That’s probably for the best.

Your definition of a “safe” New Orleans neighborhood might not be the same as that of your agent.  If you are moving from a small, rural town, then any crime might be a huge issue for you.  If you are moving from a large metropolitan area, you might be a little more relaxed about minor crimes, but still concerned about major ones.  There’s no way that we, as agents, can give you a warm and fuzzy that matches your expectations about an area.

So, what do we suggest?

Drive or walk through the neighborhoods you are most interested in living in.  Do this during the day, the evening and on weekends.  Why so many different times?  Because the whole feel of a neighborhood can change after work hours or on weekends.

Talk to the neighbors.  The best source of community information (and maybe even gossip) is the people who already live there.

Check with the local police department or check out these online resources for crime data

• Crime Map for New Orleans
• Crime Map for Jefferson Parish

Police protection on the West Bank of New Orleans is provided by:

New Orleans Police Department  (Algiers) 

Jefferson Parish Sheriff’s Office  (Terrytown, unincorporated Gretna, Harvey, Marrero)

Plaquemines Parish Sheriff’s Office  (Belle Chasse)

City of Gretna Police Department  (Gretna)

City of Westwego Police Department (Westwego)

Can’t We Just Give Them A Credit?

Well, technically, yes.  You can.  However, the Louisiana inspection response form indicates that an allowance for repairs is only good if the lender is OK with it.  Here’s a hint.  Most of them are not because it throws up a big red flag that there are defects in the property they are taking as collateral in exchange for lending the buyer the purchase money.

What Are Your Alternatives?

You have a couple of choices.

1.  Go ahead and make the repairs.  This is typically less expensive than any allowance that a buyer may ask for, because they are always going to estimate on the high end of repair costs while sellers tend to estimate on the low end.

2.  Instead of a repair credit, offer to give those funds as closing cost assistance.  As long as the assistance doesn’t exceed the maximum allowable by the lender (typically 6% of the purchase price), then an amendment to the purchase agreement can be completed and the sale can move forward.

More New Orleans Home Selling Tips

The home seller pays the Orleans Parish property transfer tax.

This applies to all transactions involving a New Orleans property – even the refinance of an existing mortgage.  Yes, I realize that there is technically no transfer taking place when you refinance a home loan, but there is a new mortgage recorded at the Mortgage and Conveyance office and that seems to be the trigger for collection of the tax by the city.

Calculate Your Annual Orleans Parish Property Taxes

HUD homes (and other foreclosures) can certainly be an affordable way to buy a home.  Just don’t get caught up in thinking that banks are giving away houses or that they will all be in move in ready condition.

Ready to take a peek at what’s available?  Fill out the form below and we’ll send you a free list of foreclosures and HUD homes in minutes.

In an established neighborhood, most home buyers don’t get a property survey and we have not historically recommended the extra expense.  However, we recently ran into a survey problem with a Gretna home that was built in the last couple of years.  It turns out that the builder didn’t follow the exact plans that were filed with the city when the land was subdivided.  Instead, the fence (that the builder installed) was 18″ into the neighbor’s yard and the house was too close to the street.

Now, of course the city was not going to force the house to be moved – that would be ludicrous.  But, it caused a delay in closing while a variance was approved.  Fortunately, the city of Gretna is pretty easy to work with.  Had this been in New Orleans, it might have taken months to get this worked out and possibly cost the home owner a sale.

Despite this, I still don’t think that the cost of a survey is generally warranted in older neighborhoods.  The exception would be if the property is not fenced, since there are no clear markers for where one property ends and another starts.

If you have concerns about property boundaries, be sure to address this during your negotiations.  Asking the home seller to provide a survey for your review can help put your mind at ease that you are getting what you are paying for.

Every weeknight between the local news and prime time television, the Wheel of Fortune continues to entertain its share of viewers.  The simple concept provides an opportunity for contestants to earn money and prizes with each spin.  Among the possible outcomes of each turn is the unfortunate consequence of being “bankrupt.”  All previous guesses and gains are lost in one moment.

Fortunately for the show’s participants, only a matter of time (and a commercial) exists between the lowest low and recaptured hope.  Those that have experienced bankruptcy in real life should take their cue from a portion of the game’s concept.  Patience during difficult financial circumstances has proven itself as a great method for turning things around.  But can we be patient and proactive at the same time?  Absolutely.   The topic today will focus on what those that have filed for bankruptcy can do in order to be re-established as credit worthy borrowers.  Since we’re on the subject of real estate (by proxy of the website you’re on) we’ll answer the question of how you can re-establish yourself after a bankruptcy to purchase a home.

Personal Recovery

The first thing to realize is that we must recover personally!  Having good credit is about having good behavior.  Home ownership should be viewed as a reward and milestone to those diligent to achieve it.  But it can become yet another ideal that is loved, inappropriately financed, and then lost if the mentality hasn’t changed.  Learning from past mistakes, a re-tooling of priorities, and proper budgeting are the beginning steps to building ourselves in creditworthiness.

Credit Recovery

Though the bankruptcy may seem disheartening, you must take complete advantage of having done it.  Immediately following a bankruptcy, credit is generally in poor condition.  In all likeliness, it was in poor condition leading up to the bankruptcy.  That said, make certain that you have reviewed your credit since then and all debts that were to be included in the bankruptcy are.  The good news about the bankruptcy is that you are starting over.  Now at ground zero, there is no place to go but up.  If there happens to be an item on the report showing in error, contact the credit bureaus and dispute the item as included in the bankruptcy.  Any tax lien or judgments need to be paid as well so have a plan to do so or supporting documentation that they have been satisfied.

Financial Recovery

There are several methods that can be taken to regain proper credit and financial status.  But as always some methods are better serving than others.  Unsecured credit like credit cards or unsecured lines of credit may be difficult to get after a bankruptcy.  Secured debt is the wiser, long-term decision if possible.  For instance, saving money to place in a CD, then making a loan against the CD is a great way of moving in a positive direction about personal finances.  First it employs the concept of saving which should be paramount in those looking to turn their financial future around.  Programs of this nature are of reasonable rate and term and are usually closed end installment loans. This means they are for a set dollar amount and for a prescribed amount of time.  A car or student loan works in this regard as well (though I do not recommend getting a car note while looking to purchase a home).  By paying consistently on a secured method of credit, you build credit as well as a good relationship with the financial institution that you may later return to for a home loan.  The greatest benefit is that you are keeping your assets and understanding how to use financial institutions to build wealth.

What about the home loan?

Realistic expectation is a necessary quality for those coming out of bankruptcy.  There are several programs available to purchase a home, many of which set parameters at 6-12 months from a discharged bankruptcy.  If you’re in that kind of a hurry, make certain that you revisit my earlier points before moving forward (especially on personal recovery).  If you find approval possible, you might be deterred by the rates offered.  While 18-24 months after bankruptcy is generally the targeted range, rates may still be higher for individuals coming out of bankruptcy than those who have never filed.  That being said, a higher rate does not equal disqualification.  In fact, if you are able to budget with the higher rate loan, the continual timely payments will work the same as with a low rate mortgage to grow your credit scores.  Underwriters will want to see a good pay history as well as sufficient funds for down payment.  FHA programs are possible 12-24 months* out of bankruptcy (certain restrictions and qualifications apply).  All judgments and liens need to be paid and good pay history since the bankruptcy needs to be maintained.  FHA rates are generally more competitive than many conventional loan programs that allow for bankruptcies.

…finally.

While it is not my practice to compare tragic life situations to game show folly, learning lessons from all aspects of life only strengthens our resolve to persevere.  While bankruptcy does not indicate financial futility, it is also not a “free spin” offering a quick chance to do everything over again.  It will take time. The lows in life may not change in an instant, but some key steps taken in good measure should have you spinning again.

Peace and Blessings,

Miles D. Victor

Once we’ve convinced them of the necessity of doing the inspections (even on new construction), one of the most common questions we get from both home buyers and home sellers is who will be at the home inspection?

Now, there are different customs in different parts of the country, but in New Orleans our custom is that the buyer, their buyer agent or REALTOR® and the various inspectors all attend the inspection.  I’ve heard that in some areas the home inspectors have access via lockbox to the properties and perform their inspections without anyone around.  I’ve also heard that in some states home inspectors don’t have to be licensed.  Thankfully, it doesn’t work that way here.

The seller and their listing agent should be no where to be found during your inspections – this is your time to have a professional assure you that you are getting what you think you are getting and to give you a fair and unbiased view of the condition of the property.  Take advantage of every minute of it.

More New Orleans home buying advice

That can actually be a tricky question, because many long time residents are grandfathered in to old zones that have changed over the years and the old zone is what they disclose when selling their home.  It’s not that they are trying to be untruthful, it’s that they are continuing to pay flood insurance premiums based on the zone at their time of purchase and that is what is reflected on their policy documentation.

What buyers really want to know is what flood zone a property is in NOW. Enter the FEMA Map Service Center.

The online FEMA Map Service Center allows anyone to search the flood maps for information on a particular address to determine the current flood zone of a property.  If there are certain zones that buyers don’t feel comfortable with, they can avoid them in their home search.  Conversely, the information is there to allow buyers to target areas that are in the lowest risk flood zones.

Many sellers will allow buyers to assume their existing flood insurance policies, but this does not change what zone the property is actually located in.  It only changes the annual cost of insuring the property if they were grandfathered, which can be significant depending on the current flood map location.

More information about flood insurance

Disclaimer #1:  Flood waters don’t care what zone you are in and living in a low risk flood zone does not mean that you are in a NO risk zone.  Those don’t exist in this area.

Disclaimer #2:  Even if your lender doesn’t require you to purchase flood insurance, I always, always, always, always (got it?) recommend that you spend the money to insure your property.  Premiums for low risk zones are less than $400 per year.

Find New Orleans West Bank homes for sale

What is the Homestead Exemption?

The Louisiana Homestead Exemption is an exemption on parish and state property taxes for the first $75,000 in value of your home.  There are some taxes that are not included in the exemption, typically those for fire and police protection.

Does everyone qualify?

All owner occupants of residential property qualify.  Investors are not eligible for the exemption.  If you own more than one residence (for example your primary home and a vacation home) then the exemption applies to only one property.

Where do I file?

Exemptions are filed with the parish tax assessor’s office.  After you have purchased a property and the mortgage has been recorded with the courthouse, you will need to bring your copy of the recorded sale documents to the tax assessor to file for your exemption.

• New Orleans Assessor
• Jefferson Parish Assessor
• Plaquemines Parish Assessor

Do I have to renew my exemption annually?

Yes.  Each year, you will receive a renewal card in the mail from your parish assessor.  Sign and return the card for automatic renewal without having to visit the office in person.

Have another question about homestead exemptions in the New Orleans area?  Contact the West Bank Living Team.

Lenders today are being very conservative with appraisals to be sure that they are not taking on collateral that is not worth the mortgage note that it secures.

As part of the loan approval process, the lender will assign someone from their approved appraiser list to provide their opinion of the value of the home being purchased.  In 2008, the guidelines for how appraisals are ordered was changed to avoid any undue influence on the values given for homes.  HVCC (Home Valuation Code of Conduct) rules state that only the lender can order an appraisal on a property – not the owner, not the REALTOR and not even the mortgage broker that may be facilitating the loan.

Once the appraisal is complete, a copy is furnished to the lender, who is responsible for making sure that the buyer also receives a copy of the report – after all, buyers are being charged for it in their closing costs.  While home sellers always want to know the details of the appraisal, that information is confidential and is not shared with anyone on the selling side of the transaction unless the appraised value comes in lower than the purchase price.

Still have questions? Contact the West Bank Living Team.  We know stuff and we’d be happy to share that knowledge with you.