Under legislation adopted this year by the Virginia General Assembly, veterans who have a 100 percent service-connected disability can be exempted from real estate taxes on their primary residence. Spouses of such veterans who died on or after Jan. 1 also are eligible.
Gov. Bob McDonnell has signed the bill into law this week
Guidelines established for disabled veterans real property tax relief program | Virginia RealEstateRama.
Military families often face frequent moves and these moves can add unique financial pressures, as spouses may have to leave their employment due to a military transfer and the families may face a reduction in income. Generally speaking, when an individual leaves a job voluntarily, then the person is ineligible for unemployment benefits. Recognizing that spouses of military service personnel who quit their jobs due to a military transfer may not be quitting so “voluntarily,” state legislators have amended unemployment compensation laws to help military families who are relocating between states. In several states, state legislators deem it good cause if military spouses leave their employment to follow their spouses in a military relocation, and thus eligible for unemployment benefits. Currently there are only 21 States that have unemployment benefits, 8 States no Benefits, and the 21 states it is a case by case basis.
A State-by-State Guide to the Laws as they Affect Military Spouses’ Eligibility for Benefits Upon PCS-Related Job Loss
Due to a holiday, the filing deadline for your 2010 Federal taxes is April 18. Deployed servicemembers and their spouses also have at least a 180-day extension to file or pay taxes from the date they leave the combat zone. To invoke this extension, write “combat zone” across the top of the return. Servicemembers on duty outside the U.S. also are entitled to an automatic two-month extension, pushing the deadline to June 18.
For more on military-related tax laws, visit www.militaryonesource.com or www.irs.gov, which features a section for servicemembers and their families.
Although the $8,000 first-time home-buyer tax credit expired for most people last year, the government extended the deadline for military personnel and their families, paying them back for their extraordinary service to our country.
“Qualified service members” now have until April 30, 2011 to sign a sales contract. They must finalize the sale by June 30, 2011.
The Internal Revenue Service describes “qualified” as any member of the armed forces, Foreign Service or intelligence community.
The extension went into effect due to the overwhelming amount of service members on active duty that would not be able to be back in the US before April 30, 2010.
The benefit comes with a couple of new rules and benefits.
Not only can qualified service members receive the $8,000, they can also take advantage of the 100% financing, zero down payment, and $417,000 that the VA loan has to offer.
This cultural odyssey was made possible by a program Ms. Roth-Douquet helped start last year that offers free admission to museums for all active-duty military personnel and their families from Memorial Day through Labor Day. Read full article …
Bank of America today announced programs for its mortgage customers serving in the United States military, improving key benefits for those on active duty and extending mortgage protections for servicemembers beyond active duty. The newly introduced programs include a principal forgiveness loan modification program for military borrowers behind on their payments when leaving active duty; a reduced 4-percent interest rate on mortgages for customers who are eligible for Servicemembers Civil Relief Act (SCRA) protection; and a mortgage customer service unit dedicated to servicing military customers.
Bank of America’s Military Loan Modification Program goes above and beyond existing programs to assist military customers who are leaving active duty domestically or abroad and are struggling to afford their mortgage payment. The program builds on the government’s Home Affordable Modification Program (HAMP) and provides a waterfall of solutions starting with principal reduction measures to help customers achieve a more affordable mortgage payment as set forth in the HAMP guidelines:
Beginning April 1, 2011, Bank of America will also offer a 4-percent interest rate on mortgages for active duty military personnel while they are under Servicemembers Civil Relief Act (SCRA) protection. This is lower than the 6-percent rate required by SCRA guidelines. The 4-percent rate will be applicable for the duration of the borrowers’ active duty and for 12 months after release.
Bank of America initially will offer the specialized loan modification program and reduced interest rate to distressed military customers with loans owned and serviced by the bank. The bank is engaged in conversations with investors in other mortgages it services in the interest of expanding these benefits to all the military customers. Participation by those investors is subject to their approval.
Bank of America previously announced it has established a dedicated customer service team for military customers within its mortgage servicing unit. This unit provides servicemembers who have Bank of America mortgages with a single team to contact for assistance with questions or needs related to the bank’s full range of mortgage options and related SCRA benefits. The unit is staffed by associates with specialized training and detailed knowledge of SCRA policies and guidelines.
Servicemembers with Bank of America mortgages may reach the dedicated customer service unit at 888.325.5357.
For those who haven’t worn the uniform, their ways can be a mystery. But anyone trying to sell a home in the Hampton Roads / Williamsburg area would be wise to learn more about the needs and habits of military officers, enlisted people and their families. It is that time of year for them to begin some serious house-hunting.
With more than six major military bases, ( Ft. Eustis, Langley AFB ) and hundreds of service members and their families move in and out of Hampton Roads every year.
Across the services, transfers frequently take effect in June or July. Starting in March, April and early May, there’s really a strong demand for military families transferring into the area. They start looking online in March and are generally here in April and May to visit the houses in person for a July move, especially the spouses. A lot of times they have less than a week to come to the area and look at homes.
Active Duty Military tend to move every two to four years, often with little notice, and usually arrive ready to buy having just arrived in the area.
Most military households, like home buyers in general, begin their search on the Internet. Simply including the name of a nearby base in any home listing on the Internet can help attract prospective buyers.
WOW! So far the response to yesterday’s Daily Press article is amazing! THANK YOU ALL for your stories, opinions and recommendations.
Clearly, from the amount of emails I have read so far, I can tell from your responses that this is a growing situation (some would say crisis). Confronting it via this blog and in emails is helpful, especially for those who are staying quiet and hoping for things to get better. Although it is easy to remain quiet (or worse–criticize), it is an entirely different matter to DO something about it. Whether it is education, finding different options, or drafting policy…I believe you are all part of the solution!
Hampton Roads is a large military community and it makes no difference whether your particular situation is similar or not…we are all affected by, or will soon see and feel, the effects. If you need more evidence, ask a neighbor or friend…then please have them contact me.
Again, THANK YOU for your stories! Keep them coming!
Thank you for your support and for the opportunity to answer your question on the following comment:
“There’s no statistical tracking of active-duty military, if they’re going into foreclosure, if they’re going into short sales,” she said. “Until Washington can put a face on the issue, it is difficult to get action started in Congress or in policy circles. That’s what I want to do.”
Military members have always run the risk of owing more on their mortgage than the appraisal value of the house (i.e., being “underwater”). This is nothing new, which is most likely driving many of the comments below. However, what is happening across the U.S. is that foreclosures are more rampant due to the housing bubble collapse. The concern is there may be bigger problems brewing out there that we are only now starting to see as PCS orders take effect two years after the collapse.
What I mean by bigger problems are the unintended consequences or second- and third-order effects given some of the unique concerns on military families. I am sure you can think of several effects as a result. This is why this issue is quickly becoming an area of concern in some policy circles.
I can say there is much debate about some of the moral hazards with appropriating more money, so I expected some of the comments below. The main concern is the added pressure on military members (especially those who deploy) to provide a home for their families whether they rent or buy. Outside of home ownership issues, keep in mind the house you may be renting could just as easily go into foreclosure or be sold at a bargain to new home owners who may not wish to be landlords. I believe the proverbial tipping point is around the corner. This affects the community as a whole.
In either case, it is something worth examining from a concerned military family member, policy decision maker, and real estate agent perspective. Especially in a large military community like Hampton Roads. Again, until Washington can put a face on the issue, it is difficult to get started. Plus, there is no hard data out there other than a depressed real estate market and families facing some tough decisions. This is why I am interested in hearing what military families have to say.
For all reading this article and subsequent comments: I really appreciate all the folks who have responded. THANKS! If you are still contemplating whether to send me your story, I am interested in hearing your situation. You can respond anonymously.
Williamsburg Military Insider 