Will County Announces Property Tax Relief Measures - 2020

Will County Announces

Property Tax Relief Measures - 2020

U.S. property owners, including those in the Chicagoland area, are currently facing real financial pressures in the face ...

Why?  

One reason is ... it's real estate property tax time across much of America.

In many areas of our nation, property taxes are presently being issued and 1st installment of tax payments are coming due.  

That is certainly true in the Chicago Metropolitan Area.  

In Chicago's Southland, Will County real estate taxes were mailed out and posted online beginning on May 1st, 2020.  Will County property owners' 1st installment of taxes will come due for payment soon ... on June 3rd, 2020.

But as I mentioned above, events now taking place are making the payment of this year's tax payments-especially challenging for many.  Employment furloughs, unemployment, reduced earnings, and health issues delivered via the COVID-19 virus are all contributing to those current challenges.

Many of our local Chicagoland-area county governments are looking for ways to meet those challenges head-on.  They're also trying to find ways to provide much-needed relief to the residents and property owners within their boundaries.  

That is definitely true in Will County.  On Thursday, May 21st, the Will County Board met and approved measures to provide financial relief to Will County property owners in meeting their 2019 tax installment responsibilities.  

The following payment schedule was approved at that County Board meeting:

   * 50% of the 1st Installment is due June 3, 2020

   * 50% of the 1st Installment is due August 3rd, 2020

   * 50% of the 2nd Installment is due September 3rd, 2020

   * 50% of the 2nd Installment is due November 3rd, 2020 

     NOTE:  Any unpaid balance remaining after the August 3rd and November 3rd dates will accrue interest.

To simplify the payment of taxes, Will County has made payment possible via any of the following methods:

• Lender Tax Escrow Payment(s):  (Check with your Mortgage Service Provider for further info.  NOTE: Most Homeowners with Mortgages and Taxes paid via Escrow accounts will see  little or no change in the tax payment schedules)
• Banks:  For a list (and locations) of those banks collecting on the County's behalf, click HERE 
• Online Payment:  Click HERE for that link
• By Mail:  Send payment(s) to Will County Treasurer, 302 N. Chicago Street, Joliet, IL 60432
• Drop-Box Payment:  2 Drop-Boxes are provided at the County Building located at:  302 N Chicago St, Joliet

            #1 is located in the parking lot as a drive-up facility/service 
            #2 is located in the County Building's lobby

Should you have any questions regarding the payment of your taxes/tax installments, please contact the Will County Treasurer's office at:  815.740.4675.  

You can also email the Treasurer's office at the following:  treasurer@willcountyillinois.com 

The topic of Real Estate Taxes is vitally important as taxes play a critical role in the transacting of real estate.  For those considering a real estate purchase, real estate taxes figure greatly into the "affordability" factor of properties, especially when the property is being financed.

Because of this fact, I've written articles on the topic many times ... specifically, as they pertain to Will County residential transactions and ownership.  Links to some of those articles are provided below.  

I hope these articles provide some insight into the topic of taxes and provide a better understanding of how Will County properties are assessed and taxes are estimated and paid. 

• Will County Taxes: Escrows, New Construction, Assessments
• Love Your New Construction ... But Educate Yourself About Future Tax Bills
• Will County and Chicagoland Property Taxes:  What, Where, How, Why
• I Received a New Property Assessment. What Do I Do?

Have questions as to how the real estate taxes on a property could affect your ability to buy?  

Are you hoping to Buy or Refinance a home or Investment Property in the Chicagoland area?  Contact Me!  I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.  I'm easily found at:

Gene Mundt

Mortgage Originator  -  NMLS #216987  -  IL Lic. #031.0006220  -  WI License 216987

American Portfolio Mortgage Corp

NMLS #175656

Direct:  815.524.2280

Cell or Text:  708.921.6331

eFax:  815.524.2281

gmundt@goapmc.com

www.genemundt.com

              

        

Gene Mundt, Mortgage Originator, an Originator with 40 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago 

and the greater Chicagoland region, including:  

The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, 

Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Lockport, Channahon, 

Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, 

and elsewhere within IL & WI.

Referrals are Greatly Appreciated and Welcomed!

Transfer Taxes: What are They? How Much are They? Who Pays?

Transfer Taxes:

What are They? How Much are They? Who Pays?

When I first speak with clients seeking information regarding mortgage financing, they're typically focused on 3 things:

1. What Down Payment they will need
2. What their Interest Rate will be
3. Can they get Approved for a Mortgage

The answers to those questions are definitely needed and vitally important. But they are not questions quickly answered.  

I must first obtain some information in order to be able to answer their questions credibly and reliably.  This includes information regarding their finances, debt, credit, savings and more.  

As the needed info is shared and our conversation unfolds, questions go back and forth between us.  Much like a ping pong ball, the questions bounce back and forth quickly and fluidly providing each of us an opportunity to get to know one-another and for fact-finding.   

It's during this conversation that the mortgage process, its direction, and needs and expectations that go along with it are normally laid out.  A time-frame for the process is provided.

It's also during this talk that the subject of monies required for costs/Closing is discussed.  Many hopeful homebuyers are surprised to find out that costs ... beyond those surrounding down payment ... are typically involved when borrowing money.  The existence of these costs and the need for their payment can come as quite a shock, especially to first-time home buyers.

A full explanation of these costs and why they are charged must then ensue.  Those Closing Costs explained and covered are:

• Lender Application Fee .. OR .. Appraisal Fee
• Appraisal Fee (Paid @ Application) If not Application Fee
• Credit Report (Paid @ Application OR @ Closing)
• Tax Service Fee
• Flood Certification
• Home Inspection (Paid @ time of Inspection)
• Lender's Origination Fee (Paid@t Closing)
• Title Fees & Title Insurance (Paid @ Closing) 
• First Year's Homeowners Insurance Premium (Paid @ Closing or immediately prior to)
• Possible Cost:  Homeowner's Association Documents & Questionnaire (If Applicable on Condos, PUDs)
• Recording Fees (Paid @ Closing)
• Transfer Taxes (These vary by City, County, State ... and by terms of Contract)  Often paid by Seller.
• Attorney Fee (Common in Illinois.  Paid @ or after Closing)

I find that the cost/fee (included in the list above) that most often confuses, "trips up" or causes last-minute panic for my clients (and sometimes their real estate team)  is that of Transfer Taxes.  It's not unheard of that this fee is addressed at the 11th hour leading up to Closing.

So:  

• What are Transfer Taxes?  
• Who is charging them?  
• And who pays them?

#1:  What are Transfer Taxes?

Transfer Taxes are those taxes that are imposed at the time that real estate property experiences a transfer of title.  

Transfer Taxes are based on the value of the property transferred.  The Recorder of Deeds/Registrar of Titles in each county collects the tax via the sale of revenue stamps that each county purchases from the IL Department of Revenue. That stamp may also provide evidence of the payment of a county real estate transfer tax.

Transfer taxes can be known by many names, such as "deed tax", "stamp tax", or "mortgage registry tax", depending on your locale.  Transfer Taxes should not be confused with mortgage recording taxes or recording fees paid at the time of Closing.

In Illinois, the sales price or the fair market value of the property sold dictates the amount of Transfer Taxes paid.  Again, the State of Illinois has a transfer tax that is typically paid by sellers and is set at a rate of $1.00 per thousand, or $100 per $100,000 of property value.  

Other states may utilize another equation for calculation of Transfer Taxes.  Please consult your real estate professional for further information regarding your local practices.

Note:  A tax professional should be consulted for advice regarding the deductibility of any Transfer Tax paid.

#2:  Who is charging Transfer Taxes?  

For those in Illinois:  Click HERE for info (as of 1-1-2019) regarding those municipalities and counties that have Transfer Taxes.  

For elsewhere:  Please refer to the info provided by the National Association of Realtors (NAR) or consult your local real estate professional to see if a Transfer Tax cost is involved in your real estate transaction.

#3:  Who pays the Transfer Taxes?

Transfer Taxes can vary from municipality to municipality and county to county within the State of Illinois.  Depending on your location, a Transfer Tax can be paid either by buyer or seller.  Payment should be negotiated at the time of contract.   

Again, for those outside of Illinois, local customs may dictate different payment methods.  What is common practice in one county/state may not apply elsewhere.

No matter which party agrees to pay the Real Estate Transfer Taxes, the taxes are shown on the Closing HUD Settlement Form.  Some Lenders require that proof of payment be supplied prior to Closing time.  Inquire with your Lender for directions regarding this matter.  

Potential homebuyers must be aware and informed regarding Real Estate Transfer Taxes (and all other Closing Costs), as they are a normal cost involved in real estate transactions in many states.  That way they will be prepared for all costs that may be incurred as they enter their real estate transaction.

The bottom line is that the mortgage process doesn't need to be confusing or challenging.  Closing Day can be completely successful and stress-free when clients are fully-informed, educated, and prepared.  

For information regarding Transfer Taxes, Closing Costs and all things surrounding mortgage financing, in Chicagoland - IL - WI, reach out to me via the info found on my mortgage website:  www.genemundt.com.

* Hoping to buy or refinance a home or investment property in New Lenox - Will County or elsewhere in the Chicagoland - IL - WI area?

Contact me today. I'll put my 40+ years of mortgage experience hard to work on your behalf.
I'm easily found at:

Gene Mundt

Mortgage Lender - NMLS #216987 - IL Lic. #0006220 - WI Licensed

American Portfolio Mortgage Corp.

NMLS #175656

Direct: 815.524.2280

Cell/Text: 708.921.6331

eFax: 815.524.2281

gmundt@goapmc.com

www.genemundt.com

Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago 

and the greater Chicagoland region, including: 

The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL. etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL & WI. 

Your Referrals are Welcomed & Greatly Appreciated!

Taxes Are Inevitable for Will County Property Owners. Tax & Assessment Surprises are NOT

 Taxes Are Inevitable for 
Will County Property Owners
Tax & Assessment Surprises are NOT

     “Tis impossible to be sure of anything 
     but Death and Taxes.”
                        Christopher Bullock, an English actor, and dramatist, 1716
   

For property owners in Will County, IL, the inevitable ... the receipt of a real estate tax bill ... has once again occurred.  


Tax Bills for the County were put in the mail on Friday, May 3rd, 2019, and should, by now, be in most property owner's possession.   

This event and the reaction to it on many social media venues remind me that real estate taxes and their payment remain a very big deal to homeowners.  Property taxes and property assessments affect most in many ways, big and small.  

Because of that, becoming thoroughly informed and educated about property taxes ... plus property assessments, taxing bodies and taxing systems ... is important.  

Property owners need to know: 

• How much their taxes are
• How their real estate is assessed 
• When their real estate is assessed
• How their taxes are calculated
• What their tax rates are
• Where and how they pay their taxes 
• Should they have a Tax Escrow via their monthly mortgage payment, they need to verify that a copy of the tax bill was received by their Lender/Service Provider ... and paid
• When both tax installments are due 
• Should they wish to protest their assessment, they need to know how to start and navigate that process
• More ...

It's also important for property owners to know:  If you're thinking your property tax bill is too high, you must focus on your property assessment, as it is the assessment of your property that you must appeal ... not the tax bill.  

Once you're in receipt of your actual tax bill, it's already too late to protest your Property Assessment for that levied year.  (Errors of fact, however, can be corrected after you've received a tax bill.)  

Any appeal filed must be conducted within 30 days of the receipt of your Assessment Notice.  In Will County, when new assessments are completed they are typically mailed and published in August.  They can also be found on the Will County Supervisor of Assessment's website.

Of special note for those considering a new construction home purchase ...  

It's important that you pay close attention to the topic of real estate taxes as your taxes will "evolve".  What do I mean?

Most borrowers are required to establish an escrow account at the time of loan.  Their escrow account includes their real estate taxes.  In most cases Insurance, Mortgage Insurance, Flood Insurance, etc. payments are also included in the escrow account.  As borrowers make each monthly mortgage payment, their escrow account builds.  

Typically the real estate tax portion of the escrow account is based upon the last available tax bill for that property ... one which was calculated on vacant property.  As a result, the first tax bill received by new construction owners is minimal.  

And subsequently, the Mortgage Escrow Account set-up at the time of the Mortgage Closing has been funded each month by escrow payments based on that low vacant property tax bill.  (Lenders are required to base tax escrow figures upon the most recent tax bill available, and adjust according to annual changes in tax amounts thereafter).

But once the Assessor acknowledges the sale of that property into a completed home, the property assessment is back-dated to the date of Closing.  This back-dating typically results in a much larger tax bill due during the second year of ownership.  

As a result, many new construction homeowners are caught off-guard upon the receipt of this 2nd larger tax bill and find themselves short on saved tax escrow funds because of it.  That often results in them scrambling for funds ... or telephone calls to their LO.

Because of that, I always stress to my new construction buyers/borrowers that it's important to: 

• Gain a thorough understanding of how taxes work prior to buying any new construction home
• Make sure you know what your projected (fully-assessed)  taxes will be on the home you're buying/building prior to signing a Contract
• Plan and prepare ahead for the receipt of the larger tax bill coming (typically in the 2nd year of occupancy)

While Will County Homeowners/Borrowers with escrow accounts are given notice by the County when taxes are due, it's the Mortgage Lender (or the loan servicer) that pays the tax bill installments out of the monies saved in their escrow account.  This is normally a seamless process, but borrowers should verify that their tax payment was successfully made upon its due date.

Possessing a working command of the taxing and assessment processes and the terminology used regarding them definitely helps property owners in many important ways.  

So to assist in that regard, I've put together a handy list of some of the most commonly heard/used tax and assessment terms below.

Property Tax and Assessment terminology:  

• Property Tax - The local tax on the value of real property, land, buildings, and homes
• Tax Rate - The amount of tax due stated in terms of a percentage of the tax base within a certain tax code
• Equalization Factor - A factor that must be applied to local assessments to bring about the percentage of increase or decrease that will result in an Equalized Assessed Value equal to one-third of the Market Value of taxable property in a jurisdiction
• Equalized Assessed Value - The fair market value multiplied by the State-Certified Equalization Factor. Tax bills are calculated by multiplying the Equalized Assessed Value, minus any exemptions, by the tax rate
• Market Value - The most probably Sales Price of a property in a competitive and open market, assuming that the buyer and seller are acting prudently and knowledgeably, allowing sufficient time for the sale, and assuming that the transaction is not affected by undue pressures
• Taxing Body & Tax District - A local governmental unit that levies a property tax. Examples: Park District, Fire Protection Districts, Municipalities, School Districts, Library Districts, etc.
• Exemption - Freedom from the property tax granted to the property in recognition or because it is taxed either directly or indirectly by other means. Example of Exemptions: Homestead, Military Veterans, Senior, Disabled, Home Improvement, Energy, Etc.
• Assess - To place a value on property for tax purposes
• Assessed Value - An Assessed Value is the dollar value assigned to a property to measure applicable taxes. Assessed valuation is the price placed on a home by the corresponding government municipality.  It  determines the value of a residence for tax purposes. 
• Assessor - The government official responsible for establishing the value of a property for tax purposes
• Board of Review - A panel of three residents of a county, experience in real estate appraisal, who review complaints filed by individual taxpayers. The Board of Review has specific statutory responsibilities to perform during a designated period of time
• Ad Valorem Property Tax - A tax imposed on the basis of value.
• Improvements - The value of any buildings or structures existing on land, whether new or old. Improvements may also include certain commercial and industrial fixtures.
• Appeal - 
• Property Index Number - Every parcel of property is assigned a permanent index number, also referred to as PIN. Permanent index numbers are 14 or 16 digits and define the location of your property. Your PIN is located on your tax bill
• Appraisal - The act or process of developing an opinion of value; an opinion of value. An appraisal must be numerically expressed as a specific amount, as a range of numbers or as a relationship (e.g. not more than, more than, not less than, less than) to a specified amount
• Assessment Protest - An assessment appeal or "protest: is the due process a taxpayer may initiate if the assessed value of his or her property cannot be agreed upon with the county assessor. It is a legal process in which a property owner contests a value or assessment either formally or informally on taxable real or personal property. For each year, there are specific statutory dates when an appeal can be made. In Will County, you have 30 calendar days from the date of the notice to file your appeal with the Will County Board of Review. The process should start with contacting your Township Assessor.  Your Assessor can provide you the info and forms you need to start your appeal/protest   

Remember, Will County Taxes are due on:

1. 1st Installment is due June 4, 2019 
2. 2nd Installment is due September 4, 2019

Yes, taxes are inevitable if you are a property owner.  But careful and consistent planning and preparation insure that tax surprises are not.

Although information and guidance is readily available via local municipalities and government offices and websites, always feel free to contact me with your questions.  I'll be happy to hear from you, answer questions, and be of assistance.

* When in need of  Mortgage info or service when buying,
refinancing, or investing in a home in New Lenox - or elsewhere in Chicagoland - IL & WI, contact me.
I'll be happy to put my 40+ years of mortgage experience and
expertise hard to work on your behalf.
I'm easily found at:

Gene Mundt

Mortgage Originator - NMLS #216987 - IL Lic. #031.0006220 - WI Licensed

American Portfolio Mortgage Corp.

NMLS #175656

Direct: 815.524.2280

Cell/Text: 708.921.6331

eFax: 815.524.2281

gmundt@goapmc.com

www.genemundt.com

   

Gene Mundt, Mortgage Originator, an Originator with 40+ years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:
Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago
and the greater Chicagoland region, including:
The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena,
Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook,
Romeoville, Naperville, etc.), DuPage County, the City of Chicago,
Cook County, and elsewhere within IL & WI.

Referrals are Appreciated and Welcomed