Do you qualify for a Cook County senior exemption on your real estate tax bill? You may, if you meet the criteria outlined below. If you do, make sure you apply for the exemption on an annual basis (unlike past years, you have to apply annually now to preserve your senior exemption).
1. You have to be at least 65 years old (in the tax year for which you are applying for the exemption).
2. The property you are applying for must be your primary residence.
3. You must be the owner of the property. If you are not the owner, then you must have a lease for the property which states you are responsible for the payment of real estate taxes.
If you submit your application, and you qualify for the senior exemption, you will receive a deduction on your second installment tax bill. Also, if you apply for the senior exemption, you do not need to submit a separate application for a homeowner's exemption.
If you feel you qualify, you should certainly apply. A senior exemption will reduce your tax bill by more than just the homeowner's exemption, keeping valuable dollars in your pocket.
Saturday, June 30, 2012
Wednesday, June 27, 2012
The Mortgage Foreclosure Debt Relief Act
The Mortgage Foreclosure Debt Relief Act (the MFDRA) has provided relief
to countless homeowners, or former homeowners, since it was enacted in
2007. Under the MFDRA, homeowners who received debt relief on their principal residence between 2007 and 2012 do not have to pay income tax on the forgiven debt (normally this debt is taxable). It doesn't matter whether the debt is forgiven as a result of foreclosure, short sale, or mortgage modification. Debt relief under the MFDRA is quite generous -- up to $2,000,000 if married filing jointly, or $1,000,000 if single or filing separately. Forgiven debt is still reported on the tax return, but is exempted from income tax if all qualifications are met.
Unfortunately, the MFDRA is set to expire at the end of this year, on December 31, 2012. While both Democrats and Republicans are supporting an extension, each party has their own version of what that extension should be. There is no agreement to extend the MFDRA just yet, and there may not be until the very end of the year, if at all!
Unfortunately, the MFDRA is set to expire at the end of this year, on December 31, 2012. While both Democrats and Republicans are supporting an extension, each party has their own version of what that extension should be. There is no agreement to extend the MFDRA just yet, and there may not be until the very end of the year, if at all!
Friday, June 22, 2012
What is Shadow Inventory?
What is Shadow Inventory? And what can it tell us about the housing market, and maybe even the economy?
Well, simply put, Shadow Inventory is a fancy way of saying Pending Supply. When analysts talk about the shadow inventory of homes, all they are talking about is how many homes are out there on the market. In other words, they are discussing the pending supply of homes on the market.
How can the shadow inventory help us determine what's going on in the housing market? Well, unless you've had your head in the sand for the past five years, you've noticed that the country is in a recession, caused, at least in part, by the housing bust. As homes were coming on the market, and buyers were disappearing, the Shadow Inventory grew. According to CoreLogic, in October of 2008, there was a 6-month supply of homes out there. And when a few sold, they were offset by the other homes that came on the market.
Just a little over a year ago, in April 2011, the shadow inventory was still at a 6-month supply. But now we're finally seeing some progress. According to CoreLogic, in April 2012, the shadow inventory decreased 14.8% from the previous year. That means that we only have a 4-month supply of homes on the market. Since we know homes are still coming on the market right and left, through distressed situations or otherwise, this probably means that some buyers are coming out too.
That, of course, is good for the economy.
Well, simply put, Shadow Inventory is a fancy way of saying Pending Supply. When analysts talk about the shadow inventory of homes, all they are talking about is how many homes are out there on the market. In other words, they are discussing the pending supply of homes on the market.
How can the shadow inventory help us determine what's going on in the housing market? Well, unless you've had your head in the sand for the past five years, you've noticed that the country is in a recession, caused, at least in part, by the housing bust. As homes were coming on the market, and buyers were disappearing, the Shadow Inventory grew. According to CoreLogic, in October of 2008, there was a 6-month supply of homes out there. And when a few sold, they were offset by the other homes that came on the market.
Just a little over a year ago, in April 2011, the shadow inventory was still at a 6-month supply. But now we're finally seeing some progress. According to CoreLogic, in April 2012, the shadow inventory decreased 14.8% from the previous year. That means that we only have a 4-month supply of homes on the market. Since we know homes are still coming on the market right and left, through distressed situations or otherwise, this probably means that some buyers are coming out too.
That, of course, is good for the economy.
Monday, June 18, 2012
Foreclosures Increase in May 2012
According to RealtyTrac, last month banks filed 16,318 foreclosure filings in Illinois. That's a whopping 29% increase in just one month. It's also a 54% increase over May 2011, a year ago. As RealtyTrac puts it, that's one house out of every 325 homes in Illinois. In Chicago, that's one out of every 252 homes. That's a LOT of foreclosure filings, especially when the real estate market is allegedly improving.
For the first time in 17 months, the foreclosure rate increased over the same month the previous year. Are banks catching up on their backlog? Will this large injection of foreclosures create a more favorable market for short sales? It all remains to be seen.
Banks could certainly use all the help they can get unloading homes that they are in no position to take care. Last month alone, banks took possession of 54,844 properties nationwide. And the filing rate for foreclosures has been slowly increasing all year long. In May 2012, banks filed 205,990 foreclosures nationwide. Banks certainly are not in the business of property management, or at least, they shoudln't be.
With all of the new liability they face, with any luck the banks will ease up on short sales!
For the first time in 17 months, the foreclosure rate increased over the same month the previous year. Are banks catching up on their backlog? Will this large injection of foreclosures create a more favorable market for short sales? It all remains to be seen.
Banks could certainly use all the help they can get unloading homes that they are in no position to take care. Last month alone, banks took possession of 54,844 properties nationwide. And the filing rate for foreclosures has been slowly increasing all year long. In May 2012, banks filed 205,990 foreclosures nationwide. Banks certainly are not in the business of property management, or at least, they shoudln't be.
With all of the new liability they face, with any luck the banks will ease up on short sales!
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