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June 2010: Redmond Law renews as Preferred Closing Attorneys for ADA

Atlanta Development Authority only works with a handful of Atlanta attorneys and Redmond Law is proud to be amount the elite group selected. Read More...

February 2010: FannieMae Addendum

FannieMae has made changes to the Real Estate Purchase Addendum, reinforcing the purchaser's right to choose the place of closing. Read More...

February 2010: Machelle Redmond Named Super Lawyer Rising Star

Each year, no more than 2.5 percent of the lawyers in the state receive this honor. Full Press Release...

January 2010: New RESPA regulations go into effect

Good Faith Estimate Tool Tool provided for Mortgage Professionals to calculate amounts for a Good Faith Estimate

Estimated Cash to Close Worksheet Tool provided for Real Estate Professionals to assist purchaser with the amountd due for closing.

July 2009: FannieMae Fraud News

A variation of property flipping involving preforeclosures properties (short sales) has come to the attention of FannieMae. Read More...

June 2009: Redmond Law becomes Preferred Closing Attorneys for ADA

Atlanta Development Authority only works with a handful of Atlanta attorneys and Redmond Law is proud to be amount the elite group selected. Read More...



Articles

  • Short Sale Basics
    •  A short sale is where the mortgage holder agrees to accept a payoff for less than what is owed on the mortgage.

    March 2008 Article

    A short sale is where the mortgage holder agrees to accept a payoff for less than what is owed on the mortgage.

    In the current market climate, many homeowners have become aware of short sales. A short sale is where a mortgage holder agrees to accept a payoff for less than what is owed on the mortgage. This generally will occur when the property is in an area with declining market values and/or the homeowner has faced a financial hardship hindering their ability to pay. If you find a homeowner seeking to sell in this situation a short sale may be an option. Here are a few tips to get you started.

    First, it is always advisable to have your seller talk with an accountant to understand the tax consequence of a short sale. The seller may owe income tax on the debt that is forgiven in the short sale. Sellers should also be aware that while the short sale allows them to sell the property now, they may still remain personally liable to lender for the difference.

    If the seller wishes to have his/her realtor or another third party talk with the lender on his/her behalf, the seller will have to submit an authorization letting including: the seller name, the property address, loan reference number, the name of the party being appointed (“Agent”) and their contact information. Every lender has a different department that handles their mitigation or short sale process, finding the proper department can, at time, be the most challenging part of the process. Once contact has been made, be sure to get the name and direct number of the person you spoke with.

    The seller will be asked to submit a hardship letter, this letter will basically explain to the lender why they should accept less than full payment of the mortgage and describe any special circumstance that have put the seller in this position. Most lenders will also want the seller to show proof their financial status (lack of income, lack of assets, bank statements, etc.)

    While many lender will have an independent appraisal of the property done; it is prudent for the listing agent to do a comparative market analysis to show the value of property in the area, it can include “actives” and “pendings,” as well as “solds” for the last six months.

    When the seller has received an offer to purchase, the lender will ask for preliminary settlement statement, based on the offer. Redmond Law, LLC is happy to assist you in the preparation of this preliminary settlement statement. The lender may refuse to allow certain items to be paid the seller, such as home protection plans, and they will sometimes require that broker commissions be reduced. The lender will provide an approval letter for the short sale detailing all the requirements for closing, including the amount it will accept for the payoff, the date the payoff must be received and any other special conditions.

    Hopefully these tips will be useful if you find yourself working with a short sale. Please feel free to email mredmond@redmondlawgroup.com, or call me, (404) 237 – 3700, with questions about this article or other matters.

    *** Machelle Redmond is the managing partner of Redmond Law, LLC. She practices exclusively in the area of real estate and business law. She holds and Associate Broker license with the Georgia Real Estate Commission and is the founder of Redmond Real Estate Institute, a non-profit corporation to expand education.
  • Homestead Exemption
    •  Georgia residents can file for a homestead exemption to reduce property taxes on their primary residence year round.

    January 2010 Article
    Guide to Filing Homestead Exemption

    NOTE: In 2009, Governor Sonny Purdue and the General Assembly did not fund the Homeowners Tax Relief Grant which provides the tax exemption to owner occupied residents. According to legislation passed in 2009 (House Bill 143), the grant will only be made available in the future if state revenues grow at least 3% plus the rate of inflation. This means that homeowners may not receive a Homestead Exemption on their taxes for 2010. However, it is recommended that homeowners filefor the exemption if eligible.
    An exemption from ad valorem taxes is available to residents of a particular county who own their principal residence within the county. Homeowners are entitled to claim partial exemption from taxation (the amount of exemption depends on the county) that can amount to substantial annual savings for the homeowner.

    The Where, When and Who of Filing:

    Some counties allow homeowner to file online or by mail, but some still require the homeowner to go in person to the office of the Tax Commissioner of Tax Assessor of the county in which the property is located. These methods are reflected by county to assist with filing.

    In order to file for a 2010 homestead exemption, the homeowner must be the owner of record and occupy the property as the principal residence by January 1, 2010. An application for homestead exemption can submitted year around (as soon as the Warranty Deed for the property has been recorded in the county of residence), but no later than March 1st of the year they seek the exemption (April 1st in some counties). The Homestead exemption will remain on the property until there is a change in ownership.

    Documents and Other Information Needed in Filing:

    The RECORDED Warranty Deed will be required along with photo identification. The Tax Commissioner will furnish the forms for the application, some counties have the forms available online.

    The property owner filing for the homestead exemption may need the following information:
    (a) a HUD-1 Settlement Statement from the closing
    (b) Automobile tag number(s)
    (c) Proof of Automobile registration
    (d) a Georgia Driver’s License with the subject property address

    It is always a good precaution to contact their local county tax commissioner’s or tax assessor’s office prior to submitting or visiting to confirm the specific requirements for that county and their hours of operation.
    Disclaimer: This information is provided as a courtesy only. Redmond Law, LLC, and their representatives do not make any representation as to the accuracy in the method filing of Georgia counties for homestead exemption. The information is subject to change by each county. It is the sole responsibility of the new homeowner to contact the appropriate county official and confirm the method for filing homestead exemption in the county of their new residence

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