Steve Ladd's thoughts on Atlanta Real Estate & More!

Real World. Real Estate.

Home Builder Says it Broke Rules

October 22nd, 2007 12:03 PM

Daily Real Estate News | October 19, 2007

Beazer Homes USA confirms that it violated U.S. government rules to assist buyers of its houses in qualifying for federally guaranteed mortgages.

A Beazer statement declined to elaborate on how exactly the home builder was guilty of wrongdoing, nor did it specify the number of mortgages involved. The statement did say that Beazer hopes to reach a settlement with federal regulators soon over the illegal practices, which reportedly relate to rules governing down payment assistance for buyers.

Beazer recorded net new orders for 990 homes in its fiscal fourth quarter recently ended, a 52 percent dive from the same period a year earlier and down 80 from 2005 levels.

Source: The New York Times, Floyd Norris (10/12/07)

Posted by Steven Ladd on October 22nd, 2007 12:03 PMPost a Comment (0)

LEGISLATURE SENDS A NEW PROPERTY TAX REFORM AMENDMENT TO VOTERS...

October 31st, 2007 8:58 AM

LEGISLATURE SENDS A NEW PROPERTY TAX REFORM AMENDMENT TO VOTERS...

Following is an overview of the new property tax reform constitutional amendment that was approved by the Florida Legislature during the October Special Session - which adjourned earlier this evening. Floridians will vote on the proposed amendment January 29, 2007. Members of the Legislature made it clear that property tax reform is not finished, and they will continue to work on the issue during the next regular session. For more information about this and other state issues, visit: www.floridarealtors.org and click on "Legislative Center".

Doubling of the Homestead Exemption

An additional $25,000 homestead exemption is provided for the value of homestead property that is above $50,000. For instance, the first $25,000 of value is currently exempt from property taxes. Should the amendment pass, the portion of value between $50,000 to $75,000 would be exempt from property taxes This exemption does not apply to school taxes.

"Save Our Homes" Portability

Homestead property owners will be able to transfer their accumulated Save Our Homes benefit (up to $500,000) to a new homestead within two years of giving up their previous homestead. If the just value of the new homestead is more than the previous home's just value, the entire differential can be transferred; if the new homestead has a lower just value, the amount of the accumulated benefit that may be transferred is proportional to the value of the new homestead. This provision applies to all taxes - including school taxes - and is retroactive to January 1, 2007.

Tangible Personal Property Tax Exemption

A $25,000 tangible personal property tax exemption for businesses is included in the proposed amendment.

Assessment Cap for Non-Homestead Property

A 10% assessment cap will be applied to non-homestead properties (similar to the Save Our Homes cap that is currently applied to homestead properties. However, the cap will apply only to non-school levies. The 10% cap will sunset after 10 years, when it will be presented to voters for re-authorization. This provision does not apply to school taxes.

Fiscally Constrained Counties (voter approval not required)

The bill requires an annual appropriation to fiscally constrained counties to make up for revenue reductions resulting from the adoption of the constitutional amendment by the voters.

Mike Mayo, Director of Public Affairs

Osceola County Association of Realtors®, Inc.

Posted by Steven Ladd on October 31st, 2007 8:58 AMPost a Comment (0)

IT'S A SWEEP!!

October 29th, 2007 10:02 AM

Congratulations to the Boston Red Sox, World Series Champions...2007

As a fan of baseball and a fan of the Boston Red Sox, I wanted to take this opportunity to personally congratulate the Red Sox on a 4-game World Series sweep of the Colorado Rockies.

This team came back from a 3-1 ALCS deficit to overtake the Cleveland Indians and then rolled on to the biggest stage in a poised and confident fashion. Some found the series to lack significant drama, I disagree. The Sox won 2 lopsided games and then proceeded to win (2) 1 run nail biters, including last night's 4-3 clincher. To me as a die hard fan, that was enough drama!

So with that said, good luck to David Ortiz on his knee surgery, to Mike Lowell on the free agency, and to Curt Schilling on his baseball future.

The Red Sox are Champs...again!

Posted by Steven Ladd on October 29th, 2007 10:02 AMPost a Comment (0)

Renting Vs. Selling

October 22nd, 2007 12:21 PM

Every 6 weeks or so, we mail out a market update to about 2,000 home owners in the Cental Florida area. These updates are sent to folks who own a home here, but do not occupy the property themselves. Most of the time, these letters are sent to bring owners up to speed on the current market conditions and how they relate to the possibility of selling their home.

In September we sent out a letter suggesting that perhaps renting their home may be a viable option rather than selling at this time. Though I expected to get an above average response, I have been astonished at the amount of calls and E-Mails we have received thus far. At this point the inquiries have been 5 times that of the usual response we receive.

It suggests to me that there are a large number of people in the area that are looking for more income from their homes. Perhaps it's a call for not just more dollars, but the reassurance and the knowledge of a fixed monthly income they'd assume from a fixed tenant. in addition, many of the people we've spoken to, don't really want to sell. They still want their homes to use in the future. In the meantime, renting it out is helping people to keep the home they have grown to love so much.

I'm happy to report that we have been taking on rental properties and finding tenants throughout the past month. It's a nice feeling knowing that 30 days ago, a homeowner was about to pull his hair out and today they couldn't be happier. Plus, we have someone who has been given a very nice place to live for at least the next year, that both fits their budget, and lifestyle.

Check back regularly for up to date available rental homes. If you have a place to rent, let us know. I'm sure there's someone out there waiting on a house like yours!

Posted by Steven Ladd on October 22nd, 2007 12:21 PMPost a Comment (0)

House Votes to Eliminate 'Phantom Tax'

October 5th, 2007 2:45 PM

The U.S. House of Representatives voted on Thursday to get rid of a tax burden for home owners who have had a loan forgiven or foreclosed on their home because they were unable to make their mortgage payments. The Mortgage Cancellation Tax Relief Act, H.R. 3648, passed by a vote of 386 to 27. Similar legislation is making its way through the Senate.

Since the early 1990s, NAR has supported such measures to eliminate the "phantom tax" on financially-strapped home owners.

“Congress made a good decision that will affect many Americans who find themselves in a truly bad situation,” says NAR President Pat V. Combs. “Changing the IRS code is an issue of fundamental fairness. It would relieve a tax burden at a time when an individual or family has experienced a true economic loss arising from the sale or loss of their home. These families are already in financial distress and are most likely unable to pay additional taxes.”

The current tax code requires a lender who forgives debt to provide a Form 1099 to the IRS stating the amount the borrower has been forgiven. This disclosure applies whether it is a short sale, foreclosure, deed in lieu of foreclosure or any similar arrangement that relieves the borrower of the obligation to pay some portion of their debt. If the property is sold at foreclosure or is sold for less than was borrowed, that difference is considered income and is subject to the tax.

H.R. 3648 would ensure that any amount forgiven on mortgage debt secured by a principal residence will not be taxed. The legislation has a provision to safeguard against abuses. That provision is similar to one that already exists for commercial real estate owners and would treat commercial and residential property equally.

"This is not only about the subprime turmoil we are currently experiencing," Combs says. "This is also about families who have lost their home or a need to sell that home for less than the amount owed on their home mortgage because of job loss, divorce, health issues, a decrease in the value of the home or other unfortunate circumstances. Clearly it is unfair to tax people on phantom income when they most likely have no cash with which to pay the tax."

In other news, another bill has been sent to the House Judiciary Committee that would revise the bankruptcy code to allow judges to order mortgage lenders to ease terms for home owners in bankruptcy proceedings. Currently, mortgage lenders can foreclose against a home owner in default 90 days after the filing of bankruptcy.

— REALTOR® Magazine Online

Posted by Steven Ladd on October 5th, 2007 2:45 PMPost a Comment (0)