SE Texas Real Estate Talk

Filing Homestead Exemptions in Jefferson, Hardin and Orange County

If you settled in to a new nest last year, then its time to think about filing for your homestead exemption. 

A homestead exemption removes part of the value of your residence from taxation and lowers your taxes.  Now, that's something to chirp about.  In order to qualify you must own your home as of January 1 of the tax year and use the home as your principal residence. 

According to the Jefferson County Appraisal District there are actually four types of homestead exemptions:

1. General Homestead- for every homeowner
2. Over 65 Homestead
3. Surviving Spouse Over -65 Homestead
4. Disability Homestead

Exemption applications, other than over 65, must be filed between January 1 and May 1 of each tax year. 

To find out how much you will save by filing for homestead current rates for Jefferson County are posted on the JCAD website. 

The Window on State Government Website gives the following information for filing for homestead. 

How do I get a general $15,000 homestead exemption?

You may file an Application for Residential Homestead Exemption with your appraisal district for the $15,000 homestead exemption up to one year after the taxes on the homestead are due. Once you receive the exemption, you do not need to reapply unless the chief appraiser sends you a new application. In that case, you must file the new application. If you should move or your qualification ends, you must inform the appraisal district in writing before the next May 1st. A list of appraisal district addresses and phone numbers is available online.

If you need a copy of Hardin, Jefferson, or Orange County's Homestead Exemption form contact me and I'll email it to you.  Just make sure you remember to file before April 30, 2010.  There's no reason to pay more taxes than you have to. Share this with all your friends who found a nest to call home last year and they will be singing your praise.  Happy New Year!

  

Southeast Texas Home Buyers Find FHA Loans Most Appealing

Its harder to finance a home these days.  If you've been in the residential real estate market in 2009 that comes as no surprise.  You may find it surprising to know that in October in Southeast Texas more home buyers used FHA loans than any other type of financing.  See the cool chart below.

Conventional financing still comes in second for all Southeast Texas home buyers and not far behind is cash.  37 home buyers paid cash for their home in October.  What a nice problem to have. 

Here's five more noteworthy tips about the type of financing home buyers used this October:

1. The median price for cash closings was $75,000.
2. The median price for conventional closings was $163,000.
3. All homes spent an average of 116 days on the market.
4. The median price for FHA closings was $124,900.
5. This October 155 homes closed, compared to 178 last year, and 185 in 2007. 

*Data is from the Beaumont MLS and has not been released to Texas A&M real estate center yet.  One of the big advantages of FHA financing is the 3.5% down payment.  For first-time home buyers its about the cheapest way to get into a home.  FHA loans also allow up to a 6% seller paid closing cost contribution.  Its no wonder, with the first-time home buyer tax credit still driving the market, that FHA financing is the most appealing loan type right now.  Want more information about the Southeast Texas residential housing market?  You can contact me right here on the blog.  Just click the contact Diane button in the right column. 

Three Addresses You Wouldn't Expect To Find At The Auction

Tomorrow, at the most Northerly door to the newest addition to the Jefferson County Courthouse, there will be a sale. 

This sale takes place the first Tuesday of each month rain or shine, wind or snow, or even Hurricane as we found out last year.  Its the Notice of Accereration and Notice of Trustee's Sale.  Also, know in layman's terms as the Foreclosure Sale.

This month there were approximately one hundred Notices of Trustee Sale filed at the Jefferson County Clerk's office.  That's about average for Jefferson County in Southeast Texas.  At least it has been this year.  As you might expect you'll see some addresses in Port Arthur.  But it may come as a surprise to see a few addresses that you wouldn't expect.

Now, foreclosure is not a process to make light of.  It is bad for the homeowner.  It is bad for the neighborhood and its bad for the lender who has not been repaid on the mortgage note.  Its not just a problem in the entry level housing market either.  

Would it surprise you to learn a Notice of Trustee Sale has been filed for a home in Barrington Heights?  How about a home on Salem Circle in Dowlen West?  What about another home in Dowlen West on Shakespeare Drive? 

All three addresses can be found by searching the most recent Notice of Trustee Sale records filed with the county clerk.  Here's what it doesn't mean.  These homes may or may not be sold at auction tomorrow.  The grantor and mortgagee have probably been working very hard to work out an acceptable payment plan that will keep the home owner in the home. 

Of the one hundred or so homes that have had a notice of trustee sale filed and are scheduled to be sold at the auction tomorrow, probably less than 1/4 of those will actually be sold.  At least that seems to be the norm.  Often the only bidder willing to buy the home at the auction is the mortgage holder (the bank or lender).  Buyer's have to pay cash at the auction which knocks out a lot of interested would be buyers.  Especially for the more expensive homes. 

If you are curious about the foreclosure auctions, attending an auction is a good place to start.  Tomorrow, at the most Northerly door to the newest addition to the Jefferson County Courthouse there will be a sale.  Sale starts at 1pm or within three hours thereafter.  Bring a chair and snacks and be prepared to wait.  You might be surprised by what you learn.

Getting A Loan? Here's What You Need To Know About the Third Party Financing Addendum

Almost all of us take out a mortgage when we purchase a home.  In Texas, when you make an offer that is contingent upon financing approval to complete the purchase, you will want to sign a third party financing addendum. 

The Texas Association of Realtors addressed a few of the components of this addendum in a recent email update to Realtors.  This is information they shared with members in the recent update.

Third Party Financing Condition Addendum
I'm having difficulty understanding the terms and issues involving the Third Party Financing Condition Addendum. How does this addendum work?

Prior to the adoption of the current addendum, there was considerable uncertainty as to when and how it was to be determined if the buyer had satisfied the lender's financial requirements. Often the dispute concerning the lender's approval would arise many days after the time period for approval under the prior addendum had expired, and the argument would be whether approval had in fact been obtained within the days specified.
In order to give all parties some certainty about this approval process, the addendum was changed to put the burden on the borrower/buyer to provide written notice to the seller within the time specified if the buyer cannot obtain the necessary financial approval. This would seem to be appropriate, since the buyer is in the best position to obtain that information from the lender and, after all, it is the buyer's contingency. If the buyer is not satisfied that he has obtained financial approval relating to his assets, income, and credit history within the time provided, the buyer must give timely written notice to that effect to the seller. If the buyer gives a timely notice, the contract terminates, and the earnest money is refunded to the buyer. If the buyer does not give such written notice to seller within that time period, the contract will no longer be subject to the buyer's financial approval regarding assets, income, and credit history.
The addendum does not require that the buyer obtain financing approval within the specified time period. Rather, it provides an opt-out period for a buyer who does not believe he can obtain that approval.
As was the case before this change, the lender's approval of the property as satisfying the lender's underwriting requirements is separate from the buyer's personal qualifications.

*Quoted from The Texas Association of Realtors.

As a home buyer who's not a real estate professional, here's the top 5 things you need to know about the addendum. 

1. It is the buyers responsibility to give written notice to the seller if they are unable to get their loan approved.

2. If the buyer gives written notice within the time frame then they will be able to terminate the contract and the earnest money will be refunded.

3. The buyer does not have to have loan approval within the given time period.

4. The home must still meet the lender's underwriting requirements regardless of the time frame for financing approval.

5. If the property does not appraise for the purchase price then the buyer has the option of proceeding with the purchase or terminating the contract.

That's a quick and simple explanation of the third party financing addendum.  As with all contracts, if you have specific legal questions when you should consult an attorney.  If you are starting a home search, you will find there is a lot of paper work that comes along with buying a home.  If you are getting a mortgage to buy your home then you will want to make sure you are signing a third party financing addendum.  Its for your protection.

Breaking Mortgage Update: Get Your $8,000 Tax Credit At Closing

Just in this morning.  Southeast Texas has a lender than is offering monitaziation of the $8,000 first-time buyer tax credit.  Haven't heard about the credit yet?  You must have been under a rock but here's a website with all the information on Federal Housing Tax Credit for first-time home buyers.

The Mortgage Group is our local lender who is offering the program.  Here's the announcement:  

We are very excited to announce we are now able to offer the Texas Department of Housing and Community Affairs MONITAZIATION of the $8,000 Tax Credit so the funds can be used at closing.  The borrowers are allowed to get 5% of the first lien amount up to a max of $7,000 to go for down payment or closing costs.  Here are a few bullet points to help you understand the program:
 
Each buyer must complete a pre-purchase homebuyer education course.
Homebuyers must be eligible to claim the Federal Tax Credit.
Homebuyer must complete the IRS Form 5405 and file an amended 2008 IRS Federal Tax Return.
This is a 90 day 0% loan with a $250 admin fee.
Homebuyers cannot have owned a home in the last 3 years.
Must meet income limits.
If funds are not paid back within 90 days, the funds are repaid over 24 months at 10% interest with monthly payments of $323 per month. 
 
 
 
 
Scott Gittinger
Senior Loan Officer
Texas License Number 49555
 
 
Michael Caballero
Marketing Director
 
Mortgage Group
990 IH 10 North, Ste 135
Beaumont, TX 77702
(409) 899-1800   Office
(409) 899-1808   Fax
(409) 351-2528   Cell

If you need more information about this program call today.  Its an incredible opportunity but you have to qualify and you have to close on a home before November 30, 2009.  Its taking about sixty days for most residential purchase contracts to close these days so you want to be finding a home soon.  If you wait until October or November to start looking you may be too late.  Sometimes offers like this sound to good to be true but this one is true.  First-time home buyers are able to get an $8,000 tax credit for buying a home. 

Its Time To Buy! Beaumont, Texas Mortgage Rates Under 5%.

If you've been sitting on the fence looking for the best time to buy a home, its time to jump!  Rates have fallen below 5% on a 30 year fixed rate mortage.

Local Southeast Texas lender's rates:

Wells Fargo, Beaumont has a rate of 4.75 today!

Bank of America, Beaumont has a rate of 4.85 with a 10% down payment, 30 year fixed today!  

The Mortgage Group, Beaumont has rates right around 5% depending on your down payment. 

It's a great time to buy.  Rates won't be staying this low once the economy starts to rebound.  I guess there are some good things to come from a national recession.  Now, get off the fence and buy a home.  You'll be kicking yourself if you miss these rates.  Need help finding one?  Email me. diane.mcnelis@gmail.com.

Buy Your 1st Home, Get $7,500 Tax Credit.

First-time home buyers have 7,500 reasons to buy a home now.  The Housing and Economic Recovery Act of 2008 was signed by President George Bush on July 30th.  One of the most exciting parts of the new bill is the provision for first-time home buyers.  There is a $7,500 tax credit you can receive next year.  Owe nothing on your tax return?  You could get a check for $7,500.

How do you get the $7,500 credit?

Buy a home between April 9, 2008 and July 1, 2009 and you are eligible for the $7,500 tax credit.  You have to be a first-time home buyer or haven't owned a principal residence in the three-year period prior to the new home purchase.  Married couple?  Neither spouse can have owned a home in the past three years to qualify. 

Are there restrictions?

There is a maximum income for individuals.  It is $95,000 in yearly earnings.  There is a maximum for couples filing jointly.  If your combined income is over $170,000, you won't qualify.  (Sorry, you make too much. No tax credit for you.)  Other restrictions just to keep us all honest and using the credit for what it was intended for. You have to buy a principle residence.  It has to be located in the United States.  That's about all the restrictions. 

The tax credit is a great incentive to buy a home before next July, but the money is not completely free.  It has a payback period.  Think of it as an interest free loan.  The credit has to repaid over the course of 15 years.  You will be paying back about 6.67% per year.  If you received the full credit of $7,500, you would be paying back about $500 per year. 

This recovery act is still being deciphered by very knowledgeable people, but the $7,500 tax credit is really there.  Buy a home and next year you can get up to a $7,500 check courtesy of Uncle Sam. 

Want to learn more about the tax credit and the Housing and Economic Recovery Act?  Read More.

• First-time Home Buyers Get a "Break", published by NAR research economist, Danielle Hale.
• NAR Chief Economist Lawrence Yun, discusses broad points of the Act.

If you are a first-time home buyer, there is no better reason - than these $7,500- to stop waiting and buy a home now.

The Cost of Closing In Texas.

New York, Texas and Florida have something in common.  According to Bankrate.com, they are the most expensive states to close on a home.  North Carolina is the least expensive state to close on a home.

The top five most expensive states are:

1. New York:  $4,016
2. Texas:   $3,975
3. Florida:   $3,683
4. Oklahoma:   $3,558
5. New Mexico:   $3,465

The least expensive state, North Carolina, averages $2,650 in closing costs.  The full article gives this basis for the higher costs in New York.  Most closings in New York are prepared and handled by attorneys.  Their fees are higher than closing agents which are commonly used in other states. 

The reason Texas and Florida are number two and three on the list is both states title insurance rates are promulgated by the insurance department.  In simple terms, the state government sets the fees.  Its illegal for title companies to charge rates other than those set by the state insurance departments. 

The typical closing costs in the ranking above were based on a $200,000 purchase price.  Its important to know your closing costs will vary from lender to lender.  You will want to have a Good Faith Estimate prepared by any lender you work with.  The title fees will be the same but what the lenders charge can vary by a few hundred dollars. 

Its a fact of home ownership.  You can't avoid closing costs.  At least in Southeast Texas property values have gone up enough each year that your closing costs turn into home equity usually in less than one year.    And, that's one more good thing about buying a home in Southeast Texas. 

Two Loans Most Buyers Have Never Heard Of...That Can Be Used To Buy A Home In Southeast Texas.

Remember the days when you could borrow over 100% of a home's purchase price? 

Those days are a faint memory for most of us in the real estate industry. Insiders and real estate veterans refer to them as the good old days when anyone who could sign their name could buy a home.  Alas. A few greedy people made some bad (cough. should I say, fraudulent) loans and spoiled 100% financing for the rest of us.

Good News. There are still low and no-down federally sponsored mortgage programs available for home buyers with steady jobs but little to no savings. 

1. The U.S. Department of Agriculture's Rural Development Program will lend up to 102 percent of a home's value in a community with a population is less than 10,000.  In Southeast Texas, here's a few of the communities that qualify: Winnie, Vidor, Mauriceville, Fannett, Silsbee and there are others.  Just about every community other than Beaumont qualifies. Want more information contract the Local Field Offices For Jefferson County to get details.
2. Streamlined 203(K) Limited Repair Program is another unique loan program.  This one allows you to buy a home that needs repair and finance up to an additional $35,000 into your mortgage to improve or upgrade your home before you move-in.  That's pretty awesome.  Want to get more details on the Streamlined 203(K) Click Here For Approved Consultants Near Us.

These loans aren't for everyone.  Qualification standards can be restrictive.  But just in-case you thought 100% loans were a thing of past, now you know they are not gone entirely.  You just have to know where to look to uncover these little-known loan programs that can be used to buy a home in Southeast Texas.

18 More Jefferson County Homes Foreclosed Today.

It was auction day again.  Since the last foreclosure auction in June about seventy notices of trustee sale had been filed with The Jefferson County Clerk's Office. 

So how does a homeowner get into a foreclosure nightmare?  For some it was the loose lending of the past several years.  Banks were eager to lend to anyone.  Your ability to repay the loan wasn't as important as your willingness to buy.  Homes were going up in value.  No one was losing their home because you could just sell it for a profit if you got in trouble making your payments.

These days homes aren't going up in value as fast.  Some home owners are even upside down.  A lot of us have probably experienced being upside down on a car.  The day you drive a new one off the lot you are usually upside down.  That is - you owe more than you could sell it for.  What do you do when you owe more to the mortgage company than you can sell your home for?  For some people, foreclosure is the only alternative. 

There are probably just a few bad money managers out there too.  They just spend more than they can afford and the bills keep adding up.  One thing leads to another.  They get behind on the mortgage and then their home is being foreclosed. 

Regardless of the "hows" and "whys", Eighteen homes were auctioned off today. 

Cold, hard facts:

• Only two of the eighteen were bought by bidders.  One on Arrowhead in Beaumont.  The other on Gladys.
• The most expensive "minimum bid" on one of the foreclosures was $244,241.78.
• The least expensive "minimum bid" was $17,500.
• Sixteen homes were bought back by the mortgage holders because no one bid the minimum bid.
• 2136 Orange Street was auctioned for a minimum bid of $18,000.  No bidders.  The mortgage company bought it back.
• 9355 Josey Street was auctioned for a minimum bid of $88,688.79.  No bidders.  The mortgage company bought it back.
• 5070 Avie Lane was auctioned for a minimum bid of $121,500.  No bidders.  The mortgage company bought it back. 

Notices of trustee sale are already being filed for the next foreclosure sale.  It will be August 5, 2008.  How many homes will be auctioned that day?  We'll have to wait and see.  Hopefully, the number will be less than eighteen.  But its unlikely that it will be zero.