Local governments can seize and sell a home if the owner falls behind in property taxes & fees.   This process helps governments make ends meet at a time when property values are lower & the weak economy is squeezing tax revenue.  Tax debts as low as $400 can cause folks to lose their homes because of arcane laws & misinformation among consumers, according to John Rao, an attorney at the National Consumer Law Center.  It is impossible to figure the number of homes sold in TAX LIEN SALES, as the information is spread among thousands of local govenments.  In Florida alone in 2008, $2 billion worth of tax liens were sold.  Many older Americans use the equity in their home as collateral for reverse mortgages and other methods.  Folks must KEEP TRACT OF THEIR PROPERTY TAXES each year and be sure they are paid and not depend on their lender.  People with higher-quality mortgages tend to pay taxes and insurance to their mortgage companies as part of their monthly bills,  but even then the homeowner needs to check to be sure their taxes + their homeowners insurance is paid YEARLY.

July reminds us of homes of our funding Fathers.  Their homes were more than shelter, but places of reflection & inspiration.  George Washington inherited Mount Vernon when he was 20 years old.  John Adams was born in a home that remained in his family for 4 generations.  “HOMEOWNERSHIP IS AN INVESTMENT IN OUR FUTURE,  but also a gateway to our past”.   The homes of our country’s founders offer insights into their characters & values & reflects their spirits, just as our homes for us today.  1/5 th of women are now homebuyers  & it is a way to express their independence.  The founding Fathers lived close to where they were born & that is still true according to the National Assoc. of Realtors.  The typical buyers only moves 12 miles from his or her previous residence.  Thomas Jefferson said “I am as happy nowhere else & in no other society, & all my wishes end, where I hope my days will end, at Monticello”.

Reducing the amount struggling homeowners owe on their mortgages is proving to be a more effective way to prevent foreclosures than other methods, such as reducing interest rates or postponing payments, according to Amherst Securities Group.  That brings the home’s value near market value, so borrowers do not fall behind on payments & lose their homes.  Only 12% of borrowers who receives principal reductions re-defaulted in 2011, compared to 23% who received interest rate reductions (but NO principal reduction) & 30% who received forbearance, which postpones their debt repayment.  In many cases homeowners are no longer hopelessly underwater.  Loans backed by Freddie Mac & Fannie Mae are NOT included, but could change as the Federal Housing Finance Agency, who controls the majority of outstanding mortgages through its oversight of Fannie & Freddie, has thus far prohibited the mortgage giants from including debt forgiveness as part of their mortgage modifications, as considered unfair.  Uncle Sam could help with these loans, but conplicated & more to come.

Freddie Mac yesterday released the results of its Primary Mortgage Market Survey, showing average mortgage rates easing amid worsening economic indicators.  THIRTY- YEAR FIXED rate mortgages averaged 3.66% with an average of 0.7 point for the week ending 6/21/2012 or down from 4.5 % a year ago.  FIFTEEN- YEAR FIXED rate mortgages averaged 2.95% with an average 0.6 point or down from 3.69% a year ago.  Five-year Treasury-indexed hybrid ARMs or adjustable rate mortgages averaged 2.77%  this week with an average 0.6 point or down from 3.25% a year ago.  One-year Treasury-indexed ARMS averaged 2.74% this week with an average of 0.5 point & down from 2.99% a year ago.

Tyler area home sales in May 2012 jumped 6.65% from the same time last year.  289 units were sold as compared to 271 in May 2011 reported by the Greater Tyler Association of Realtors.  Increase from April, but April was slow.  Median home sale prices are still $137,500 as they were a year ago.  Dr. Lawrence Yun, National Association of Realtors chief economist, said the housing recovery is under way.  It is no longer just investors, but folks taking advantage of the HIGH AFFORDABILITY conditions, which includes the continuing low interest rates.  The number of days on the market in the Tyler area is DECREASING, so inventory is lowering, which is a good indication of a stronger market.  Still a ways to go to be a stable market for both buyers & sellers.

The real estate matra, “location, location, location,” doesn’t apply just to homebuyers anymore, but to renters also, according to the National Association of Home Builders (NAHB).  The location of an apartment building is the most important feature for renters choosing their home.  As a result more and more developers are choosing to build in urban areas near public transit, such Millennials – the largest group of renters – seek shorter commute times and better quality of life.  Onsite fitness centers are becoming more prominent as well, with top-of-the-line equipment and yoga rooms.  Common areas are become more, well, common, such as computer centers, media centers and lounges – previously separate spaces – are now coming together to foster more resident interaction.

The Texas Veterans Land Board (VLB) has voted to increase its home and land loan limits.  Texas veterans can now borrow up to $417,000 to buy a home and up to $100,000 for the purchase of land.  Both options are available as low-interest loans.  Also lots as small as ONE ACRE and now eligible.  Information on the loan program and be found at the  VETERANS LAND BOARD WEBSITE.  You may need to go thru a local lender, but be sure you deal with a lender who deals with these loans and only a few do.

It has been noted by a few Realtors lately that sometime during showings PRESCRIPTION DRUGS have gone missing.  Home owners are often cautioned about hiding  jewelry and small electronics, but recently a Waco Realtor noted that prescription drugs went missing after a showing.   The Waco theft is no isolated incident.  Reports have surfaced of a Dallas-area man visiting homes for sale in search of prescription medications.  Reports of similar thefts have been found across the country.  So now prescription drugs are added to the list of valuables to hide or remove from the property during showings.

If you tell yourself to find something red & no red around, but during the day your brain works till you find something red & quickly.  In fact it could be something almost red, but your brain is wired to find red.  We need to wire our brain to think of the positive and uplifting events in ours lives.  That is why bad news gets more press than good news.  100 top sales folks said the “ability to control or the ability to manage their own state of mind” is what makes them successful.  So WATCH YOUR MOUTH and say only positive things about yourself and others.  It makes a difference on your thought life!

The Tax Code states that notices of protest must be filed before May 1 or no later than the 30th day after notices of appraised value are delivered, but there is some flexibility.  “If an owner of a single-family residence files a notice of protest after the deadline, but before June 1 and the ARB (Appraisal Review Board) has not approved the appraisal records, then the owner is entitled to a hearing and determination of the protest”.   Homeowners who have questions can email PTAD or call 800-252-9121 (press “2” for the menu, then “1” to contact the information services team),