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While I tend to be straight-laced when it comes to taxes, I also think it is our right - heck, even our duty - to pay as little taxes as legally required. I take every deduction that I can substantiate. While learning about property taxes, I read that somewhere between 30-60% of homes in many areas are over-assessed. If the estimated assessment value is too high, then those homeowners are paying too much in taxes! In areas of dropping home values, you may be able to get your assessment lowered.

But don’t expect anybody to tell you this. From this 2000 and 2004 articles about property taxes, both from CNN Money:

“It’s an unfair system,” Lewis said. “You can go to one particular block in Long Island, for example, where 11 houses got a tax reduction last year because they filed grievances. The remaining 4 homeowners who didn’t file a grievance are still overpaying. In most municipalities, if you don’t file it means you accept the assessment value of your home.”

“The bottom line is that if homeowners aren’t focused on what has happened in their marketplace, they are paying too much in property tax,” says John Brusniak, a Dallas property tax lawyer.

My sister-in-law recently contested her assessment and successfully got a reduction in her property taxes. The way to do it seems to be for (1) each homeowner to do a little research as to how their local government does their property taxes, (2) figure out if they are…

WalletPop:

Filed under: Real Estate

Some real estate and mortgage experts say that the mortgage industry hasn’t hit bottom yet, because here’s what’s up next: Consumers with prime mortgages bailing out on their financial obligations. If these consumers with good credit and the ability to pay their mortgages don’t make good on their loans, there could be a whole new wave of financial problems in our economy.

California is probably in the worst shape of any state. Real estate prices surged there in recent years, but then the values of homes also fell very quickly. The California real estate market was hit hard as subprime borrowers defaulted. But there is a belief that prime borrowers will soon decide to stop paying their mortgages as they see their real estate values dropping.

This makes no sense to me, because in my world, people pay their debts regardless of whether it’s a “good deal” for them or not. Simply put, these homeowners purchased properties at prices they agreed to. They signed papers agreeing to pay back the bank for the money loaned to purchase the house. If the house has now lost value, it’s not the bank’s fault, and it doesn’t do away with the fact that the consumer promised to pay!Consumers who decide to be dishonest and ditch out on their mortgages will be happy to know that there are even companies that will help you make the most out of your planned foreclosure. They’ll advise you on how long you can still live…

WalletPop:

Filed under: Home, Insurance, Real Estate

After a 5.4 magnitude earthquake shook southern Illinois this morning, I wondered what would happen if my home were caught in a strong tremor. Like most people, my home insurance doesn’t cover such an eventuality. Ohio is in blue on the U.S. Geological Survey Earthquake Hazards Program map of earthquake risk, so I probably won’t go shopping for coverage.

Earthquake insurance is available, though. Usually sold with a large deductible, the coverage might be a good investment for those in highly vulnerable areas. Of course, the higher the risk, the higher the premium. Californians are assured that coverage is available thanks to the creation of the California Earthquake Authority The CERA points out that there is no part of the state that is immune from earthquakes.

“For many California homeowners, their home is their biggest financial asset,” The CERA says on its Web site. “Without earthquake insurance, how do you plan to protect that asset from the costs of earthquake damage?”

But earthquakes aren’t just a California problem. The Insurance Information Institute (III) points out that since 1900 these geological events have occurred in 39 states and been felt in all 50.

“Earthquake insurance carries a deductible, generally in the form of a percentage rather than a dollar amount. Deductibles can range anywhere from 2 percent to 20 percent of the replacement value of the structure,” The III says on its Web site. “Insurers in states like Washington, Nevada and Utah, with higher than average risk of…

WalletPop:

Filed under: Real Estate, Mortgage Confidential

In a story released today by the Associated Press, RealtyTrac, an online foreclosure reporting firm, reported that year over year foreclosure rates jumped 57% when compared to March 2007. It seems foreclosures just won’t stop and it’s the fault of all those subprime and alternative mortgages that are resetting to higher rates and people simply can’t afford them. Oh really? In another slant on the very same data, CNBC reported that yes, foreclosures are still up nationally, but they actually are FALLING in other states such as Texas, New Mexico, New Jersey, Hawaii and Delaware. This little tidbit, oddly enough, was stuck in the very last paragraph of the article. But wait a minute…if all these loans that are adjusting at higher rates are causing more and more people to be foreclosed upon then why are these other states immune from the very same problem? Hmmmmm?

Could it be that it’s not the loan type that’s been the problem? After all, subprime loans have been around for twenty years and so have their hybrid brethren so why has this foreclosure “crisis” being blamed upon subprime loans and the brokers that pushed them?

I’ve suggested this for quite some time, that if it were the type of loan that were the problem then we would have seen similar foreclosure rates for the past twenty years, and we haven’t. And now we see that other states, including Texas, are showing just as dramatic decreases in foreclosure filings, all with…