feeling it" early 2007 and much much worse.
So here is the question from my friends/clients, "my parents want to move here to Austin because of the grandchildren in Texas (two sets) but their home has lost it value. If they were to sell it would be a 'short sell'. Even though their credit is above 800 they might want to go ahead and take the proverbial hit. They have been waiting for over 4 years to do this and nothing seems to be improving. They attempted to sell 2 years ago with zero results. What will this do to their credit if they attempt the short sell?".
I called a lender for some feedback on this question. First, a mortgage payment(s) needs to be missed. Then the process can begin since a mortgage company sees no reason to accept less than what is owed if all payments are being made. And there is no guarantee the bank will accept a 'short sell' in any event. The real question is what will this short sell to do a 800+ credit score? The answer is an estimate due to all the variables but in short, it will drop it to low 600's or 500's quickly.
So here is the question from my friends/clients, "my parents want to move here to Austin because of the grandchildren in Texas (two sets) but their home has lost it value. If they were to sell it would be a 'short sell'. Even though their credit is above 800 they might want to go ahead and take the proverbial hit. They have been waiting for over 4 years to do this and nothing seems to be improving. They attempted to sell 2 years ago with zero results. What will this do to their credit if they attempt the short sell?".
I called a lender for some feedback on this question. First, a mortgage payment(s) needs to be missed. Then the process can begin since a mortgage company sees no reason to accept less than what is owed if all payments are being made. And there is no guarantee the bank will accept a 'short sell' in any event. The real question is what will this short sell to do a 800+ credit score? The answer is an estimate due to all the variables but in short, it will drop it to low 600's or 500's quickly.
Friday, January 13, 2012
Homestead Exemptions (this is a long one)
Texas Homestead Exemption
It’s that time of year again – time for those interested in benefiting from the Texas Homestead Exemption to file an application. The information in this post applies to any homestead exemption request in the State of Texas specifically in Travis County.
What is a Homestead Exemption?
For those new to this, a Texas homestead exemption reduces the taxes you owe on your home. For example, Texas school districts are required to offer a $15,000 tax exemption for qualified applicants, which means if your home appraises for $200,000 as of January 1st, the amount you pay in school taxes is based on $185,000 ($200,000 home value less the $15,000 school tax exemption). Austin’s school district rate for 2010 was1.227 , so in this example, if you filed for a homestead exemption on a $200,000 home, you would save $184.05 in taxes. Other taxing authorities (e.g. county, city) may offer exemptions of up to 20% of your home’s value, so filing for a homestead exemption is worth your while.
Who is eligible for a Travis County Homestead Exemption?
Homestead Exemptions in the State of Texas are granted to home owners who apply for the exemption on the home they consider their primary residence that they were living in as of January 1st of the year in which the exemption is requested. If you are 65 or older, or disabled, there are exceptions to this rule that are described in the application.
What is the Travis County Homestead Exemption Application process?
To apply for the Texas Homestead Exemption:
Fill out the application: Travis County Homestead Exemption Application.
Helpful Info: For married couples, either person may be listed at the owner (the other owner blank is for 3rd party owners), just be sure the submitted required documents in Step 5 are for the person listed as owner. To obtain the Legal Description and acreage information requested on the form, you may want to look up your home’s tax record on using the Property Search on the Travis County Appraisal District’s Website.
Include the required proof of residency documentation (see NOTES below) required by the new law that went into effect in September of 2011.
Submit the application to the county appraisal district where your property is located no later than April 30th of the year for which you are requesting the exemption. For Travis County residents, you can mail, fax (512-834-8651), or hand deliver the application and required documents. For questions, or to verify any of this information, call the Travis County Appraisal District at (512) 834-9138. There is no charge to submit the application.
IMPORTANT NOTES:
The new proof of residency requirement is stated on the Texas Comptroller’s website: “House Bill 252 requires a copy of the homeowner’s Texas driver’s license or state identification card and the homeowner’s vehicle registration receipt be sent with the homestead exemption application. If the homeowner does not own a vehicle they can send a current utility bill showing name and address, along with an affidavit provided in the application indicating non-ownership of a vehicle. The address on the documents must match the address for which the homestead exemption is requested.” (Texas Comptroller)
If you do not have a copy of your vehicle registration receipt, you can request one from the Texas Department of Motor Vehicles. For Travis County residents, call 512-854-9473 to request a copy over the phone and have it sent right away via email. You will need your license plate number when you call. The charge is $5 ($2 plus a $3 convenience fee) for a phone order. To request a copy via the mail, see the TxDMVVehicle Registration FAQ page or go directly to the request receipt form.
Please also note that additional information is required for those filing for the exemption on a manufactured home.
Do I have to reapply for the Texas Homestead Exemption each year?
Once you are granted the exemption, you do not have to reapply for it annually unless the Appraisal District notifies you that a new application is required.
Disclaimer and Additional Information
The information above is not to be considered tax or legal advice, but is provided as a helpful reminder to our site visitors and clients. For the official rules and details on Texas Homestead Exemptions, see the Texas Homestead Exemption Application and visit the Texas Comptroller’s website for additional information on Texas Homestead Exemptions.
It’s that time of year again – time for those interested in benefiting from the Texas Homestead Exemption to file an application. The information in this post applies to any homestead exemption request in the State of Texas specifically in Travis County.
What is a Homestead Exemption?
For those new to this, a Texas homestead exemption reduces the taxes you owe on your home. For example, Texas school districts are required to offer a $15,000 tax exemption for qualified applicants, which means if your home appraises for $200,000 as of January 1st, the amount you pay in school taxes is based on $185,000 ($200,000 home value less the $15,000 school tax exemption). Austin’s school district rate for 2010 was1.227 , so in this example, if you filed for a homestead exemption on a $200,000 home, you would save $184.05 in taxes. Other taxing authorities (e.g. county, city) may offer exemptions of up to 20% of your home’s value, so filing for a homestead exemption is worth your while.
Who is eligible for a Travis County Homestead Exemption?
Homestead Exemptions in the State of Texas are granted to home owners who apply for the exemption on the home they consider their primary residence that they were living in as of January 1st of the year in which the exemption is requested. If you are 65 or older, or disabled, there are exceptions to this rule that are described in the application.
What is the Travis County Homestead Exemption Application process?
To apply for the Texas Homestead Exemption:
Fill out the application: Travis County Homestead Exemption Application.
Helpful Info: For married couples, either person may be listed at the owner (the other owner blank is for 3rd party owners), just be sure the submitted required documents in Step 5 are for the person listed as owner. To obtain the Legal Description and acreage information requested on the form, you may want to look up your home’s tax record on using the Property Search on the Travis County Appraisal District’s Website.
Include the required proof of residency documentation (see NOTES below) required by the new law that went into effect in September of 2011.
Submit the application to the county appraisal district where your property is located no later than April 30th of the year for which you are requesting the exemption. For Travis County residents, you can mail, fax (512-834-8651), or hand deliver the application and required documents. For questions, or to verify any of this information, call the Travis County Appraisal District at (512) 834-9138. There is no charge to submit the application.
IMPORTANT NOTES:
The new proof of residency requirement is stated on the Texas Comptroller’s website: “House Bill 252 requires a copy of the homeowner’s Texas driver’s license or state identification card and the homeowner’s vehicle registration receipt be sent with the homestead exemption application. If the homeowner does not own a vehicle they can send a current utility bill showing name and address, along with an affidavit provided in the application indicating non-ownership of a vehicle. The address on the documents must match the address for which the homestead exemption is requested.” (Texas Comptroller)
If you do not have a copy of your vehicle registration receipt, you can request one from the Texas Department of Motor Vehicles. For Travis County residents, call 512-854-9473 to request a copy over the phone and have it sent right away via email. You will need your license plate number when you call. The charge is $5 ($2 plus a $3 convenience fee) for a phone order. To request a copy via the mail, see the TxDMVVehicle Registration FAQ page or go directly to the request receipt form.
Please also note that additional information is required for those filing for the exemption on a manufactured home.
Do I have to reapply for the Texas Homestead Exemption each year?
Once you are granted the exemption, you do not have to reapply for it annually unless the Appraisal District notifies you that a new application is required.
Disclaimer and Additional Information
The information above is not to be considered tax or legal advice, but is provided as a helpful reminder to our site visitors and clients. For the official rules and details on Texas Homestead Exemptions, see the Texas Homestead Exemption Application and visit the Texas Comptroller’s website for additional information on Texas Homestead Exemptions.
Tuesday, January 10, 2012
Buyer Frustration of the times
Here is an example of the frustration both Sellers & Buyers are experiencing; qualified buyer wants to buy a bank controlled house but cannot get a response from the bank - huh??? Seriously? Are there not a high number of homes that need well qualified buyers? One specific example I am working on is in Central Austin where my client buyer could pay cash or work with the current lien holder to get a loan. Neither the Seller nor I can get this major banking institution to respond and it has been posted on the foreclosure list the last two months...this has been going on since early September 2011 - over 3 months! A second specific example I am part of is in South Austin where we have made a good offer to buy but the bank will not even return the calls of their own Realtor, choosing to just keep a price that competes for better conditioned homes that have sold in the same neighborhood.
I find this fascinating and annoying; it would help if a response was given (a "no" would even provide some relief) AND if the financial institution who has the toxic asset would realize their price is waaaayyy off. These scenarios not only make the buying process extremely difficult on the buyer, but also makes the seller go through some additional mental hardship because nothing is being done to give closure.
I find this fascinating and annoying; it would help if a response was given (a "no" would even provide some relief) AND if the financial institution who has the toxic asset would realize their price is waaaayyy off. These scenarios not only make the buying process extremely difficult on the buyer, but also makes the seller go through some additional mental hardship because nothing is being done to give closure.
Monday, January 9, 2012
Bonus/Over time for loan approval
Are planning on using your bonus income or overtime income to help you get a mortgage?
...If so, then there are three important things you need to be aware of:
1) Lenders can't use bonus income or overtime income unless you can prove you have been receiving this income for 2 years.
2) The employer has to indicate that the bonus or overtime income will likely continue.
3) Lenders will use a two year average of bonus and/or overtime income. So, if you got alot this year, but not last year then we will have to use an average of both years.
...If so, then there are three important things you need to be aware of:
1) Lenders can't use bonus income or overtime income unless you can prove you have been receiving this income for 2 years.
2) The employer has to indicate that the bonus or overtime income will likely continue.
3) Lenders will use a two year average of bonus and/or overtime income. So, if you got alot this year, but not last year then we will have to use an average of both years.
Subscribe to:
Comments (Atom)
