Blog: Today on the Ilyce Glink Show - July 12, 2009
Added July 12, 2009 by Ilyce R. GlinkSummary: Today on the Ilyce Glink Show, Ilyce discussed health care and loan modifications. She took calls about whether the Obama plan is working.
Listen to the full podcast here.
Ilyce Says ....
I'm a little bit annoyed with the new proposal from the Democratic leadership about paying for health care reform. I'm all for paying more in taxes, but it would be nice to get a program that might help everyone - not just the uninsured.
Supposedly I'll benefit because getting everyone insured means we won't have millions of Americans using emergency rooms for regular preventive care.
But I have to say, health insurance is really unaffordable for anyone who has to buy an individual or family policy. We are now paying more for our health care bill than any other single line item in our budget. Our $30,000 in health care (which includes medical insurance premiums, our 20 percent share, our dental bills, prescriptions, etc.) is more than our mortgage, food bill, entertainment bill, insurance premiums (homeowners, auto, excess umbrella liability, life, etc.) and real estate property taxes.
We had tried to apply for a less expensive plan, but because Sam had been diagnosed with a herniated disk 7 years ago, we're ineligible. (The guy works out every day without a problem!) So, we're stuck with our plan at the moment, which is increasingly expensive.
I don't mind paying, but it would be nice to know that we could benefit from health insurance reforms as well.
Homestead Exemption
We heard from Brian today. Brian's neighbor told him that the homestead exemption is going away. Brian called for clarification. I was unable to find out anything on the Georgia Department of Revenue Website. I'm tracking down some information, but would welcome anyone providing any links for me to look at.
In general, county governments are suffering as more people don't pay their property taxes and tax revenue is decreasing while expenses keep going up. So tax assessors are well aware of the problem and don't want to see more revenue disappear than is absolutely necessary. Watch this space for an update.
Websites and Phone Numbers from Today's Show
We had a whole bunch of calls today from people who aren't hearing back from their lenders regarding loan modifications and refinancings. I'll see if I can get someone on air for Sunday who can discuss why it takes so long to process loan modifications, refinancings, short sales and foreclosure sales. Stay tuned. In the meantime, here's the contact information I gave out earlier on the show:
Georgia Dept. of Banking and Finance. If you're not getting your lender to pay attention to you, give the DBF a call: 770-986-1633 or online at http://dbf.georgia.cov.
Homeowners HOPE hotline. If your lender isn't getting back to you on a loan modification, you may have found someone who doesn't know what they're talking about. Call 888-995-HOPE to speak to a HUD-certified housing counselor. You can also call Consumer Credit Counseling Services of Greater Atlanta and speak to one of their HUD-certified housing counselors (404) 527-7630.
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Comments
Paul says
There was a call during the show today refering to the loss of the Homestead Exemption; I PRESUME the call is from GA. I called Crystal and told her that the State of GA has taken away the States' exemption; the respective county still holds. All else being equal; millage rates, appraised values, etc- Taxes will appear to go UP due to the loss of the deduction. Below is an article (from the Augusta area) for your ref. Paul Georgia Homestead Exemption Abolished - For Now... Monday, June 22, 2009by Joe Loomer Since 1999, Georgia property owners who applied for a "homestead exemption" on their primary residence received about a $200 reduction on their annual property taxes for their primary residence. The vehicle for this tax break came in the form of the Homeowners Tax Relief Grant (HTRG). 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. One additional step you may want to take is to ensure you have your 2008 valuation handy when you receive your 2009 tax bill. Compare the two - and if you have any concerns, contact the Tax Assessor for the county your home is in. Keep in mind that any increase in your tax burden can be appealed. The Columbia County Tax Assessor's office actually posts what areas they intend to visit within the next 90 days to assess 2009 tax values. you can find this list by clicking here. If you are registered for the homestead exemption and pay your taxes via your mortgage lender's escrow account, remember to budget for the $200 shortfall when your lender pays your tax bill.
Ilyce says
Paul: Thanks for filling me in. Some people will take a small hit, it appears. I'd welcome other links and information on this. Ilyce
Ed says
A caller on today’s show chastised you about not giving the Obama administration’s mortgage refi plans time to work. There is an article in this week’s Barron’s Magazine (July 13, 2009 page 9) that seems to indicate that many of the loan modification programs are just not working. I encourage you to present this data on a future radio show. The numbers are eye opening…
ED says
My subscription to Barrons ran out a few weeks ago and I miss getting it so much. It's truly one of my favorite magazines. (My fault for not watching the subscription ...) I will definitely get a copy and see. But I don't need to read Barrons to know that there's trouble in loan modification paradise. I've been talking to a bunch of senior folks in the lending industry and at the OCC and they know there is trouble. The mortgage world isn't set up to deal with millions of homeowners in distress. But I'll take a look and maybe talk about the numbers on this upcoming weekend's show. Also, I'm going to try to get someone on from the top of one of the big mortgage companies to talk about process and what they're trying to do. Thanks so much for your comments -- and for listening to the show.
John says
Good show today. Happy Birthday! I heard in your voice that you knew you were not hearing the full tax story from your caller that owed $3800. She received $84 interest per quarter in 2008 or only $ 336 for the year. Her effective tax rate was probably closer to 15% or $50 in taxes. She probably owed due to her self employment income and FICA=social security & medicare not the interest income. As you cautioned, she needed to pay estimated taxes at the time she earned them. The caller said the IRS told her that her tax preparer should have set up a plan. In defense of the tax preparer, this isn’t written but we don’t automatically prepare a Form 9465 and request an installment plan. It depends if the taxpayer is in financial distress we choose the less expensive way. If we prepare the Form 9465 then there is a tax preparation fee. This can be avoided. If we just don’t prepare one and wait two or three months then the IRS sends one for free with the deficiency notice. This gives the taxpayer time to save and pay the taxes in full. This also saves the $105 IRS charge to set up the installment plan ($53 if direct debit). The current IRS interest charge is only 4% APY for the two or three months on the residual balance. This is the cheapest way to help someone in financial trouble.