The Dark Side of Property Taxes

seniors rising property taxes

Reverse mortgage lenders and originators typically discuss property taxes in terms of non-payment, delinquencies, and in worse-case scenarios a technical default. However, there’s another property tax risk that can displace older homeowners who may forfeit their hard-earned accumulated equity- increasing property tax rates.

In June, Rocket Mortgage ranked the states with the highest property tax rates. The five most expensive states for property taxes are New Jersey, Illinois, New Hampshire, Connecticut, and Vermont. While most states have several property tax exemptions for seniors, those with disabilities, and veterans many older homeowners continue to find themselves in the unenviable position of having to choose to pay the taxman or cover living expenses. 

Lawmakers have attempted to respond to the hardships property taxes impose on some seniors. Some states, like California, have property tax postponement programs that postpone payment until the homeowner moves, dies, or the title is passed onto an ineligible party. Other states have enacted programs that are targeted to assist seniors with few assets and low incomes which include property tax breaks for homeowners over the age of 65.

The challenge is tens of billions of dollars of property tax aid are going unused each year, says Josh Hodges, a chief customer officer with the National Council on Aging. “You’ve earned these benefits,” Hodges said. He encourages older homeowners to think of the property tax assistance programs “like their Medicare, like their Social Security.”

While reverse mortgage professionals want to originate loans, they also care deeply about the older homeowners in their community, many with whom they’ve forged a personal connection with. Consequently, reverse mortgage originators should be aware of those who provide counseling and benefits coordination for seniors who are struggling to pay their property taxes. A good place to begin is for the originator to understand the program’s requirements and process. Next, is to forge a relationship where you can serve as a potential solution for those who don’t meet the eligibility requirements to receive property tax assistance.

In a future segment, we will examine the challenge that rising homeowners insurance premiums for homeowners of all ages.

Additional Reading:

Property Taxes By State: A Comparative Look At The Highest To Lowest States

Older Americans miss out on billions of dollars in benefits as inflation takes a toll

 

-Shannon Hicks

What’s your weakness?


How your weakness can be a strength

Each of us has our own fragilities.

Extroverts, for example, are often great at creating new business relationships and sales but are lacking when it comes to having a disciplined system of follow-up. Introverts are often entrenched in sticking to a well-planned and proven way of doing things but may struggle to engage in an emotionally persuasive way with potential clients. Highly organized and concrete sequential types are disciplined laborers in the field of sales but are thrown off their game when new circumstances require a sudden change.

The truth is we all struggle with specific skills or a lack thereof. Yet some of history’s most notable achievers overcame their biggest weaknesses or turned them into a strength. Here are just a few.

The Apostle Paul described himself as unpolished in his speech, yet he became one of the most impactful messengers of Christianity, convincing thousands to follow in the faith.

The skateboarder Tony Hawk lacked the strength of larger skaters to yank the board up in the air. He turned his disadvantage into a strength by inventing ‘ollying’ where he stomped on the curved end of the board to get elevation or ‘air’. Problem solved.

Walt Disney was fired from a newspaper for not being ‘creative enough’. Coaches wouldn’t give young Michael Jordan a chance to play on their team because he was too short. 

So how do we address where we lack? Here are a few ways to begin.

  1. Know specifically where you’re lacking strength.
  2. Decide what weakness you are going to commit to addressing.
  3. Engage with a person who possesses the strength you want to develop and ask for their input and how they developed their skill.
  4. Set specific benchmarks to measure your improvement.
  5. Read. There’s a universe of knowledge available on nearly any subject. Invest the time in educating yourself.
  6. Find a workaround that addresses your weakness. If it’s phone reluctance use set a goal to make at least xx amount of phone calls a day before you can go home. If it’s speaking in front of a large group take a class on public speaking. If it’s staying organized enroll in a time management course.
  7. Embrace where you are today but commit to incremental improvement.

Self-assessment

Take a few moments and write down your personal and/or professional weaknesses in one column and in the other how you will begin to transform that weakness into a strength or asset. 

“My attitude is that if you push me towards something that you think is a weakness, then I will turn that perceived weakness into a strength.”
-Michael Jordan