2011 Oakhurst Wine Crawl - February 26th

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Residents along Ponce band together to fight crime | ajc.com

Residents along Ponce band together to fight crime  | ajc.com

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Homestead Exemption

It’s time to file for the Homestead Exemption. The Fulton deadline is April 1st – and you do not want to miss out on this great tax deduction. You save approximately 1/3 of your taxes.

In order to qualify, you must have owned your home on January 1st of that year. Once you file it, you never have to file again. It stays with the house until you sell it.

Also, if you live in City of Decatur or in Atlanta/Unincorporated Dekalb – you need to file in both places.

So, for Decatur, file in City of Decatur and DeKalb County.

For Atlanta, file in Fulton County and Dekalb County.

You have to file in both counties to receive both “sections” of your homestead.

Here are the links:
http://www.decaturga.com/cgs_citysvcs_atr_taxesandfees.aspx

http://www.fultonassessor.org/Forms/HtmlFrame.aspx?mode=content/Exemptions.htm&LMparent=180

http://web.co.dekalb.ga.us/TaxCommissioner/homesteadGen.html

Now get to it!

Loan Modification Programs

There's a lot of info out there regarding these programs. But, they leave out the important part. Yes, your interest rate is reduced and your delinquent amount is added to the back end of your loan. But, I've heard that your loan is then lengthened to 40 years (from 30) and that the interest rate is a temporary reduction for a period of years.

Why on earth would they keep that a secret?

In the end they are not helping at all financially. Of course, folks get to keep their homes. But, at what price? And why so secretive???

Here's an article for US News and World Reports that gives some info. Leaving out what I mentioned above...


Obama's Loan Modification Plan: 7 Things You Need to Know

The White House releases fresh details on its plan to save the housing market
By Luke Mullins
Posted March 4, 2009

At the heart of the President Barack Obama's ambitious plan to rescue the housing market is the conviction that restructuring distressed mortgages will keep struggling borrowers in their homes and help insert a floor beneath plummeting property values. With $75 billion dedicated to reworking troubled loans, that's a big bet—especially considering that a top banking regulator said last December that almost 53 percent of loans modified in the first quarter of 2008 went bad again within six months. But supporters argue that mortgage modifications need to be properly engineered to work—and many early ones weren't. To that end, the Obama administration on Wednesday unveiled fresh details on its plan to restructure at-risk loans and help as many as four million home owners avoid foreclosure. Here are seven things you need to know about Obama's loan modification program.


1. Payments, not prices: The plan centers on the belief that struggling borrowers will stay in their homes—even as values decline sharply—as long as they can make their monthly payments. Although not everyone agrees with this, billionaire investor Warren Buffett endorsed the philosophy in his most recent letter to shareholders. "Commentary about the current housing crisis often ignores the crucial fact that most foreclosures do not occur because a house is worth less than its mortgage (so-called “upside-down” loans)," Buffett wrote. "Rather, foreclosures take place because borrowers can’t pay the monthly payment that they agreed to pay."

2. Thirty-one percent: To that end, the administration's plan requires participating loan servicers to reduce monthly payments to no more than 38 percent of the borrower's gross monthly income. The government would then chip in to bring payments down further, to no more than 31 percent of the borrower's monthly income. In lowering the payment, the servicer would first reduce the interest rate to as low as 2 percent. If that's not enough to hit the 31 percent threshold, they would then extend the terms of the loan to up to 40 years. If that's still not enough, the servicer would forebear loan principal at no interest. The plan does not, however, require servicers to reduce mortgage principal, which Richard Green, the director of the Lusk Center for Real Estate at USC, considers a shortcoming. "For underwater loans, if you don't write down the balance to be less than the value of the house, people still have an incentive to default," Green says. "Writing down the principal first instead of last—which is what [the Obama administration is] proposing—makes sense to me."

3. Cash incentives: To encourage participation, servicers will be paid $1,000 for each modification and will get an additional $1,000 payout each year for as many as three years, as long as the borrower continues making payments. Borrowers, meanwhile, can get up to $1,000 knocked off the principal of their loan each year for as many as five years if they make their payments on time. Neither party can receive the cash incentives until the modified loan payments have been made for at least three months.

4. Financial hardship: The Obama administration is pitching its plan as an effort to help responsible homeowners ensnared in the historic housing slump and painful recession—not speculators. As such, only owner-occupied, primary residences with outstanding principal balances of up to $729,750 are eligible. Occupancy status will be verified through documents, such as the borrower's credit report. In addition, the program is designed to target homeowners who are undergoing "serious hardships"—such as a loss of income—which have put them at risk of default. To participate, borrowers will have to sign an affidavit of financial hardship and verify their income with documents. "If we would have had such stringent verification over the last four or five years, we probably wouldn't be in as bad a position as we are in," says Richard Moody, the chief economist at Mission Residential. But while Moody has no objection to such verification, obtaining documents from so many homeowners could be an onerous effort. "It's going to be a very time-consuming process," he says. Only loans originated on or before Jan. 1, 2009, are eligible, and modified payments will remain in place for five years. Now that the administration's plan is out, lenders are free to begin modifying loans.

5. Net present value: To determine if a particular mortgage will be modified, the servicer will perform a so-called net present value test. The test compares the expected cash flow that the loan would generate if it is modified with the expected cash flow it would generate if it isn't. If the modified loan is expected to produce more cash flow for the mortgage holder, the servicer is to restructure the loan. Howard Glaser, a mortgage industry consultant and a U.S. Department of Housing and Urban Development official during the Clinton administration, called this component of the plan "clever," arguing that it would work to ensure broad participation. "When you apply the formula, the loans that are modified are the ones that are in the best economic interest of the investors to modify," Glaser says. "The federal subsidy for the payment on the modification…tips the scale toward modification as a better deal for the investor."

6. Second liens: The Obama plan also addresses the issue of second liens—such as home equity loans or home equity lines of credit—by offering incentives to extinguish them. But key details on this component of the plan remained unclear. "Distinguishing the second lien is really important," Green says. "[But] exactly how they are going to convince the second lien holder to do this is not clear to me at all."

7. Will it work? Moody argues that while the plan may reduce foreclosures for primary residences, it could lead to a spike in defaults for another group of homeowners. Although he supports the administration's efforts to focus the initiative on primary residences, Moody notes that "it could be the case that a lot of [real estate speculators] have been just hanging on waiting to see exactly what the details are of this [plan]," Moody says. Now that it's clear the Obama plan leaves speculators out, "we could actually see a spike in foreclosures or at least mortgage defaults among this group."

Glaser, meanwhile, worries that lenders may soon be overwhelmed by inquiries from homeowners looking to participate. "Starting today, millions of borrowers are going to start to call their lenders to see whether or not they are eligible," he said. "And I'm not sure that the financial services industry has the capacity to handle these inquiries."

Foreclosures

Foreclosures are all the rage. If I had a nickel for every client that was looking for a foreclosure and "the deal" over the last 12 months, I would be very wealthy in nickles.

But, what most folks don't realize is that by the time the foreclosure hits the market, the ones left are really the third tier foreclosures.

First Tier:
The investors scour the legal organs (Publications) of the county and see who is advertised for foreclosure by the banks. Then, they literally knock on the doors of the ones they want and buy them pre-foreclosure using a variety of methods.

Second Tier:
The investors who buy them on the court house steps on the day of foreclosure.

Third Tier:
These are the ones that have been passed over by investors twice and left for the buyer's market.

So, deal?

Maybe, maybe not.

They generally need much more work than meets the eye. I had a call from a buyer earlier today who closed on their beloved foreclosure at the end of the year - you know deal of the century/we beat the system etc. They were super excited.

They finally moved in and started adding up the cost of everything that needs to be done - all the stuff I told them about 10 times. Kitchen renovation, bathroom renovations, new windows, new floors, new paint, new siding, gutters etc. Of course not everything needs to be done today. But, that's all expensive stuff!

What's so amazing to me about this market is that there are just as many investor owned properties that are priced just as low. And they have likely had a partial or full renovation!

Why is everyone so stuck on the word "foreclosure?"

Don't they realize that if they did not have the money to pay the note, they did not have the money for the house maintenance etc.? I'm not saying that all foreclosures are bad and all will cost money by any means. I'm just saying that there are lots of great deals out there. And more often than not, I think you can get a better deal if you drop that label.

Decatur joins green wave

By MARY MacDONALDThe Atlanta Journal-ConstitutionPublished on: 06/02/07
Used to be fixing the sewers, adding sidewalks and getting the trash picked up on time was enough.
Now cities feel they need to help save the planet.

Joey Ivansco/Staff
(ENLARGE)
Decatur's not alone in environmental measures. Atlanta's City Hall has a rooftop garden 'green roof' that helps reduce stormwater runoff and cool the building.
Not to be outdone by New York City, which plans to upgrade its exhaust-spewing taxis, or Berkeley, Calif., which is trying to cut emissions by 80 percent, Decatur plans to leave its own green mark.
The small city is making room in its budget for all-natural cleaning solvents, compostable office supplies and a pair of low-emission vehicles.
By this time next year, the breakrooms, bathrooms and offices in all city buildings will be stocked with recycled farm produce. As in potato starch cutlery and corn-based coffee cups.
Two hybrid vehicles will be zipping around on city business. And janitors will mop and wipe with green cleaning alternatives.
The city already has a tree protection ordinance, a recycling program and building rules that reduce stormwater runoff. Switching to green city supplies is the next logical step, say city officials, who expect the move will cost little, if any, more money.
Residents in the liberal-leaning city have traditionally supported Earth-friendly efforts.
"We have an activist community in terms of environmental issues," said City Manager Peggy Merriss. "It hasn't escaped us that that's something our community has said is important."
Treading lightly, or at least less heavily, on the planet has become a priority for many cities.
Along with Mayor Bill Floyd of Decatur, the mayors of Atlanta, East Point, Macon and Tybee Island have signed the U.S. Mayors Climate Protection Agreement, a pledge to use regulations and programs that will reduce global warming pollution levels by 2012. So far, 522 mayors have signed on.
In Atlanta, official efforts to become more environmentally friendly spill over 10 full pages.
Among other things, City Hall is topped with a "green roof," a garden that is designed to catch runoff and lower energy costs. Since 2003, all city-financed construction has had to meet green standards. And the city has one of Georgia's toughest tree ordinances.
In Decatur, officials have tried to balance environmentally friendly initiatives with budget realities. Switching to compostable kitchen, cleaning and office supplies rose in priority as the cost of "going green" came down, said David Junger, director of public works.
"In some form or fashion, there is some [green] equivalent out there," Junger said. "And it seems there is more every day."
GREEN OPTIONS
1. Switch out traditional light bulbs with compact fluorescents. The lights last longer, emit less heat and use less energy.
2. Buy groceries and other products that are packaged in recyclable materials.
3. Build a compost pile. This will keep natural materials, including kitchen scraps, out of the landfills. It also improves soil.
4. Reduce water use by choosing drought-tolerant plants and flowers.
5. Reduce gas consumption by choosing a fuel-efficient car. Keep tires properly inflated.
Source: Staff reports

National Association of Realtors Reports on 3rd Quarter Housing

The National Association of Realtors has released their report for the third quarter of 2006, and the numbers support the real estate market transition felt nationwide.

Existing home sales were down 12.7% from a year ago, yet some states experienced an increase in sales activity, with the largest sales increase occurring in North Carolina.

The median existing home price is $224,900, representing a 1.2% decrease over the same number one year ago.

To read more:

http://www.realtor.org/press_room/news_releases/2006/mhp_2006q3_sales_confirm_market_transition.html

Freddie Mac Introduces New Loan Limits


http://www.freddiemac.com/news/archives/singlefamily/2006/20061128_loanlimits.html