Using gifts for real estate purchase downpayment

The New York Times discusses the impact on your loan application when you receive a gift towards your cash needs for closing.

HOME buyers trying to scrape together enough money to cover the typical 20 percent down payment frequently look to relatives for help.

The number of first-time homebuyers who resort to the Bank of Mom and Dad is about 25%.  No surprise here as prices in the metro-New York area are high and first time home buyers are young couples who are, literally, just starting out.

There are some pitfalls to avoid when you receive a gift.

But mortgage lenders closely scrutinize cash gifts. That critical check from the parents may not count toward your home purchase if you can’t thoroughly document its source and intention.

Be certain that the money is transferred by check or wire as the paper trail is essential and must be able to be followed by the loan processor.  If possible, get the money into the buyer's account several months before the closing.  It might result in less questioning by the bank.  Also, donors should check on their gift tax liability.

Nothing is simple, is it?

Read the full article here.

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Foreclosure prevention seminars - do they work?

An article making its way around the Internet through MCT News Service poses this question on Sun-Sentinel.com-

I saw a notice for a foreclosure prevention workshop sponsored by my lender. Do these really help or is it just public relations for the bank? — Anonymous

I guess the answer is "yes and no."

Whether it's calling your bank's 800 number, working with an attorney or going to a workshop, you will get out of it what you put into it. Be completely prepared. Make sure you have two years of tax returns, six months of bank statements, a copy of your budget and bills, pay stubs and any other paperwork that might be relevant.

The point to remember is that you have to start somewhere, and a workshop may be just the right place to do it.

Read the full story here.

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Year-end dash to sell real estate

The year-end is approaching and with it some tax law changes. Add some confusion to the mix, such as the so-called Obamacare sales tax on real estate, and we can see why there’s a flurry of year-end activity, perhaps the greatest since 1986.

As the The New York Times Alexei Barrionuevo points out in A Mad Dash to Avoid a Bigger Tax Bite

NOT that anybody needs more stress during the holiday season, but sellers and their brokers and lawyers across the country have been scrambling to close deals and avoid January tax increases that will eat into their profits.

What's driving this rush?

 What is everyone so worried about? Federal capital gains taxes — the tax you pay when you sell an investment — are expected to rise at the top rate from 15 percent to at least 23.8 percent. That would include a 5 percent tax increase and a new 3.8 percent tax on investment income levied on high earners to pay for health care.

While no one knows exactly what will be decided in Washington to avoid the fiscal cliff, many people expect that the cost of selling an investment will be higher in January than in December.

There are some options.  The 1031 exchange process might help some owners postpone recognition of gain income.  But I'm not here to offer tax advice

Good luck to all those folks intent on closing before the end of the year.  It's less than a working week away.

Read the full report here.

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FDIC sells bank, new owner puts squeeze on borrowers

The FDIC closes a bank, offers that bank for sale, finds a buyer and agrees to cover some of the losses that the buyer incurs. That's how it works when your bank goes under.

But, what happens after you become a loan customer of the new bank? Is it all peaches and cream? Not necessarily so.

  

According to a report on CharlotteObserver.com, banks often put roadblocks in front of their borrowers and either hound them to pay off  their loans or face foreclosure.  One borrower wouldn't roll over and took the bank to court.  It WON!

Read the full story here.

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Just what does your homeowner's insurance cover?

Hurricane Sandy was a wake up call to many homeowners who had to struggle with their insurance coverage.  Knowing just what is and is not covered by your insurance policies is an important part of homeownership.  Realty Times' most recent posting discusses what you should know about coverage and exclusions.  Confused?  Seek help from a professional insurance agent.

Read the full Realty Times article.

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Mortgage Foreclosure Backlog Impacts Market

Foreclosure backlog impacts real estate marketplace.  That's the theme of an article in today's New York Times.

FORECLOSURES are taking significantly longer in states where lenders must go through the courts, and the delay may or may not be good for borrowers, depending on their circumstances. But some researchers say that dragging the process out hurts society at large.

The backlog in foreclosures hurts the real estate recovery in states using judicial foreclosure, such as New Jersey, because they impact the value of surrounding properties.

The long and short is that New Jersey is chock full of foreclosure properties, in the pipeline and in the marketplace.

"The best outcome is to prevent the foreclosure," said Paul S. Willen, an economist and policy adviser at the Boston Fed. "But if it’s clear that can’t be done, it’s in society’s interest to get the foreclosure done as soon as possible."

Read the full column here.

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Widows losing homes in foreclosure

I must admit, I'm a bit jaundiced about these types of stories that come across portraying banks as evil incarnate.  Here, the headline in the New York Times says it all, "Widows pushed into foreclosure."

Geraldine Bates lost her husband to kidney failure last year. Now, she has fallen behind on her mortgage payments and is terrified that she will lose her home in Jacksonville, Fla.

In the latest chapter of the foreclosure crisis, homeowners over 50 are falling into foreclosure at the fastest pace of any age group, according to nationwide data, in part because women are outliving their spouses and are unable to cope with cuts in their pensions, ballooning medical costs — and the fine print on their mortgages.

At first glance, the issue seems little more than a logistical headache. To stay in the home, the surviving spouse needs to take over the mortgage. But to do that, most banks require that the borrower assuming the mortgage be up-to-date on payments. Housing advocates say that their clients, especially if one spouse experienced a prolonged illness, often find they are already thousands of dollars behind.

The solution, ask the Federal government to create a nationwide solution.  Egad, this would be a nightmare as we have courts situated to adequately protect folks in this situation.

In my opinion, we don't have all the facts as I've yet to come across a bank that will not accept payments from the executor or administrator of an estate after the death of the owner of record.  As for modification of an existing mortgage, here, too, the executor or administrator is empowered under state law to act in the place and stead of the deceased owner. 

Finally, there's more than one way to skin a cat because if there's equity in the property, the surviving spouse should be eligible for a reverse mortgage that would pay off the existing first mortgage and provide a continuing cash flow to the survivor if that is desired.

Read the full report here.

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Just what is a reverse mortgage?

So, just what is a reverse mortgage? It's a question we are often asked.

An article on the Financial Upside blog is right on point.

A Reverse Mortgage provides a means for an individual or entity to take the equity out of their property.   The lender provides the borrower either a line of credit or a monthly payment which is due at a later date.   

That's it exactly.  Yes, there are upsides and downsides to reverse mortgages but a good mortgage broker, someone like Ken Goffstein, will steer you in the right direction.

To read more about reverse mortgages, see the full article here.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. We are the title insurance agent that does it all for you.

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Low mortgage interest rates driving the market

I believe this article from Realty Times is on point with the volume of business we are seeing now.  But the question no one is asking - is the market going to run out of qualified borrowers?

Lenders have tightened their criteria and loans are harder to get.  Low rates help, but they're not the only answer as home prices tend to rise in a low rate market.  It's a Catch-22.

What do you think?

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Low rates influence housing market but there are some bumps in the road

Good news about the housing industry.

Realty Times reports-

Even with the home buying season behind us, housing data continues to show the influence of low mortgage rates. The National Association of Realtors reported that existing home sales increased 2.1% on a seasonally adjusted basis in October. This increase is 10.9% higher than the rate in October of 2011.

While conventional lenders are closely eyeing borrower's information-

On the other hand, HARP 2.0 is the non-traditional mortgage refinance program for borrowers who have loans that were sold to Fannie Mae or Freddie Mac prior to June 1, 2009. This program does not require an appraisal in most cases and documentation is kept to a minimum. HARP 2.0 has helped many underwater borrowers, especially those with more than 125% loan to value, refinance to historically low mortgage rates, thus, saving them a substantial amount of money and eventually giving them back equity at a faster pace. This whole process is helping not only the housing market, but the overall economic recovery. With many borrowers still eligible for HARP 2.0, the online form is available for submission without the need of a social security number. A response with more information is returned almost instantly.

Some negative news. 

FHA announced that the annual mortgage insurance premium will be increasing by 10 basis points or 0.1% which will add approximately $13 per month to the monthly mortgage payment for the average borrower. In addition, premium payments will no longer be able to be canceled as has been the case since 2001.

These changes are being made in order to shore up the agency's insurance fund which has taken a serious hit since the housing crisis began. Throughout this time FHA has kept mortgage rates both low and competitive with conforming mortgage rates, even sometimes lower. 

FHA closing costs (APR) are high due to various FHA fees and the upfront mortgage insurance premium, but these can often be added to the loan amount or paid with seller concessions as allowed by FHA guidelines. The FHA streamline with no cash out and drastically reduced upfront and annual mortgage insurance premiums is available until the end of 2013. This program is for existing borrowers who have loans that were endorsed prior to June 1, 2009. While an appraisal or other documentation is not required for the FHA streamline, borrowers must have a clean mortgage payment record with no late payments for the most recent twelve months.

Read the full story.

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Hurricane Sandy - mortgage relief is on the way

The New York Times reports:

HOMEOWNERS reeling from the effects of Hurricane Sandy may find that their mortgage servicer is willing to ease some of the immediate financial burden. 

Both Fannie Mae and Freddie Mac — the mortgage finance giants that guarantee or own most residential mortgages — have authorized their servicers to grant a 90-day forbearance period to borrowers in federally declared disaster areas.

“The expectation is that your life has been disrupted and the house may have been damaged,” said Brad German, a spokesman for Freddie Mac, “or your place of employment may have been damaged and your job may be unavailable.”

What is forebearance?  At its most basic, the lender agrees not to take action against a delinquent homeowner.  In exchange the homeowner agrees to a payment plan that brings him current with the lender is a certain period of time.

What to do if you are in a disaster area and having difficulty making your mortgage payment?  Contact your loan servicer, you can find the contact information on your mortgage statement or its website and explain your situation.  Do not, I repeat, do not, wait for the servicer to contact you.

If you are not sure you are in a disaster area, go on-line to fema.gov/disasters.

Read the full article.

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Naming that real estate development

As a lad I lived in Cameo Homes, a development of split level, ranch and, later on, bi-level homes in Monsey, New York.  It was carved out of farmland and woods in the late 1950s and early 1960s and was populated by World War II vets moving up from New York City apartments and other first-time homebuyers.  It was not a particularly pretty subdivision as almost every large tree that remained would soon die because of the changes to water levels, etc. brought about by large scale grading of the land.

Now I live in High Tor Estates in Essex County, New Jersey.  Our developer planted trees have grown well throughout most of the tract, but the railroad tie retaining walls designed to hold back the mountain (hence High Tor) on which we live is starting to show its age.

Cameo Homes and thousands of others throughout the country, have names with no relation to what one really finds on the ground.  The names are all about marketing, can't blame folks for that.  Here's a commentary on the subject from one of my favorite comics, Frazz.

What do you think?

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Hurricane Sandy delays loans

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We have received a letter from a local community bank of consequential size advising that all loans in the pipeline heading toward closing will be delayed until each property is inspected by an appraiser. The New York Times has picked up on this new challenge to getting a mortgage in New Jersey.

THE extensive power failures that have paralyzed the region in the wake of Hurricane Sandy have understandably delayed closings in mortgage deals that had otherwise been buttoned up. But lenders are adding to the logistical bottleneck by requiring that properties in affected areas be reinspected for damage.

“If you are in a FEMA-declared disaster area or emergency area,” said Jason Auerbach, a divisional manager for First Choice Loan Services, of Morganville, N.J., “banks are requiring an inspection of the home to affirm whether there was damage done. They are reinspecting properties to make sure it’s still a functional property that can be lived in.”

We have had one closing postponed because the borrower disclosed water damage to the property just as the loan was being scheduled to close.

For properties in areas that didn’t suffer extensive storm damage, the inspection may constitute no more than a drive-by. The delay in such cases may be no more than a few days.

Both buyer and seller may also be required to sign a form attesting that they agree the property suffered no storm-related damage. Regardless, buyers should do a thorough walk-through well before the day of closing, advises Scott Penner, a real estate lawyer in Milford, Conn.

If you are advised of a delay by your new lender, be sure to discuss the effect of the delay on your interest rate!

Read the full story here.

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Homeowners and the storm - exercise caution about insurance claims

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The New York Times Your Money column written by Ron Lieber has a cautionary report on reasons for homeowners to be wary until they have the insurance check in hand.

There is a sort of honeymoon period that occurs after a big storm like Hurricane Sandy, when insurance executives appear on the local news offering reassuring words. Their brightly painted vans pull into residential neighborhoods amid the standing water and debris. Everyone is hopeful. Handshakes and back-patting all around.

That period is about to end. Prices for roofers and construction materials will rise, disadvantageous parsing of policy language will commence and gangs of class-action lawyers will round up aggrieved clients who still have months of homelessness ahead of them. Many claims will take years to settle.

It happens every time, and so it will with this storm. That’s not to say that a majority of people with insurance claims won’t be satisfied with the check they receive or won’t get one quickly.

There are things to watch that people should watch out for:

• The insurance adjuster who doesn't work for you.
• Categorizing the damage from flood rather than wind.
• Replacement versus repair
• Compliance with building codes

Read the full story.

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Stephen M. Flatow, Esq.

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FDIC goes after IndyMac bankers

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The LA Times ran the story this week about the FDIC seeking damages against three officers of the now-defunct IndyMac Bank.

"When the Federal Deposit Insurance Corp. seized Pasadena housing lender IndyMac Bank four years ago, the scene resembled the grim bank failures of the 1930s.

"Panicked depositors, seeking to reclaim their money, lined up outside branches of the big savings and loan, whose collapse under the weight of soured mortgage and construction loans helped usher in the financial crisis and biggest economic downturn since the Great Depression.

"As those memories fade, the government's effort to reclaim losses stemming from the financial debacle grinds on, with one IndyMac case winding up this week before a federal jury in Los Angeles.

"The civil lawsuit seeks damages from three former IndyMac executives, accusing them of negligence in approving 23 loans that developers and home builders never repaid, costing the bank almost $170 million.

"The executives approved ill-advised loans because they earned bonuses for beefing up lending to developers and builders, said Patrick J. Richard, a lawyer representing the FDIC."

And what do the defendants say?

"This case," defense attorney Damian J. Martinez said in his opening statement Wednesday, "is about the government evaluating these loans with 20/20 hindsight after the greatest recession we've had since the Depression in the 1930s."

It's a story worth noting because the FDIC, read here "us taxpayers," will never recoup the kind of money it has cost to rescue IndyMac.  But the folks on trial should be thankful they don't live in China, crooked executives get a bullet in the head.

Read the full LA Times story here.

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Houses look like their owners?

Realty Times has a quiz for you - What Home Am I?  First-time homebuyers, pay attention!

I always believed that dogs and owners begin to resemble each other, but a house?

Are you looking to get in the housing market? It's a great time to buy, with historically low interest rates and affordability rates.

Where does one start? Are you a country mouse or a city mouse? Your own personality and desires should be your guide. There are homeowners who avoid yard maintenance at all costs. Others love the privacy of a country property.

 Choosing the right home for your particular needs and temperament is crucial in today's market, where staying in a home long term is the best way to build equity.

Want to find your match? Read the full story.

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Vested Land Services LLC

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Treetop Development LLC buys in Belleville, New Jersey

Vested Land Services LLC provided the title insurance for Treetop Development LLC’s purchase of a residential garden apartment complex in Belleville, New Jersey. The 404 unit complex located on Belleville Avenue will be known as Branch Brook Gardens.

Treetop Development, LLC is a multi-faceted real estate company headquartered in Teaneck, New Jersey that has earned a strong reputation for renovating and redeveloping value-driven, market rate and subsidized residential buildings in key  urban  centers throughout the New York Metropolitan area. Its philosophy is to identify emerging neighborhoods and create signature residential  properties that  redefine  and move communities.  http://www.treetopdev.com/

Attorney for Treetop Development LLC was Steven D. Fleissig, Esq. of Greenberg Traurig, LLP’s Florham Park, New Jersey office, www.gtlaw.com.

Vested Land Services LLC is proud to have been a part of this transaction.

For your next title order or

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Stephen M. Flatow, Esq.

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Tel 973-808-6130 - Fax 973-227-0645

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Treetop Development buys apartments in Plainfield NJ

Vested Land Services LLC provided the title insurance for Treetop Development LLC’s purchase of a residential garden apartment complex in Plainfield, New Jersey. The 108 unit complex located on East Front Street will be returning to its former name of Netherwoods Village.

Treetop Development, LLC is a multi-faceted  real estate company headquartered in Teaneck, New Jersey that has earned a strong reputation for renovating and redeveloping value-driven, market rate and subsidized residential buildings in key  urban  centers throughout the New York Metropolitan area. Its philosophy is to identify emerging neighborhoods and create signature residential  properties that  redefine  and move communities.  http://www.treetopdev.com/

Attorney for Treetop Development LLC was Steven D. Fleissig, Esq. of Greenberg Traurig, LLP’s Florham Park, New Jersey office, www.gtlaw.com.

Vested Land Services LLC is proud to have been a part of this transaction.

For your next title order or

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Stephen M. Flatow, Esq.

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E-mail sflatow AT vested.com

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In the face of Hurricane Sandy and other natural threats

Two stories in the 11/4/12 edition of the New York Times talk about the weather and its impact on living on the water. My opinion boils down to this – build on the waterfront, be it ocean, lake, bay, lagoon or river, the Federal and state governments no longer step in to help you rebuild.

IF tropical storm Irene last year was an eye-opener, was a reality check. Waterfront property in the New York area is some of the most coveted in the nation, but after back-to-back years of supposedly once-in-a-generation storms, public officials, developers, brokers and homeowners are being forced to re-evaluate.

Read Would you buy on the Waterfront?

The Real Luxury: A Way Out The damage caused by Hurricane Sandy speaks to something so obvious it is often overlooked: New York City shores are not fit for living.

Read it here.

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Big jump in VA mortgages reported

Applications for VA mortgages jumped 50% according to a story in the New York Times.

MORTGAGES guaranteed by the Department of Veterans Affairs surged by 50 percent in the fiscal year ended Sept. 30, as tighter credit standards on conventional financing made these programs all the more attractive to current and former military members.

VA mortgages are available to former and current members of the military.  My parents obtained one when they bought their home in 1960.  The attractiveness of the VA loan program is due to low rates guaranteed by the US government.

Borrowers also benefit now that rates have dropped.

Borrowers who already have a V.A.-backed mortgage can get an interest-rate reduction relatively easily. The department’s streamlined refinance program doesn’t require these borrowers to “re-prove” that they qualify, said Nathan Long, the chief executive of Veterans United Home Loans, an online broker of V.A. loans.

Information about VA loans is readily available on the Internet.  Read the full story here.

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Getting a mortgage will be a bit harder

Realty Times reports: "Fannie Mae Tightens Underwriting Rules for Condo, Refinance Loans, Borderline Borrowers" by Shashank Shekhar.

Fannie Mae is putting the squeeze on underwriting guidelines this fall, making it tougher for some condo, borderline and refinancing borrowers to land a home loan.

Effective Oct. 20, 2012, the stricter rules are designed to reduce Fannie Mae's ever growing exposure to risk. They will also force more borrowers to shop around.

Here are some highlights:

Condominium Loan Documentation – Right now with less than 10 percent down, condo buyers need to complete a two-page condo questionnaire about the homeowner association's financials and provide additional documents including a reserve study, by-laws and a copy of the master insurance policy.

The documents are readily available from the homeowners association, but with Fannie Mae lenders pouring over more documents, there's a greater chance more loans could be denied for failing to meet Fannie Mae's condo loan underwriting criteria.

End of Discretionary Approvals – Discretionary approvals, also called "Expanded Approvals (EAs)" will end for all Fannie Mae refinances, except Fannie Mae's Refi Plus Program loans, also called HARP (Home Affordable Refinance Program) loans.

Self-Employed Borrowers – Fannie Mae will require self-employed borrowers seek a loan to provide two consecutive years of federal tax returns, instead of the current one year tax return requirement for some returns.

Because of the new two-year average approach, one bad year out of two could sink a self-employed homeowner's application even if the most recent year would have qualified him or her under the old rules.

Maximum LTV Reduction for Adjustable Rate Mortgages (ARM) – The current LTV allowed for ARM home purchases and refinances, 97 percent, will be reduced to 90 percent.

You can read the full article here.

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The Rental Alternative to Foreclosure

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The New York Times reports

FOR homeowners who have been buffeted about by the foreclosure process, the suggestion that they willingly hand their deed to the lender and rent the home instead may only add insult to injury.

But such an alternative to foreclosure — variously called “deed for lease” or “mortgage to lease” — is an option for a select few. Fannie Mae introduced a rent-back program in 2009, and this year, both Bank of America and CitiMortgage announced that they would try a similar approach in a handful of markets.

The programs are basically an extension of what’s known as “deed in lieu of foreclosure.” In this process, the lender agrees not to foreclose if the homeowners simply hand over the deed to their property.

An interesting idea and in some markets it might work very well if homeowners can rebuild their income.

There is a scam similar to this legitimate program.  In the scam, the "buyer" or "investor" gives you money for your home, usually enough to pay off your mortgage, and then agrees to rent you the house back at $X.  The problem is that the monthly payment is too steep for the former owner to maintain payments.

In the meantime, the investor has borrowed against the home, ceases to make payments and the former owner is on the street.

 

Read the full article here.

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VA Mortgages - the borrower's friend

title insurance refinance new jersey closing in our office or your home

My folks bought their first home with a VA mortgage, yet we haven't heard too much about them.  Here's an article from Bankrate.com.

Shoved aside by the hot mortgage products of recent years, Veterans Affairs mortgage loans are making a comeback and are a viable financing alternative for veterans looking to secure an attractive fixed-rate loan with little or no money down.

Veteran's deserve a break.  This article will provide more information and some good links.
Read more here.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

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New investors need to learn about being a landlord

Refinance settlement fairfield, nj closings title agency Vested Land
Buying an investment property?  As with all ventures there are pitfalls but for the new real estate investor, they can be especially dangerous.

The following article from Realty Times, while addressed to a Canadian audience, has a message for investors in New Jersey, too.

Property management companies can be hired to find and deal with tenants, but many small investors take the do-it-yourself approach and select their own tenants. Getting the right tenant, who pays his rent on time, respects his neighbours and doesn't trash the property can be a tricky business.

Read the full article here.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

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High closing costs? Who's to blame?

Vested Land Services title agent title insurance refinance new jersey

Closing fees are a component of the home purchase or refinance. This article from the New York Times is a tad misleading about these costs and where the blame, if that's the right word, lies.

FOR some people, a major hurdle to homeownership is the closing costs that come on top of the required down payment. There are fees for everything from title searches to deed recordings, and if you happen to be buying in New York or New Jersey, you’ll find some of the highest costs in the country.

But these fees have been easing, according to a report released last week by Bankrate.com, which found that average closing costs, including mortgage origination fees, fell 7 percent nationwide from 2011 to 2012. In New York they fell 12 percent.

OK, so where do these high fees come from? Not from third party suppliers such as title agencies, but from lenders and government officials.

Yet, the article continues,

Title insurance is the biggest cost, averaging around 1 percent of the loan balance. Mr. McBride suggested that borrowers shop around, eliciting good-faith estimates from a number of lenders.

Poppycock. Rates in New Jersey are regulated as they are in New York and costs will be identical from title agent to title agent. Companies such as ours survive based on the level of service we provide our clients to get buyers and borrowers to the closing table as safely and expeditiously as possible. (Unless your title agent is owned by a bank or controlled by a real estate agency whose goal is to get you to the table no matter what.)

But the buyer/borrower cannot escape government charges. The county recording fee for an average mortgage in New Jersey is $240! And, in New York, you must add government mortgage taxes that add thousands to the cost of a home or mortgage.

The only place where the buyer/borrower can maneuver is with the lender. There are three words to remember when applying for a loan, shop, shop and shop for the mortgage and if the loan officer cannot explain something to your satisfaction, run for the hills.

Read the full article.

 

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

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Vested client Treetop Development buys in New York City

Treetop Development Adam Mermelstein Azi Mandel Azriel Mandel
Hat's off to Adam Mermelstein and Azi Mandel of Newark-based Treetop Development for their purchase of a 52-unit apartment building on West 127th Street. Treetop Development is noted for its approach to providing housing to the metro-NY NJ workforce -- folks who want a clean up-to-date apartment in which to start out or to begin raising a family.

We're proud of our association with Messrs Mermelstein and Mandel and wish them and Treetop continuing success in their efforts to fill the needs of an under served segment of the housing market.

Read more from Crain's New York  here.
 

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

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Tapping your home's equity? Banks are making it easier.

The New York Times’ Vickie Elmer writes about good news for potential home equity borrowers.

Seems that the Office of the Comptroller of the Currency “noted that one in five lenders nationwide loosened up underwriting standards on home equity loans, while another 68 percent kept them unchanged from a year ago.”  That’s a big improvement over 2009. 

“Lenders also have been lowering the credit scores and equity levels needed to qualify, industry experts say. “You may not need to have as much equity as lenders may have demanded two years ago, when housing prices were going to fall,” said Keith Leggett, a senior economist at the American Bankers Association. This is especially true, he said, in areas where home prices are appreciating.”

refinance heloc home equity closing settlement service 

Advice for tapping your home’s equity-

“Borrowers must decide whether they want a traditional home equity loan, sometimes called a second mortgage, which has a fixed interest rate and fixed payments, or a home equity line of credit, known by its acronym, Heloc. A line of credit usually has a variable rate and can be drawn down incrementally. The variable-rate Heloc is one and a half percentage points lower than the fixed-rate home equity loan, which in turn is around three percentage points above the average 30-year fixed-rate conventional mortgage.”

Once you are approved for a home equity loan, you will have to select a title agency to close your loan. For my two cents, avoid the one recommended by the lender because experience shows that borrower’s need the personal touch when it comes to closing the loan, not some production line outfit. Personal service, that’s something we’re proud to be able to provide.

Read more here.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com
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California proposal to condemn mortgages; will it be next in New Jersey?

refinance

In the foreclosure-battered inland stretches of California, local government officials desperate for change are weighing a controversial but inventive way to fix troubled mortgages: Condemn them. Officials from San Bernardino County and two of its cities have formed a local agency to consider the plan. But investors who stand to lose money on their mortgage investments have been quick to register their displeasure. refinance

Of course, there's another investor behind this that will earn fees for arranging the taking of the loans and their restructuring. Others are livid over the proposal. refinance

Timothy Cameron, managing director of the Securities Industry and Financial Markets Association's asset managers group, told the authority that residents of the region would find it harder to get loans and investors — including pensioners — would suffer losses. He also said such a move would invite costly litigation. "The use of eminent domain will do more harm than good," he said. "We need mortgage investors and lenders to come back to these fragile markets — but this plan will force both groups to avoid them."

Will it work in New Jersey? What do you think?
Read the full article - here.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail sflatow AT vested.com

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Customer service, you can't give or get enough

Not solely related to title insurance or property ownership, this article about email and the Internet hits home and should be of interest to, well, anyone caught up in the Catch-22 of the web and service providers.
title insurance refinance purchase title insurance quote fairfield nj
All business, including title agencies, begin and end with customer service, don't you think?  Well, if that's the case, when you read this story you must ask what could have been going on at McAfee?  From the NY Times Haggler column:

Q. McAfee can’t seem to resist messing around with my e-mail. Here’s the story: I had been using McAfee, which sells antivirus software, on a PC for a while, but I stopped when I switched to a Mac. Months later, thanks to McAfee’s murky opt-out policy, I realized that the company was still charging me for a subscription. Or trying to. My credit card had expired, and I ignored McAfee’s entreaties to post new credit card information, thinking that would end the subscription.

Unfortunately, McAfee continues to monitor my e-mail, providing daily reports of messages it has intercepted and quarantined. Some of the quarantined e-mails are come-hithers from Russian women, who are apparently very lonely and would feel much better if I just clicked on their link. But others are important to me, so I’ve contacted McAfee several times, requesting that it stop performing this service that I don’t pay for and don’t want.

I haven’t received a reply. I tried chatting online with a McAfee rep, an exchange which could be described as occasionally hilarious but unhelpful. A job for the Haggler?

Alan Alda

Obviously, to me at least because I read the story, the poor rep was going to be over his head. Now let the fun begin.   Yet, McAfee stepped up to the plate.

The confounding part, and what McAfee executives say they find embarrassing, is that the Haggler’s intervention was needed. Referring to the online chat, Jason Grier, who runs the global support team, said: “The question is what do you do when you don’t know what to do. The first thing you do is raise your hand and get a supervisor involved. And clearly that didn’t happen here.”

As the Haggler calls it, "a simple misunderstanding" of the basis of the problem turns into a customer service nightmare. Isn't that the bane of all businesses? I hope we can do better to avoid that misunderstanding turning into the loss of a client.

Read the full column.

Well, that's what I think.  What's your opinion?

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-227-4724 - Fax 973-556-1628

E-mail stephen@stephenstitle.com

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Little known fee to raise interest rates

Loan fees are about to rise, and you won't even know it.  The fee in question is a guarantee fee collected by Fannie Mae and Freddie Mac that is part of the interest rate you pay.  It's not set forth on the settlement statement because it does not have to be disclosed.

According to the New York Times,

INSIDE the interest rate quoted on your home lies a small hidden fee that has been charged by government-sponsored entities like Fannie Mae and Freddie Mac for more than three decades. It’s an add-on rate known as the guarantee fee.

Everyone has to make a living, including Fannie Mae and Freddie Mac, don't you think?  But just think of the fees collected over the years that seem to have been squandered in the so-called "sub-prime crisis."  In any event, it means a small rise in interest rates is coming in the days ahead.

Read the full story here.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Title Inc.

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 201-656-4506

E-mail vti@vested.com - www.vested.com

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Special deals to get the house sold.

Vested Title title agent new jersey refinance

The New York Times Antoinette Martin writes about “Going Beyond Price Cuts” on February 12, 2012.

“A PERSISTENT recession in house sales has led to a surge in “concessions” for buyers. In listings and brochures, and most recently through a program started up on Zillow.com, real estate agents are trumpeting the news: even sellers who have reduced asking prices by a lot are often willing to do more.”

Despite what you may have read to the contrary about concessions, “as long as concessions are written into a contract” and are clearly disclosed on the HUD Settlement Statement, … many banks in New Jersey are approving mortgage loans with up to 3 percent of purchase price in seller concessions.”  FHA loans can be approved with concessions as high as 6 percent.

One of the keys is that the seller has to be creative.  Taxes too high?  Pay some of them on a going forward basis.  Buyer is a little cash strapped?  Give them cash.

The house must still fully appraise, but, hey, isn’t that what life’s all about.

Read the full story here.

Do you have a story about concessions?  If so, we’d like to hear from you.  Please post your comment below.

For your next title order or

if you have questions about what you see here, contact

Stephen M. Flatow, Esq.

Vested Title Inc.

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 201-656-4506

E-mail vti@vested.com - www.vested.com

“That means contract concessions, in which sellers may agree to cover a buyer’s closing costs, provide a gift card for a certain amount, pay in advance for renovations, or even subsidize taxes by allocating funds from their proceeds at closing.” Sphere: Related Content