Property Tax Info

What happens to your mortgage payment when the taxes change? We’ll look at my daughter’s changes over the last 18 months. In 2008 when the Indianapolis property tax C-bill came out ( the final bill for 2006), it was much less than the normal tax bill. Since taxes were behind, my daughters lender assumed her taxes had changed and sent her a check for the overage in her reserve account.

Mortgage companies are only allowed to keep a maximum amount in reserves.

When the next tax bill came out, the lender paid the taxes, but there wasn’t enough in her account, so her payment increased to $1240.00. She paid that until last month when the reconciliation bill came out. The computer which tracks such things calculates her payment again decides she has too much in reserves and kicks back a check.

Now she has two months reserves...

An email on Friday revealed the answer to the question many have been asking. When will the tax bills go out? Today the Indianapolis Star confirmed the property tax bills for Hendricks County will be mailed out this week.

The time bomb – they will receive two bills; the spring bill and the fall bill will go out at the same time and all of 2008 taxes will have to be paid by November of this year. Johnson County residents will face the same fate. Marion County has not yet posted when they will have taxes certified for 2008.

Hendricks County Spring Bill is due 9/18/2009 and the fall bill is due 11/20/2009. Johnson Counties’ due dates are 9/10/2009 and 11/10/2009.

My search statistics prove homeowners are concerned about the tax issues. Search queries over the past few weeks indicate it is a hot topic. 3 of the top 5 searches on my Indianapolis Real Estate Blog are:

• hendricks county property tax
• indianapolis...

Low interest rates have created an upsurge in the number of homeowners looking to refinance their homes. I don’t have an opinion either way, as I believe it is a personal financial decision everyone needs to make for themselves.

Once you have considered the cost of title insurance, closing costs and lender costs; weigh the difference in monthly payments against the length of time you plan to stay in your home, it may make sense for some, while others may not fare as well.

If you do decide to refinance your home, please be sure to file your mortgage exemptions again. There are some counties in and around Indianapolis where the title company will file the exemptions for you. Other counties, you are required to go file yourself.

Make sure you know when you leave the title company whether they will be filing for you, or if you must do it yourself.

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Here’s a little knowledge about the tax bills which will soon hit our mailboxes. Remember, you will receive a tax bill for the first half of 2007 in a few weeks, best estimates indicate November 10th. We then expect the last half of 2007 tax bill to come out in January. By May 2009, we should be back to normal ( whatever is normal for Marion County Taxes) and will be paying for the first half of 2008, due, May 10th.

In the meantime, check the estimated tax rate and dollar amounts at the Marion County Tax Estimator site. Here’s instructions for calculaing your estimated tax. The disclaimer is – the tax Estimator is a projection only and not a statement of true tax liability. This will give you an estimate of 2008, 2009, 2010 tax rates and dollars.

Click the ...

A Phone Call

A recent phone call from a gentleman about the amount of real estate property tax he had to pay for the reconciliation bill in July made me think about what a mess this whole year has been for homeowners, both those who are buying and those who are selling. This particular person closed on his home in July 2007, a really bad month to close on a home in Indianapolis.

Let me explain – Last July was the month the property taxes were stayed by the Governor. When tax bills were received last year, (late, I might add) there was an uproar from homeowners in Indianapolis.

The tax paying citizens of Indianapolis marched at the Governor’s home over the July 4^th Holiday last year and back then, I thought, what irony. It was Independence Day and we definately needed some independence from property taxes and their effect on our freedom to live in our homes without fear property taxes would be the final straw to break the proverbial...

This is a week of tax questions. If you have been a reader here for any time at all, you know the Indianapolis property tax issue is a favorite of mine  

The following question came from someone who is starting their search for a home in Avon a city just west of Indianapolis. I love working with people who really do their research and am happy to help people with their real estate questions

The question: We're getting ready to look at some properties in Indianapolis (actually, more towards Avon) and I'm having trouble finding what the property tax is to calculate into my estimated payment. Could you help me out with that?

Of course, I am happy to help – here’s my answer:

In Indiana, there are currently no set taxes, as in a percentage. Each city determines their budget needs, then applies property tax based on the needs of government for that particular year, by applying a percentage to the assessed value. ...

Another Repercussion of the Indianapolis Property Tax Issue

We all love receiving an unexpected check in the mail. Usually, our first response is, “Great, a refund”. Well……….if you are one of the Indianapolis homeowners who recently received  a bonus check from your mortgage company, don’t run to the bank to cash it until you know the repercussions of doing so.

Here’s the deal – Our infamous Indianapolis property tax issue has created yet another payment balancing fiasco -this time for your mortgage company. You see, the ...

The time has come for the homeowners in Indianapolis to realize the effect of the “stay” on taxes ordered last year by Governor Daniels.

Almost one year ago, the uproar over tax bills could be heard throughout the city of Indianapolis as homeowner after homeowner opened their 2006 tax bill. Trending had reached into the pocketbooks of most real property owners, from residential to businesses.

Quickly, we were given a stay on taxes at the previous years rates, while  all properties in Indianapolis were reassessed. Let me tell you, it was NOT the assessment which was the problem – it is the tax rate. It was never more evident than the closing I attended today on behalf of my clients. Should we have closed last week on their home, we would not have known how much...

I recently spoke with a homeowner who did not have their Homestead Exemptions filed. The impact on their taxes was $600.00 a year. Being in their third year of ownership, this simple process has cost them $1800.00. I don’t like paying more in taxes than I have to!

When you sign your documents at the Title Company, you will receive the paperwork to file your Homestead Exemption. It is so easy to forget to go through the stack of papers and send in the document. Most buyers breath a sigh of relief, thankful they have made it to signing and now own their home. The Title Company recommends you send it in after you have made your first payment.

The form actually has to be submitted by June 10th and you have to be the homeowner as of March 1^st of the year you submit the application. Anytime you refinance or have a deed change, the paperwork must be resubmitted. You can find complete list of available ...

Property Taxes in Indianapolis has been the subject of many articles, questions and water cooler converstaions. I have even cast my voice into the well of objective (okay, maybe not objective) opinions. My objectivity is clouded, not by my personal agenda, but, by what I see happening and how it has affected the advice I can provide my clients, as well as my ability to negotiate in the best interest of my clients.

I wasn't going to write anymore about the tax situation.....then, I was asked recently if there is a silver lining in the property tax fiasco. I am generally conservative in my opinion of future events, especially when those events are left to the decisions of politicians who have failed to deliver on their promises.

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Dear Prospective Client:

I must tell you up front there is a new form attached to  the Indiana Residential Real Estate Contract I do not understand. Oh, I will try……..but even with these boots, I’m not sure I can trudge through the uncertainty of the current “new” form (2007 Property Tax Rebate Disclosure Form) I must have you sign. One thing is certain, I won’t be alone! By now, all the great citizens and taxpayers of Indianapolis have been made aware of property tax increases affecting  homeowners.

As a...

 There is a silver lining, though, in the form of a credit or rebate. About this time, you should be jumping up and down with joy just thinking about receiving a credit. But wait...... dont over-exert yourselves just yet- we don t know how much or when the credit will be given. This rebate is...