My Blog

The Plain Dealer and others have written widely on how the credit crisis and other factors have hurt the local real estate market. Given this difficult situation, if you think the assessed value for your real property tax purposes is too high, I want you to be aware that Ohio law provides a process for you to challenge that value. The Cuyahoga County Board of Revision is charged with the responsibility of dealing with complaints seeking tax relief. Please note, the time period for filing a complaint with the Board of Revision is December 1, 2008 through March 31, 2009.

You can find more information from the Cuyahoga County Auditor's website at www.auditor.cuyahogacounty.us.

Dan Latimer

NEW HOMEBUYERS CAN NOW REDUCE THEIR TAX LIABILITY WITH OHFA'S NEW MORTGAGE CREDIT CERTIFICATE

COLUMBUS — Ohioans can now buy a home and lower their tax liability with a Mortgage Credit Certificate (MCC) from the Ohio Housing Finance Agency (OHFA). OHFA has launched its MCC Program to encourage new homeownership, allowing qualified first-time homebuyers to take a direct tax credit for a portion of their mortgage interest up to $2,000 per year for the life of the mortgage.

“The MCC Program is just one of the ways OHFA is continuing to provide resources that make sustainable, quality housing available to homebuyers,” said Doug Garver, Executive Director of the Agency. “By using this credit, Ohioans can reduce their tax burden and keep more of their hard-earned money.”

The MCC Program provides for a credit between 20 and 30 percent, depending on whether the property is in a target area, non-target area, or if it is a Real Estate Owned property. Borrowers are eligible for the MCC Program by being approved for a mortgage and meeting certain requirements, including income limits, maximum home sale price, limited prior homeownership interest, and purchasing the home as a primary residence.

In addition, the recently passed American Recovery and Reinvestment Act provides an $8,000 tax credit for homes that are closed between January 1, 2009 and November 30, 2009. This credit can be used in conjunction with OHFA’s First-Time Homebuyer Program or the MCC Program.

MCCs are available on a first-come, first-served basis through participating lenders and are not transferable. To locate a lender in your area, visit the Homeownership section of OHFA’s web site at www.ohiohome.org.

OHFA utilizes federal and state resources to provide housing opportunities for families and individuals through programs designed to create, preserve, and manage affordable housing throughout the State of Ohio. The Agency is a self-supporting quasi-public agency governed by an eleven-member board, nine of whom are appointed by the Governor and confirmed by the Senate. Two additional seats on the board, by statute, are reserved for the Director of Development and the Director of Commerce, or their designees, and both serve as ex officio voting members.

To see if the property that you are interested in purchasing is in a target area give me a call with the address. I would be happy to provide more specific information for you.

Dan

If you have been watching the news this week, you may have noticed that the debate in Washington has finally turned toward real stimulus for the housing industry. As a result, I believe that we could be on the brink of a substantial turn arou nd in the real estate market. Now, it’s critical that we all join together and deliver a powerful message to our legislators that we support this stimulus.

Last night, the Lieberman/Isakson Amendment was included in the senate version of the Economic Stimulus Bill by a unanimous voice vote. This amendment would provide a Tax Credit to all home buyers at the rate of 10% of the sales price up to a limit of $15,000. The credit would be available for a one year period to all purchasers of primary residences.

Today, the senate expects to debate Amendment 353, a proposal by Senator John Ensign (R-NV) that would provide 30 year fixed financing at a rate of about 4%, for anyone purchasing a primary residence.

If these two provisions survive in the final passage of a stimulus bill they could have a tremendous impact on our industry. If they are coupled together with provisions to ease the flow of credit and reduce foreclosures, we could see an immediate and dramatic turn-around in real estate.

I feel that these provisions represent real economic stimulus. They will put money in the hands of millions of homeowners, increase sales, stabilize home values and add more revenues to local communities in the form of property taxes.

I urge each of you to contact your senators and representatives to let them know that you believe these provisions are essential components of any stimulus bill. You can go to the official senate and house web sites to locate the email and phone number of your legislators.

Let's hope that our government acts responsibly and in the best interest of us all!

Dan Latimer