Rebate Filing Date Extended

New Jersey's Governor Jon S. Corzine has announced today that the deadline for filing 2008 "Senior Freeze" (Property Tax Reimbursement Program) and Homestead Rebate applications has been extended until November 2, 2009.

"With the deadlines for these programs approaching, many potential applicants still need time to file," said Governor Corzine. "This extension will help to ensure that everyone who is eligible gets the chance to participate," he said.

According to the Governor's press release, rebate checks are already on the way to eligible senior and disabled residents who applied for property tax relief benefits under the Senior Freeze and Homestead Rebate Programs. Checks for those who filed after the original deadline "will be processed and issued as quickly as possible."

"Homestead Rebate checks for nonsenior and nondisabled homeowners are scheduled to be issued in October. "

"Information about the Homestead Rebate Program is available by calling the Homestead Rebate Hotline (1-888-238-1233 for homeowners or 1-888-213-8623 for tenants) from 8:30 a.m. to 4:30 p.m. Monday through Friday.

"Status of rebate checks can be found by calling 1‑877‑658‑2972, or online at www.state.nj.us/treasury/taxation/homestead/hrintro.shtml. Rebate check information for homeowners who are under 65 and not disabled will not be available either online or by phone until October.

"Homeowners who still have not filed their Homestead Rebate applications can do so by phone (1‑877‑658‑2972) or online at www.state.nj.us/treasury/taxation/. The automated telephone filing system and Internet filing application are available 24 hours a day, 7 days a week. The tenant rebate application and instructions are available on the Division of Taxation's Web site for those senior and disabled tenants who have not yet filed.

"For more information on the Senior Freeze (Property Tax Reimbursement) Program, to obtain an application, or to check the status of a reimbursement check, contact the Property Tax Reimbursement Hotline at 1-800-882-6597 from 8:30 a.m. to 4:30 p.m. Monday through Friday. Information about the Program is also available on the Division of Taxation's Web site at www.state.nj.us/treasury/taxation/propfrez.shtml. "

For your next title order
or if you have questions about what you see here,

contact Stephen M. Flatow
Vested Title Inc.
648 Newark Avenue, P.O. Box 6453, Jersey City, NJ 07306
Tel 201-656-9220 - Fax 201-656-4506
E-mail vti@vested.com - www.vested.com

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Foreclosure Follies: A rebuttal to the FDIC modification plan.

The Wall Street Journal continues its theme on the inherent weakness of the FDIC's proposed mortgage bailout plan. We commented on the FDIC's Sheila Bair's Mortgage Miracle on December 3, 2008. The FDIC responded to the WSJ in a letter to the editor "Our Foreclosure Plan" on December 7, 2008.

According to today's editorial,

The FDIC wants to pay loan servicers to restructure delinquent loans and then have taxpayers share the losses if the loans fail again after six months. The FDIC did not appreciate that we reported private data showing that more than 50% of modified loans go delinquent again. The agency suggested that 15% might be a better estimate.

That estimate just got a lot harder to defend. Comptroller John Dugan released the default numbers on loans modified in the first two quarters of 2008, based on data from institutions servicing more than 60% of all first mortgages. "What makes these quarterly reports unique is that they are not merely surveys, but instead consist of validated, loan level data," said Mr. Dugan. "We believe the reports include the most accurate and reliable data on mortgage performance that is available today."

The Journal's approach was somewhat ratified by a report issued by the Comptroller of the Currency, John Dugan, that showed high default rates following modification. "The results, I confess, were somewhat surprising, and not in a good way."

The editorial continues,

"Of mortgages modified in the early part of this year, more than 35% had gone at least 60 days delinquent again after just six months, and a full 53% were 30 days delinquent or more. By eight months, this default rate had climbed to 58%. Second quarter modifications are on track to be nearly as ugly, with more than 50% of borrowers at least 30 days delinquent at the six-month mark. Come to think of it, these stinkers are going south so quickly that perhaps the FDIC's plan actually will protect taxpayers -- there won't be much left to insure after these toxic loans blow up in the first six months after modification."

Perhaps New Jersey Governor Jon Corzine should take a closer look at these numbers and accept the strong possibility that his efforts to stop foreclosures will create more havoc in the real estate market by not allowing "toxic loans" to blow up and clear the mortgage out of the market place and allow the property to get into the real estate market sooner than later.


Stephen M. Flatow

Vested Title Inc., 648 Newark Avenue, P.O. Box 6453, Jersey City, NJ 07306.
Tel 201-656-9220. Fax 201-656-4506. E-mail vti@vested.com

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NJ Governor Urges Mortgage Foreclosure "Timeout"

Timeouts are not confined to sports. According to Bloomberg News Service and other outlets,

"New Jersey Gov. Jon S. Corzine urged a “timeout” on foreclosures, saying keeping people in their homes is an important step in efforts to correct a “deeply troubled” market.

A three- to six-month freeze on foreclosures is needed as the “economic dominoes are picking up speed,” Corzine said today at a housing conference hosted by the Treasury Department’s Office of Thrift Supervision in Washington. Mortgage foreclosures rose to a record high in the third quarter as one in 10 U.S. homeowners fell behind on mortgage payments or were in foreclosure, the Mortgage Bankers Association reported last week."

According to the Star-Ledger, "Corzine's remarks followed news from banking regulators, stating that more than half of all homeowners who had their loans modified to make the payments more affordable in the first half of the year are already in default again."

In what direction will borrower assistance travel? Corzine would like to see the resurrection of an entity such as the Home Owners' Loan Corp. that was created in 1933 to help borrowers refinance troubled home loans during the Great Depression.

Even the FDIC admits a high rate of default after terms of modification are agreed upon. The solution will not be simple and it will be painful for lenders, especially if they are blocked from foreclosing.

Vested Title Inc., 648 Newark Avenue, P.O. Box 6453, Jersey City, NJ 07306.

Tel 201-656-9220. Fax 201-656-4506. E-mail vti@vested.com

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