Iowa Property Owners Alliance

How Your Home Can Help You at Tax Time

IPOA Staff — Fri, 06 Apr 2012 17:30:18 +0000

If you have already filed your taxes, hooray for you! It’s always such nice feeling of relief and accomplishment to have it completed. However, if you haven’t filed yet or are looking for some resources to plan ahead and reduce next year’s tax bill – here are some tips to keep in mind.

Click below for resources on home tax deductions topics including:

Iowa – Great Place to Live

IPOA Staff — Fri, 06 Apr 2012 15:45:08 +0000

You know that Iowa is a great place to live. But isn’t it satisfying to see that other people around the country are beginning to catch on as well? Iowa and various Iowa cities have been in the national news several times in the past few months, for everything from housing markets expected to outshine the rest to highest level of well being. Click below to read more about life in the great corn state!

5 Housing Markets Expected to Outshine the Rest – #4 -Des Moines-West Des Moines, Iowa
10 Real Estate Markets to Watch in 2012 – #4 -Des Moines-West Des Moines, Iowa; and #9 – Waterloo-Cedar Falls, Iowa
5 Markets Beating the Housing Bust – #2 Davenport, Iowa
Iowa listed in top 1/3 of happiest states in nation

Spring Fever – Tips for Your Home

IPOA Staff — Fri, 06 Apr 2012 07:55:32 +0000

Even if the groundhog did see his shadow at the beginning of February, worst case scenario: that should mean just a few more weeks of winter, right?

You can feel it in the air: spring fever is going around! Whether spring is just around the corner or still weeks away, it’s time to start thinking about some of your home maintenance, repair, and cleaning projects you have ahead. Check out this guide for spring and summer seasonal maintenance, and an easy to-follow spring cleaning guide.

Dream Makers Down Payment Assistance Program

IPOA Staff — Tue, 13 Mar 2012 16:33:30 +0000

Dream Makers is a national down payment assistance program for first-time home buyers of modest means who help defend our nation. Grants are eligible for active duty and veteran military personnel as well as current employees of the Department of Defense and Department of Homeland Security. Grants can be used in conjunction with VA, FHA, and conventional mortgages from any lender in the nation. Applications can be submitted online at www.penfedfoundation.org/DreamMakers.

Mortgage Settlement Provides Debt Reduction and Refinancing Options for Homeowners

IPOA Staff — Fri, 10 Feb 2012 17:05:45 +0000

Iowa property owners are estimated to receive approximately $40 million from a large mortgage settlement involving 5 banks and negotiated by 49 states attorneys and the federal government. Specifically, Iowa’s share of this settlement breaks down like this:

Iowa borrowers will receive an estimated $5,899,449 in benefits from loan term changes
Iowa borrowers who lost their home to foreclosure from January 1, 2008 through December 31, 2011 and encountered servicing abuse would qualify for $7,402,512 in payments to borrowers
The value of refinanced loans to Iowa’s underwater borrowers would be an estimated $11,602,880
The state will receive a direct payment of $15,330,480

Unfortunately, the complexity of the mortgage market and the huge scope of the settlement means that borrowers will not immediately know if they qualify for payments or loan modifications. Additionally, banks have up to 3 years to implement the terms of the settlment into their systems and processes.

As of Feburary 10, the settlement included the following banks:

Ally: 1-800-766-4622
Bank of America: 1-877-488-7814
Citi: 1-866-272-4749
Chase: 1-866-372-6901
Wells Fargo: 1-800-288-3212

Iowa Mortgage Help Hotline: 877-622-4866

Loans held by other banks or by Fannie Mae and Freddie Mac are not currently part of the settlement. However, the federal government is working on a settlement with additional banks, so it is likely that the list of included banks will grow in the next several months.

A number of resources are available for Iowans seeking more information on this settlement:

Sources: Iowa Attorney General, National Mortgage Settlement Website

Key 2012 Legislative Session Dates

IPOA Staff — Fri, 10 Feb 2012 16:38:19 +0000

Iowa legislators stick to a schedule in order to help give new legislation a fair shot at being heard while making sure that ideas that aren’t well-supported don’t live on forever. This schedule is important because bills that don’t make it through the “funnel” are most likely dead for the legislative session.

The following are key dates for the 2012 legislative session.

February 24, 2012: First funnel deadline – This is the date that House bills need to be reported out of the House committees and Senate bills out of Senate committees.

March 16, 2012: Second funnel deadline – This is the date that House bills need to be reported back out of House committees and Senate bills reported back out of Senate committees.

April 17, 2012: Tentative scheduled adjournment date for the 2012 legislative session (100th calendar day of the session)

Iowa Legislators are Back to Work: Expected Issues include Property Taxes, Mental Health Reform, and Education Reform

IPOA Staff — Mon, 09 Jan 2012 17:00:52 +0000

Today (January 9) marks the start of the 2012 Iowa Legislative Session.

As we have reported previously, property tax reform promises to be one of several key issues discussed during this year’s session. Governor Branstad has publicly stated his intention to make property tax reform a key piece of legislation this year, and the governor’s staff has been working on drafting legislation that could change how property taxes are assessed across residential and commercial property classes. Specifically, the goal of the legislation is to reduce the property tax burden on Iowa businesses, with the belief that lower property taxes will make the business climate more favorable in Iowa, thereby helping businesses to grow and add jobs. Concerns remain about how property tax changes will affect residential property owners, as residential property owners likely do not want to be on the hook financially for any commercial property tax reductions. Cities and local governments will also be watching closely to make sure their property tax revenues are not changed significantly. So there are many interested players in property tax reform, and all will be watching and working to make sure their respective interests are considered in any legislation. We will be watching as well and let you know how the various legislative proposals shape up as the legislative session progresses.

According to the Des Moines Register, legislators will also be considering changes to Iowa’s mental health system – in particular how services are provided in each of Iowa’s 99 counties. Additionally, some legislators have made education reform a priority for 2012. What “education reform” means specifically is yet to be determined…

Remember to Like us on Facebook or join our email newsletter list to stay updated on the latest legislative happenings as they relate to property issues.

Federal Bill Increases Cost of New Mortgages and Refinancing

IPOA Staff — Sat, 17 Dec 2011 22:49:42 +0000

The U.S. House and Senate have been at odds recently on whether a payroll tax cut and unemployment benefits should be extended and how to best pay for the associated costs. So how does this impact housing and property ownership? The Senate has devised a bill that extends the payroll tax cut and some unemployment benefits, while paying for these programs by increasing the fees on some mortgages and refinancings.

Fannie Mae and Freddie Mac are government-backed entities that (among other activities) insure lenders against the risk of making home loans to consumers. Because private insurers have been reluctant to insure mortgages in recent years, Fannie and Freddie now insure roughly 9 in 10 new mortgages in the U.S. The Senate bill increases the fees that Fannie and Freddie charge to insure mortgages, meaning that a homeowner who purchases a $200,000 home would pay approximately $17 more in fees. However, at the same time a worker earning $50,000 per year could expect a decrease of $165 in payroll taxes over the 2 month extension of the payroll tax cut.

While this is a small increase, the total revenue expected from these fees is calculated at $33 billion over the life of the programs (a 2-month extension of payroll tax cuts and longer extension of unemployment and Medicare programs). It is somewhat puzzling that legislators would target housing as an industry to pay for other tax relief, given the recent industry struggles with foreclosures. However, some commentators speculate that this action was intended to raise Fannie and Freddie’s fees in an attempt to lure private insurers back into the market.

Source: Washington Post

Realtors Report that Home Sales Across Iowa Increased in November

IPOA Staff — Fri, 16 Dec 2011 16:40:34 +0000

CLIVE, IOWA (Dec. 15, 2011) – According to the Iowa Association of Realtors® (IAR), Iowa home sales were up again in November, marking it the fourth month in a row with an increase in number of sales.

IAR’s 2011 November Housing Trends Report indicates the number of home sales in November increased by 12.2 percent, with 261 more sales last month than November of 2010. IAR reports 2,395 homes sold/closed in November 2011, while 2,134 homes sold/closed in November 2010.

Prices last month were very comparable to last year, down a mere 0.6 percent or $900 from November 2010. The average sale price across the state in November 2011 was $138,804, while the average sale price in November 2010 was $139,704.

IAR also reports the statewide inventory at the end of the month was 21,431, which includes 3,112 new active residential listings. The average days on the market in November was 109 days, up 3 days or 2.8 percent from November 2010 when the average was 106 days.

“Market activity typically slows a bit at this time of the year, as people are busy preparing for and celebrating the holidays,” says Dale Gross, president of the Iowa Association of Realtors®. “In light of this annual trend, it’s great to see a continual flow of increased activity here in Iowa. Iowans must be taking advantage of the low mortgage interest rates and good supply of homes currently available.”

Twenty-seven of the 44 local boards across Iowa reported increases in the number of sales and 27 boards reported increases in average sale price from November 2010. Seventeen boards showed a decrease in the average number of days on the market.

The IAR releases a Housing Trends Report each month. Data is collected from local Realtor® boards through their multiple listing service (MLS), which tracks sales activities in the board area. The IAR compiles all of the local board data into the statewide report each month. The information used to create the November 2011 Housing Trends Report was current as of December 12 at 1:00 p.m. The information is subject to change due to the dynamic nature of the IAR’s housing statistics system, which is updated hourly based on information present in local participating MLS (multiple listing service) systems. Reports are available online to IAR members and affiliates with a login and password. Anyone is eligible to become an IAR affiliate. For membership information, visit www.iowarealtors.com.

All real estate is local and each market is unique. IAR encourages interested buyers and sellers to contact a local Realtor® for more information on the market in their community. Realtors® are the number one voice for real estate and defenders of home ownership. To find a local Realtor® visit SeeIowaHomes.com. The term Realtor® is a registered trademark, which identifies real estate professionals who follow a strict code of ethics as members of the National Association of Realtors®(NAR). The Iowa Association of Realtors® is the state’s largest real estate professional organization representing more than 7,000 members and affiliates.

Source: Iowa Association of REALTORS®

New Property Tax Proposals Taking Shape

IPOA Staff — Thu, 15 Dec 2011 21:44:54 +0000

The 2012 legislative session is just a few weeks away, but already proposals on how to best modify Iowa’s current property tax structure are starting to take shape. The focus has been on providing commericial property tax relief, which legislators say will make Iowa a more attractive place to do business, thereby helping businesses to add jobs. The key questions seem to be which businesses should qualify for property tax relief (small Iowa businesses or all businesses – even large out-of-state companies), and how to pay for commerical property tax relief. Most proposals involve some adjustment in how property taxes are split among residential, commerical, and agricultural property types. Of course, nobody wants to pay more or receive less in tax revenue, including the state, local/city governments, and property owners. So the debate continues for now.

Here is a look at what some legislators proposed recently. We’ll keep you updated as this issue continues to develop.