Fannie Mae and Freddie Mac Buying Sketchy Loans?

According to a report released by the Federal Housing Finance Agency (FHFA) last month, mortgage giants Fannie Mae and Freddie Mac have continued to buy questionable mortgages despite notice that there are issues with property appraisals.

Apparently at some point during the process of buying the loans, the FHFA evaluates them.  Between the summer of 2012 and early fall of 2013, the FHFA alerted Fannie Mae and Freddie Mac to appraisal issues on $107 billion in mortgage loans.  Despite that, Fannie Mae and Freddie Mac went ahead and bought those loans anyway.

What is a Senior Freeze?

If you qualify for a Senior Exemption on your real estate taxes, you might also qualify for a senior freeze.  A senior freeze is a great way to keep your taxes down, because it will essentially freeze the assessed value of your property to whatever the assessed value is the year you qualified.  You won't be subject to annual increases in the assessed valuation of the property, as long as you continue to qualify.

 

To qualify for the 2013 senior freeze:

 

1)  You must be born in 1948 or earlier.

2)  You must own the property you are applying for, and it must be your principal place of residence.  If you do not own it, but you have a lease that states that you are responsible for the payment of real estate taxes, that is sufficient.  But you must have owned the property or had a leasehold interest in the property on both the first day of 2012 and the first day of 2013. 

3)  You also must have been the responsible party for payment of both 2011 and 2012 property taxes.

4) In 2012, your total household annual income must be $55,000 or less.

 

If you qualify, act quickly!  Contact your local assessor's office for the senior freeze application!

 

Senior Exemption for Real Estate Taxes in Illinois

If you are a senior and you own a home in Illinois, you could qualify for a senior exemption on last year's real estate taxes.  While the first installment of 2013 taxes has already been paid, the second installment won't be due for month, and you can still get the benefit of the senior exemption if you qualify.  To get a senior exemption for 2013:

1)   You must have been at least 65 years old during 2013.
2)   You must own your residence.  If you do not own, you may still qualify for the senior exemption if your lease states that you are responsible for real estate taxes.
3)   If you moved during the tax year, you can apply for and receive a prorated senior exemption.  Make sure you submit your HUD or settlement statement, proof of age, proof of residency, and a copy of a recent real estate tax bill.

Contact your county assessor to get the application, and get it done quickly.  Applications will be due soon!

Foreclosure Filings Increased Nationwide in January 2014

Are things really getting better?  RealtyTrac recently released it's Foreclosure Market Report for January of 2014.  Unfortunately, foreclosure filings increased 8 percent since December 2013 nationwide.  Perhaps the large increase is just because less foreclosures might have been filed over the holidays?  Who knows.  What we do know is that according to RealtyTrac, there were nearly 125,000 new foreclosure filings nationwide in January.

What's more, Illinois had one of the highest rates of foreclosure filings in January.  Only Florida, Nevada and Maryland has more.  The top five were rounded out by New Jersey. 

On the bright side, to the extent you're looking for a home, there might be some more inventory out there in the near future as a result of all of these foreclosures.