The BrazzelDazzle Blog

DON'T GET CAUGHT WITHOUT YOUR HOMESTEAD PROPERTY TAX CREDIT!   In Howard County, we have a Homestead Tax Credit that limits the increase of county taxes to 5% per year and state taxes to 10% ... IF THE DWELLING IS YOUR PRIMARY RESIDENCE.  But, you MUST APPLY for the credit! 

Even in the current real estate market, State and County Taxes often do go up! The property taxes you pay are based on a percentage of the assessed value of your home.  In the past, the homestead property tax credit transfered with the property -homeowners didn't have to take action to have it applied.  But, as of January 1, 2008, Howard County changed it's regulations regarding the credit and has required that all residents apply.  Howard County residents have until their next assessment to do so.  If you do NOT, you will lose the benefit (which for 2008 averaged $1,000 per household!) 

It may be hard to fathom the possiblity that your taxes may go up when all you hear about is your decreasing house value.  But, eventually your market value will go up and so will your taxes!  So, remember to apply for the Homestead Tax Credit before it's too late.  The implementation will take place until December 31, 2012. 

A Maryland State hot-line (410-767-2165) has been set up for any questions you may have.  Or, give me or Dip a call ... we'd be happy to help!

• Are you hoping to avoid foreclosure? 
• Worried about making your mortgage payments?
• Already late with your payments? 

You don't need to let your house slip away ... it is not your only option!  You may be able to negotiate with your Mortgage holder and perhaps arrange for a short sale. 

A short sale is when a homeowner's bank agrees to accept less than the full amount owed on the property.  Contrary to a foreclosure which can affect a seller's credit for years, a short sale shows up on a credit report as a debt that settled for less than the amount due.  This may affect a seller's credit score, but is less devastating than a foreclosure.  The seller must negotiate with the bank for a release on the property as well as for the underlying personal debt which is secured by the noteIf there is no option for you to stay in your house, a short sale may be arranged and you can avoid foreclosure with this process.  You may get some good advice from a HUD approved credit counceling agency.  You can go to www.HopeNow.com for information.  A knowlegeable and experienced Realtor can also help you with this process.

Most banks have a short sale "package" that they will provide a seller upon request.  It contains all of the documents and instructions about the short sale so a seller can navigate through this cumbersome process.  A key point to keep in mind is that the seller must be able to demonstrate that making mortgage payments has become a hardship and those reason(s) must be detailed for the bank.  In order to avoid foreclosure, a seller should begin this process as soon as it becomes clear that he has no other option.  The process can take up to six months or possibly even more - so patience is necessary.