Macomb County Real Estate - Macomb Michigan Homes for Sale

Today, while out on appointments I again heard the bail out commercials - telling people how they could get out of paying their IRS tax liens, how they could reduce their credit card debt even how they could reduce mortgage payments and the amount owed on the mortgage. The commercials blame " the Big Bad IRS, the Credit Card Companies and the Banks".

When will We the People of the United States of America stand up again and be STRONG? When will we Stop asking companies and the government to take care of us every step of the way.

What happened to the United States of America? What happened to our people? Does our word mean nothing? Is there any personal responsibility left? We were a nation like no other - people came here from all around the world to be Free, to work hard and be successful. A country where people could stand on their own but stand together. A country where the government could lend you a helping hand but not one where we needed them to continue holding our hand.

Are things a little tough now? Yes, but that's what makes us Strong. People not government made this nation great. Here's a little history lesson. Do you know who Patrick Henry is? He pushed for the Bill of Rights and said this about government " If you give too little power today, you may give more tomorrow. But the reverse of the proposition will not hold. If you give too much power today, you cannot retake it tomorrow: For tomorrow will not come for that purpose.

He also left a note with his will that read in part " Reader! whoever thou art, remember this, and in thy sphere practice virtue thyself, and encourage it in others." you can read the whole note here by James Elson.

Again People not government made this nation great and it was done with Hard Work, Trust and Virtue - by ourselves and by encouraging others.  To prove my point see what happens to these boys when they receive encouragement from others. Not the government but We the People...(sorry you'll have to wait for the commercial)

Yesterday, we attended a Meet and Greet of local REALTORS® and the Macomb County Commissioners. I have never had an interest in government nor do I care to listen to what politicians have to say, especially since they all say one thing and do another. But with government spending more and more and getting bigger and bigger, while people are losing houses, jobs and cutting Waaaay back, we figured we would attend and see what they had to say.

So what was discussed???

After the normal introductions we listened to what the Commissioners had to say as they talked about the great services Macomb County has to offer like the Smart Bus Service, the Macomb Orchard Trail, our Library and much more. The REALTORS® talked about the county's declining property values and how we could use the Neighborhood Stabilization Program, to rid our streets of foreclosures. We discussed job loss and how the commissioners wanted to bring businesses to Macomb.

The Commissioners also discussed the Macomb County tax increase of .36 mills which was passed by a 13 -12 vote. With a final vote expected in April, at the public hearing. Since property taxes in Michigan are a huge thing when purchasing a home I asked "what will we be getting for the extra money"? Basically I was told Nothing. Why? Because the County has a shortage in their budget.

Now this is exactly why I do not like government. They pushed for more and more and services as property values increased along with property taxes. But now that the property values and taxes are coming down, rather than cut services back to 1995 levels they ask for a tax increase. Are they cutting back Yes.....just like everyone else. But they may need to cut back much more. Our residents are house poor and strapped for cash and I wonder if the services the county offers even benefit many of our hard working residents.

Of course our beautiful roads came up and the fact that ours are some of the worst roads in the county. One thing I did not know was that the Road Commission is not run by of the board of commissioners.

Another heated topic was if Macomb County should move from a 26 member board of commissioners and a chairman to a County Executive, with less than half of the board members. The REALTORS® really did not say to much but boy did we hear from the commissioners that were present. You could plainly see who wanted want. In case you do not know about this. The process started a few years back and last year the voters of Macomb approved a charter commission to draft an overhaul of the county's government structure to move towards a County Executive.

My concern of course is which commissioners would be cut? Would I lose my voice? Who will be the Executive? From what party? Will the county be better off financially? If we cut half of the part time commissioners and add an Executive with a huge staff (think government) and increase the wages of the remaining commissioners will we be better off? Is this something we need to move Macomb County forward? Or are we better off the we are right now??

You be the judge - here's a few opinions from Charter = County, Macomb County Republican Party and an article by the Romeo Observer.

All in all I did enjoy the meeting quite a bit. However, it was a little disappointing that only 7 Commissioners out of 26 attended even worse only 12 REALTORS® out of over 3500 were present, 3 of which we Ed, our son Mike and me.

Yesterday, we attended a meeting giving us the details of the Neighborhood Stabilization Program(NSP) for Macomb County home buyers. This program was authorized under the Title III of the Housing and Economic Recovery Act of 2008 under President Bush. That funding has just hit the county for distribution. But it will run out quickly.

The purpose of this program is to help rid our Macomb County neighborhoods of the vacant foreclosed homes. They are not only dropping home values but creating eye sores in our neighborhoods. As expected there are income limits which you can read about on our website. This program is not just for first time buyers but you must not own another home.

Here's how it will work - Macomb County will be receiving $20.1m of which $9.8 will cover what is being called "Urban County" view map. Another $10.3m will go to Warren, Sterling Heights and Clinton Township. While another estimated $3.1m will be used for Saint Clair Shores and Roseville.

If you fall into the income guidelines, qualify for a mortgage, apply for the funds and purchase a foreclosed home at least 15% under value. Then you can receive up to 49% of the purchase price for down payment, closing costs and fix up if needed. Then you simply get a loan for the balance of the monies. The grant is a 2nd loan that has no interest and no payments and only needs to be paid back If and When you sell your home.

As I said the money will move quickly - the county figures they will be able to get about 150-200 homes out of their funding in the "Urban County" and more sales will come from the other cities listed above. HUD is giving them a deadline to spend the monies and if it is not spent it will go back to Washington. So again you need to move FAST.

Hurry - find a REALTOR® to represent you as a Buyer Agent, get pre-approved for a mortgage, then apply for the funding. Then work closely with your agent to locate a foreclosed home. You could be in by summer.

View Macomb County foreclosed homes currently for sale.  If you are a first time buyer you can also use the $8000 tax credit towards your purchase.

If you need more information please do not hesistate to drop us an e-mail at nsp@edandcindyknight.com or give us a call at 586-336-1506.

It's Time to Spring Forward and say Good Bye to the Michigan Snow

and Hello to Spring

.. and don't forget when you turn back your Clocks tonight to 

change the batteries in your Smoke Detectors

and re-set your breakers and change your fuses

Every year about this time homeowners receive their State Equalized Value or SEV in the mail.

That's usually about the same time our phone starts to ring asking us "why did my taxes go up". This year it's "why did my taxes go up if home prices are falling ". So this year I am going to explain it the best I can - since the state does not make it easy to understand.

Okay here goes (and Dad, I hope you are reading this):

First there are 2 values - one is a Taxable Value and the other is the State Equalized Value. The taxable value is the value at which you are taxed and the SEV is what the state or city feels you home is worth divided by 2.

Now before you start screaming at the computer and tell me homes are not selling for that in your neighborhood - let me explain. The city/township assessor does not determine the value on each individual home. What they do is randomly take a certain number of homes sold, put them into a computer and determine what the average sales price would be, for a home like yours. They also do not track home prices; so if you buy a foreclosure for 30% under market that does not mean your SEV will come down. Your SEV will still be based on the average sales price.

To better understand how all this works let's look at the history behind it. In 1994, Proposal A was passed. Since then, when you purchase a home, you assume the seller(s) SEV. At that time their Taxable Value is uncapped and the new taxable value and SEV become equal. Then each year your taxable value goes up by the CPI (Consumer Price Index) usually 3-5% per year, however, it can not exceed 5%. Whereas, your SEV can go up as home prices go up. Which is what happened in this area from 1994 until about 2004.

Now let's say you bought a home in 1994 for $200,000 and the SEV at that time was $100,000. As stated above your taxable would also become $100,000. The chart below uses my example a CPI of 3% every year and the average sales data in Macomb County.

As you can see the SEV's went way up but over the past few years they have been going down. However, they will not effect your Taxable rate Until they are the same as the SEV. Once this happens your SEV will push your taxable down. This explains why your taxes may be going up while property values are dropping. Proposal A states that taxable values can not exceed SEV's.

Back to the question Should I fight my SEV?

The information below may help you determine if you can and should

• According to the cities/townships 2009 assessments are based on sales data from October 1, 2007 - September 30, 2008. However, according to those that appeal taxes this is not true.
  
• SEV reductions will only reduce your taxes IF your SEV pushes your taxable value down. But this can also help you when selling your home.
  
• The city/township May use distressed properties like foreclosures or short sales in their sales data.
  
• If you feel your SEV is to high hire a professional to help you appeal it. Harold Hoyt at Professional Property Tax Appeals is one of many in the area.
  

Stay tuned for more information on Millage Rates and how Property Taxes can effect your mortgage payment. Feel free to contact with any questions you have regarding the above information or leave a comment below.