From our research on the Mortgage Electronic Registration system, we learned about the mechanics of mortgages and how they impact buyers and homeowners.

Suppose you want to learn who owns a particular piece of real estate, and who else might have a claim on that property. County clerks have long maintained a set of records, including deeds and deeds of trust, showing who owns title to land and who holds liens on that land. Since the 1990’s, a private system known as the Mortgage Electronic Registration System (MERS) has tracked mortgage transfers electronically, taking over some of the roles traditionally performed by county clerks. MERS has come under criticism from local governments and real estate professionals, as recently reported in the Austin American Statesman. Critics contend that it deprives county clerks of filing fee revenue and exposes buyers and borrowers to increased risk of fraud. Supporters tout its efficiency and costs savings, as it streamlines the process of closing a loan by eliminating much of the physical paperwork.

Local governments make their own rules and procedures for recording real estate documents. Any exchange affecting title to real estate should be recorded with the clerk of the county where that property is located, with payment of a filing fee. As banks and lenders developed a national reach, compliance with multiple competing procedures became difficult. MERS developed in part to improve efficiency for mortgage lenders. The system assigns a unique Mortgage Identification Number (MIN) to a mortgage loan to aid in tracking it over its lifetime. It also assigns unique identifiers to lenders and loan servicers, known as a ServicerID, to allow homeowners to locate their loan servicer.

Implementation of MERS had the benefit of reducing costs for both lenders and borrowers, as the amount of paperwork declined significantly. At the same time, the removal of an actual, physical signature on a page may have opened the door to electronic fraud. A recent lawsuit by the Delaware Attorney General against MERS alleges a series of deceptive trade practices that fails to maintain accurate records of mortgage transfers, making it more difficult for homeowners to fight foreclosure. Several state supreme courts have ordered MERS to stop acting as an agent for lenders in foreclosure cases. District attorneys in Texas contend that the system of electronic transfers in MERS lead to an incomplete public record, putting homeowners and buyers at risk.

Local county clerks have stated that the amount mortgage transfer filings received in their office has dropped dramatically in recent years, according to the Statesman. Williamson County Clerk Nancy Rister, for example, estimates that 70,000 properties in the county are in the MERS system, and that filings of mortgage transfer in her office have dropped by more than 71 percent in the past seven years. This has led to a significant loss of revenue for county governments.

It is important to note that MERS does not affect the chain of title to property itself, only the ownership of the mortgages secured by property. The GoodLife Team’s lenders and title officers have not seen any problems caused by MERS in thousands of transactions and closings. The problems seem to arise after closing, when a mortgage begins to change hands among banks and loan servicers. MERS, by offering a database of mortgage transfers that owners can access, can help prevent fraud in some situations. By removing oversight of title records from county clerks, it can also lead to incomplete title records and the risk of incorrect or even wrongful foreclosure. The lawsuits recently filed by state and local governments will be interesting to watch.

We will continue to track the MERS story, and we will keep all of our goodlifer’s up to date on the latest in homeownership issues.

Each month, the GoodLife team recognizes clients who exemplify “Living the Good Life.”

Scott Wiley and the GoodLife Team are proud to recognize Steve and Nina Waldron as June’s GoodLifers!

Steve and Nina were originally looking for a home in East Austin and wanted to work with a company that knew the area really well.  They had a passion for both architecture and real estate, and felt that they needed an expert to help them fulfill their vision.

“Our original intent was to purchase a home in East Austin, and wanted someone who was based in the neighborhood and who could understand the complexity of the rapidly changing neighborhood.”

Like most of our clients looking to purchase real estate in Austin, Steve and Nina Waldron found the GoodLife Team online. After talking to Scott Wiley, an agent with the team, they found that the GoodLife Team had the expertise they were looking for as well as shared values.

“Steven and Nina were all about living the goodlife – good food, good friends, high ambition”, said Scott Wiley after meeting his clients for the first time.

Read below for what Steve and Nina have to say about working with the GoodLife Team and how they are committed to living the goodlife – for life.

What is a “GoodLife” to us? The GoodLife is to obtain a content, stress-free life.

What does it mean to live our “GoodLife”? To live a GoodLife is to do your work with passion and competence. This builds experience, often exuding a feeling that your task at hand is simple and easy, even though it is anything but.

How does the GoodLife team help you live your GoodLife? The GoodLife team enables it because they have an entire resource team able to answer questions on many aspects of home buying, selling, leasing, insurance, and even legal transactions. To have it all under the same roof means quick answers and faster peace of mind.

As most of you know, I am a lover of Modern Architecture, Smart Urban Growth and Sustainability –- all as the impetus behind creating The Modern Home Tour.

So, when meeting over coffee last week with my friend Travis Young – Modern Architect and Principle of Studio Momentum Architects – I was overjoyed to learn about a new concept he is working on called PUG. PUG, in my opinion, is great for Austin and is a sensible solution to handle our upcoming growth AND slows down environmentally UNsound urban sprawl –which is guaranteed if these types of solutions are not recognized and accepted into our City of Austin Planning and Development for the future of Austin.

Travis has founded PUG which represents smart and positive urban growth  WHILE offering a “not the mini-van” solution to many Central Austin homeowners who want more ‘space’ but have vowed against the seduction of a larger home in the suburbs. I call it the “not the mini-van” solution due to the number of friends I know who declared, prior to having kids, “I won’t be the parent who drives a Mini Van”. Yet, once they found themselves with two or three little ones under the age of 6, the practicality of Mini Van won out over the psychological feelings about it. Similarly, without a solution like PUG, I predict many of us will finally throw in the towel and move to the burbs (with a mini-van) all for the sake of the practicality of “a little more room”.

Isn’t a PUG a Dog?

Not in this case. Pug is a “Positive Urban Growth” solution to gaining more space in our otherwise small Central Austin impervious footprint — enabling many of us the opportunity to avoid the suburbia we vowed to boycott in our younger years.

As Travis puts it “PUGS are A lot of house, in a small package instead of a lot of dog in a small package!”

Can I have a PUG instead of a Mini Van?

Simple answer. Yes.

PUGs are additional living “units” on your existing lot. They offer, on average, an additional 550-850 square feet that can double the density use of your lot without producing a “McMansion” effect incongruent with the character of your neighborhood.

The separate PUG unit can be sensibly used as a separate living space for extended family members, guests, renters … or, to hell with others … how about a space for your home office or exercise room that you’ve sacrificed in order to avoid suburbia.

Does the City of Austin like PUGS?

No worries about the City of Austin. PUGS conform to the City of Austin’s guidelines for “secondary apartments” and the Smart Growth amendments being adopted by our existing neighborhoods.

And, you can feel environmentally responsible by choosing PUG. They have a minimal impact on the surrounding environment and reduce the need for urban sprawl. They are quick to construct, economical, and benefit from the latest building science for energy efficiency, water conservation, construction waste management, indoor air quality, and low maintenance and operation costs. You will be “Green” by being PUG in that every PUG will result in a 5 star rating with the Austin Energy Green Building Program. PUGs are VERY sustainable, and are designed to meet Austin’s Climate Protection Plan by being Zero-Net-Energy Capable.

Can I be a PUG owner?

Now, there are special qualification regulations for PUGs that fall under the special-use permit of a “Secondary Apartment”:

• Your home must be zoned SF3 or less restrictive. You can call us to determine if you have the appropriate zoning.
• A typical ‘duplex’ lot must be at least 7000 square feet, but if your home falls under the PUG, it opens up the opportunity to build a PUG on lots greater than 5750 square feet.
• The gross floor area cannot exceed 850 total square feet or 550 feet on the second story.
• Other restrictions apply … but that’s what we are here for … to help you determine if you qualify

Curious about the style … they can be constructed to take on the character of your current home and neighborhood. Below are a few examples:

“The PUGnacious”

Stats:  550s.f efficiency apartment above with carport and storage below.

Features include rainwater and gray water collection, FSC certified lumber construction, spray foam insulation, and reclaimed wood flooring.

“The PUGalley”

Stats:   840s.f. Two story, two bedroom, 1 – 1/2 bath, with covered carport, highly efficient windows, optional vegetative roofing.

Custom graffiti mural by Nathan Nordstrom, AKA “SLOKE”

“The PUGhat”

In 2010, the GoodLife Team helped our customers, clients and friends reduce their home values over $2 million cumulatively — saving over $50,812 in real estate taxes! “I encourage everyone to appeal their taxes. When people don’t appeal, the Williamson County taxing authority accepts that their value is correct. This affects all homeowners in a given area.” says Krisstina Wise. For that reason, we help people negotiate their property values in order to do our part to help keep our real estate taxing authority in line with market value.  Williamson county includes Round Rock, Pflugerville, Cedar Park, Leander, Liberty Hill, Georgetown, Hutto, and Taylor.

The following video, while specific to Travis County, covers the fundamentals of appealing your property taxes. The process is essentially the same for Williamson County.  We give you quick tips and what to expect from both the Informal and Formal hearings at the Williamson County Appraisal District (WCAD), and what the difference is between the two hearings.

Why is Williamson county tax-assessed value different than market value?

The tax-assessed value is what Williamson county believes your home or condo is worth. Williamson county attempts to set their values at a market value. However, they do not evaluate comparables nor do they perform individual market analysis on every home. The county simply values your home according to the area, not the house. Meaning, the value may be too high or two low, depending on the size, location, amenities and condition of your specific home.

When should I receive my WCAD property valuation and how long do I have to appeal?

Williamson county mailed the majority of their property valuations on April 25th. Most homeowners receive their valuation on or around May 1st. Homeowners have until May 31st, or 30 days from the date they receive their valuation (whichever is later), to appeal.

Should I appeal my Williamson County property valuation?

If the market value on your home is lower than your tax-assessed value, then you should appeal. If the market value is higher, do nothing. How do you determine your market value? Use the GoodLife Team Market Snapshot to get an online evaluation of your home using real-time data from the Central Texas/Austin MLS. This tool is easy to use and we stand ready to answer any questions you may have regarding the data.

How do I appeal?

File Your Property Tax Protest Williamson County has a protest form. However, you can type up or handwrite your protest and fax or mail it in. If you are going to write up your protest, be sure to include the following:

1. Identify yourself as the homeowner
2. Include the property address
3. Indicate that you are dissatisfied with the decision made by the appraisal district
4. Request the evidence packet for how they came up with your valuation – these are the comparable sales they are using for valuation purposes.

Prepare to Wait After you have filed, it can take several months for the Williamson County Appraisal District to schedule your informal tax appraisal hearing.

Prepare to Present The purpose of the informal hearing is for you to present your evidence and facts to support your claim that they have over-valued your Central Texas home or condo. We suggest the following as valuable evidence to compile for your hearing:

Comparable Market Analysis

A comparable market analysis looks at Market Value and shows recent sales for homes that are similar to yours in size, age, location and type of construction. Your GoodLife Team Market Snapshot that you used to determine if you should appeal may provide enough evidence to support your hearing. However, we also stand ready to provide you with a more in-depth market analysis prior to your hearing.

Documentation Regarding Your Home’s Condition

Do you have foundation issues? Plumbing problems? Anything that would adversely affect the Market Value of your home should be documented. Take photographs and bring them with you to your hearing.

Documentation Regarding Your Home’s Location

Once again, anything that would adversely affect the Market Value of your home is evidence that you can use in your appeal. If your home backs up to a busy street, consider printing off a Google map to document your location.

Recently Purchased Homes

If you purchased your home in the last several months, and the purchase price was lower than your appraised value, bring a copy of your settlement statement.

Present Your Evidence There are a couple of things to keep in mind for the day of your hearing:

1. The Appraisal District is responsible for setting appraised value. They have nothing to do with the tax rate. You are not going to the hearing to protest your tax rate or how much you are paying in taxes. You are only appealing the counties assessed value of your home.
2. Be polite and courteous.
3. Bring an extra copy of your supporting documentation to leave with the county

If you found this article valuable or have any further questions, please post your thoughts here. We will get back to you right away. And, if you successfully appeal your appraised value, we want to hear about that too.

Thanks! It’s a Good Life!

Reference:

Georgetown Texas (TX) Property Taxes – How to appeal property taxes in Georgetown, Tx (Texas)

Pflugerville Property Taxes – How to appeal property taxes in Pflugerville

Round Rock Property Taxes – How to appeal property taxes in Round Rock

Cedar Park Property Taxes – How to appeal property taxes in Cedar Park

Liberty Hill Property Taxes – How to appeal property taxes in Liberty Hill, TX

Hutto Property Taxes – How to appeal property taxes in Hutto

Taylor Property Taxes – How to appeal property taxes in Taylor

Pflugerville Property Taxes – How to appeal property taxes in Pflugerville

Neighboring Counties:

Appealing your Property Taxes in Travis County (Austin, TX, some parts of Pflugerville and Round Rock)

In 2010, the GoodLife Team helped our customers, clients and friends in Travis county and the City of Austin reduce their tax appraisal values of their homes over $2 million cumulatively — saving over $50,812 in real estate taxes! “I encourage everyone to appeal their taxes. When people don’t appeal, the taxing authority accepts that their value is correct. This affects all homeowners in a given area.” says Krisstina Wise. For that reason, we help people negotiate their values in order to do our part to help keep our real estate taxing authority in line with market value.

Check out our video on the appeal process for some quick tips and what to expect from both the Informal and Formal hearings for travis county appraisal district (TCAD), and what the difference is between the two hearings. Then, keep reading to determine if you should appeal your county property valuation and how to proceed through the process:

Why is Travis County tax-assessed value different than market value?

The tax-assessed value is what your county believes your home or condo is worth. The county attempts to set their values at a market value. However, they do not evaluate comparables nor do they perform individual market analysis on every home. The county simply values your home according to the area, not the house. Meaning, the value may be too high or two low, depending on the size, location, amenities and condition of your specific home.

When should I receive my TCAD property valuation/assessment and how long do I have to appeal?

In 2011, Travis county is mailing valuations in four batches:

Mail Date:            Protest Deadline Date: 4/29                       6/1 5/13                       6/13 6/1                          7/1 7/19                        8/18

Should I appeal my Travis County property valuation?

If the market value on your travis county home is lower than your tax-assessed value, then you should appeal. If the market value is higher, do nothing. How do you determine your market value? Use the GoodLife Team Market Snapshot to get an online evaluation of your home using real-time data from the Austin MLS. This tool is easy to use and we stand ready to answer any questions you may have regarding the data.

How do I appeal for Travis County/City of Austin?

File Your Protest Travis County has a protest form. However, you can type up or handwrite your protest and fax or mail it in. If you are going to write up your protest, be sure to include the following:

1. Identify yourself as the homeowner
2. Include the property address
3. Indicate that you are dissatisfied with the decision made by the appraisal district
4. Request the evidence packet for how they came up with your valuation – these are the comparable sales they are using for valuation purposes.

Prepare to Wait After you have filed, it can take several months for the Travis County Appraisal District to schedule your informal hearing.

Prepare to Present to TCAD The purpose of the informal hearing is for you to present your evidence and facts to support your claim that they have over-valued your Austin home or condo. We suggest the following as valuable evidence to compile for your hearing:

Comparable Market Analysis A comparable market analysis looks at Market Value and shows recent sales for homes that are similar to yours in size, age, location and type of construction. Your GoodLife Team Market Snapshot that you used to determine if you should appeal may provide enough evidence to support your hearing. However, we also stand ready to provide you with a more in-depth market analysis prior to your hearing.

Documentation Regarding Your Home’s Condition Do you have foundation issues? Plumbing problems? Anything that would adversely affect the Market Value of your home should be documented. Take photographs and bring them with you to your hearing.

Documentation Regarding Your Home’s Location

Once again, anything that would adversely affect the Market Value of your home is evidence that you can use in your appeal. If your home backs up to a busy street, consider printing off a Google map to document your location.

Recently Purchased Homes If you purchased your home in the last several months, and the purchase price was lower than your appraised value, bring a copy of your settlement statement.

Present Your Evidence There are a couple of things to keep in mind for the day of your hearing:

1. The Appraisal District is responsible for setting appraised value. They have nothing to do with the tax rate. You are not going to the hearing to protest your tax rate or how much you are paying in taxes. You are only appealing the counties assessed value of your home.
2. Be polite and courteous.
3. Bring an extra copy of your supporting documentation to leave with the county

If you found this article valuable or have any further questions, please post your thoughts here. We will get back to you right away. And, if you successfully appeal your appraised value, we want to hear about that too.

Thanks! It’s a Good Life!

Reference:

Austin Property Taxes – How to appeal property taxes in Austin

Round Rock Property Taxes – How to appeal property taxes in Round Rock

Pflugerville Property Taxes – How to appeal property taxes in Pflugerville

Westlake Property Taxes – How to appeal property taxes in Westlake

Eanes Property Taxes – How to appeal property taxes in Eanes

Neighboring Counties:

Appealing your Property Taxes in Williamson County, including Round Rock, Pflugerville, Cedar Park, Leander, Liberty Hill, Hutto and Taylor

What is it? Over the course of two weekends, East Austin opens the doors to its many art studios to let everyone know where and how these artists work.  It is a great community event to get to know the neighborhood, and to take part in all the activities that spring up around it.  The actual studios and associated activities are scheduled for Saturday and Sunday, Nov 13-14 and 20-21, between the hours of 11 am and 6 pm each day.

If you are on Facebook, take our quick poll to let us know your favorite home. We would love to hear what you thought of the tour, please provide your comments. Finally, look for more tours to come in the future.