WARNING: Homeowners at Risk!

[celtic_crippler]

I'm not sure about other states, but apparently in the lovely state of Georgia they're eliminating the Homestead Exemption.

What does that mean?

It means my mortgage took an enormous jump this month! Holy Mother of Zeus did it take a jump!!! :cuss:

So I call the court house about it and they say it's because state revenue is down (no **** Sherlock...we're in the Great Recession!!!!) so the state has decided to rescind the exemption.

Okay... so the government is supposed to be concerned about KEEPING homeowners in their homes and your answer is to do something to RAISE THEIR F'N MORTGAGE?!?!?! :angry:

ARRGGGHHHHH!!!! :tantrum:

At least the clerk I spoke to was nice. I made the comment that apparently none of the incumbants are worried about reelection and she laughed...yeah...they're probably not.

Did I mention that my HO insurance went up $100 too? Yup..and State Farm can't explain that either. They have to call Deluth to find out...I'm like, what the hell does Deluth have to do with me? I was an insurance agent and underwriter for over 7 years and know when my chain's being yanked...sigh...apparently there was a state-wide increase though I haven't had confirmation fromr my "good neighbor" yet. I guess I'll check with Oxindine...probably get a quicker answer...

Anyway...Bob...be glad you decided to move to TX and not GA. Right now we're taking it in the :moon:

 

[Bob Hubbard]

Sheesh. Sounds like GA was talking to NY.

I wouldn't do business with State Farm either, but that's another story in itself.

 

[Empty Hands]

It seems like the set terms of your mortgage should prevent something like that from happening. Always read the fine print, I guess.

Of course, if all those foolish homeowners had just worked harder and used some of those bootstraps, they wouldn't need to take advantage of their poor creditors to keep their houses in a bankruptcy...

Actually, how does this move increase the liability of the mortgage holder? How does being able to keep your house in a bankruptcy help them? It seems like getting a bad tenant out so the mortgage holder can sell the asset (house) would help them, not hurt them.

 

[Carol]

What does the Homestead Exemption mean in GA?

In MA it essentially meant that no one could take my condo in a lawsuit. Pity that didn't work for the divorce :lol:

 

[celtic_crippler]

The exemption meant I could claim a credit against my property taxes saving me hundreds of dollars every year. It was for first time home buyers.

But... since the state isn't generating revenue from taxes the way it used to before the economic collapse, it seems to think that by eliminating this tax break it can make up for some of it's losses. Genius....

Did I mention that State Farm is increasing my insurance rate for similar reasons?

For those that don't know, insurance companies make their money by investing your premiums. They couldn't possibly make any money off of your premiums alone (I know it's hard to swallow when you look at what you pay, but it's true.)

...and since the stock market's been in the toilet it also means insurance companies aren't making any money. I would expect more than just my Home Owner's insurance to be going up...

 

[Bob Hubbard]

Car insurance has been going up significantly without apparent reason.

 

[Empty Hands]

Car insurance has been going up significantly without apparent reason.

Assuming it isn't just because they can, it's probably insufficient return on their investments.

 

[celtic_crippler]

Car insurance has been going up significantly without apparent reason.

Assuming it isn't just because they can, it's probably insufficient return on their investments.

Oh, there's a reason.

And you shouldn't just be P.O.ed with your insurer either. Insurance companies can not arbitrarily raise your premium without the express consent of your state's Insurance Commishioner....another beurocrat.

And yeah, ROI is the primary reason as there have been no major disasters or drastic increases in claims.

 

[Bill Mattocks]

It seems like the set terms of your mortgage should prevent something like that from happening. Always read the fine print, I guess.

Of course, if all those foolish homeowners had just worked harder and used some of those bootstraps, they wouldn't need to take advantage of their poor creditors to keep their houses in a bankruptcy...

Actually, how does this move increase the liability of the mortgage holder? How does being able to keep your house in a bankruptcy help them? It seems like getting a bad tenant out so the mortgage holder can sell the asset (house) would help them, not hurt them.

Your mortgage is generally PITI, so you pay taxes with your mortgage payment, which the mortgage company then distributes to the taxing authorities. If taxes go up - for whatever reason - then your mortgage goes up. That's not something the mortgage company can 'set in stone' when you close on your house. The terms did not change - the taxes did.

 

[arnisador]

My property taxes just came yesterday and they have gone up 24.6%...in a year in which I am getting no raise because of the economy.

 

[celtic_crippler]

My property taxes just came yesterday and they have gone up 24.6%...in a year in which I am getting no raise because of the economy.

Looks like the government has a great plan for making up lost revenue though don't it?

I can't believe the economy's in the toilet and they are increasing taxes. It seems not one of these beurocrats have read anything about early 20th century history...It appears they won't stop until the plunge us into another Depression.

 

[Empty Hands]

The terms did not change - the taxes did.

My understanding of the initial post was that the Homestead Exemption was repealed. Usually, that means that your creditors can't take your house if you declare bankruptcy. Does it mean something different in crippler's state? If not, I don't see how that raises taxes.

 

[Bill Mattocks]

My understanding of the initial post was that the Homestead Exemption was repealed. Usually, that means that your creditors can't take your house if you declare bankruptcy. Does it mean something different in crippler's state? If not, I don't see how that raises taxes.

Yes, it means different things in different states. In NC, it means what you said. In some states, it is that and (different meaning) an exemption on your state and/or local taxes based on a defined homestead amount. Some states and localities (and yes, in Texas too) are repealing or thinking about repealing homestead exemption tax shelters. Doesn't change the meaning of 'homestead exemption' for bankruptcy, but does change the amount of taxes due.

It's a sneaky way to raise property taxes. First tax you $100, then shelter $80 worth of it, so you pay $20. But in hard times, take away the shelter - now you owe $100 again, even though I never actually 'raised taxes'.

See how that works? Those bastiches.

 

[Empty Hands]

Yes, it means different things in different states.

Thanks, this whole issue makes much more sense now.

 

[celtic_crippler]

My understanding of the initial post was that the Homestead Exemption was repealed. Usually, that means that your creditors can't take your house if you declare bankruptcy. Does it mean something different in crippler's state? If not, I don't see how that raises taxes.

I explained it further up the thread. :wink1:

 

[Deaf Smith]

Thank goodness I live in Texas.

Due to the conservative polices of Texas, we are in the black as for finances. No talk at all about this kind of stuff.

Watch Glenn Reynolds with Gov. Rick Perry:

Texas Gov. Rick Perry: Running a State the Right Way

http://www.pjtv.com/video/InstaVisi...ck_Perry:_Running_a_State_the_Right_Way/2096/

Now compare Texas with California....

Deaf

 

[Bill Mattocks]

http://en.wikipedia.org/wiki/Homestead_exemption

 

[celtic_crippler]

Official release:

Due to the economic recession, the 2009 Georgia Assembly failed to appropriate funds for the HTRG. The Grant will only be made available in the future if the state revenues grow at least 3%, plus the rate of inflation.
What this means to all Georgia homeowners who have filed for the homestead exemption is that you can expect at least a $200 hike in your property taxes for 2009