A Salute to Martin Luther King Jr.
By · CommentsHow appropriate that the day after we celebrate the life of Martin Luther King Jr, Barak Obama will be sworn in as the President of the United States.
In honor of both occasions, enjoy these quotes by Martin Luther King Jr.:
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The ultimate measure of a man
is not where he stands in moments of comfort and convenience,
but where he stands at times of challenge and controversy.
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Faith is taking the first step up
even when you don’t see the staircase.
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All labor that uplifts has importance
and should be undertaken with painstaking excellence.
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Life’s most persistent and urgent question is
"What are you doing for others".
Wow – I am inspired to speak as if my words will be remembered for years after I die.
According to Zip Realty, Phoenix –Scottsdale real estate was the second most frequently searched zip code for homes for sale in 2008. Here is the list of the top ten – and Phoenix zip codes made 5 of the top ten spots. Phoenix, Scottsdale, Chandler, Mesa and Gilbert all made the top ten list. Zip Realty is in 35 markets.
- Phoenix – Phoenix
- Phoenix-Scottsdale
- Phoenix-Chandler
- Orange County-Irvine
- Las Vegas-Summerlin
- Phoenix-Mesa
- Orlando-Orlando
- Phoenix-Gilbert
- Atlanta-Atlanta
- Las Vegas-Henderson-Green Valley
Scottsdale Foreclosure Report - Freddie Mac homes
By · CommentsI received the latest update dated December 22, 2008, for the current foreclosures of Freddie Mac homes in Scottsdale. There are 15 total foreclosure homes in the following Scottsdale zip codes: 85251, 85255, 85258, 85259 and 85260 (These are the zip codes I subscribe to but I have access to others, if you are interested). Typically, foreclosed homes are not maintained and need a bit of work. But the price can make the work part seem manageable. Let me know if you’d like more information about any of these homes.
Click here to see a zip code map of Scottsdale
| Zip Code | # Homes | Low Price | High Price |
| 85251 | 6 | $79,900 | $127,900 |
| 85255 | 5 | $119,000 | $349,900 |
| 85258 | 2 | $304,900 | $312,900 |
| 85259 | 1 | $234,900 | $234,900 |
| 85260 | 1 | $239,900 | $239,900 |
Who Qualifies for Mortgage Forgiveness?
By · CommentsWith more and more short sales in my inventory of listings, I’ve realized that one important question most homeowners have is how the short sale will impact their income tax. When a lender cancels debt, it is considered taxable income to the borrower . This income is reported to the IRS by the lender on Form 1099-C .
H.R. 3648 Mortgage Forgiveness Debt Relief Act of 2007 amends the Internal Revenue Code of 1986 to exclude discharges of indebtedness on principal residences from gross income. It applies to debt forgiven in the calendar years 2007 through 2012 through foreclosure, short sales or deed-in-lieu of foreclosure. Here are a few of the main qualifiers that allow the taxpayer to exclude forgiven debt from their taxable income:
- Must be on their principal residence with a loan balance of less than $2 million or $1 million if married and filing separately.
- Debt must have been used to buy, build or improve the principal residence
- Debt must have been secured by the principal residence.
- If you have refinanced, the debt is eligible up to the amount of the old mortgage principal balance prior to the refinance.
My advice is this: Do your research. Read and ask questions. Knowledge will empower you and give you the confidence to be proactive. Then, consult an accountant or tax advisor. Share with him what you have learned and ask for his advice.
Checkout these important facts:
Internal Revenue Service : FAQ Mortgage Forgiveness Debt Relief Act
Internal Revenue Service - Form 982 Reduction of Tax Attributes Due to Discharge of Indebtedness
FAQ for Scottsdale Arizona Property Taxes
By · Comments
Affecting residential real estate in the cities of Scottsdale, Phoenix and Paradise Valley - Maricopa County
Arizona Property Taxes can be very confusing for three main reasons: 1. Arizona property taxes are not levied on the market value of a home but on the assessed value of a home, 2. There are numerous unfamiliar terms in the property tax statements and valuations, and, 3. Property Taxes are billed and due in arrears. Review the flow chart and read the FAQ you should get a more clear understanding.
How are property taxes computed?
The burning question everyone has is naturally related to their property taxes and how much they will be. Here is the formula:
Full Cash Value x Assessment Ratio = Assessed Value x Tax Rate = Annual Property Tax
The general tax rate is about 1.3% of Full Cash Value. For example: A home with a Full Cash Value of $500,000 will in general have property taxes of approximately $6500.
$500,000 x 10% = $50,000 x 13% = $6,500 which is the same as 1.3% of Full Cash Value
What is the primary tax rate?
Tax rates vary by city and sometimes subdivision. In general, one can expect to pay about 1.3% of the Full Cash Value as determined by the tax assessor. The tax rates are set in August of each year and taxes are billed in September. You can review the all the 2008 tax rates here. You may look up an address or a parcel number here to see the current property taxes.
What is the meaning of “Full Cash Value” ?
Full Cash Value is the current market value of the land and any improvements as estimated by the County Tax Assessor using computerized standard appraisal methods. This value is used to calculate secondary taxes for budget overrides, voter approved bonds and limited purpose districts. The Full Cash Value has nothing to do with the sales price of a home but the sales prices are used to determine the Full Cash Value.
What is the meaning of “Limited Property Value”?
Limited Property Value is determined by the State Legislature using a mathematical formula that limits the annual increases. The Limited Property Value is the basis for computing the primary taxes used to provide operational expenses for the state, county, cities and schools shown on your tax statement. The Limited Value cannot be greater than the Full Cash Value.
Overview Chart of Arizona’s Property Tax System
What is the “Assessed Value”?
Your property tax is not computed on the Full Cash Value but on the Assessed Value of a property.
How is the "Assessed Value" determined?
The Assessed Value of each property is determined by multiplying the Full Cash Value by the assessment ratio. Residential homes are assessed at 10% and Vacant Land is assessed at 16%.
What is the "Assessment Ratio"?
The assessment ratio is a percentage based on the property use. It is applied to the Full Cash Value to determine the assessed value and is set by the State Legislature. The assessment ratio for an owner occupied residential property is 10%. For example, if you have an owner occupied residential property with a Full Cash Value of $500,000, the property tax will be based on the assessed value of $50,000 .
When you purchase a property mid year – who pays the property tax?
When you purchase a home mid year, the property taxes will not have been paid (the first property tax bill is not due until October). Property taxes are prorated to the close of escrow so the Settlement Statement will show a Seller credit to the Buyer for property taxes for the part of the year prior to close of escrow. This means that the new buyer will be responsible for the entire year’s property taxes when they come due.
When are Property Taxes Billed and Due?
Maricopa County property taxes are confusing because they are billed in September of the year for which they apply. The first tax payment is due Oct 1 and is delinquent on Nov 1. The second tax payment is due March 1 of the following year and is delinquent on May 1. If you fail to pay the first half tax in October but you pay in full by December 31 of that year, then you will not be assessed any interest.
Are there any property tax exemptions?
Yes there are tax exemptions for widows, widowers and totally disabled persons subject to conditions and limitations. Read the Arizona statute. If you want to file for this exemption, download this form.
Is Senior assistance available?
Yes, if one owner is at least 65, you may apply to freeze the Full Cash Value of your primary residence. You must have had this property as a primary residence for at least two years prior to application and your income (from all sources and averaging for previous 3 years) cannot exceed $30,576 for a single owner or $38,220 for two or more owners. Download application.
In addition, the Elderly Assistance Fund, established in 2007 is available to reduce the property tax of qualified elderly taxpayers. More info here
What is meant by “Real Property”:
Real Property includes land, buildings and other improvements on the property (i.e., swimming pools).
What does “Legal Class” mean?
The Legal Class is determined by the property type or use (i.e., owner occupied residential, residential rental, commercial, vacant land, multi-use).
What are "Special Districts"?
Special districts have a limited purpose such as flood control, fire or irrigation.
Metro Phoenix Weekend Freeway Closures for Dec 5-8
By · CommentsBe prepared before you head out to do your Holiday shopping - Check out the freeway closures as itwill be a busy pre-holiday weekend. Closures are located on:
- Route 51 (Piestewa Freeway) between Thunderbird and Shea Blvd
- Loop 101 - between Route 51 and Tatum Blvd
- Westbound 60 - between Rural Rd and Mill Ave
- Northbound Loop 101 - between Cactus and Thunderbird
[tags]phoenix metro,freeway closure,[tags]
Just in - as provided to me by Linda Smith of Eagle Pro Mortgage.
Remember, as a general rule, weaker than expected economic data is good for rates, while positive data causes rates to rise.
Thanksgiving 2008 - Musings
By · CommentsIt’s been an enjoyable weekend with lots of cooking, eating and visiting with family. The only real estate appointment I had was a home inspection yesterday but other than that, it’s been a lot of hanging out and doing nothin. Thanksgiving is my favorite holiday because there is no stress except the timing of the turkey and making the gravy at the last minute. And that stress is so worth the end result of the traditional Thanksgiving feast - and we do it all from the turkey to the pumpkin pie.
Kind of corny but after we finished our dinner, we all shared the different things we were thankful for. The funny thing is that once you get started it is hard to stop. As we slowed down, Lauren pulled out a printed email she had received and read it to us. I had heard it before but I still laughed so hard. Enjoy!
A young man named Victor received a parrot as a gift.
The parrot had a bad attitude and an even worse vocabulary. Every word out of the bird’s mouth was rude, obnoxious and laced with profanity.
Victor tried and tried to change the bird’s attitude by consistently saying only polite words, playing soft music and anything else he could think of to "clean up" the bird’s vocabulary.
Finally, Victor was fed up and he yelled at the parrot.The parrot yelled back.Victor shook the parrot and the parrot got angrier and even ruder. Victor, in desperation, threw up his hand, grabbed the bird and put him in the freezer.
For a few minutes the parrot squawked and kicked and screamed. Then suddenly there was total quiet. Not a peep was heard for over a minute.
Fearing that he’d hurt the parrot, Victor quickly opened the door to the freezer.
The parrot calmly stepped out onto Victor’s outstretched arms and said "I believe I may have offended you with my rude language and actions. I’m sincerely remorseful for my inappropriate transgressions and I fully intend to do everything I can to correct my rude and unforgivable behavior."
Victor was stunned at the change in the bird’s attitude.
As he was about to ask the parrot what had made such a dramatic change in his behavior,the bird continued, "May I ask what the turkey did?"
GE Recalls Wall Ovens Because of Fire Hazard
By · CommentsGE has issued a recall for wall ovens under the brand name of GE®, GE Profile™, Monogram® and Kenmore®. Apparently, there have been 28 incidents of property damage caused by the intense heat of the self-clean cycle when improperly installed. Click here for details of the GE Oven recall. This recall was issued Nov 18, 2008.