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In order for the city to approve your application, you must provide proof of your income and assets. Please provide the following items. 1) 2) 3) 4) The fully completed and signed application form, which includes a complete listing of all persons residing is this home, showing their age, employment/disability status, and income. If the property is not in your name currently due to an unrecorded land contract or otherwise, then provide proof of ownership. Copy of most recent annual Social Security notice of amount of monthly benefit for each person in your household who receives any type of Social Security benefit. Copy of the 2011 Federal and State income tax returns for you and for every household member who is required to file. The Applicant’s Michigan return MUST include a Homestead Property Tax Credit Claim and a Home Heating Credit Claim. Copies of the TWO most recent statements for every bank, retirement, annuity, cash value life insurance, brokerage, or other financial asset accounts held by you or any person residing in your household. A statement detailing any assets owned by any person residing in you household, other than normal household goods and items listed on the application. Again, be sure to include proof of income and assets for each person who resides in your household. Deliver the application and all documents to: Kalamazoo City Assessor 241 W South St Kalamazoo MI 49007
6) 7) 8)
Guidelines for Property Tax Reduction Due to Financial Hardship
1) All applicants must meet income standards as established by the City Commission. Exemptions will be granted to owner-occupied homesteads only. property must have at least a 50% Principal Residence Exemption. The
All applicants must provide the city with a copy of Federal and State income tax returns filed for all persons residing in the household. Senior citizens will pay no more than 3% of their income, after homestead credit rebate from the State, for property taxes. Citizens under age 65 will pay no more than 5% of their income, after homestead credit rebate from the State, for property taxes. Senior citizens with savings (passbook, stocks, bonds, etc.) that total more than 3% of their income, or who own other property, will not qualify. Citizens under age 65 with savings (passbook, stocks, bonds, etc.) that total more than 5% of their income, or who own other property, will not qualify.
When will the application be considered?
After you complete the application and furnish all required documentation, the City Assessor will determine if you meet the guidelines as established by the Kalamazoo City Commission. If so, then the application must go before the city's Board of Review for approval. This takes place only in March, July, or December. If your application is approved after a tax bill for the year has been issued, then that bill will be recalculated in the lowered amount. An application for tax reduction is only valid for the year you apply. You must reapply each year. The city CANNOT approve any reduction for prior years.
Decisions of the March Board of Review may be appealed in writing to the Michigan Tax Tribunal by July 31 of the current year. July or December Board of Review denials may be appealed to Michigan Tax Tribunal within 35 days of the denial. A copy of the Board of Review decision must be included with the filing. Michigan Tax Tribunal PO Box 30232 Lansing, MI 48909 Phone: 517-373-3003 E-mail: email@example.com Website: www.michigan.gov/taxtrib
City of Kalamazoo
2012 Income Levels for Property Tax Reduction Due to Hardship
To qualify for a property tax Hardship Reduction, your income cannot be higher than the amount in the "Qualifying Income Level" column for the number of persons in your household. In addition you must meet the other requirements.
Qualifying Income Level
2012 Federal Poverty Thresholds $10,900 $14,700 $18,500 $22,400 $26,200 $30,000 $33,800 $37,600 $41,400 $45,200 $49,000 $52,800 $3,800 25% Above Federal Threshold per City Commission Policy
Number of persons in household 1 person 2 persons 3 persons 4 persons 5 persons 6 persons 7 persons 8 persons 9 persons 10 persons 11 persons 12 persons Increase for each additional person over 12
$13,625 $18,375 $23,125 $28,000 $32,750 $37,500 $42,250 $47,000 $51,750 $56,500 $61,250 $66,000 $4,750
City of Kalamazoo
2012 Application for Reduction in Property Taxes Due to Financial Hardship
I, _______________________________________________, Petitioner, being the owner and residing at the property that is listed below as my principal residence, apply for property tax relief under MCL 211.7u of the General Property Tax Act, Public Act 206 of 1893. In order to be considered complete, this application must: 1) be completed in its entirety, 2) include information regarding all members residing within the household, and 3) include all required documentation as listed within the application. Please write legibly and attach additional pages as necessary. PERSONAL INFORMATION: Petitioner must list all required personal information.
Property Address of Principal Residence: Age of Petitioner: Number of Legal Dependents: Applied for Homestead Property Tax Credit (yes or no): Daytime Phone Number: Marital Status: Age of Dependents: Amount of Homestead Property Tax Credit: Age of Spouse:
REAL ESTATE INFORMATION: List the real estate information related to your principal residence. Be prepared to provide a deed, land contract or other evidence of ownership if requested.
Property Parcel Code Number: Unpaid Balance Owed on Principal Residence: Property Description (street address or full legal description): Name of Mortgage Company: Monthly Payment: Length of Time at This Residence:
ADDITIONAL PROPERTY INFORMATION: List information related to any other property you, or any household member owns.
Do you own, or are buying, other property (yes or no)? If yes, complete the information below. Property Address Name of Owner(s) Amount of Income Earned from Other Property:
Amount & Date of Last Taxes Paid
EMPLOYMENT INFORMATION: List current employment information for you and any other employed household member.
Name of Employer: Address of Employer: Name of household member who is employed: Employer Phone Number:
Name of Employer: Address of Employer:
Name of household member who is employed: Employer Phone Number:
Name of Employer: Address of Employer:
Name of household member who is employed: Employer Phone Number:
If necessary, attach separate sheet showing the information requested above for any other household member who is employed. INCOME: List all income sources, including but not limited to: salaries, Social Security, rents, pensions, IRA’s (individual retirement accounts), unemployment compensation, disability, government pensions, worker’s compensation, dividends, claims and judgments from lawsuits, alimony, child support, friend or family gifts/contributions, reverse mortgage, bills paid by someone else, or any other source of income.
Source of Income Amount and indicate whether Monthly, Annual or One-Time Income
CHECKING, SAVINGS AND INVESTMENT INFORMATION: List any and all accounts owned by all household members, including but not limited to: checking accounts, savings accounts, postal savings, credit union shares, certificates of deposit, cash, stocks, bonds, or similar investments.
Name of Financial Institution or Investments Amount on Deposit Current Interest Rate Name on Account Value of Investment
LIFE INSURANCE: List all policies held by all household members.
Amount of Policy Name of Insured Monthly Payment Policy Paid in Full Name of Beneficiary Relationship to Insured
MOTOR VEHICLE INFORMATION: All motor vehicles (including motorcycles, motor homes, camper trailers, etc.) held or owned by any person residing within the household must be listed.
Make Year Monthly Payment Balance Owed
LIST ALL PERSONS LIVING IN HOUSEHOLD: All persons residing in the residence must be listed.
First & Last Name Age Relationship to Applicant Place of Employment
If unemployed or disabled, so state.
Amount of Monetary Contribution to Household Income
PERSONAL DEBT: All personal debt for all household members must be listed.
Creditor Purpose of Debt Date of Debt Original Balance Monthly Payment Balance Owed
MONTHLY EXPENSE INFORMATION: The amount of monthly expenses related to the principal residence for each category must be listed. Indicate N/A as necessary.
Heating: Phone: Clothing: Daycare: Other (list type): Other (list type): Other (list type): Electric: Cable: Heath Insurance: Car Expense (gas, repair, etc): Other (list type): Other (list type): Other (list type): Water: Food: Garbage: Other (list type): Other (list type): Other (list type): Other (list type):
NON-FILING OF INCOME TAX: For every household member 18 years of age or older who has not filed a 2011 Federal and/or Michigan Income Tax return, state the reason for non-filing. Note that if any household member is required to file a Federal or State income tax return for 2011 and has not yet done so, the return(s) MUST be filed before this application can be accepted.
First & Last Name Age 2011 Returns not filed Reason for non-filing.
( ) Federal ( ) State ( ) Federal ( ) State ( ) Federal ( ) State ( ) Federal ( ) State ( ) Federal ( ) State
Notice: Any willful misstatements or misrepresentations made on this form may constitute perjury, which, under the law, is a felony punishable by fine or imprisonment. Notice: Per MCL 211.7u(2b), a copy of all household members federal income tax returns, state income tax returns (MI-1040) and Homestead Property Tax Credit claims (MI-1040CR 1, 2, 3 or 4) must be attached as proof of income. Documentation for all income sources including, but not limited to, credits, claims, Social Security income, child support, alimony income, and all other income sources must be provided at time of application.
If this application is not complete or if the required documentation is not fully submitted, then the City Assessor will return it to you and it will not be considered by the Board of Review. Petitioners: Do not sign this application until witnessed by the City Assessor or staff, a Board of Review Member or a Notary Public.
STATE OF MICHIGAN COUNTY OF KALAMAZOO I, the undersigned Applicant, hereby declare that the foregoing information is complete and true and that neither I, nor any household member residing within the principal residency, have money, income or property other than mentioned herein.
X__________________________________________ Applicant Signature Subscribed and sworn this _____________day of___________________________, 2012
Signature: ____________________________________________ Printed Name: ________________________________ ( ) Assessor ( ) Assessor staff ( ) Board of Review Member ( ) Notary Public If Notary, appointed for ______________________ County, acting in ______________________ County; My Commission Expires: _________________________ This application shall be filed after January 1, but before the day prior to the last day of March, July or December Board of Review to the address below. Kalamazoo City Assessor 241 W South St Kalamazoo MI 49007 __________________________________________________________________________________________________
So what’s next? How do we get started?
Complete the form on the next page and submit it to the Veenstra Team by fax or email. Email: Sold@VeenstraTeam.com FAX: 773-751-2206 We will get back in touch with you and explain the rest of the details! If the form is missing from this booklet, call us at 269-350-5514.
Understanding Short Sales
Is it a good option for me/us?
We are eager to serve!
Check out our websites at www.VeenstraTeam.com or www.KzooNeighbor.com Follow us on Twitter.com/VeenstraTeam Friend us on Facebook Facebook.com/VeenstraTeam
What is a Short Sale?
A short sale is the process by which a homeowner can sell a house for less money than he actually owes on the mortgage(s). This is best accomplished by using the services of a skilled Mortgage Negotiation Specialist AND a REALTOR who provide the and market expertise that mortgage holders need to consider whether to reduce the mortgage balance and allow the sale to occur. The mortgage lender (or bank) may actually agree to take a loss on the mortgage because the market value of the home has fallen below the mortgage balance AND the homeowner has a hardship that is not temporary and is therefore in a poor financial condition that will not allow him to continue to make regular mortgage payments. If the bank approves the discount on the mortgage, the home can be sold for a lower price without the seller having to come up with cash to cover the shortfall. In that case, the mortgage is satisfied and any foreclosure process stops.
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Why would a bank or mortgage lender want to do a short sale?
Banks do not want to own real estate, they want to lend money and collect interest. When a bank takes a property back via foreclosure, it is a long and expensive process and often results in holding the property in their inventory as a non-performing asset. Banks have a limit to the amount of non-performing assets they want to hold. Once this limit is exceeded, they have strong incentive to get rid of the properties at discount prices. For a lender, doing a short sale avoids many of the costs associated with the foreclosure process. Attorney fees, delays from borrower bankruptcy, damage to the property, costs associated with resale, property tax, insurance, etc. all must be paid by the bank during a foreclosure. In a short sale scenario, the lender is able to cut its losses by getting rid of the property faster. This is particularly true right now, not only because the real estate market is so slow, but also because the foreclosure rate is high.
How do I know ...
Let us reduce your stress!
if a Short Sale is a good option for my property????
Answer this first set of questions…. ο Can the house be sold for enough to pay off what you owe on it, pay the real estate commission, closing costs, taxes, and other costs of sale? ο Do you have the means to solve the financial situation on your own? Do you have money available in a bank account or equity in another property that you can use to catch up or pay off your mortgage(s)? ο Has your temporary financial hardship been resolved?
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Do you intend to stay in the house (even when you know you will have to move if the house forecloses)?
If you answered yes to any of the above, you may NOT be a good Short Sale candidate, and you should pursue other options If you answered NO….. TURN THE PAGE PLEASE
Consider these questions...
Are you willing to move out of the house (after it is sold, don't need to move right away)? Have you attempted a loan modification or forbearance with your lender and were not successful? Is any foreclosure sale more than 10 days away? Do you owe more on the house than the house is worth in today’s market? Does the house have more than one mortgage on it? Do you have a home equity loan? Does the house need work? Does it differ from the norm in a way that would make it difficult to sell? Might the house be difficult to sell because of it’s location?
4. Once a short sale is accepted by the lender and while the short sale is being processed, the house will be listed on the Multiple Listing Service by the Veenstra Team and will be aggressively marketed. The house will be listed at or below market value but this does not impact the short sale settlement for you. The investors will be looking for a buyer to purchase the home from them. The Veenstra Team will earn a commission for the sale but this is paid by the investor group. There are no fees to the short sale home seller.
Is a short sale a guarantee that I will not face foreclosure?
No, The worst case scenario is that the offer made
(after we drop the price to what the market will bear) is not enough to satisfy the lender for a short sale. In that event, nothing we could have done would have prevented the house from going to foreclosure. There has been no cost to you, and you are in no worse a position than you were before we started the short sale.
…If you answered yes to any of these questions above, your home may be a viable Short Sale option.
The best case scenario is that the foreclosure is prevented, the house gets sold,
you get on with your life without a deficiency hanging over your head, the lender doesn't have to take the house back (and saves money), The Veenstra Team makes a full commission and our Mortgage Negotiating Specialist Partner makes a profit for putting it all together. That's a win-win-win-win.
Possible Benefits of
How does the process work?
1.The Veenstra Team and our Mortgage Negotiation Partners will analyze your situation and let you know if your situation meets the criterion and is a good short sale candidate. 2. Most lenders will not consider a short sale unless an offer has been made for them to consider. We have investors who will make an offer to buy your property, so long as it is in our "sweet spot". Our investors actually bring an offer to purchase! A good short sale candidate includes: Decent selling condition (Ugly is ok, but no major problems) Generally not over 50 years old NO condos, town homes, lots, unfinished new homes, or mobile homes Good chance for resale (at the right price) You have experienced a long term hardship and cannot pay off the note or continue to make payments All owners are cooperative and willing to vacate prior to closing You are not a candidate for a loan modification or forbearance Foreclosure sale is more than 10 days away The property is over-leveraged (no equity) The property is not included in any current bankruptcy proceedings. If so, call us when it is dismissed or discharged. 3. We will meet with you to execute documents which allow our negotiators the authority to initiate and negotiate the Short Sale, and give us permission to begin marketing the house so our investors can resell it after the Short Sale is accomplished.
Doing a Short Sale
1. You will keep a full blown foreclosure off your credit history. Typically a Short Sale will impact your credit less than a foreclosure. Before and after studies have shown that a foreclosure will lower your credit score more than a Short Sale will lower your credit score. You don't have to say "Yes" when asked on future loan applications whether "you have had a house go to foreclosure" You will be eligible, under Fannie Mae guidelines, to buy another home in 2 years instead of 5 years for a foreclosure. FHA and VA have no published wait guidelines, and if you get your credit score back up with a one year good pay history, you can qualify for a new loan. We negotiate with the lender for FULL SATISFACTION of all debts. If the house goes all the way to foreclosure, costs continue to add up until the lender gets the house resold. The deficiency will be much higher than if they do a Short Sale, and the lender could pursue a deficiency judgment against you. Working out a Short Sale may allow you to avoid filing bankruptcy. Retain some dignity in knowing that you sold your home. You won't suffer the social stigma of the "F" word: Foreclosure. Although you won't receive any funds at closing, it won't cost you anything either. All costs of the sale come out of the lender's proceeds. Typically homes sold in a Short Sale are sold "As-Is", so you won't need to spend any money fixing anything, unless you choose to do so.
4. 5. 6. 7.
Possible Drawbacks of Doing a Short Sale
1) Waiting for the bank to approve a short sale offer can be frustrating. 2) The bank will want to examine personal records such as tax returns, bank accounts, pay stubs, assets and liabilities, in addition to asking for a hardship letter from you. 3) Accommodating prospective buyers will mean showing your house. If you have already moved, or plan to move soon, this is not an issue. 4) There is no assurance the bank will accept a Short Sale offer. 5) As a short sale represents a loss for the lender, they can report the amount lost as debt forgiveness to the borrower. They could issue a 1099-C as income to the borrower. However, the Mortgage Debt Relief Act of 2007 allows borrowers to exclude this income for a principal residence (Refer to IRS Publication 4681 and IRS Tax Form 982 for more info). It should be noted the lender can do this in a foreclosure as well. 6) If you have significant assets, you are giving information to the lender that they might use to try and get some of those assets.
Why should you work with The Veenstra Team and our Professional Mortgage Negotiation Specialists?
You get the benefit of a veteran REALTOR® and real estate team (The Veenstra Team) with over 22 years of home selling experience and top notch marketing strategies. We have partnered with a Professional Mortgage Negotiation Specialist and his team who are getting the job done! We list the home at a price that the market will bear, and “work the Short Sale” with the lender to create the discount needed to get the house sold. You don't have to waste your time trying to sell a house that will never sell because it is priced too high for this market. You do not have to pay any costs or fees for negotiating the short sale or selling the property. You pay nothing. We handle all of the headaches. Negotiating Short Sales can be time consuming and frustrating. We work with investors who will make a guaranteed offer on your house. Most lenders require an offer before they will even consider a Short Sale. You don’t have to wait weeks or months for a qualified buyer before you can even start the Short Sale process – our investors will buy your home and we can start the process immediately! Our Mortgage Negotiation Specialist partners are highly trained and experienced and bring the highest level of professionalism and expertise to our Short Sale negotiations. They know exactly what to say and who to say it to. They even have inside contacts at many of the major banks to expedite the process. Your chance for success will be much higher when you work with us. We are committed to customer service and helping you make the best choices for your situation. We respect your privacy. All information will be kept strictly confidential
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