Guest Blog Courtesy of Leigh Clack with Neel & Robinson, LLC

Georgia recently passed “The Property Tax Assessment and Appeals Reform Bill” (Senate Bill 346) on June 7, 2010.

Highlights include:
1.     Every property owner will receive an Annual Notice of Assessment and the right to appeal;
2.     Every Notice of Assessment must contain the estimated property tax (in dollars);
3.     Appeal period has been extended to 45 days;
4.     Alternative streamlined appeal option for properties valued over     $1,000,000;
5.     Automatic taxpayer victory on appeals when government fails to respond within 45 days;
6.     Requirement that all relevant sales, including distress sales, be included when determining Fair Market Value (FMV);
7.     Requirement that only “current use of property” be used in determining FMV;
8.     Taxpayer must be given access to all data used in determining FMV;
9.     Sales price establishes FMV for next tax year.

Remember that a reduction in the assessment does not always reduce the actual bill.  Other factors such as the millage rate, homestead exemption, and other exemptions will also affect the final tax bill amount.

Leigh Clack
Neel & Robinson Attorneys at Law, LLC
22 Lenox Pointe, Atlanta, Georgia 30324
Office:  404-705-3690  Fax:  404-705-3697
lenox@neelandrobinson.com

Today’s Guest Blog provided by GeorgiaHomePros.com

You’ve searched and found a home that fits your family.  Now it’s time to make sure it’s safe, sound and will stand the test of time. You need a professional inspector working with only your best interest to determine the condition of the home.  The naked eye usually only uncovers cosmetic items & minor repairs, IF it is visible to the naked eye.  Many major repairs are not fully visible and you need a professional certified inspector who knows what signs of problems to look for.  Even Georgia builders/remodelers have relied upon our, GeorgiaHomePros.com 5-star rated inspection service   Did you know that foreclosures have no sellers disclosures? And, many short sales don’t either. This is now more than half the market that you will have no history on your home.  Also, many homes are located in counties where codes were not enforced when they were built… Yes, even though you may not be in that scenario, the vast majority of homes have thousands of dollars in repairs to be made whether it be code violations, structural defects, latent defects, safety, health hazards or simple wear and tear

In a  majority of inspections, you can have the seller repair the items or you can negotiate the repair moneys off of the price. Even the homes that did enforce codes when built,…the County inspector may have only spend 5-10 minutes if you’re lucky, at the home.  How does that compare to our normal 3-5 hour inspection, 40+/- page report, w/a 500+ point checklist, summary & photos + repair cost estimates? It doesn’t.  That is why it is so smart to get inspection during your due diligence period, to be fully informed PRIOR to closing, or if at all possible it is BEST to do prior to writing an offer.  You will only pay hundreds for an inspection, but possibly save thousands and have peace of mind that your family is safe and you have not bought a money pit.

M.Scott Webb
Rated top 10% Nationwide
20+ Years Experienced Builder/Remodeler
770-893-2271
www.georgiahomepros.com

Today’s Guest Blog Courtesy of Garrett Feis a HUD Approved 203k Consultant

FHA has a little known loan program called 203K.  It is the governments answer to America’s deferred maintenance of existing housing stock.  Most lenders will only lend money on homes that are in good condition or they require the borrower to make the repairs before the closing.  Not so with FHA’s 203K.  FHA allows you to purchase the home “AS IS” and gives you the money to get the repairs done after the closing,  all in one 30 year fixed rate loan at current rates.    Best of all, you won’t need to make mortgage payments until the renovation is complete.

Here are examples of what you can do with a GA 203K loan:

• Purchase a two bedroom one bath home and get the funds to make it a three bedroom with a nice master bath.

• Purchase a foreclosure that needs carpeting, a paint job and maybe a new kitchen.

• Purchase a home that is in perfect condition and remodel the kitchen and bathrooms.

• Purchase a home that is in perfect condition and finish the basement off into an “In Law” suite.

All of this and more is possible under 203k Guidelines.  This loan program is almost limitless.  You can purchase a standard stock home and make it into the home of your dreams.

This loan has become very popular the last two years due to the increase in foreclosed properties.  These properties tend to be in pretty rough shape and usually need some help.  A Georgia 203K loan is the way to get you where you want to be.

For more information on how a 203k loan can be right for you, contact:

Garrett Feis  404-925-7163

Today’s Guest Blog Courtesy of Kevin Kust with Veracity Credit Repair Service.

• Starting Score Rule: Better the score, bigger the hit with ALL delinquencies – As years pass, less effect (example: If the starting score is a 750 a foreclosure will hurt dramatically, probably from 200-250 pts.  If the starting score is a 575 a foreclosure would only drop the score 75- 125.  Make sense?)

• Credit Profile: The impact of any delinquency on a credit report will always depend on what remaining positive credit/trade lines are there to counter balance the recent derogatory.  (Example: a late payment could hurt one consumer by 100 points, but another by only 20 based off of supporting credit)

Georgia Foreclosure – (150-250pt. average)
•    Fannie Mae requires a Foreclosures 5 year “seasoning”
•    High Outstanding Balance
•    Reported as the most severe delinquency / Repo
•    FHA – 3 years until you can buy again

Georgia Short Sale – (75-125pt. Average)
•    Viewed as a charge off – late payments leading up to the short sales is what hurts not the “short sale” itself.
•    Typically closed out with a $0 balance
•    Fannie Mae requires a Short Sale 2 year “seasoning”
•    If no lates, scoring models are not impacted by notes “settled for less” – only lenders acknowledge
•    FHA treats a Short Sale like a foreclosure – 3 years

Biggest factor: Fannie Mae Guidelines – Lenders will qualify a consumer with a short sale (2yrs) & foreclosure (5yrs).  FHA Guidelines – (3 yrs) for both.

In summary, no one can gauge the EXACT impact a short sale or foreclosure will impact one’s credit as it depends on the state regulations and the specifics of the consumer’s credit profile.  More often than not, the short sale is always the best route to take if an option.

VERACITY CREDIT CONSULTANTS

1-866-518-2194

www.veracitycredit.com

Today’s Guest Blog Courtesy of Jeff Rayman with Rayman Financial Solutions

Refinancing your Georgia home loan is a great idea if you can get a lower interest rate, ideally 1.5-2% lower and you plan to stay in the house for at least two or more years.  If you plan to move or the interest rate is not a substantial decrease, the closing expense on the refinancing may be more than your benefit.  Each situation is unique.

Most people don’t realize that the points on a refinance are tax deductible and others think the entire amount is deductible in the year refinanced.  However, refinancing points charged at closing are tax deductible over the life of the loan.  This means if you refinance and your points are $2,000 over a new 30 year loan, approximately $67 will be deductible on schedule A of your taxes each year.  If you do not itemize, you will not receive any deduction for the points paid to refinance.

When purchasing a new home in Georgia the points are 100% deductible in the year the home was purchased.  This will normally be reported on form 1098 from your mortgage company.  As with all tax deductions, income limits and personal tax situations may result in a lower tax deduction.

Don’t forget if you sign a contract on a home by April 30, 2010 you may be eligible for the $8,000 or $6,500 tax credit on your 2009 tax return. If you close after you have filed your 2009 tax return, please contact me to file an amendment so you don’t have to wait for your credit. As of today, the closing on the home purchase must be completed by June 30, 2010.

Please contact me at jeff@raymanfinancial.com or 678-469-6931 with any tax questions related to a new home purchases, a recent refinance or to have your business or personal taxes completed by April 15, 2010.  If you need to file an extension, I can file at no charge.

Submitted by Jeff Rayman, CFA, CTP at Rayman Financial Solutions, Inc.

Today’s Guest Blog Courtesy of Richard Wilson with Allstate

Did you know there is a 26% chance of having to experience flood damage to your home during the course of your 30year mortgage. If you are not in a high-risk flood zone, you still may experience flooding.

Fact:  25% of all flood claims are from people who live outside of a flood zone.

What would it cost you to rebuild your home or replace all of your personal possessions. Losses due to flooding will have an effect on your financial well-being and that is where your current home insurance company and the National Flood Insurance Program can help give you peace of mind.

Where do I start?

Always check your home insurance policy. Most homeowners’ insurance policies do not cover flood damage. You may need a separate flood insurance to protect against flooding. Flood policies, administered by your insurance company and provided by the federal government, are available in communities that have joined the National Flood Insurance Program. Purchased separately from your home insurance policy, a flood insurance policy can complete insurance protection for your property.

The National Flood Insurance Program has set up a Preferred Risk Policy which is designed for homeowners with low to moderate flood risk and for those who acknowledge the need for flood coverage, and want to protect their home and personal belongings in the event of a flood.
There are certain conditions to qualify for this type if policy:

1. You own a one to four family dwelling.
2. You are located in a low to moderate flood hazard area.
3. There has been no more than one paid flood claim over $1000 since the date of construction.

If you do not qualify for a Preferred Risk Policy, you may still be eligible under the Standard Flood Insurance Policy. To purchase or for more information about Georgia flood insurance, give me a call.

Richard Wilson

rwinsurance@gmail.com or 404.388.1471

Guest Post Courtesy of Leigh Clack with Neel & Robinson, Attorneys at Law

Georgia’s law called the Record Disposal Act (OCGA 10-15-1) requires businesses to properly dispose of confidential customer information, including social security numbers and account numbers, in order to prevent identify theft.

Realtors, lenders, and closing attorneys need to be sure to comply with this law.  The fines for violations of the law can go up to $10,000.

Proper disposal is by shredding paperwork or by deleting (remove or mark out completely) all confidential information from any documents or computers that can be accessed by anyone else.

Listing Agents:  safeguard the payoff information and social security numbers for your sellers, plus any other financial data provided as part of a short sale.

Selling Agents:  protect any financial data provided by your buyers to be used for loan approval or information given to provide proof of funds for a cash purchase.

Lenders:  almost all information provided by your borrowers must be kept secure, including income tax returns.

Closing Attorneys:  pre-closing work and closing documents, especially those containing account numbers and social security numbers, must be kept confidential.

*Reminders to Your Clients:
Remove social security numbers from identification cards, driver’s licenses, and checks.
Social security numbers should not be reflected on any recorded documents from a closing.
IRS liens now include just the last four digits.
Unfortunately, older recorded documents show some social security numbers.

Be aware that death certificates are public records, and show the full social security number (and cause of death) of the deceased.  Make sure that this confidential information is deleted if a death certificate is being placed in the real estate records.

Neel & Robinson, Attorneys at Law, LLC
Leigh Clack
404-705-3690

Guest Post Courtesy of Veracity Credit Consultants

What do consumers know about their credit scores?  We have all heard a thing or two about credit, but do the good habits of our day to day financial decisions benefit our credit score?  The bottom line is the Credit Scoring world is complex and secretive place.  Little of what the average consumer understands or thinks they know about credit is in fact important or relative to benefiting their credit score.

Today, credit scores can be a consumer’s biggest asset to build or protect.  Understanding the Credit Scoring Models and being on top of the game could save individuals thousands a year and make them a very powerful consumers.  A consumer’s credit profile is considered for insurance, mortgages, employment, auto loans, utilities, cell phones and the list goes on and on.  Creditors seek current or past account histories to determine personal risk.  Here is a basic overview of the 5 components of our credit score:

1.    Payment History (35% of credit score / 297.5 points) – This is where positive & perhaps negative payment history is reviewed.  To optimize this component of the credit score one must have open accounts and make on time payments to their creditors.  The longer that positive payment history is reviewed the more points will be accumulated in this section.  Negative payment history (public records, collections, charge offs, late payments) are also assessed in this section.  The more derogatory marks that report to the credit bureaus the bigger negative impact on the credit score.  This is essentially where most of any type of “credit repair” can help the scores.
2.    Debt Ratios (30% of credit score is Revolving Debt / 255 points) – The majority of debt that impacts your credit score are credit cards and HELOCS.  By utilizing over 30% of a line of credit’s balance to limit ratio one will lose points for that specific account. Hence, a maxed out credit card will certainly hurt a credit score.  There are several ideas how to maximize these ratios and spread debt around to help scores without available cash – consult with a Veracity representative to review your specific profile.  Additionally, do not pay collections without consulting with a Veracity representative.  In cases, if a collection is paid credit scores can actually go down.  If paying or settling on a collection is the best option, there are strategic ways and documentation needed when doing so.
3.    Length of Credit History (15% of credit score / 127.5 points) – A consumer’s credit history is an average of only open accounts.  In most cases do not close older accounts or open new accounts if not absolutely necessary.
4.    New Credit (10% of credit score / 85 points) – This section relates to the amount of times a consumer has their credit pulled (credit inquires) to apply to open a specific account.  Understand that every time a creditor pulls your credit it will negatively impact your scores – no matter what you have heard.  However, by pulling a credit report from an internet source a consumer will not hurt their scores.
5.    Types of Credit (10% of credit score / 85 points) – A consumer can only have revolving, installment, or real estate types of accounts.  A good mix of these types of credit is recommended to achieve high credit scores.

Veracity Credit Consultants

1-866-518-2194

www.veracitycredit.com

The current economy is leaving many consumers with questions on how to save money on their household insurance cost. The following suggestions are guaranteed ways to save, however, I do not recommend any changes until you speak with your personal agent.

Are you ticket and accident free in the last three years, consider taking a defensive driving course or on-line safety course. Many of these courses will only take approximately 8 hours to complete and cost on average less than $75. In fact if your company will accept an on-line safety course there is a great one available at www.aarp.com that will cost $19.95 or $15.95 for current members. The best part is there is no age requirement for this course. Make sure you talk to your agent to see if you qualify for these discounts before you spend your hard earned money. The major companies in the industry require no accidents and a clean driving record for the last three years to be eligible. Once you provide a copy of your certificate of completion you will save an average of 10% on the at-fault coverage (liability and collision) which are usually the more expensive coverage on your policy and the discounts are good for 3 years on your eligible vehicle. This is a great way to save especially if you have multiple cars and multiple drivers that qualify.

Are you taking advantage of your company’s multi-policy discount, this is a no brainer? Your insurance carrier is going to save you on all your policies just for allowing them to insure them and not the competition. For instance if you have home with company A and auto with company B, why not compare the two against each other to see which would be a greater benefit. Some companies offer a combined discount of 30% or more in some cases and to put the icing on the cake, this is a discount that you will never lose, unless you change carriers, no matter how many tickets, accidents, or claims you have. Besides, the savings, imagine the time you can save when you have a situation arise, if you can handle all of your policies by making one simple phone call.

Do you have an emergency fund? If your answer is yes, consider increasing your deductibles on all of your policies. Insurance companies are willing to part a great percentage of your premium if you self insure for a greater portion of the risk. An emergency fund is for an emergency so why do you continue to carry a low deductible in the event of an accident, fire, or storm. These would all be considered emergencies and therefore if you have set aside the money, take advantage of the savings. Contact your agent and find out what maximizing your deductibles can do for you, in many cases, it will save you hundreds of dollars per year on your premium that could be well spent elsewhere.

These are some tips for further savings on your insurance for the years to come. Again, always discuss your options with your personal agent, to make sure they are right for you, but, I can guarantee savings with the above tips no matter what company you are with. If you have further questions or would like a personal review of your insurance, feel free to contact me via email at rwinsurance@gmail.com.

Richard Wilson

Today’s guest blog post courtesy of MortgageFit:

Shopping around for a home mortgage can be confusing. It’s not unusual to get worried about performing something new for the first time. This applies to taking out your first home mortgage as well.

Luckily, there are some easy tips that you can follow to ensure you’re geared up prior to searching for your first home loan. Given below are 5 simple tips that can assist first time home buyers:

1) Lock your home loan interest rate

Mortgage rates can go up or down on an everyday or hourly basis. Talk about your interest rate expectations with the loan officer and try to understand how rises and falls in your interest rate might affect your monthly loan payment and your ability to become eligible for that loan. To save yourself from interest rate hikes, request for a rate lock, which can preserve a particular interest rate for you for a specific period of time. If you’ve made a decision to lock your rate, just ensure that your lock-in period doesn’t run out before the date of closing.

2) Think about an FHA loan

If you’re buying a home for the first time, you might wish to shop for an FHA mortgage, which is a loan that is backed by the Federal Housing Administration or FHA. FHA loans frequently come with competitive interest rates and lower down payments. It’s easier to qualify for FHA loans than other types of loans. The minimum amount of down payment for an FHA loan is just 3.5% of the purchasing price of the house. However, these loans necessitate that you buy private mortgage insurance (PMI).

3) Avail the tax credit

If you haven’t purchased a home in the last three years, then you might be eligible for the Federal First Time Home Buyer Tax Credit of up to $8,000. This credit is reimbursable which implies you’d even receive a rebate of sorts from the Federal government if your amount of outstanding taxes is lower than the total amount of the credit. The credit is dependent on income limitations.

4) Train yourself

A basic 15 or 30-year fixed rate mortgage is quite simple to understand. However, other types of loans might be more complex to understand. If you want to go for an adjustable rate mortgage (ARM) or other unusual types of loan products, you should explore them and ensure that you comprehensively understand how these loans work prior to signing the loan agreement.

5) Shop around

Loan products, interest rates and loan terms differ among lenders. This suggests that all borrowers whether first time or not, must shop around for loan offers. Make questions about the pros and cons of every loan offer and make sure to compare the approximate closing costs, quoted points and interest rates on various loans.

Following the above mentioned tips would help you choose a home loan that’s most suitable for your personal situation.