Posted: 18 Jan 2011 08:04 AM PST,
R. Scott Brunner, VAR (Virginia Association of REALTORS) CEO, in VARbuzz.com
A piece of legislation is being considered that you should be aware of, as a Realtor® and as an advocate for Virginia property owners.
It’s a bill that would eliminate the recordation tax from property refinances, thereby allowing Virginia property owners to refinance at a lower cost, saving them in these hard economic times hundreds of much-needed dollars.
But in Virginia property owners may also have to pay a recordation tax on that refinance.
Under current Virginia law, refinancing a property loan can cost property owners hundreds, even thousands of dollars in recordation taxes. And with so many property owners in danger of losing their properties or going ‘upside down’ on their mortgages, it’s unfair that they are taxed again when they’re trying to refinance to keep their properties or reduce their costs.
These days, refinancing a mortgage is a great way to take advantage of rock-bottom interest rates and save property owners on monthly payments. If Virginia property owners are facing foreclosure, refinancing their mortgages can help them save their properties by their locking in lower rates and monthly payments.
Later this week, property owners across from Virginia will be sent an e-mail asking them to visit a Web page with a calculator that will show how much tax they would pay on a refinanced loan — that is, how much money they stand to lose if this bill does not pass. They’re then asked to contact their legislators and ask them to vote YES to eliminating the refinance tax. As a property owner, we hope you will visit this site and contact your legislators. Thank you in advance.