Help paying your back property taxes

ACT NOW TO GET $30,000 TO SAVE YOUR HOME

Dear Friend:

This letter is to inform you of a new program to help pay your delinquent property taxes up to

$30,000 if you face a hardship preventing you from paying your property taxes.

The program is called the “Step Forward Michigan Loan Rescue Program for Property Tax

Assistance,” and is helping some eligible homeowners pay off their delinquent taxes.

You may be eligible if the following criteria apply to you:

1. Owner Occupied Homes Only – You must live in your home, no land contracts.

2. Delinquent Taxes – You must owe delinquent taxes, interest, or fees on that home.

3. Hardship – You must face a hardship preventing you from paying your taxes.

4. Cash Reserves – Less than 1.5 times your annual property tax bill in your account.

Applicants are encouraged to apply with help from our partner agencies, including:

Community and Home Improvement, Oakland County; Community Housing Network;

GreenPath; JVS; Lighthouse; New Hope; OLHSA; Southwest Housing Solutions; and

University of Detroit-Mercy Legal Aid Clinic.

With the help of your certified housing counselor, apply for the “Step Forward Michigan

Loan Rescue Program” online at www.stepforwardmichigan.org or by calling 866-946-7432.

Please contact our office at 248-858-0624 and we will get you connected with a certified

housing counselor to begin the application process.

Taxpayers with delinquent taxes should schedule a Taxpayer Assistance Meeting with

our office to arrange a payment plan and prevent foreclosure.

Sincerely,

Andy Meisner

Oakland County Treasurer

Here is a list of partner agencies

Oakland County Treasurer

1200 N. Telegraph Rd., Dept. 479

Pontiac, Mi 48341-0479

Andy Meisner

County Treasurer

Jody Weissler Defoe

Chief Deputy Treasurer Office

(248) 858-0612 Fax (248) 858-1810

Certified Housing Counselors

Community & Home Improvement, Oakland County

250 Elizabeth Lake Rd., Suite 1900,

Pontiac 48341

(248) 858-1891

Community Housing Network

570 Kirts Blvd., Suite 231,

Troy 48084

Step Forward Michigan Hotline

(248) 269-1330

GreenPath

36500 Corporate Drive,

Farmington Hills, MI 48331

888-776-6735

JVS

29699 Southfield Rd.,

Southfield 48076

Clarissa McMillon (248) 233-4482

Reda Nafso (248) 233-4263

Lighthouse

46156 Woodward Ave.,

Pontiac 48342

 (248) 920-6060 Ext. 2411

New Hope Community Development

19487 Evergreen Road,

Detroit 48219

(313) 255-6275

OLHSA

196 Cesar E. Chavez Avenue,

Pontiac 48343

Autumn Butler (248) 209-2797

Elena Steek (248) 209-2644

Southwest Housing Counseling Solutions

3627 W Vernor,

Detroit 48216

Main Line (313) 841-9641

Tina Ellis (313) 297-0065

LEGAL AID

University of Detroit-Mercy Law Clinics

651 E. Jefferson,

Detroit 48226

Professor Joon Sung (313) 596-0262

Blog post by:

Morris Hagerman, Realtor

Real Estate One Royal Oak

26236 Woodward Avenue

Royal Oak, Michigan  48072

248-854-8440

morrishagermanproperties@gmail.com

Morris Hagerman Real Estate One website

HUD releases "Qualified Mortgage" definition

HUD releases "Qualified Mortgage" definition

WASHINGTON – Today the U.S. Department of Housing and Urban Development (HUD) released its final rule which defines a ‘Qualified Mortgage (QM)’ that is insured, guaranteed or administered by HUD. The final rule will be effective on January 10, 2014 and will apply to mortgages with a case number assignment on or after that date. Read HUD’s final rule.

The Dodd–Frank Wall Street Reform and Consumer Protection Act requires HUD to propose a QM definition that is aligned with the Ability-to-Repay criteria set out in the Truth-in-Lending Act (TILA) as well as the Department’s historic mission to promote affordable mortgage financing options for underserved borrowers. HUD’s rule builds off of the existing QM rule finalized by the Consumer Financial Protection Bureau (CFPB) earlier this year.

In order to meet HUD’s QM definition, mortgage loans must:

• Require periodic payments without risky features;

• Have terms not to exceed 30 years;

• Limit upfront points and fees to no more than three percent with adjustments to facilitate smaller loans (except for Title I, Title II Manufactured Housing, Section 184,Section 184A loans and others as detailed below); and

• Be insured or guaranteed by FHA or HUD.

Currently, HUD does not insure, guarantee or administer mortgages with risky features such as loans with excessively long terms (greater than 30 years), interest-only payments, or negative-amortization payments where the principal amount increases. Moreover, HUD’s existing underwriting standards require lenders to assess a borrower’s ability to repay their mortgage debt. The new limit on upfront points and fees for all Title II non-manufactured housing FHA-insured single family mortgages is consistent with the private sector and conventional mortgages guaranteed by Fannie Mae and Freddie Mac to attain qualified mortgage status under CFPB’s final rule.

The rule establishes two types of Qualified Mortgages that have different protective features for consumers and different legal consequences for lenders. HUD’s Qualified Mortgage classifies a loan as either Rebuttable Presumption Qualified Mortgages or Safe Harbor Qualified Mortgages depending on the relation of the loan’s Annual Percentage Rate (APR) to the Average Prime Offer Rate (APOR), the rate for the average borrower receiving a conventional mortgage. The two categories of Qualified Mortgages are:

A Rebuttable Presumption Qualified Mortgage will have an APR greater than APOR + 115 basis points (bps) + on-going Mortgage Insurance Premium (MIP) rate. Legally, lenders that offer these loans are presumed to have determined that the borrower met the Ability-to-Repay standard. Consumers can challenge that presumption, however, by proving that they did not, in fact, have sufficient income to pay the mortgage and their other living expenses.

Safe Harbor Qualified Mortgages will be loans with APRs equal to or less than APOR + 115 bps + on-going MIP. These mortgages offer lenders the greatest legal certainty that they are complying with the Ability-to-Repay standard. Consumers can still legally challenge their lender if they believe the loan does not meet the definitions of a Safe Harbor Qualified Mortgage.

Furthermore, HUD’s rule covers Title II manufactured housing, Title I manufactured housing and property improvement loans, Section 184 Indian Home Loan Guarantee Program mortgages and Section 184A Native Hawaiian Housing Loan Guarantee Program mortgages.. The rule designates loans insured under these programs as Safe Harbor Qualified Mortgages regardless of upfront points/fees and APR to APOR ratio so as not to interfere with current lending practices until appropriate parameters can be determined.

HUD also adopts CFPB’s list of transactions that are exempt from the ability-to-repay requirements, which includes Reverse Mortgages; Bridge loans with a term of 12 months or less; Construction-to-permanent loans for 12 months or less for the construction phase; Extension of credit by a Housing Finance Agency; Extension of credit by Community Development Financial Institutions; Extension of credit made pursuant to a program authorized by sections 101 and 109 of the Emergency Economic Stabilization Act of 2008; Downpayment Assistance through Secondary Financing Provider made pursuant HUD’s regulations; Community Housing Development Organization (CHDO) provided that the creditor has entered into a commitment with a participating jurisdiction and is undertaking a project under the HOME program; A 501(c)(3) organization that secured no more than 200 dwellings in the prior calendar year to consumers with income that did not exceed the low- and moderate-income household limit as established pursuant to section 102 of the Housing and Community Development Act of 1974 (42 U.S.C. 5302(a)(20)) and the creditor determines, in accordance with written procedures, that the consumer has a reasonable ability to repay the extension of credit.

HUD’s mortgage insurance and loan guarantee programs play a central role in the housing market and act as a stabilizing force during times of economic distress, facilitating mortgage financing during periods of severe constriction in conventional markets. The final rule aims to ensure the continuity of access to mortgage financing to creditworthy, yet underserved borrowers while further strengthening protections for FHA borrowers and taxpayers, alike.

Leasing a home can be easy and there are no fees or commssions

Finding a home to rent can be a struggle.  Especially if out there all alone looking for someplace that is livable.  

But, it doesn’t have to be.  A real estate agent can also help find a home to rent just like the search for a home to purchase.  The nice thing is that there are no fees or commissions for the renter to pay.  All of those fees are paid by the landlord.

The real estate agent can provide a list of houses, flats, apartments or lofts that are currently on the market in the geographic area that the renter requests.  It can be narrowed by the price range and numerous amenities that are needed.

After examining the details of the properties on the list, and perhaps with a drive by, the renter can then determine what properties to walk through.  The agent can then set up the showings.

Making an offer on a home to lease is a little simpler than on a purchase.  But, there is still some of the same paper work.

• Agency disclosure form - This document fully informs the renter that the real estate agent is an agent.
• Designated Tenant Agency Agreement - This document allows the agent to work for the benefit of the renter.
• Offer to lease - This document details the terms that the renter is willing to accept and the amount of the rent being offered.
• Property disclosures such as lead based paint and other building materials used in the construction of the property that may cause health issues.

The offer to lease will set the terms for the lease.  The financial details are the monthly rent, the security deposit, a pet security deposit, a cleaning fee if there is one.  It will also state who is to pay the utilities (usually the renter), the taxes (usually the landlord), waste removal and water bill.  If applicable, it will state who will cut the grass and perform the general maintenance of the property.

Along with the documents mentioned above the following is often required. These documents are very important because landlords will require them before you are even considered, often before you can even see the house.

• Proof of employment - a letter from your employer
• Two month's pay stubs
• Two years of W-2
• Credit score - available for free from Credit Karma and others online
• Two month's of bank statements
• Previous landlord or mortgage company and contact information
• Social security number
• Proof of ID, such as Michigan license, Michigan ID card or passport
• Most likely for many, there is a criminal background check

These documents are then submitted to the landlord or the landlord’s real estate agent for acceptance.

If the application is accepted, a closing is set up at the property.  At the closing three checks are needed:

• One check or money order for half of the first month’s rent made out to the landlord’s real estate agent company
• One check or money order for half of the first month’s rent made out to the renter’s agent’s real estate company
• One check or money order in the amount of the security deposit made out to either the landlord, the landlord’s real estate agency or a property management company.

Also at the closing, the renter will be asked to review the property and make note of anything that is wrong or damaged.  It is suggested that besides making a note of the issues, that either a photo or video also be taken.  For things that are essential to the operation of the property, such as a water heater or stove, a request to repair it can be made.  If it is cosmetic, making a note protects the renter from possible action against the security deposit when the lease is completed.  At that time, if satisfied, the renter can sign the lease, present the checks and take over the property.

While most, if not all, properties will follow the above process, there may be a individual property owners that ask that things be done a little different.  Those situations are handled on a case by case basis.

This process may seem complex, but it really isn't.  A good agent will make sure things run as smoothly as possible. But, remember, there are no fees or commissions to pay.

***

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page. 

Buying a house before selling the current home

Buying a your next home before you sell the current one that you are living in creates some tough decisions.  Many of them should be made in advance to reduce the anxiety and allow time to prepare for the issues that may arise.

If there was a “right” way, we would all know just what to do.  But, in reality, the decision comes down to more personal choice and the tolerance for risk.  While there is risk, of course, in any decision, it comes down to what kind of risk.

Buying first

Searching for a new home can be fun if there isn’t a deadline.  Knowing there isn’t a closing pending on a current home means having the luxury of time.  With that time, waiting for right house to come on the market is relaxing.  It also means that if the deal on the right house falls through, it is easy to start searching again, instead of perhaps suffering a financial hardship or being forced to accept a deal that turned sour.

There is a downside to finding the right house and still owning the current home.  While the closing can be put off for a while to enable enough time to sell the current house, it can’t be placed on hold for long.  The seller’s will want action sooner or later, since they may be in the same situation.  Then, if the closing goes through, there are now two mortgages to keep up on.  It not only might be impossible to make two mortgage payments, a lender might not be willing to take the risk.

The buyer can protect themselves by placing a contingency on the purchase with the sale of the current home.  But, that contingency will have a drop dead date when the buyers will place the home back on the market.  Additionally, in a seller’s market when there are going to be multiple offers, seller’s will look closely at all contingencies and select the one with the least conditions.

Selling First

If the current home is sold first, besides removing the risk of two mortgages, the amount of money the sale produced will be certain.  When buying first, the down payment money comes out of savings with plans to replace the money on the sale of the current home.  But, if it the sale of the current home doesn’t produce enough cash, it may create an avoidable financial hardship.

The downside is the stress of finding a new home before closing on the new home.  If the tolerance for risk is low, deals may be accepted that are not good.

Plan in advance

Ask many questions of yourself and your family when you decide to move.  If the closing dates of the two homes don’t come at the same time, is the family willing to move in with someone else or find a short term rental.  Will it be possible, given income to debt ratios and credit scores, to get bridge financing to help with the cost of owning two homes?

The best advice is to talk with a couple of professionals in advance.  Since an application for a mortgage is going to be made, discuss your financial situation with a lender.  Let the lender knowing what is being planned.  The lender can then prepare a couple of options with bottom line costs.

Also, talk with a real estate agent about current market conditions.  Knowing how fast homes are moving in your market is not a guaranteed about your home but will give you some idea of what to expect.  The agent will also develop a listing price to help understand the financial situation.  

In the end, while it is going to cause stress no matter the choice, enjoy the process.  Finding a new home can provide a great change and a lot of hope for the future.

Morris Hagerman is a local real estate agent with Real Estate One in Royal Oak, Michigan.  He serves Berkley and the other Woodward 5 communities, including Ferndale, Pleasant Ridge, Royal Oak and Huntington Woods.  Hagerman is also a member of the Berkley/Huntington Woods Area Chamber of Commerce.  You can contact him by phone at 248-854-8440, email at morrishagermanproperties@gmail.com or visit his web page.