Homestead Exemptions In Orleans Parish - What You Need to Know

As of January 1, 2012, if you reside in Orleans Parish, the Homestead Exemption you receive on your property will be permanent for as long as you own your property and declare it as your domicile. Once you have successfully applied for a Homestead Exemption, you will no longer need to reapply annually.

For every home, there can only be one homestead exemption. As of August 2016, it is a punishable crime according to state law to claim more than one homestead exemption.

Every homeowner in Orleans Parish can claim an exemption from property taxes for the first $75,000 of the value of their "domicile" or the home they occupy as their primary residence, guaranteed by the State

Constitution. As of 2017, for those declared 100 percent disabled by the U.S. Department of Veterans Affairs or the surviving spouse of a veteran, policeman, fireman, or state trooper killed in the line of duty, the exemption is for the first $150,000 of a home's value. 

AGE, DISABILITY, VETERANS

Homeowners 65 years of age or older, may qualify for a Special Assessment Level (SAL) if they meet certain conditions. You must be on permanent disability, be the documented surviving spouse of a member of the Armed Forces or Louisiana National Guard who was killed in action, is missing in action, or is a prisoner of war. The SAL places a "freeze" on the property's assessed value, even though the appraised value may fluctuate with the market.

HOW TO FILE FOR A HOMESTEAD EXEMPTION:

To claim a Homestead Exemption, all owners who occupy the property must appear in person at the Assessor's Office and present the following documentation:  

1. Proof of ownership (either an Act of Sale or Warranty Deed);

2. A valid Louisiana Driver's License or Louisiana State I.D. (address must match the property's address on your application);

3. A current unpaid Entergy bill for the property, (service location and mailing address must match) showing a standard residential usage; OR

4. A landline telephone bill or cable bill (Direct, Dish, or Cox).

Note that your Sewerage and Water Board bill will not count towards proof of residency.

100 PERCENT DISABLED VETERANS EXEMPTIONS

To claim a Homestead Exemption for a 100 percent Disabled Veteran,

you must show the following: 

1. Proof of ownership (either an Act of Sale or Warranty Deed); 

2. Proof that the owner qualified for the current year's Homestead Exemption; 

3. 3. A valid Louisiana Driver's License or Louisiana State I.D. (address must match the property's address on your application);

4. 4. A current unpaid Entergy bill for the property, with service location and mailing address being the same, showing standard residential usage; OR 

5. 5. A letter from the Veterans Administration (V.A.) which states the veteran owner is 100 percent disabled. 

WHAT IS AN AGE FREEZE AND HOW TO QUALIFY 

An Age-related abatement or "age freeze." 

To qualify for an age-freeze, the homeowner must be at least 65 by August 1 in the year preceding your tax year. You must also meet certain income restrictions. Note that the maximum qualifying income for an age freeze changes annually—Call 504.658-1300 to verify the current maximum. Once successfully gained, the age freeze will be permanent, and you will not have to reapply for it on an annual basis.

Age-related abatements or "freezes" must be documented by:

1. A valid Louisiana Driver's License or Louisiana State I.D. (address must match the property's address on the application);

2. Proof of annual income: 1040 adjusted gross income of the prior year's income tax return or Social Security award letter for individuals with no income or job.

 At Homestead Title, we handle the coordination of all parties of interest so that your refinancing runs efficiently. We also take the time to ensure that all documents are in order, so that you will experience a “smooth road” to refinancing. Call us today at (504) 581-6427 if you have any questions or would like further information on how we can help you. 

A Title Company’s Role in Refinancing - A Quick Guide

Despite your original commitment to timely mortgage payments, unexpected difficulties can create hardships. When these problems take you by surprise, refinancing may be an option for you to try and lower your mortgage payments. Communicating with your lender will definitely assist you in your search for a lower interest rate.

Refinancing a home can be overwhelming to those new to the process. In accordance with our commitment to thorough and competent service, we'd like to offer the following quick guide to refinancing.

In loan refinancing, you are addressing the outstanding original loan by using a new loan to pay it off. Closing costs for refinancing can range from anywhere to 2-5%, with the average being 1.5%. Your interest rate, credit score, and type of loan are among the chief factors that determine your payment. 

During refinancing, you or your lender will choose a title company for research purposes. The title company’s responsibility is to determine that you are, in fact, the owner of the property. This evaluation is normally completed through a title search. The title company is also looking for factors such as outstanding judgments that the lender could ask to be paid before proceeding with refinancing.

Those who choose to go forward with refinancing may be curious about title status and have questions about title insurance.

* Title insurance isn’t paid through monthly premium, but instead by a one-time fee at closing. The lender seeks protection through title insurance at the time of closing. 

* Title insurance promotes investor confidence as mortgages are security-backed. Investor risk is minimized through title insurance.

The lender will provide you with a closing disclosure, which outlines how the loan will be disbursed and used. Ultimately, a title company acts as a go-between, or intermediate party, for all of those involved in refinancing, ensuring the process is free of headaches. 

 At Homestead Title, we handle the coordination of all parties of interest so that your refinancing runs efficiently. We also take the time to ensure that all documents are in order, so that you will experience a “smooth road” to refinancing. Call us today at (504) 581-6427 if you have any questions or would like further information on how we can help you. 

Real Estate Closings During COVID-19 – Keeping You Safe

Before COVID-19, real estate closings primarily involved all parties to a transaction sitting around a conference table as participants signed and passed around dozens of documents. Now with physical-distancing protocols in place, attorneys, lenders, and title company representatives have had to adjust to the new normal.  Remote closings and E-closings are a hot topic in real estate and title circles nationwide. In Louisiana, while remote notarization is available temporarily under the state emergency guidelines, most lenders are still not accepting documents executed via remote notarization. However, more and more lenders are moving towards a hybrid approach that saves time and paper at the closing table. 

Unlike a face-to-face closing where real-time issues can be addressed; hybrid closings take a bit more preparation and coordination on the front-end. The majority of documents can be delivered and signed electronically, however at the minimum, the Closing Disclosure, Deed, Mortgage, and Note still must be “wet-signed” in person in front of a notary and two witnesses. 

With COVID-19, title companies have had to adapt quickly to protect both clients and employees. Many, like Homestead Title, have adjusted their procedures to allow the notary and witnesses to meet the parties outside, and often parties remain in their cars to sign documents. In some cases, notaries have even brought documents to a party’s home for an outdoor signature and then brought the document back to complete the transaction. After the transaction is complete, copies of documents are being sent electronically to each party instead of hard copies being given at the table. 

At Homestead Title, the health and safety of our clients and employees are of the utmost importance to us. We are following the CDC guidelines and monitoring the changes during the pandemic. We will continue to take precautionary steps to protect our clients and to ensure that whether you are buying or selling a home, we are here to help you do so, safely. 

In order to make face-to-face closings more convenient, Homestead Title has three offices: New Orleans at 1201 S. Carrollton Ave. 2nd floor, Mandeville, at 1070-B W. Causeway Approach, and Harvey, at 1901 Manhattan Blvd. Building D. We also have multiple locations throughout Metairie and New Orleans area where we can bring the closing to you! 

Why You Need Title Insurance!

Title insurance is one of the very best investments you will ever make for your residential or commercial purchase. When a title defect occurs, it can involve the loss of money to defend against an adverse claim or to hire a lawyer to fix the problem. Potentially, it can lead to the loss of the property. Title insurance provides a way of covering those risks, and it doesn't just protect you directly, but lives on to protect your investment and loved ones in the future.

COMMON TITLE PROBLEMS

• Money judgments

• Bankruptcy

• Open mortgages in the Chain of Title

• Minors mortgage

• Interdiction

• Deceased on title

• Absentees on title

• Tax sales

• IRS and State Tax Liens

WHAT IS TITLE INSURANCE?

• A title insurance policy is an insured statement of the condition of title, or ownership, of real property.

• Title insurance is unlike any of the traditional forms of insurance: it is concerned with risk elimination.

• Title insurance does not insure against the possible happening of a known and designated future event such as a fire, accident or death.

• Title insurance is a contract of indemnity and the issuer must provide reimbursement to its beneficiary in the event of the occurrence of certain conditions specified in the policy.

• Title insurance protects you from anyone who shows up out of the blue demanding money or even the right to use your property.

The best part of title insurance is that it is usually purchased at closing as a one-time cost. That cost is regulated by the state — meaning service is paramount when choosing a title company. With our history and experience, we are one of the best service-providers in the state, and we strive to give our clients the most up-to-date information regarding their individual transaction. We’re here to offer guidance or even a listening ear should any issues arise in the closing process.

REMEMBER, TITLE INSURANCE

• is available for residential and commercial transactions

• protects you from loss of property and money

• can be included as a one-time cost during closing