Brian Vanderhoff's North Fulton Real Estate Blog: January 2009

If you’re over 62 and a homeowner you have a unique opportunity to get significant, spendable value from your home, even if you still hold an existing mortgage. Recently, LendingTree launched a reverse mortgage service for interested senior homeowners looking to talk with lenders who can help them consider using the equity they have built in their home.

Senior homeowners have spent years, often decades, building up equity in their homes. An increasingly common practice of homeowners over the age of 62 is to obtain a reverse mortgage (also known as a HECM, a home equity conversion mortgage) which gives qualified senior homeowners a proven solution to help fund their retirement needs. In addition, and importantly to most independent seniors, a reverse mortgage allows them to live in their home as long as they wish.

Reverse mortgages may be a good option to consider for some, but before moving forward, it’s important to fully understand how they work. The following helpful advice comes from the LendingTree Smart Borrower Center:

1. Reverse mortgage candidates must be at least 62 years of age, have significant equity in their property, and be looking for a reverse mortgage on their primary residence only.

2. Anyone who intends to apply for a reverse mortgage is required by law to complete a 45-minute counseling session with a HUD (Housing and Urban Development) approved counselor*.

3. The sum from a reverse mortgage can be paid to you in a couple of different ways; all at once in a single lump sum of cash; as a regular monthly loan advance or as a credit line that lets you decide how much cash to use and when to use it; or you may have the option to choose a combination of any of these payment plans.

4. The amount of cash you can get from your home’s equity is determined by a number of factors including your age, your home’s value and location, and current interest rates.

5. Reverse mortgages may have tax consequences, could affect eligibility for assistance under Federal and State programs, and may have an impact on the estate and heirs of the homeowner.

Labels: Georgia, reverse mortgages, seniors

Top 10 Questions to Talk Over with Your Attorney

When a homeowner finds themselves in a situation that might result best in a short sale, it’s important for them to understand their options as a homeowner when their property is in or heading toward default. They should be asking:

1. What is a better or more likely outcome for me and why?

- A short sale or a repayment plan?
- A short sale or a forbearance plan?
- A short sale or a loan modification?
- In the case of an FHA loan, a short sale or a partial claim?
- A short sale or a short sale/assumption agreement?
- A short sale or a deed-in-lieu of foreclosure?
- A short sale or a bankruptcy?
2. How do I know if my property and I may be considered for a short sale?
3. How would I initiate the short sale process?
4. Which process has a more adverse effect on my credit rating: short sale, foreclosure, bankruptcy, or deed-in-lieu of foreclosure?
5. What types of hardships would a lender generally consider favorable toward my appeal for short sale consideration?
6. On average, how long does a short sale process take?
7. What are the tax implications of a short sale?
8. If a lender agrees to the short sale option on my property, can the bank still proceed with a foreclosure?
9. Is there a real estate commission paid in a short sale? If so, who pays it?
10. When is a bankruptcy preferable to a short sale or to a foreclosure?

Labels: deed in lieu of foreclosure, forbearance plan, Georgia, loan modifications, repayment plan, short sales, what homewoners need to ask

The Home Depot's EXPO store on Davis Drive in Alpharetta, near the Ga. 400-Mansell Road interchange, will close as part of the company's decision to exit its EXPO business. This and other cost-cutting measures will cut 7,000 jobs, or 2 percent of its total workforce.

No "orange box" Home Depot stores are closing.

Company officials said the EXPO business has not performed well financially and is not expected to anytime soon. Even during the recent housing boom, it was not a strong business and weakened significantly as the demand for big ticket design and decor products declined with the economy.

The Alpharetta EXPO store will be one of 34 EXPO Design Center stores to close, with five YardBIRDs stores, two Design Center stores and HD Bath, a bath remodeling business with seven locations. Approximately 5,000 workers will be affected at these locations, their support functions and distribution centers.

"Exiting our EXPO business is a difficult decision, particularly given the hard work and dedication of our associates in that business and the support of our loyal customers," said Frank Blake, chairman and CEO. "At the same time, it is a necessary decision that will strengthen our core Home Depot business."
Restructuring support functions, including continuing to shift to a region-and district-based support model and reducing head count in administrative functions in store support centers, will better align Home Depot's cost structure. These support reductions will affect approximately 2,000 associates and will result in a 10 percent reduction in the Company's officer ranks. They will not impact any customer-facing positions in Home Depot stores.

All officers will have a salary freeze. Merit increases to non-officer associates, as well as earned bonuses and the company's existing 401k matching contribution for all associates, including officers, will continue.

The company will offer severance, earned bonuses and other benefits to all impacted associates.

"We're very fortunate that the soundness of our company lets us live our value of taking care of our people, even in this time of unprecedented economic hardship," Blake said. "These changes will make us a stronger company and will allow us to continue to grow associate employment over the long term to benefit our customers."

Labels: Alpharetta, davis drive, home depot, store closings

Homeowners should pay close attention to budget discussions underway at the Capitol about the proposed elimination of the Homestead Tax Relief Grant (HTRG) Program. Governor Sonny Perdue has recommended not to reimburse local governments for this program, which provided a nearly $429 million tax break for homeowners on their 2008 property tax bills. For most homeowners, this credit amounted to a $200 - $300 savings each. A legal opinion issued by the Association County Commissioners of Georgia (ACCG) indicates that counties may not legally absorb the amount of these credits into their local government budget. This means that all homeowners will receive a delinquent property tax notice later this spring if reimbursement for the HTRG program is not included in the final budget passed by the General Assembly.

“We feel for our Governor and state legislators who are trying to fix a $2.2 billion budget shortfall and we know that they are very concerned about this program,” said Jerry Griffin, Executive Director of ACCG. “We just want everyone to understand that if this program is not funded, Georgia homeowners will have to get out their checkbooks to pay back the credit because counties have no legal authority to forgive taxes or lower the millage rate established in 2008 to offset the loss of the HTRG credit.”

“Residents in my county are very concerned about this issue,” said Lamar Paris, Sole Commissioner of Union County and 1st Vice-President of ACCG. “Many of our residents are already struggling to make ends meet, and an unexpected bill like this one will not make it any easier. I don’t know of any other state program proposed for elimination that would result in an immediate tax increase for Georgia homeowners.”

Homeowners have benefitted from HTRG since it was established through legislation in 1999. Local governments set their budgets and tax rate and then, in producing the tax bills, the Tax Commissioner calculates the value of the tax credit based on the combined millage rate (county, city and Board of Education) multiplied by an established value ($8,000 for 2008). The credit is subtracted from property tax bills and the local government files for reimbursement through the Georgia Department of Revenue. A line on the property tax bill clearly states that this credit comes from the State of Georgia, not local governments. The benefits of this program are entirely for the homeowner; local governments do not receive any of the funds.

The credit also is not a part of the county budgeting and millage rate setting process that are determined by following the Taxpayer Bill of Rights established through legislation by the General Assembly. Counties simply play an administrative role for the state in placing this credit on a homeowner’s property tax bill.

The Georgia General Assembly appropriated the funds for the 2008 HTRG credits through the General Appropriations Act in March 2008, which the Governor signed. Governor Perdue suspended the reimbursement in August 2008 based on the state’s projected budget shortfall. His budget recommendations call for not reimbursing the counties for the credit already issued to homeowners for last year’s property taxes and eliminating the program.

“Homeowners will be angry with both state and local officials if they receive a delinquent tax notice for their 2008 property taxes,” said Griffin. “We strongly encourage legislators to include the funding for the credit that homeowners have already received or we will all hear about it.”

About ACCG: It is the mission of the Association County Commissioners of Georgia to enhance the role, stature and responsiveness of county government in Georgia. Since counties are the level of government closest to the people and serve all the people of the state, ACCG will promote the ability of Georgia counties to provide public services responsibly, efficiently, and cost effectively through cooperative legislative action, education of public officials, provision of quality member services and technical assistance, and increasing public awareness of critical local government issues. http://www.accg.org

Labels: Georgia, homestead tax relief grant program

Dan O’Leary, normally a mall operator, played pitchman today, giving his first public presentation of his idea to build a casino at Underground Atlanta.

O’Leary and his business partner John Aderhold brought the proposal, first reported in the Atlanta Journal-Constitution, to the executive board of the Atlanta Convention & Visitors Bureau. O’Leary also brought in what he called his “dream team,” including lawyers and lobbyists from McKenna Long & Aldridge and the president of Dover Downs, a casino and four-star hotel in Delaware. O’Leary has a letter of intent with Dover Downs to operate the proposed casino.

O’Leary told the board, made of hoteliers and other civic leaders, that his proposal will make Underground a “jewel” of downtown.

“We may not even call it Underground Atlanta anymore,” he said. “This is a new deal. It’s 12 acres of property that will become something completely different.”

While the ACVB didn’t have any action in front of them, O’Leary was clearly pleading for their support.

O’Leary’s proposal calls for the Georgia Lottery Board to approve “video lottery terminals” in a casino and hotel at Underground.

The lottery board has not set a date for a decision.

After the meeting, Joe Hindsley, general manager of the Hyatt Regency, one of downtown’s largest hotels, said he wants more details, such as how many visitors the casino will attract, how many nights they’ll be expected to stay, and how much of the expected $600 million in gross revenue, that O’Leary estimates the casino will generate, will trickle down.

“I like the idea we’re combining a demand generator that has been successful in many parts of the country with an area of town that’s had its challenges,” he said. But before endorsing the idea, he said he needs more details.

O’Leary told the board he will need political support for the casino.

“Do we need political support for it? Yes,” he said, noting that more than $200 million annually is spent by Georgians gambling in nearby states.

“There’s gaming in Georgia, folks. We’re just not getting our money,” O’Leary said.

Labels: casino, casinos, developer, underground atlanta

Alpharetta Community Center
Friday, February 6, 2009 7:00 PM

Alpharetta Recreation and Parks Department will host the Father/Daughter Valentines Day Dance on Friday, February 6th from 7pm to 9pm. Space is extremely limited. Registration for City of Alpharetta residents begins July 30th. Open registration begins August 13th. The cost per person is $20 for residents and $30 for non-residents. Evening activities include dancing and dessert. For more information, email accprograms@alpharetta.ga.us or call 678-297-6100.

Labels: Alpharetta, alpharetta community center, alpharetta recreation and parks, father daughter valentine day dance, february 6th, Georgia

The Alpharetta Dept. of Public Safety proudly announces the ribbon cutting ceremony for the opening of the new Alpharetta 911-Command and Control Center, better known as the “C-3.” The “C-3” incorporates advanced communications including video monitoring of traffic flow at major intersections and GPS tracking of police and fire vehicles. The “C-3” will monitor the physical location of all police, fire and ambulance vehicles within Alpharetta by utilizing AVL (automatic vehicle locator) technology. By using AVL technology, dispatchers will send the nearest public safety unit instead of relying on units in assigned zones. The response times will be lessened thus providing much quicker aid to our citizens. Next to the “C-3” is the “EOC” Emergency Operations Center. This area will allow City officials and department heads to meet in one central location to plan, monitor and supervise emergency operations in the event of a major incident.

Alpharetta citizens, employees, guests and the media are invited to attend the ribbon cutting ceremony on Monday, January 26th at 6:00pm at the Alpharetta Department of Public Safety located at 2565 Old Milton Parkway, Alpharetta, GA 30009.

Hot dogs and hamburgers with refreshments will be served hot off the grill!

Media guests are asked to RSVP by email to PIO George Gordon.

Labels: 911 command and control center, Alpharetta, alpharetta public safety, c-3, city of alpharetta, january 26

The City of Milton is initiating its first Comprehensive Transportation Plan this month with a kick-off meeting and "Rural by Design" workshop on Thursday, Jan. 22, from 4:00 to 9:00 P.M. at City Hall in Council Chambers. This meeting is open to the public and all residents and business owners are encouraged to attend.

The meeting will present the transportation plan process, schedule, and activities for the overall transportation plan. The workshop will be led by Randall Arendt, author of the book "Rural by Design." This will offer the community the opportunity to develop a strategy for ensuring that the transportation plan and its program of improvements support the City of Milton's desired rural community nature.

Labels: city of milton, comprehensive transportation plan, Meeting, rural by design

The Milton Police Department will host its second Citizens Police Academy, a six-week program that gives citizens an inside look at the department and law enforcement, beginning Feb. 11.

The program takes place Wednesdays, 6:30-8:30 p.m., at the Milton Police precinct at 750 Hickory Flat Road. Topics include criminal investigations, criminal law, police K9 units, traffic law, and 911 operations. Participants who are over age 18 can also go on a ride-along with an officer.

Class size is limited to 15 people, with preference given to Milton residents. Interested citizens are encouraged to register as soon as possible by completing an application and background form at City Hall during regular business hours, 8:30 a.m. to 5 p.m.

Labels: citizens police academy, city milton, Georgia, milton police department, second

Fulton County Commissioner Robb Pitts wants to see foreclosed homes put to better use – by giving them away to police officers.

"This is all still a work in process," said Harriet Thomas, a representative with Pitts office. "We're still working out all the details."

According to Pitts, the subprime market collapse has led to an overwhelming amount of vacant homes in Fulton County, which negatively impacts the community.

"I would like to see these single family homes occupied by police officers," he said, in a written statement.

His tentative plan would offset low police department salaries by allowing officers to purchase homes on a down payment of just $2,500 with a 15-year service commitment to the department.

"Since most jurisdictions cannot pay police officers what they deserve, providing free homes to them would be a substantial supplement to their salaries and a good tool for recruitment and retention," said Pitts.

The program would require officers to pay all taxes, insurance, utilities, maintenance and make the residence their primary home. If they fulfilled the service agreement, at the end of 15 years they would be handed the deed to the home.

"The way we're looking at it, we're not trying to expend county money," said Thomas.

Pitts and his staff are researching ways to give banks incentive to help get the program off the ground, including the offering of tax credits. It's a program Pitts hopes can be replicated throughout the state and country.

Meetings with community leaders and mortgage lenders are being set up, according to Thomas. Pitts is hoping to have a better idea whether the program is feasible within a month, she said.

Labels: foreclosed homes, Foreclosures, Fulton County, Georgia, police officers, rob pitts

Fulton County is not prepared to raise water and sewer rates again, at least not yet.

Despite the fact that county staff insists a 10 percent rate increase is necessary to achieve its debt service requirement, the Fulton County Board of Commissioners held off on taking any action on the item for 45 days during their Dec. 17 meeting. "I'm not ready to impose a rate increase without some kind of true strategy for capital planning," said Commissioner Lynn Riley.

The request to increase the rates once again comes only months after the rates were increased by 17 percent. However, because water usage was down by nearly 24 percent between October 2007 and October 2008 the county could be in trouble with its bond repayment.

The bond, which was taken out on the system expansion, requires that money coming in is slightly above the bond repayment amount. But because more water and sewer customers have implemented conservation in their usage and other jurisdictions have raised their water and sewer rates against the county, something must be done so that Fulton doesn't find itself having trouble repaying its debt.

County Finance Director Patrick O'Conner told said the county could receive a bad credit rating if the rate increase is not approved. In fact, he believes non-approval could impact the issuance of recently approved library bonds.

"I'm philosophically opposed to the additional rate increase, but because of language in the bond formula we might have to [increase rates]," said Commissioner Robb Pitts.

Still, until they have a much better handle on how water and sewer systems are managed, Riley won't approve an increase, she said.

"All of these issues give me great concern," said Riley.

Commissioner Emma Darnell requested a short, comprehensive analysis of the operational budget in terms of personnel, equipment and cost per unit before the item comes back before the commission in January.

Labels: Fulton, Fulton County, Increase, Rates, water

The woman who led the nation's public health agency in a post-Sept. 11 world of bioterrorist fears is out, her resignation announced in a Friday night e-mail to employees.

Dr. Julie Gerberding has resigned as director of the Atlanta-based U.S. Centers for Disease Control and Prevention, and will be replaced on an interim basis by a deputy as of Jan. 20, the day President-elect Barack Obama is inaugurated.

The e-mail obtained by The Associated Press that discloses the news was sent Friday night to employees of the U.S. Department of Health and Human Services, the umbrella agency over CDC.

Although an HHS housecleaning has been expected with the new administration, Gerberding's fate was somewhat unclear. The first woman to head the agency, Gerberding led the CDC through a post-Sept. 11 world of bioterrorist fears and was considered an effective communicator with legislators and the public.

Labels: Barack Obama, CDC, Dr. Julie Gerberding