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Good morning to our I-HEART listeners around the country and good morning to you, Memphis! You’re on the Real Estate Mortgage Shoppe program with me, Jo Garner, mortgage loan officer with Evolve Bank and Trust. Our co-host today is Tom King, certified Shelby County real estate property tax appeal expert with King and Vaughan Consulting.

Glad to have you back, Tom. Tell our audience a little about who you are and what you can do for them
It’s all about Memphis today but even if you are listening from outside of Memphis, some of the same principles we are discussing can apply to you where you are too. Our topic today is “Outlook For Shelby County Real Estate Taxes in 2013.” But whatever real estate challenge is on your mind, give us a call and let’s see if we can offer a solution to your real estate or real estate financing challenge.

Last week we told you we were going to have a surprise visitor to the show. If you have a question about your Shelby County taxes, we have the man himself here with us today. David Lenoir, our Shelby County Trustee. David, thank you for taking time on a Saturday morning to spend with our radio listeners. Tell us a little bit about yourself and what you do.

• Jo answers– Tom you’re right about that. Rates moved down earlier this week breaking new lows but started upward again yesterday and the day before due to the better Jobs Situation Report. Currently on the 30 year fixed rate we are at about 3.25% to 3.375% and even lower for FHA loans. Wow, let that one sink in ….3.25% or lower on a 30 yr fixed rate. The 15 year fixed rate is between 2.75% and 2.875%. The 5-1 ARM fixed for the first 5 years is coming in around 2.625% 3.25% depending on the lender.

The biggest activity is split between people refinancing on the HARP 2 refinances where there is no appraisal value required and the FHA streamline where there is no appraisal required (I think I see a trend here)… and then home purchases are on the upswing . As the fees get higher and the restrictions tighter, aspiring homeowners are grabbing their chance to buy while home prices are still bargains and mortgage rates are still at historic lows. But the environment is changing. Already some neighborhoods in Memphis are converting from a buyer’s market to a seller’s market.

Word to the wise: If the real estate deal works for you today, do it today. My very capable assistant Susan Belew and I would like to talk with you off the air to compare what kind of money we can save you on a refinance or a home purchase. Our direct line for OFF the air is 901 482-0354. That number again is 901 482 0354.

Big news this week and last week is the new Helping Homeowners Down Payment Assistance program that offers up to $15,000 to help homeowners purchase a home and get into the deal with only 1% down. The household income limit is 120% of the median income based on the number of people in your household. You do NOT have to be a first-time homebuyer but you cannot own an additional home at the time of closing on your new purchase. We can talk how this program can specifically help you. Call us on the air at 901 535 WREC or call me directly after the show at 901 482 0354.

Here’s a news flash—if you’ve called a mortgage company and they have told you they cannot offer you the special HARP refinance program with no appraisal, give me a call. Ask the mortgage company the reason WHY they cannot offer you the HARP program. Then call ME. It is very possible that the company you are talking with have extra restriction overlays that we don’t have at Evolve. For instance, we have been getting our customers rates in the 2’s and 3’s for both the Fannie Mae AND Freddie Mac refinances. We have been able to help people with investment property refinance with the HARP loan program, AND we can loan all over the country.

Have you already called your lender to refinance your old FHA loan to a new FHA loan and they told you that you will have to come up with all of the closing costs and escrow items out-of-pocket. Call me at 901 482 0354. Susan and I have some ways of helping you refinance your FHA loan with nothing out-of-pocket or much less than the competition.

Being a mortgage officer right now is REALLY rewarding! Susan and I have spent the year helping our customers save anywhere from $200 per month to over $1,000 per month. Most of our customers are saving over the term of the loan an average of $25,000 to $300,000 dollars. That is SERIOUS MONEY. I bet you can think of a few things you could do with an extra $200,000….

Susan and I would like very much to help you get bragging rights like that. Its like winning your own lottery. And if you didn’t win the lottery the other day but you like saving the BIG BUCKS, then you’re with the right folks around the coffee table this morning. And we want to hear from you….

Today we’re talking about the “Outlook for Shelby County Real Estate Taxes in 2013.” We’ve talked about some ways you can save your money on a mortgage loan but Tom King, certified Shelby County property tax appeal expert with King & Vaughan Consulting is here to help you save money on your real estate property taxes. Our special guest today is David Lenoir, our Shelby County Trustee. David, we want to ask you what the Outlook is for Shelby County property assessment values and tax rates, but right now, Tom, tell us what steps we need to take for you to help us when the new assessment values come out?

Questions for David Lenoir to answer:

1. How would you best describe your responsibilities as Shelby
County Trustee?

2. What criteria does your office use to calculate the tax assessment value on homes in Shelby County?

3. How does the Unified School District issue affect the tax on Shelby County homeowners?

Questions for Tom King to answer:

1. If a homeowner wanted to hire you to appeal his real estate taxes, how does your sign up process work? What is your fee? How long does the process take?

2. What are some of the most common reasons why a property can be assessed for a value that is too high?

3. Do you have access to real estate sales data that is not available to the general public?

Questions for Jo Garner to answer?

1. Evolve Bank this week hit the 1 Billion dollar level for mortgages closed in 2012. What type loans made up the 1 Billion Dollars in loan volume?

A good part of this $1 billion dollars in mortgage production came from the popular Home Affordable Refinance Program with no appraisal requirement, the FHA and VA streamline refinances, all of the other refinances and a healthy number of home PURCHASE loans. These loans were underwritten and closed here in Memphis from customers here in Memphis and all over the country.

2. The media says that mortgage guidelines are getting tighter. What is your opinion? If you are procrastinating about getting purchasing a home or refinancing one, better get off the fence. The message from the Federal Reserve saying they plan on keeping the rates low over the next few months, has lulled some people into complacency. Since last year the government-imposed Guarantee fees on the most popular Fannie Mae and Freddie Mac loans have gone up anywhere from $200 in extra closing costs for every $100,000 dollars borrowed to $880 for every $100,000 dollars borrowed. AND—Mr. Demarcos as just announced they are going to raise those fees on borrowers AGAIN.

The FHA government loan program have announced they want to go up again on their mortgage insurance premiums and now they are talking about tightening down by raising the minimum credit score limit and lowering the maximum mortgage amount. All of this spells “Tightening of Restrictions & Raising Fees.” If the deal works for you today, better refinance or purchase that home today instead of tomorrow.

3. Last fall you and your assistant Susan researched your former customers’ properties and notifed several who needed to appeal their tax valuations. What other extra services to you and Susan provide for your customers?

A. Stop, Look, Listen Approach to Customer
B. The “2nd Look” when appraisal comes in
C. Continued follow up and customer support for years to come after closing

Real Estate Tip of the Week
(David or Tom can do this one if you have a tip we have not used before) Otherwise, I can come up with one about the advantages of the FHA program. Sometimes we have situations where a family member wants to cosign for a child or other family member but they themselves do not want to live in the house with the family member. On some other programs, like Fannie Mae conventional loans, only the occupying borrower’s income can be used (which usually defeats the purpose of the co-signer). However if the family member is purchasing a home as their primary residence and using the FHA loan program, both the occupying borrower and the non-occupying cosigner can be on the loan and the title . It’s a very small 3.5% down payment too and the sellers are allowed to pay all of the borrower’s closing costs and prepaid taxes and insurance up to 6% of the purchase price. What a deal!

1. Talk Shoppe is an organization offering free education and networking to anyone interested in real estate or business. This Wednesday 9am to 10am at the Better Business Bureau 3693 Tyndale Memphis, TN 38125, Jimmy Luke, CPA, will be presenting “Just-In-Time Tax Tips Before Year-End” For more information, go to www.TalkShoppe.BIZ

2. Next Saturday right here on AM 600, our Real Estate Mortgage Shoppe program will be featuring Ken Bowley of Erin McDonald Allstate Insurance Agency. He is wants to talk with you about putting in place the right insurances before the prices of those coverages increase in 2013.

Transition Songs: “Walking In Memphis” Marc Cohn; “Memphis, TN” Elvis Presley; “Maybe It Was Memphis” Pam Tillis

Upon graduating from Evangelical Christian School in 1986, David attended the University of Alabama on a football scholarship where he was a 3-year letterman and a Freshman All-SEC Defensive End. David received his B.S. in Accounting from the University of Alabama’s Culverhouse School of Accountancy and returned home to Memphis to begin his career in the financial services industry. For 2 decades, David has worked consulting with businesses, municipalities, and individuals advising in the areas of money management, retirement plans, and financial responsibility. He has worked for firms such as First Mercantile Trust Company, National Bank of Commerce, and Wachovia Securities. In 2006, he launched a mutual fund and has most recently worked with Sector Capital Management, a local money management firm.

In addition to serving on the board of directors for several local organizations including Economic Opportunities, Crosscheck Athletic Association, and Family Action Council of Tennessee, David has been a volunteer football coach for both Manassas High School and currently at St. George’s Independent School. David also regularly speaks to groups and organizations on issues ranging from integrity and character to personal finance and debt management. He and his family are active members of Grace Evangelical Church where he serves as the Chair of the Men’s Board.

In his free time, David enjoys hunting and fishing with his boys and is an avid reader. David, his wife Shannon, and their two boys, David and Christian, live on their small family farm in Collierville.
David was elected as Shelby County Trustee on August 5, 2010 and will serve a 4-year term. http://www.shelbycountytrustee.com/

Tom King, certified Shelby County property tax appeal expert with King & Vaughan Consulting, is also a 35-year veteran appraiser in the Memphis area. taxappealexpert@gmail.com

Jo Garner, Mortgage Officer with Evolve Bank & Trust. (901) 482-0354. Past radio podcasts on Jo’ blog www.mortgageloansblog.com She has over 20 years experience in the mortgage business.

For more information about how to appeal your Shelby County property taxes, listen to our podcast or contact Tom King or David Lenoir. For real estate mortgage refinance solutions or mortgage programs or rates contact Jo Garner at 901 482-0354 or www.MoneyShoppe.NET