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Missouri Offers to Pay Property Taxes but Homebuyers not biting

Dennis Norman

Dennis Norman

UPDATE June 7, 1010 – Here are links to the Forms from MHDC to claim the tax credit as well as some sample forms they have provided showing how to fill them in:

Program Application
Home Purchase Affidavit
Promissory Note
Hope Program Information and Instructions
Sample Forms

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Dennis Norman

Back in December I wrote a post about a $35 million economic development initiative that was approved by the Missouri Housing Development Commission which included $15 million to pay the first-year of property taxes for qualified homebuyers who purchase a new or existing home after January 1, 2010.  Missouri Treasurer, Clint Zweifel, said he expected this would help between 9,000 and 11,000 Missouri families making less than $100,000 a year.

This morning I saw a report from a very trusted source that indicated thus far only two home buyers have taken advantage of this incentive.  Wow, the State of Missouri is trying to give away money and it can’t!  Perhaps homebuyers are not aware of the incentive, or there just aren’t that many people that meet the income guidelines that have bought a home since January 1st.  In either event, the “incentive” does not appear to doing anything for the Missouri housing market.

To get complete details on the program please see my prior post by clicking here.

 

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18 comments to Missouri Offers to Pay Property Taxes but Homebuyers not biting

  • Linda

    I live in Missouri and I own a home. I have always paid my real estate taxes on time. However
    I was in and out of the hospital during the past year and with my last admission (over 2 months)
    I came home and had no money to pay my real estate taxes due to paying off other bills which
    had to come first. I don’t know what to do about this, as I am 100% disabled, very low income
    and do not want to lose my home. I have lived in this house all my life except when I was married.
    Is there any way I can get some help with this? I don’t know who to turn to. The Dept of Revenue
    was unable to help me either. I know I qualify for Medicaid and Food Stamps. What do you
    suggest I do? Thanks for your help.

  • Dennis Norman

    Hi Linda,
    I’m sorry to hear about your situation and hope that you find a way to get through it. Unfortunately I do not know of much in the way of help that is available for people that cannot pay their property taxes, but here is what I am aware of:

    The State of Missouri has a Property Tax Credit available to seniors and disabled persons that meet the income criteria…through this program you can get a credit back for up to $1,100 of property taxes you have paid….Information on qualifying can be found at:
    http://dor.mo.gov/tax/personal/ptc/proptax.pdf

    I realize you have not PAID your taxes from 2009, but I think have up to 3 years to apply for this credit, so perhaps, you can apply for prior years you were eligible and did pay your taxes and then use that refund to pay your current taxes? Or, maybe if you knew you were going to get the credit back you could put the money together to get the taxes paid, then immediately apply for the credit? The link to the main page for the program is:
    http://dor.mo.gov/tax/personal/ptc/

    It sounds like you may not have a mortgage on your property and may be a senior? If so you may want to look into a reverse mortgage? That is something that many seniors use when they find themselves with plenty of equity in their home but short on cash. As with any other major transaction as this you should fully research it though and consult people you trust to be sure it would be good for you in your situation…if a reverse mortgage is right for you it may give you the opportunity to get cash out of your home to pay your taxes, medical bills, etc, or even have a monthly “income” from you home to supplement your income. I wrote an article about reverse mortgages a while back that has a lot of information at the link below:

    http://stlouisrealestatenews.com/financing/reverse-mortgages-pave-the-way-to-financial-freedom-for-many-st-louis-seniors-not-for-everyone-though/

    The only other thing I can think of, is you didn’t say what county you are in, but I would call the assessors office in your county, explain your plight and see if the county you are in has any programs available to help.

    Good luck and God Bless,
    Dennis

  • Tammy

    Hi I just purchased a house and I need info on the tax credit off first year taxes . I need the forms to fill out so I can submit these forms When closing on my house the lender didn’t know anything about this tax so if you can let me know where I need to go to get these forms and submit them or what I need do that really help thanks Tammy

  • Dennis Norman

    Hi Tammy
    Congratulations on your home purchase! Thanks for bringing this up, the state did not have the forms prepared when I did the first two articles but they are done now…I just did an update on the article with links the the forms, instructions and samples…Good luck, Dennis

  • TAMMY

    Hi I emailed you and you responded thanks for that but now the site wont show the instructions or info on the program and I also cant pull up the sample forms help! please thanks

  • Dennis Norman

    Tammy, sorry about that…I had a couple of bad links, everything is fixed now and I tested all the links so you should be good to go…have a good day, Dennis

  • TAMMY

    Hi its me again I purchased a rehabbed house how can I see if it qualifies for the additional $500 dollars acentive.

  • TAMMY

    here is my email sorry did not leave it before

  • Dennis Norman

    Hi Tammy
    Here is a link to some information on the program..in looking this over it is clear that if you buy a NEW home that has qualify energy efficient items or if YOU make improvements to a home within 60 days of purchase you are eligible, but it’s not clear about buying a remodeled home that had improvements…logic would say it should be eligible, but logic doesn’t always prevail when it comes to the govt :)
    http://stlouisrealestatenews.com/hope-info-instructions.pdf

    Here’s a link to the application:
    http://stlouisrealestatenews.com/Form_700_rev20100421.pdf

    Well, now that I have reviewed the applications to apply for the credits I’m thinking you may not qualify …there is a form (710) for new construction in which the builder has to sign and certify he built the house NEW and included energy efficient items…the other form (715) is for purchasers that bought a home then made improvements and you have to itemize what you added to the home….it sort of appears your situation is not covered although if you can find someone at the state level to ask it would be worthwhile…here is a link to all the sample forms for the program;

    http://stlouisrealestatenews.com/hope-samle-forms.pdf

    Good luck,
    dennis

  • This was very informative post.

  • TM

    Unpaid St. Louis County Real Estate Tax

    New Homeowner summer 2009. Kidney failure 3 months later, unemployeed and struggling to pay bills. Disability case in action. Do not qualify for tax credit for disabled yet or new credit started for 2010.

    Was unable to pay 2009. Rec. a bill for 2010 including 2009 and as of today the last day of the year, I am unable to pay 2010. I will have tax return money in 2nd week of feb and will use to get caught up.

    Question? How many years unpaid real estate tax will the St. Louis County allow before stepping in to take property?

    Thank you,
    TM

  • Dennis Norman

    TM
    Sorry to hear about your plight, it sounds like you have had a rough way to go…
    As far as the property taxes, St Louis County will conduct a sale for unpaid taxes after 3 years have went unpaid generally…this sale gives the buyer a “tax certificate” but not ownership of the house…the buyer has to wait two years longer to get ownership…during this period you can “redeem” the property by paying the back taxes including fees, penalties and interest…Therefore it is only after 5 years of taxes go unpaid that you actually lose ownership of the house..
    Having said all this I need to stress to you I am not an attorney and this is not legal advice…this is just knowledge I have gained over the years as a real estate broker and attending tax sales that I am sharing with you.
    It would be a good idea for you
    questions regarding the tax sale is encouraged to contact the St Louis County delinquent tax department at 314-615-4207 to discuss your matter and confirm the information I’ve given.
    Good luck to you,
    Dennis

  • TM

    tears are rolling……..the stress of unknown have just released 20 bricks off my shoulders. What a great New Years…..I have time and hope to hold.
    I am so thankful to the Lord above
    and God Bless you for your time to help us all…

    Thank you soooooooooooo much.

  • Dennis Norman

    TM
    Thanks for the kind note, I appreciate it and am glad the info helped you and you have given credit first and foremost to where it is truly due, our Lord and savior…
    God Bless you and your family as well
    Dennis

  • Rich

    I bought a home in the City of St. Louis by contract for deed (closed on June 30, 2010) for my primary residence where the seller carried back the loan. The Contract for Deed was recorded and stamped at the recorder’s office. I had heard of this program but had assumed I wouldn’t qualify; but, it seems like I do qualify. I am wondering can I still file for it and does purchase by contract for deed qualify? The Contract for Deed was adequate for the IRS and the $8,000 first time homebuyer tax credit. What’s your opinion?

  • Dennis Norman

    Hi Rich,
    The HOPE program info states the following in terms of qualifying:
    Real Estate Property Tax HOPE Eligibility:
    1. A household that purchases and occupies a one‐to‐four unit single family residence in the state of Missouri on or after
    January 1, 2010, is eligible to apply for HOPE.
    a. Also, the contract to purchase the home must be executed on or after January 1, 2010.
    2. The applicant must be at least 18 years old, and may not have purchased the home from a relative or spouse, if married.
    3. The household must qualify as low to moderate income as defined by MHDC.
    a. See Form #705 for maximum annual income levels.

    So, assuming you entered into the contract to purchase the house on or after January 1, 2010, and meet the other criteria, I would think you are OK – the link to the application is in the article so I would go ahead and submit it – you’ve got nothing to lose.
    good luck

  • richard

    I just found you online and once again thank you for the info on the taxes my wife and i have being unemployed since 09 as well until this year late and is it possible to pay for 09 taxes before the first of the year or do we have to pay the three years before the first? money is tight right now and has being any more info will great thank you.

  • Dennis Norman

    Hi Richard
    That depends on the county you are in, but the ones I’m familiar with will allow you to pay the oldest year of back taxes (in your case it sounds like 2009) without paying taxes due for subsequent years as long as you do so before they put it into a tax sale – you need to check with the assessor’s office for your county- here is a link that will give you contact info for Assessor’s offices throughout Missouri. You simply click on the county you need- Dennis
    http://www.moassessorsassn.org/assessors.htm

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