Talon Northwest Neighborhoods

Looking to buy a Pierce County Tax Foreclosure?

The Pierce County Foreclosure Department has just recently posted the list of properties going to auction in December.  The tentative date of the auction is December 3rd, 2010 at the Pioneer Park Pavilion in Puyallup.  Gates are scheduled to open at 8 AM, with bids starting at 8:30. 

To view the current list of properties, please click here.  Keep in mind that it's not guaranteed that we'll be updating this post, so please check with the county for updates or changes on this list and the auction date.

Good research is the key to purchasing foreclosure properties, so please proceed with caution when dealing with foreclosures.  Here are some helpful departments to research parcels you are interested in, from the Pierce County website:

As a potential buyer, you must be aware that any parcel of property subject to foreclosure could have environmental issues. You are encouraged to research all parcels fully. The Assessor-Treasurer's office has computers, maps and other research tools available for your use at the public service counter. Due to limited staff, research assistance is not available by mail or telephone. If you have questions or concerns regarding environmental issues, please contact the Tacoma/Pierce County Health Department at (253) 798-6470 or (253) 798-6566.

Often parcels have other restrictions (open space, wetlands, slope hazards, and other critical areas, etc.) that the Tacoma-Pierce County Health Department (TPCHD) can't answer. For parcels located in unincorporated Pierce County, these issues/concerns/restrictions can more properly be answered by Planning and Land Services (PALS) staff located at the Development Center. Interested individuals may call (253) 798-3739, (253) 798-7210 or 1-800-992-2456or visit the Development Center located at 2401 South 35th Street, Tacoma. Development center hours are 8:00 to 4:30 Monday through Friday except on Wednesday when the office opens at 9:00. You may wish to visit the Development Center website http://www.piercecountywa.org/pals for additional information.

Thanks everyone

 

Another Round of Property Taxes Coming?

Interesting article today in the Seattle Times regarding King County property taxes.  LLoyd Hara, the King County assessor, is working with tax consultants to see if under-assessed properties is the solution to fixing a $60 million budget shortfall coming next year.  They are even asking the question of whether or not homeowners should be billed for this property value "error", even if the owners have paid in full.

According to the Seattle Times, there are three categories of properties that are under the scope:

• Properties on which assessed values didn't change from one year to the next
• Properties valued below the price for which they sold
• "Personal Property"

We've talked about property taxes a few times before.  Here's one where we talked about 2010 taxes, and how new, lower assessments wouldn't affect them all that much.  Also, we'll re-post the video we did in July 2009 in case you missed it. 

 

I'm not exactly sure how the personal property tax change will ultimately effect the majority of Puget Sound homeowners, so for this piece we'll focus on regular property taxes for homeowners.

 

In my personal opinion, I don't believe this is particular issue will gain any traction for three main reasons. 

 

• By law, taxing districts are limited to a 101% increase of regular property taxes for taxing districts. This is for taxing districts, not individual properties.
• Homeowners have a right to appeal their property valuations withing 60 days of the mail date of the Official Property Value Notice. It would stand to reason that they would need to send some sort of notification out to homeowner if the assessor was revaluing property.
• Politically it would be a very hard sell. As noted in the Seattle Times article, "they are leery of sending another bill to homeowners who already paid their taxes — particularly at a time when thousands of people are complaining their taxes have gone up even as property values have plummeted." I think if they looked at the comments section, they have reason to be leery.

Although I doubt this will gain much traction, property taxes keep coming up as a solution to fix the budget gaps we face.  Remember when Christine Gregoire proposed to lift the levy lid to fund K-12 education? 

Lets face it, our county and state governments are looking for creative ways to reduce the budget shortfalls they face.  Although I don't see the revaluing of properties gaining traction, I do see the discussion of raising property taxes continuing.

Thanks everyone, and if you hear of anything else going on out there please let us know.

WA State offers Tax Deferral Program for limited income homeowners

Washington State now offers help for many cash-strapped homeowners struggling to pay costs associated with home ownership. This relatively new deferral program (established in 2008) allows limited income homeowners to defer 2nd half property taxes and/or special assessments. Unlike the senior citizen tax exemption/deferral programs that we recently posted to our blog, this new program has no age restrictions and a higher income threshold of up to $57,000!

Mike Braaten of the Department of Revenue mentioned that only around 150 homeowners per year are taking advantage of this limited income deferral program as opposed to roughly 1000 using the senior citizen deferral. He feels this number will climb as people become more aware of it's availability.

If you or someone you know could use some partial/temporary relief from property taxes, here's a pretty cheap way to tap your equity. Highlights of the program:

Must have lived in home for at least 5 years as a primary residence and resided in home for at least 6 months out of the year. Allowances are given for burdens associated with hospital and assisted care stays.

Household disposable income cannot exceed 57K for the previous year. "Household" is determined by all members living in the house that have an ownership interest. Disposable income is defined by a WA statute and is not the same formula used to calculate federal income tax.

Limits tax deferral to 40% of your equity. Equity is defined as the difference between the county assessed value minus any debts secured by the property. Example: House and property is assessed at total of $250,000 - $150,000 (total secured debt) = $100,000 (equity). In this case, 40% of equity calculates to $40,000.

The tax deferral balance plus accrued interest must be repaid upon any of the following circumstances: Property is sold or transferred, death (unless spouse or domestic partner qualifies and decides to continue program), property no longer serves as permanent residence, or the property is condemned. Interest rates are calculated each year based on the avg of the federal short-term rate plus 2 percent (totaled 5% for 2009).

Application must be filed with the county by September 1st in the year taxed are to be deferred. All qualified applications are forwarded on to the Department of Revenue for paying second half taxes/special assessments.

Must pay first half property taxes (due April 30th) in order to qualify for second half deferral.

The DOR files a lien on the property once taxes have been deferred. They will also file a satisfaction once the deferral(s) plus accrued interest have been repaid in full.

With first half property taxes coming due in a few days, The Talon Group thought it would be timely to share what's out there for relief. Call it a property tax extension!

Written by: Robert Porter, Sr VP. The Talon Group

We recently wrote about the differences between  Property Tax Exemption and Property Tax Deferral for senior citizens and disabled persons. These programs have helped keep these two classes of citizens from literally being "taxed" out of their homes. According to the Department of Revenue there are tens of thousands currently enrolled in the exemption program.

Senior Property Tax Exemption or Deferral? One places a lien on property!

Washington State provides two very different programs for our "well-aged" homeowners to help pay property taxes. The most popular program, Senior Property Tax Exemption allows seniors making less than $35,001 to "freeze" the tax value of their home (in the eyes of the assessor) at the current rate. As the assessed value rises or falls, the taxable value will be billed upon the lesser of the frozen or market value. Other than the Emergency Medical Services Levy, this program exempts all excess or special levies that are in addition to the regular levies. Seniors can even exempt themselves from paying for regular levies if their income is $30,000 or below (maximum exemption up to 60K in regular levies or 60% of the homes assessed value). To qualify, you must be at least 61 years of age by December 31st of the application date. Renewals are sent out out at least every four years.

Other qualifications include:

• Primary residence for at least six months out of each year.
• Residence may qualify even if homeowner is temporarily hospitalized or in nursing care.
• Assessor will continue to annually determine market value for the property.
• Mobile homes may qualify even if the homeowner does not own the land.
• Must apply for exemption in the year before taxes are due.
• Spouses or domestic partners may continue program in event of applicants death.     
• Income is based on all co-tenants that have an ownership interest in the property.
• Homeowners may rent out the property as long as the income is used for hospital or nursing home expenses.

The Property Tax Deferral program for seniors making less than $40,001 is a whole different animal. Under this program, the homeowner must pay back all the subsidized taxes or special assessments that have been paid on their behalf by The Department of Revenue... plus interest. The obligation of this repayment shall become a state held lien on the property for up to 80% of the homeowner's equity. The age requirement for the deferral program is at least 60 years of age by December 31st of application. In addition to what's been listed above for tax exemption status, other qualifications can be compared to obtaining a reverse mortgage!

• Tax/special assessment deferrals and interest may not exceed 80% of equity.
• Incomes less than $35,000 must apply for Prop Tax Exempt program before applying for deferral.
• Application must be made each year you want to defer.
• If applicable, mortgage or purchase contract holders that reserve for paying taxes must cosign the deferral documentation in front of a notary or said county assessor/deputy.
• Hazard insurance must be sufficient to cover the interest of the State of Washington or the amount deferred cannot exceed 100% of the land value.

Determining household incomes is very detailed in both programs. The tax implications for the deferral program as explained by Erik Mickelson, CFP is..."The taxpayers would merely get to report (and deduct) the full amount of taxes paid when the deferral comes due and they actually pay the tax …" 

The intentions behind the deferral program are all well and good, some experts such as Meg Burns with FHA are taking a close look at these humanitarian programs as a solution for seniors in Reverse Mortgages who fail to pay taxes and other costs associated with home ownership. Oregon offers a very similar program as Washington's.

The growing popularity of these programs will undoubtedly cause title companies to keep a keen eye out for liens of this nature. Another great reason for buyers to obtain title insurance from the The Talon Group!    Rob Porter, Sr VP, The Talon Group

Future post: Property Tax Deferral program is available for all limited income homeowners in WA State.