Perrysburg Blog

Did you know you may have to pay a tax on your home?  When you sell it?

Because of the 2010 Obama Care Health Plan?

Yes.

It’s true.

But it’s also not likely.  At least not right away.

You will have to an income of more than $200,o00.

You will have to have a gain of more than $500,000.

Then you will owe a 3/8% “Medicare Tax” on your capital gain.

Some have called it the “Lawyers and Accountants Employment Tax”.

You can read the excellent article in the Washington Post for all the gory details.

So, unless you have a big bomber on River Road or the Sanctuary . . . and you inherited it . . . you are not going to pay the new tax.

(In fairness I must point out that the new tax is also on tanning, investment income, and many other things – which you WILL have to pay.)

But here’s the problem.

Honestly ask yourself this:  Are the big spenders in Washington D.C. going to ratchet the thresholds up or down in the future?

You and I both know the answer -  $500,000 will be $250,000 then it will be $25,000 (in the name of fairness) and then everyone selling in Perrysburg is going to have to fork over another 3.8% of their homes’ value at the closing table.

Count on it.

There really was one a couple of weeks ago . . . although I did not feel it.

But there has been an ongoing one . . . for the past 3 or 4 or 5 years.

The “mortgage implosion”.  Which is really the “people who have lost their jobs can’t pay their mortgages implosion”.

Excerpting from today’s Toledo Blade:

Metro area 52nd highest in ’10 foreclosure filings

Metro Toledo ranks 52nd highest in foreclosure-related filings in the first half of the year among the nation’s top 200 metro areas, a new study shows. The ranking, the worst among the metro areas in Ohio, is based on the number of filings of default and auction notices and repossessions per households. RealtyTrac Inc., a national real-estate data tracking firm, says in a report released today the Toledo area has one such filing for every 65 houses.

#52.  Of the top 200 foreclosure towns.

Not.  Good.  At.  All.

You can argue about school funding, TARTA leaving, and the constant I-75/475 construction projects all you want to.

But when 1 out of 65 houses in T Town has JUST GONE UNDER THE GAVEL in 2010 . . . . the other problems are not that important.

My advice?  No need for a Foreclosure Czar.  No need for a conference.  No need for a telethon.

People in Toledo need J.O.B.S.

That is the only thing that is going to bring housing back, equity back, and end the misery and physical destruction of real estate in Northwest Ohio.

I use the MLS every day.

Here are some updated jargon items that have caught my attention:

“Corporate Owned”.  No one can say “REO” or “Bank Owned” anymore . . . . but this means it is foreclosed.

“Active”.  May be pending.  May be sold.  May be contingent.

“Spec Home”.   This is extinct.  See “Passenger Pigeon” for an example.

“Needs Work”.  This can be better translated as full of toxic black mold, a tree has crushed the garage, and the pipes and plumbing and furnace and kitchen have been removed with a Sawzall’s.

“Prequalified”.  This, again, has no meaning.  Anyone seems to be able to get a prequal letter that is magically not worth anything 3 weeks later.

“Short Sale”. This has 2 meanings.  A.) A great house at a great price.  Jump for joy!  B.) A house you can never buy until it is foreclosed and “needs work” (see above).

“Great Location”.  This means it is most likely a terrible floor plan.

“Needs Redecorating”.  Translation?  Foil wallpaper, green walls, asbestos tile in the kitchen, and skunks living in the crawl.

Of course, I personally never use any such jargon!

Just so you can identify what they are doing . . .

And just as a public service . . .

IF you reply to one of these incredible rental deals in Perrysburg or Sylvania here is the first letter you get.   Note how they suck you in and how later you will have to give them more info.  These Nigerian Scammers and very good – they bait the hook and play the fish:

Hello,
I did get your response concerning the AD I posted on craigslist. The house is still available but I’m not in the state. I did bid for a portion of Gas(popularly known to be  the oil and gas sector) in west africa and fortunately I won the bidding,so I had to move quickly down to west africa to set up my own company. because I will have to rebid for it in the next 10 years. I came over here with my wife, we both built the house when we got married. As soon as we settle down here I had  thought of selling the house, so I had an agent who had wanted to help me in that regards,not until my wife had advised against such plans;she gave reasons that we will definitely be in search of a new home when  coming back to the state and that a nice home might not be as easy to get.I gave it a second thought and decided is best I have someone take very good care of the house while I’m away… So I contacted the agent back and requested for my keys and documents(you will get to see in the front yard, the ”for sale sign” which will be no problem handling cause I will take it off as soon as I can find the right person to occupy the house) Later we decided to have the house leased out,I personally would have given the same agent this task to carry out,but the extra charges these agents get for carrying out thier chores,we belive might scare those seeking to rent our home.Some people are not aware that you get to pay more in rent when an agent is involve,and get to pay less when renting from the owner directly(so the agent is not invlove in this).If you have taken notice you will discover that the price we are offering is far below the market price,it’s for a fact that we are not after the money but the very upkeep and proper care that our new tenant can offer in regards to the house.The house is completely empty now(the refrigerator,washer,dryer,stove and some more that are just what we have left in the house)so, you can get to move into the house with your furnitures cause the rooms are big enough for them.I will be providing my new tenant with a local account where the monthly rent can be paid into.I will be providing my address over here where my new tenant can always write me..I will have to go through the information that I had requested to help me with having the right person occupy the house, and also would like to discuss things over on phone( my cell phone number is right below) so that I can be pretty sure of a true screening before giving out any form of approval…The keys and paper works will be forwarded to the current address via DHL or FEDEX upon approval.I will be coming back from time to time to check on the house and to see in what condition it has been kept.The lease term will be for a maximum of four years.

Please if you are ready now to occupy the house kindly provide the information below for record purpose

PLEASE TELL US ABOUT YOURSELF
Full Name__________________________________________________ Home Phone (        ) ________________________
Date of Birth_________________________________
Other Phone (       ) ___________________
Current Address_______________________________Apt#________ City__________________ State______ Zip________
Reasons for Leaving____________________________Rent $__________Phone (       ) ____________________________
Are you married____________________________
How many people will be living in the house__________________________
Do you have a pet____________________________
Do you have a car____________________________
Occupation____________________________
Move In Date____________________________
House Address:
XXXXX XXXXX XXXXXXXXX

P.S.;YOU WILL NOT BE ABLE TO VIEW THE INTERIOR PART OF THE PROPERTY,BECAUSE I HAVE THE KEYS AND DOCUMENTS HERE WITH WITH ME.

Regard’s Mr.Peter Fox
Phone…+234-80226310
011-234-8022631

It is being run right now in Perrysburg and Sylvania.

The scammer scrapes a couple of listing photos off of the internet for a nice house in Perrysburg.

Puts it “for rent” on Craigslist.

At a RIDICULOUS price.   Example:  newer ranch, 4 beds, finished basement, etc.  $600 a month.  That’s for a house that should rent for $1500 or so.

That is also the BAIT.

In the last Craigslist Scam I warned you about it was phony owners who pretended to be phony landlords who simply rented out a house they had access to buy no right to lease.

Poof – your deposit and first months rent are gone.

This new scam is worse – because the Nigeria based scammer wants you to fill out a standard lease application.

Think about what you put on there:  SSN, date of birth, copy of drivers license, and on and on . . .

With this they clone your identity and cause all sorts of mischief.

It it’s too good to be true . . .  it is.

And if the putative landlord has no office, no access, and wants you to scan your app to him via email . . . RUN.

(BTW – these guys are good – no local presence means local police are powerless.  They can only be identified and avoided not prosecuted and caught.)

There are many.

Sewer tap fees that keep people from building.

Zoning rules that keep people from “stepping down” to the right use or “stepping up” to the best use.

But 2 that I really hate and detest, because of the “unintended consequences” that their use causes are:

1. Condo associations that want the “right of first refusal” on you or me buying into their association.

What’s wrong with that?

Example:  property has been on the market for months.  Everyone in the association knows it is for sale . . . and vacant.  But they want the right to know who is buying it so they can decide if any of their current members wants a crack at it?

Seriously?

That’s not a “right of first refusal”.   It’s a right to discriminate and try to select your neighbor.

Outrageous conduct often results from such a mischievous law.  Many years ago I was representing a divorced single parent mother.   Who hoped to buy a condo.   But the nosy neighbors did not like her single parent status and tried to keep her out.    Big mistake.  (That’s what the Fair Housing Center is for, btw).

2. Utility Bills that are the Banks Responsibility.

This one is really rearing its’ ugly head now.

From $200 electric bills to $8500 water bills.

Every little town, village, utility, and conglomerate wants my bank clients to shell out $$$$ for the utilities that the prior, now foreclosed owners ran up a tab for.

And if you don’t pay – no service. (while the house fills up with mold and water and other damage happens)

What’s the harm in that, you say?

If everyone thinks they don’t have to pay – they won’t.

If the bill keeps getting punted down the line to the next owner – at some point (which is . . . oh, right about NOW) normal business forces will stop working.  Utilities will just keep giving “free” service to free riders.   Normal Joe who pays his bill?  Sucker.   The utility is racking up bad debts and expecting you to front the money to keep them running.   Foreclosed Phil?  Once he figures out that others will pay – he will run the air and heat all the more.  Utility Dude who runs the utility?   He doesn’t have to worry about credit checks, deposits, or even shutting people off when they don’t pay!   The bank will pay someday.

Lucas County Auditor Anita Lopez is trying to put a stop to this mess.

Other counties ought to think about the consequences of their policies too.

This:  the news that mortgage interest rates for residential borrowers are at an “all time low”.

Details:  WSJ.

4.58% for a 30.

4.04% for a 15 year term.

As the members of the National Association of REALTORS say . . . “NOW IS THE BEST TIME TO BUY A HOME”!!!

But take the letter “w” out of that sentence and no – it might NOT be the best time to buy.

Not if you don’t have a down payment saved.

Not if your consumer debt is out of control.

Not if your car is over-leveraged and your school loans are hitting.

Not if your job is in danger.

It might NOT be a good time to buy.

The bank rate on borrowed money should be one of the last considerations about timing and pulling the trigger on a home purchase.

I listed 2 foreclosed homes today.

I am certain that each of these homes had a prior owner that was absolutely certain it was a great idea to buy.

And I am certain that each of these former owners – I have talked to both of them – wish they would have made another choice.

Don’t let the “buy, buy, buy” PR machine push you into buying.

Buy if it is the right, correct, and wise decision.

Don’t buy because rates are low today.

One more thought . . . why do you suppose this trend will stop?  If it continues then NOW is actually NOT the best time to buy a house.

And as this picture shows – we have some very good balloon pilots.

Because hot air balloons go where the wind takes them – no engines.

One of my team members, Deborah Patton, was on board – and she told me they are going to aim for the stadium.

I have flown many times in the balloon – we have a fleet of three of them in Ohio – and the most memorable ride was the ONE TIME I took my dear, sainted mother in law Darlene up.

We had a crash landing.

I hope she has forgiven me now . . . after 10 years.