Category Archives: Seniors

Want to keep your old Proposition 13 tax base when you move? Here’s how!

Adding more teeth to Prop 13–expanding propositions 60 and 90

C.A.R.’s Portability Initiative
Campaign Talking Points

• GOAL: To create homeownership opportunities for young families and
preserve tax savings for seniors. Expand Proposition 60 and 90 voter mandated keeping of old property tax base.
• Proposition 13. California’s property tax system is based on the purchase price of a
home. Proposition 13 caps property taxes at 1 percent of the purchase price (Prop.
13 property tax base).
• Moving Penalty. When a homeowner relocates, their property taxes will be 1
percent of the purchase price of the replacement home. As a result, homeowners’
property taxes generally increase when they move.
• Seniors. In California, homeowners 55 years of age or older can transfer their Prop.
13 property tax base – only once – to a replacement home located in the same
county so long as the purchase price for the replacement is equal to or less than the
sale price of the original residence. These homeowners can also transfer their
Prop.13 property tax base to a home located in a county that has agreed to the
transfer (only 11 counties have agreed to inter-county transfers).
• Data. Data shows that homeowners are very aware of how their property taxes will
increase when they move. As a result, almost three-quarters of homeowners 55
years of age or older have not moved since 2000!
• Research. Because of the housing supply shortage, 65% of starter homes are
selling at or above the asking price which makes it very difficult for first-time
homebuyers to enter the market.
• C.A.R.’s Initiative. C.A.R.’s Portability Initiative would allow homeowners 55 years of
age or older to transfer their Prop. 13 property tax base to a home of any price,
located anywhere in the state, any number of times.
• Buy Up. For example: Homeowner originally bought for $100K ($1K/year for
property taxes), subsequently sells for $300K, and buys a replacement home for
$400K. The $100K difference between $300K and $400K is added to the original
Prop. 13 property tax base of $100K for a new Prop.13 tax base of $200K ($2K/year
for property taxes). Under existing law, this transfer could not be made and the
Prop. 13 tax base would be $400K ($4K/year for property taxes).
• Buy Down. Returning to the example: If a homeowner buys a less expensive home,
for example for $200K, the property taxes will be proportionally the same as for the
original home. In other words, if the tax base was one-third of the sales price, the
new property tax base would be a third of the new sale price (i.e., 1/3 of $200K =
$67K or $670/year for property taxes). Buying down reduces the homeowner’s
annual property tax bill.

• Arguments in Favor:

– No moving penalty. The initiative keeps senior homeowners’ property taxes low
when they move.
– Increased supply. As senior homeowners move, they create housing
opportunities for younger, growing families and first-time homebuyers that don’t
exist today.
– Local finances. When a senior moves out and a young family moves in, the tax
revenue to the locality annually increases.

Picking the Perfect Retirement Community:  Prioritize Your Interests and Push to Find the Right Fit

 

 

Seniors have many factors to consider when it comes to downsizing and choosing a retirement community. They may need to think about their budget, medical needs, and proximity to relatives, but the lifestyle available in a community is essential to consider, too. Every community has its own personality, and it is vital to find one that truly feels like home. Here are a few key considerations to keep in mind.

Search for a community that feels like a comfortable fit

Look beyond the marketing brochures and first impressions when evaluating retirement communities — you must dig deeper to establish what the right fit for your needs is. For example, are you looking to continue specific hobbies you enjoy or broaden your social circle? Are you looking to maintain a lot of control as a resident or do you want more structure and less to be responsible for?

Make It Better notes that many retirement communities feel like a combination of a cruise ship and a college campus, providing numerous opportunities to stay socially engaged with others. A calendar full of daily activities to try out is common, but this can be a turnoff if you are looking for a peaceful, quiet new home or are less apt to take advantage of social activities.

Bankrate notes the increasing popularity of affinity retirement communities, or those that create niche communities based on a common hobby or characteristic. They may revolve around a specific professional background, serving the LGBT community, or interests like RV vacationing, nature, or specific colleges. When available, choosing an affinity community can help a senior feel at home quickly since they are easily able to connect to others with similar interests.

Consider factors like religion, median age, and services provided

Additional characteristics to consider include whether a place focuses on a specific religion. Many assisted living or nursing home facilities are religion-based, but each will vary in how dominant that faith is in the day-to-day activities. In addition, Huffington Post suggests that you check into the median age of the residents and try to get a sense of whether it is mostly singles or couples living in the community so you can determine whether you’ll feel like you fit into the group.

It’s important to consider the kinds of services and amenities each retirement community offers; not only will it help you better prepare for the move, you’ll have more tangible pros and cons to weigh between communities. Many will have hairdressers, barbers, housekeeping or laundry services, shuttle buses to take residents off-site, and on-site access to some level of medical care. Dining is typically included as well, but you should inquire about options, pricing, and meal plans.

Social opportunities can vary greatly from neighborhood to neighborhood

Opportunities for swimming, golf, and tennis are common within retirement communities. However, you may also find access to adult education classes, on-site entertainment, fitness classes, music, and more unique sports like “pickle ball” offered too. If you have issues with mobility or some special needs, you will want to look carefully to ensure the community is diligent about being compliant with the American Disabilities Act.

Potential retirement community residents have plenty of choices to sort through when deciding where to spend their golden years. Whether your loved one wants to continue a specific hobby, desires a community that revolves around a specific religion, or wants a place geared toward a niche interest, there are options available. Work with your older loved one to determine his or her priorities so you can find the retirement community that will quickly feel like home as they enjoy their golden years.

[Photo via Pexels] Courtesy of Author: Michael Longsdon (ElderFreedom.net)

This Sunday, Fire Damage Re-assessment! Sonoma County clerk-recorder-assessor Bill Rousseau Special Guest

Bill will answer ALL of your questions regarding Sonoma County Property Tax issues.

Sonoma County clerk-recorder-assessor Bill Rousseau will join me to discuss emergency reassessments of your fire damaged property. Other “emergency” issues will also be discussed. Have a home partially damaged? What if you are one of a few homes left standing? Lower your assessment? How about your old proposition 13 tax base after rebuilding? This and more will be discussed.

Shark Alert!! This Sunday–Don’t wire your house downpayment to a crook!

Mark Bisordi, Gen Manager North Coast Title Co.Join us this  Sunday, July 16th as Mark Bisordi, General Manager for North Coast Title Company, talks to us about the scammers out there who intercept or have you falsely wire your down payment NOT to the title company and your escrow account but to a crooks account. One couple in Tahoe recently sent $1.5 million to a scammer and lost the entire amount! NO INSURANCE for this folks! What are the steps to protect yourself? Here are some quick tips!

Don't wire your down payment to a fraudster!
Don’t wire your down payment to a fraudster!
  • Call, don’t email! Confirm all wiring instructions by phone before transferring funds. Us the phone number from the title company’s website or a business card. You also have an “opening order” statement. This tell you your escrow number, escrow officer and her/his number
  • Be Suspicious! It’s NOT common for title companies to change wiring instructions and payment info–be aware and confirm!
  • Confirm it all: Ask your bank to confirm not just the account number but also the name on the account before sending a wire.
  • Verify immediately- You should call the title company or real estate agent to validate that the funds were received. Detecting that you send the money to the wrong account within 24 hours gives you the best chance of recovering your money.
  • Forward, don’t reply–When responding to an email, hit the forward instead of reply and then starting typing in the person’s email address. Criminals use email address that are VERY similar to the real one fora company. By typing in email addresses you will make it easier to discover if a fraudster is after you!

Chief Deputy Assessor Greg Walsh Joins us on the “hour” this Sunday.

Do you know you can take your old tax bill, the cheap Proposition 13 roll-back basis, WITH you when you sell your home? How about transferring to another County and keeping your old property tax basis? Did you have your taxes “rolled-back” due to the real estate crash of 2007 only to see them bounce back big time? These and other perplexing questions answered as Greg Walsh, Chief Deputy Assesor joins us on the show this Sunday!

Propositions 60, 90 and 110 are voter-approved amendments (Revenue and Taxation Code, Paragraph 69.5) which allow qualifying Sonoma County homeowners to transfer the taxable value of a previous residence to a new residence. For many people, this can result in substantial tax savings.

  • You (or your spouse who resides with you) must either be at least 55 years of age (Prop 60) or severely and permanently disabled (Prop 110) as of the date you sell the home you are replacing.

We sometimes refer to the process of reviewing property as “the Prop 8 review process” because of its association with temporary declines in taxable value allowed by the passage of Proposition 8 in 1978.

Did you know you can Purchase a home with a Reverse Mortgage…and have NO mortgage payments??!!

Jill Gromm  VP/Senior Loan Agent  Alliance Reverse Mortgage  3033 Cleveland Ave., Santa Rosa, CA  95403  (707) 535-2926  jgromm@alliancereverse.com  CA BRE 01326979 | NMLS 246723
Jill Gromm VP/Senior Loan Agent Alliance Reverse Mortgage 3033 Cleveland Ave., Santa Rosa, CA 95403 (707) 535-2926 jgromm@alliancereverse.com CA BRE 01326979 | NMLS 246723

If you are 62 or older. you can use a Reverse Mortgage to make a home purchase, and have no payments!!  Today on the show, Reverse Mortgabe specialist, Jill Gromm of Alliance Reverse Mortgage, joins us. Tune in to the Real Estate Hour today for more information om this great option for  our seniors community.

Plus more information about the traditional Reverse Mortgage refi which allows Seniors to age in place. This is good info for all us aging Baby Boomers, and our families.

The Real Estate Hour airs Sundays 9-10AM, PST live on KSRO 1350AM, 103.5FM and streaming live (and later podcast) at www.KSRO.com. Questions, call in numbers 707-636-1350  during the show or 707-799-3617 anytime.

Purchase a Home with a Reverse Mortgage

A HECM for Purchase is a Home Equity Conversion Mortgage that allows homeowners to purchase a new principal residence and obtain a Reverse Mortgage in a single transaction.  As with a traditional Reverse Mortgage, all homeowners must be 62 years or older to qualify. (Spouse may be under 62)

The Reverse for Purchase enables senior homeowners to relocate to other geographical areas to be closer to family members, right-size home or land or maybe move closer to medical facilities.

What is a Reverse Mortgage

A Reverse Mortgage, also called a Home Equity Conversion Mortgage (HECM), is a loan that uses your home as collateral, but instead of making payments to a lender, the lender pays you. As long as you live in the home and comply with loan terms including payment of taxes and insurance, you will never have to make a mortgage payment, in other words you will have no personal liability for the payment of the debt. Upon the sale or transfer of ownership of the property the loan will then be repaid.

A huge benefit is that your cash is distributed to suit your needs and lifestyle. The lender pays out the loan in three ways: lump sum, monthly payouts, or line of credit. As long as you have money to access, you can change your mind on how you take the money at any time. This allows the homeowner to be flexible with the money.

Other benefits include:

  • The funds loaned to you are tax-free (consult your tax advisor for your specific situation)
  • Your loan does not affect your Social Security or Medicare benefits
  • You and your heirs will keep any remaining equity
  • You can never owe more than the value of your home
  • There are no application fees
  • Your piece of mind is invaluable. This loan will provide you the relief you have been looking for, remember it is a loan secured by a lien on your home
  • You may continue to own your home in your name or in your trust
  • Increase cash flow by eliminating monthly mortgage payments

How much can I borrow?
The amount of money the borrower can receive is determined by the age of the youngest borrower, interest rates, appraised value, sale price and the maximum lending limit. It will be specific to your situation. We offer a no obligation assessment. Contact us to discuss.

What types of homes are eligible to be collateral?
Most single-family homes, two-to-four unit owner-occupied dwellings and approved condominiums and manufactured homes are eligible for a reverse mortgage loan. The home must meet FHA minimum property standards.

Am I eligible to take out a Reverse Mortgage?
To be eligible the FHA requires all borrowers on title to be 62 years or older. Borrowers must also meet financial eligibility criteria as established by HUD. If there is an existing mortgage on the home, it must be paid off with the proceeds from the reverse mortgage loan.

What happens if I want my home to be a part of my inheritance?
When the reverse mortgage loan does become due, the borrower’s heirs and/or estate may choose to repay the reverse mortgage loan and keep the home. Or, they can put the home up for sale in order to repay the loan. If the home sells for more than the balance of the reverse mortgage loan, the remaining home equity passes to the heirs.

If the home sells for less than the owed balance, the estate is not required to pay more than the value of the home at the time the loan is repaid.

A reverse mortgage loan is “non-recourse”, meaning that if you sell the home to repay the loan, you or your heirs will never owe more than the loan balance or the value of the property, whichever is less; and no assets other than the home must be used to repay the debt.

What monthly payments will I have?
You will not have mortgage loan payments, but still need to continue paying property taxes, insurance and HOA dues if any while maintaining the home according to FHA guidelines.

What can I use the money from the Reverse Mortgage loan for?
Reverse mortgage loans are commonly used to pay for home renovations, medical and daily living expenses. Homeowners who have an existing mortgage must use the reverse mortgage loan to pay off their existing mortgage. Ultimately, you can usually use it for anything you need.

 

Jill Gromm

VP/Senior Loan Agent

Alliance Reverse Mortgage

3033 Cleveland Ave., Santa Rosa, CA  95403

(707) 535-2926

jgromm@alliancereverse.com

CA BRE 01326979 | NMLS 246723

This is not your Grandparent’s Reversed Mortgage. Today’s Reverse Mortgage Explained

Think you know ALL about reverse mortgages? You might be in for a few surprises. Jill Grom , Reverse Mortgage Specialist with Alliance Reverse Mortgage, joins us on this Sunday’s show to talk about the many things you may not know about Reverse Mortgage.

Tune in every Sunday from 9-10AM pst for The Real Estate Hour on KSRO 1350AM, 103.5FM and streaming live at www.KSRO.com

Reverse Mortgage specialist--a great guest too! Very informative.
Reverse Mortgage specialist–a great guest too! Very informative.

Jill Gromm |  VP, Reverse Mortgage Specialist 707-535-2926 – Cell 707-235-2269                             www.allreverse.com (Formerly California Reverse Mortgage Consultants)

cid:3511512905_16256324
A TRUSTED CREDIT UNION PARTNER

3033 Cleveland Avenue Suite 150  |  Santa Rosa CA 95403  |  CA BRE 01326979  |  NMLS 246723
MEMBER OF NATIONAL REVERSE MORTGAGE LENDERS  ASSOCIATION

About Jill:
Jill Gromm is an experienced mortgage professional providing mortgage loans for over 14 years and has spent the last 9 years specializing in Reverse Mortgages. She works for Alliance Reverse Mortgage which is located in the Redwood Credit Union’s corporate office on Cleveland Blvd.
Jill’s mission is to educate the senior homeowner and provide safety, security and peace of mind on every loan. She is a trusted advisor that not only works with each client through the loan process but also keeps in touch with all of her clients after the loan closes to answer any questions during the servicing of the loan.
Jill’s keys to success is to listen to her clients needs and educate them on all mortgage options to see what is in the clients’ best interest. She gives every client personal and professional service including in-home consultations. Continue reading This is not your Grandparent’s Reversed Mortgage. Today’s Reverse Mortgage Explained

Trusts, Estates, Conserved, Probate – Gun Safety in the Home.

Firearms Firearms1This month’s PFAC meeting (Professional Fiduciary Association of California) focused on firearms, ammunition and explosives you might find in the home of a deceased or conserved homeowner, and what to do with them.

Captain Gary Negri (ret.) – Santa Rosa Police Dept. and
Sergeant Rob Douglas (ret.) – Sonoma County Sheriff’s Dept. lead an informative and interactive talk on the following topics:

1) Safety risks that a fiduciary or legal professional is likely to encounter in the course of their work when a client owns weapons.

2) What the Trustee, fiduciary or attorney needs to be aware of when entering a client’s home environment.

3) The potential assaultive behaviors that can occur when guns are in the home, and what steps can be taken to minimize risks.

4) What procedures and laws must be followed to handle, transfer, sell or dispose of guns in an estate.

5) Important conversations for attorneys to have with clients about firearms during the estate planning process.

6) How to identify and distinguish various types of weapons.

If you find firearms, ammunition  or explosives in a home; DO NOT transport them, DO NOT walk into the police department with them, call the local police Department or Sheriffs Department. For explosives and ammunition larger than 50 caliber (approx 4 inch bullet) you are required to call the local bomb squad.  ALWAYS err on the side of safety.

If you need help settling a the real estate portion of an estate, or you need a stepped up basis for tax purposes, give us a call 707-799-3617 or, email NoDumbQuestion.com

The Real Estate Hour: Come see us at the Dementia Care Event at the Finley Center

The Kelly-Norman Team are proud to be sponsoring this great event in Santa Rosa on January 16th 1:30-5:00pm.  A large portion of our Real Estate business involves working with seniors and their families when the time comes for them to move on, either into assisted living, to a child’s home, or when they pass on and their estate is liquidated. We understand the probate and trust process, and we specialize in taking the real estate burden off the family’s plate.

We look forward to meeting you there.~ Mike and Allison

Nationally renowned dementia expert Teepa Snow is coming to our area!

http://www.seniorhelpers.com/napa-Local-Events

 

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