Florida resident sells a home in New Jersey? What taxes will you pay?

Sold a home at a profit, what taxes will you pay?

Is it really New Jersey's "exit tax"?

Out of state residents who own real estate in New Jersey are often shocked to find that a minimum of two percent (2%) of the sales proceeds is collected at closing and sent to the State of New Jersey Treasury.  Some call this an "exit tax" when, in reality, it's nothing more than an estimated income tax payment.

This article from NJMoneyhelp.com discusses this payment:

Q. I have been a resident of Florida for the past 16 years and have just sold a two-family family house in New Jersey. Do I need to file anything other than an A3128 for a refund? We did make a substantial profit. What should I expect? — Seller

A. Congrats on your home sale.

It looks like you may need to pay taxes to New Jersey on your profit.

Unless the house was used solely as a personal residence and falls within the guidelines for the sale of a personal residence — which is unlikely given that you’ve lived in Florida for 16 years — you should expect a tax bill, said Michael Karu, a certified public accountant with Levine, Jacobs & Co. in Livingston.

You will have to file Form NJ-1040-NR as a non-resident, he said.

The profit will be calculated based on the difference between the selling price and the cost basis,” Karu said. “ If the property has been rented, there may be depreciation recapture as well.”

Upon the sale of a business, business interest, or real property in New Jersey, a non-New Jersey resident is subject to New Jersey gross income tax on the profit from that sale, he said.

“In order for the State of New Jersey to be sure that it gets paid, taxes are withheld at closing,” Karu said. “While people call it an ‘exit tax,’ the reality is that the payment is simply an estimate tax payment against the tax that gets calculated when the non-resident income tax return is filed.”

* * * *

So, there you have it, it's a tax but not an "exit tax."

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

For your real estate purchase or mortgage refinance 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@vested.com

@vestedland

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Harrison, N.J.: The Next Hoboken?

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

Easy commute to NYC from Harrison, NJ.

The New York Times asks, is: Harrison, N.J.: The Next Hoboken?

When our office was located in Jersey City-Harrison's neighbor to the east-I had occasion to drive through this town.  Once the home to heavy industry, the area near the PATH station has become a residential enclave.

The New York Times reports

Steve Defontes spent years living in West Orange, N.J., and commuting to work in Lower Manhattan before he decided, last year, that he was ready for a change. When his house sold faster than he expected, he was forced to make a quick decision about where to go, and his mind naturally went to the town he had been driving to each day to catch the PATH train: Harrison, N.J.

“I asked myself, ‘What can I do that will disrupt my life the least?’ And I thought of all those buildings that were going up around where I parked my car every day,” said Mr. Defontes, 45, the president of Big Idea Advertising.

In December, he moved into a one-bedroom, one-bathroom apartment in one of them, a luxury rental building a three-minute walk from the new PATH station, cutting his commute in half. And at $2,180 a month, he estimates his rent is about half of what he would pay in a similar amenity-filled building in New York City. The move was expedient, but the outcome turned out to be much better than Mr. Defontes anticipated.

So, a question for renters and home buyers who are watching their budget, does Harrison sound right for you?

Read the full report.

For your real estate purchase or mortgage refinance 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

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It's not about title insurance, but about civil rights and the US military

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

How New Jersey Helped Desegregate the US Military

Unlike most civil rights struggles, these events did not occur in the South, the Supreme Court, or the White House. Instead, this story begins in the armories of the New Jersey Army National Guard.

This story is not about title insurance, but about an aspect of American history we were not aware of, the efforts to desegregate the US Army following World War II.  

Written by Patrick McKnight From Law.com, the New Jersey Law Journal:

On July 26, 1948, President Truman issued Executive Order 9981. This action abolished discrimination “on the basis of race, color, religion or national origin” in the United States Armed Forces. This decision eventually resulted in the desegregation of the entire US military. Historians praise Truman for his foresight but generally overlook the role New Jersey played in driving this historic accomplishment.

Executive Order 9981 reads:

It is hereby declared to be the policy of the President that there shall be equality of treatment and opportunity for all persons in the armed services without regard to race, color, religion or national origin. This policy shall be put into effect as rapidly as possible, having due regard to the time required to effectuate any necessary changes without impairing efficiency or morale.

African Americans, Hispanic Americans, Native Americans, and Asian Americans made incredible contributions to the United States military prior to 1948. The general public is becoming increasingly aware of these achievements through popular films such as “The Tuskegee Airmen.” Likewise, Americans are becoming familiar with the history of the Navajo Code Talkers, the Nisei 442nd Regimental Combat Team, and the 65th Infantry “Borinqueneers.” Regardless of one’s views about America’s foreign policy, the United States Military is an organization where people of any background can expect to be judged based on individual merit.

Modern scholarship has celebrated the role of President Truman’s “stroke of the pen” executive order. This is sometimes contrasted with the more gradual pace of legislative and judicial action. Other scholars have correctly identified the important role of civil rights groups led by A. Philip Randolph such as the League for Non-Violent Civil Disobedience Against Military Segregation.

This scholarship is significant, but it is also far from complete. Remarkably, most historians ignore the full story surrounding the events leading up to Executive Order 9981. This forgotten historical drama illustrates how States can use federalism to fight federally-mandated racism. Unlike most civil rights struggles, these events did not occur in the South, the Supreme Court, or the White House. Instead, this story begins in the armories of the New Jersey Army National Guard.In 1947 New Jersey approved a new Constitution which included the following language:

No qualified person shall be denied any civil or military right, nor be discriminated against in exercise of any civil or military right, nor be segregated in the militia or in the public schools because of religious principles, race, color, ancestry or national origin.

The federal National Guard Bureau had recently organized a new unit in New Jersey, the 372nd Anti-Aircraft Artillery group, entirely of black soldiers. Clearly, this new unit was illegal under the New Jersey Constitution. The New Jersey Military Affairs Committee, New Jersey Governor Alfred E. Driscoll, as well as the commanding and adjutant generals of the New Jersey National Guard all pushed back against this federally-mandated segregation. On Oct. 24, 1947, Gov. Driscoll announced this new unit would not be composed on the basis of race and that any segregated armories would be integrated effective immediately.

On Dec. 3, 1947, Driscoll declared, “All of our citizens must be given the opportunity to enlist in the New Jersey units of the National Guard and participate in any of its activities for which each individual is considered qualified.”

This was in direct violation of the official War Department policy of the time that “negro manpower will be employed in negro regiments or groups, battalions or squadrons, troops or batteries.”

To read the remainder of the article, please go here.

The author, Patrick McKnight, is a law clerk at Wilson Elser Moskowitz Edelman & Dicker in Philadelphia. He is in his final year of the JD/MBA program at Rutgers.

For your real estate purchase or mortgage refinance 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

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New Jersey residents get answers about #incometax refunds

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

New Jersey's Division of Taxation has been creating FAQs for curious taxpayers.  And I'm not embarrassed to say we refer to them frequently in our #titleinsurance business.

A FAQ was just distributed under the heading Your Tax Refund: What You Need to Know and answers several questions. You can read the full FAQ here.

Let us know what you think.

For your real estate purchase or mortgage refinance 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@vested.com

@vestedland

#NewJersey

#incometax

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Sales Tax on New Jersey Short Term Rentals

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

Sales Tax on New Jersey Short Term Rentals

New Jersey landlords, especially those down the Jersey Shore, are impacted by a sales tax on short term rentals.  New Jersey uses taxes to boost revenues, and the short term rental tax is just another tool in the taxman's box.

Here are two links you might (or might not) find helpful in understand which categories of owners are affected by the tax.

The first is from the CPA firm of Chris Whalen in Red Bank, New Jersey.  The second is from the State of New Jersey.

Tax Memo from Chris Whalen, CPA

New Jersey Tax Bulletin TB-81R.

For your real estate purchase or mortgage refinance 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

1500 Allaire Avenue, Suite 101
Ocean, NJ 07712

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

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New Jersey Exit Tax is not really an exit tax. Think of it as a tax prepayment.

We are the New Jersey title insurance agent that does it all for you. For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us, Vested Land Services LLC. We can help!
The below topic is something we deal with every day.  If you are a homebuyer, trust us to get it right.

**  From the blog of Untracht Early LLC.  A New Jersey based CPA firm.**

The New Jersey "Exit Tax" is not really an exit tax.

If you’ve recently been talking about moving around a former New Jersey resident, it’s likely you’ve heard something about the “exit tax” you’ll be required to pay as you move out of the state. As your conversation continues, you’ll likely hear stories of the price residents have paid to move, and how this forced them to reconsider moving. But what is this cost, and what do these stories all mean?

In actuality, the New Jersey “Exit Tax”, as it’s referred to, has been likened more to urban legend than fact by CPAs. The law requires sellers of New Jersey homes to pay the state tax in advance of moving, of either 8.97% of the profit on the sale of their home or 2% of the total selling price – whichever is higher.

The objective of the pre-payment is that no New Jersey residents can move out of the state without first paying taxes on the income from the sale of their home. At the end of the day, the New Jersey “Exit Tax” is simply misunderstood as an additional or special tax, instead of the pre-payment of potential income tax due that it really is.

The resulting question for many New Jersey taxpayers is, what happens if they don’t incur a profit on the sale of their home? The good news is that homeowners that incur a loss on the sale of their residence, and those who also pre-paid the tax before leaving the state, will be refunded the pre-payment when filing their NJ State Income Taxes.

Here’s some other information that may be pertinent to taxpayers who are concerned by the New Jersey “Exit Tax” estimated payment:

• Homeowners may be exempt under Internal Revenue Code Section 121, which makes gains on the sale of a home exempt from capital gains if the homeowner has used the home as their primary residence for 24 of the last 60 months (for married couples filing jointly, only one spouse must meet this requirement)
  • The exemption for these gains is up to $250,000 for single homeowners, $500,000 for those homeowners who are married filing jointly
    • Taxpayers are automatically disqualified if the home was acquired through a like-kind exchange or if they’re subject to expatriate tax
    • Taxpayers may qualify for a partial exclusion of gain if the reason for the sale of the home was a change in workplace location, a health issue, or an unforeseeable event
• The pre-payment for the selling of the residence should be recorded on the GIT/REP form

As time goes on, tax professionals hope that the New Jersey “Exit Tax” misnomer goes the way of other urban legends and becomes a footnote in taxpayers’ memories.

For your real estate purchase or mortgage refinance 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

1500 Allaire Avenue, Suite 101
Ocean, NJ 07712

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

E-mail sflatow@vested.com

@vestedland

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New Jersey suburbs - having deer as neighbors

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

Having lived in the wilds of suburban Essex County, New Jersey, I can personally testify to the incredible number of deer roaming through wooded areas; such as the one that bordered my home.  I once read that there are as many deer now as there were in the time of the Revolution.  The reason, we killed off their natural predators.

www.pexels.com

In any event, they are back with an annoying vengeance.  Here's an interesting article on the problem from the New York Times

Deer Make the Worst Neighbors

Like many of us who choose to live in the suburbs, deer want a nice, safe neighborhood, with great food and plenty of privacy. For one particular doe and fawn, that neighborhood happens to be my backyard. 

 Sure, they’re quiet — come to think of it, I’ve never heard them make a sound. And the little one covered in Bambi spots sure is cute. But let’s face it, they’re rude neighbors. When I ask the mother to leave by, say, pounding on my kitchen window with a spatula, she stares back at me blankly and pees. 

 Sometimes, she deposits her fawn in my shrubs for the day while she runs off to do whatever it is deer do with their time when they’re not devouring my marigolds. I’m not a free babysitter, but she seems to think I am. And the fawn is under the impression that we can’t see her, even as my children crouch, perplexed, to get a better look at the little speckled creature crushing my lamb’s ear. 

 I’ve tried using subtle hints to let them know I want my space, like spraying my foliage with an organic concoction that smells like sour milk and claims to repel deer, but actually only repels people who like to sit near flowers. Sometimes, they take a hint and venture off — I imagine them taking long strolls in the nearby nature preserve, another suburban selling point. 

 No sooner have they left, though, when another mother shows up. How do I know she’s not the same one? A hint: this one has twins.

 You’d think I live far out in the country, in some area of thick woods and wild mountains. But no, I’m only 20 miles from Midtown Manhattan in New Jersey, the most densely populated state in the country.

 Blake Smith, who moved from Brooklyn to West Orange, N.J., 13 years ago with her husband, Tim, 49, can see the Empire State Building from her back deck, but it’s the deer that take her breath away.

 “They’re like these mystical creatures,” she said. “They’re like unicorns.”
 More like shameless interlopers. A few weeks ago, a deer pushed its way into Ms. Smith’s screened-in porch to get ahold of some potted hibiscus. Ms. Smith, 45, an associate director of digital at the New York Eye and Ear Infirmary of Mount Sinai, had moved the pots inside so they wouldn’t become deer salad. 

 So much for that. Ms. Smith gave up and put the pots back outside. “I told them, ‘Have them, just eat them. Just please don’t eat my watermelon,’” she said. 

 Ms. Smith knows these deer well. They are members of a herd that has lived in a vacant lot behind her house for years, with a doe that the family named Limpy for her uneven gait. Perhaps because they’ve been neighbors for so long, the deer listened to her about the watermelons and so far have left them alone. The hibiscus they ate.

 Whitetail deer are a source of suburban awe and angst. They were hunted to near oblivion in the late 19th century, but their numbers are back and they’re seemingly everywhere. New Jersey doesn’t even know how many whitetails call the Garden State home, since government estimates are based, morbidly, on the number of deer that hunters kill each year, which hovers around 50,000. In areas where hunting is prohibited, like my backyard, no one is tracking the herds.

 “It’s really hard to get a population estimate, especially in a fragmented, densely populated state like New Jersey,” said Brooke Maslo, an assistant professor of ecology at Rutgers University.

Read the full article.

For your real estate purchase or mortgage refinance 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

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New Jersey's "exit tax" - It's not really a tax, after all, but you have to pay it

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

This is a good article from AskNJMoneyHelp about the so-called "exit tax" which is really not a tax but a way for the state to be sure you file your tax return after you have sold your real property and moved out of state.

As a #titleinsurance agent handling hundreds of closings this year, the subject of when this payment must be made is encountered by us on an almost daily basis.

Here's the full article:

Q. We own a commercial/professional condo in New Jersey and reside in Maryland. Is the property subject to the exit tax since we don’t file there?— Unsure

A. Let’s get things straight about the exit tax, a term that’s often misunderstood.

It’s not necessarily a tax.

“It is a required estimated tax payment to make sure a nonresident seller files a New Jersey tax return,” said Chadderdon O’Brien, a certified financial planner with RegentAtlantic in Morristown. “It is required because New Jersey is concerned that the seller may not file a New Jersey tax return and pay taxes if they are a nonresident or current resident that is leaving the state.”

When you sell a property in New Jersey as a nonresident, you are required to file the NJ GIT/REP-1 form (gross income tax form), O’Brien said.

New Jersey requires you to withhold the amount of either 8.97 percent (New Jerseys highest tax bracket) of the profit or 2 percent of the total selling price, whichever is higher, he said.This withholding requirement is the so-called exit tax.

O’Brien offered a few hypothetical examples to show how it works.Say you continue to rent your condo and do not sell, then the exit tax is not relevant. You just need to continue filing a nonresident tax return for your rental activities in New Jersey.

Or say you sell your property and have a taxable gain. Then you are required to make an estimated tax payment of the higher of 8.97 percent of the profit (capital gain) or 2 percent of the selling price.

When you file your New Jersey tax return, the actual capital gain tax that you owe will be deducted from your estimated tax payment and the rest will be refunded to you.

If instead you sell the property at a loss, or if there is no capital gain, then you must still make an estimated tax payment of 2 percent of the sale amount. In this case, you do not actually owe any tax, so you will get the entire 2 percent withholding back when you file your New Jersey nonresident tax return.

“As I mentioned above, New Jersey requires these estimated tax payments because it forces the seller to file a New Jersey tax return for that year,” O’Brien said. “The good news is that this is not an extra tax – it’s just a way for New Jersey to make sure that you pay any capital gain taxes that you might owe.”

Your specific situation will dictate your required estimated tax payment and how much you receive back in the form of a tax refund. As always, there are exceptions and caveats to the exit tax, so be sure to consult with a tax professional with any questions about your specific situation.

Email your questions to Ask@NJMoneyHelp.com.

Or, you can ask us!

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@vested.com

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New Jersey Senior Freeze Program - do I have to fill out the form every year?

Vested Land Services LLC is ready to help you make that home purchase a reality instead of a title headache.  Here's some background information about the New Jersey Senior Freeze Program that helps senior citizens with their real estate taxes from NJMoneyHelp.com.  Information about the current program can be found at the end of the article.

Q. Do I have to fill out a form every year for the Senior Freeze?
— Hater of paperwork

A. Let’s go over the Senior Freeze.

The Senior Freeze property tax reimbursement program reimburses eligible senior citizensand disabled persons for property tax or mobile home park site fee increases on their principal residence, said Abby Rosen, a certified financial planner with RegentAtlantic in Morristown.

To qualify, you must meet all the eligibility requirements for each year from the base yearthrough the application year, currently 2016.

You qualify if you, or your spouse or civil union partner, were:

1) 65 or older; or actually receiving Federal Social Security disability benefit payments (not benefit payments received on behalf of someone else).
2) You lived in New Jersey continuously for at least the last 10 years, as either a homeowner or a renter.
3) Homeowners: You owned and lived in your current home for at least the last three years.Mobile Home Owners: You leased a site in a mobile home park where you placed a manufactured or mobile home that you owned for at least the last three years.
4) Homeowners: You paid the full amount of the property taxes due on your home. Mobile Home Owners: You paid the full amount of mobile home park site fees due.
5) Your income did not exceed $87,007 for 2015 and $70,000 for 2016, as long as they meet all other requirements. Applicants whose income was over $70,000 but was $87,007 or less can establish their eligibility for future reimbursements by filing an application by the due date.

So yes, you must fill in a form every year to participate in the Senior Freeze, Rosen said.

“A form PTR-2 should be mailed to you annually if you filed an application the prior year and met all eligibility requirements,” she said. “You must file a PTR-1 if it’s your first time applying or you were ineligible the prior year.”

Rosen said you must file your application (Form PTR-1 or PTR-2) for 2016 on or before the extended due date of October 18, 2017. The original due date was June 1, 2017.

Information about the current program may be found on the official New Jersey website.

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

Follow us on Twitter @vestedland and FaceBook 

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

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Dramatic changes in New Jersey - a report from Vested Land Services LLC, the consumer's title insurance agent

Vested Land Services LLC, the consumer's title insurance agent, is proud of New Jersey-

See the 7 most dramatic changes in N.J. over the past half century

The only thing still recognizable of New Jersey of 1968 may be its borders. 

The last 50 years have starkly reshaped the landscape of the Garden State, from its sardine-packed Gold Coast to the white sands of Cape May. We analyzed decades of Census data to show the myriad ways New Jersey has evolved.  

What emerges is a portrait of a society that's constantly shifting and potentially foreshadows the challenges of the years ahead. The graphics below detail seven of the most dramatic shifts, which are fundamentality shaping who we are as a state.

Packed like sardines

This likely isn't news to most residents, but it's important. New Jersey is the most densely populated state in the nation, packing more than 1,200 people per square mile of space. This colors not only how development proceeds, but could also have impacts on how growth occurs. 

The Great Slowdown

After experiencing nearly exponential growth from the 1790s through 1970, New Jersey has been adding fewer and fewer new residents. As New Jersey is outpaced by other states around the country, its Congressional delegation has suffered.

Growth has slowed to a near halt over the last decade or so, which could imperil one of the state's 12 seats in Congress after the 2020 Census.  

Read the full story- http://www.nj.com/data/2018/04/7_ways_new_jersey_has_changed_over_the_last_centur.html#incart_river_index

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

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

@vestedland

#NewJersey

#homebuyer

#mortgage

#refinance

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55 and Older Communities...Right for you?

Excellent article on the pros and cons of moving to a 55 and older community.  
#NewJersey has many age restricted communities and has regulations that 
impact owners and sellers.  Vested Land Services can help you when you buy.  
Give us a call.

Moving To A 55 and Older Community: 

Is It Right For You?

mortgages.com

For a lot of people a 55 and older community can mean spending your retirement living with people your own age, being active, and exploring new hobbies right in your own neighborhood. It sounds a little like the social life of college without the studying. And who wouldn't want that? What should you know before you buy?

Social club

One of the benefits of a 55 and older community is the social aspect. Not only is it easy to meet people your age, but most communities also have planned events ranging from golf to art. We always talk about why location matters in real estate. And this is no different. Think about what you want to spend your days doing? If you love skiing, Florida probably isn't the best location for you.

Security

Most 55 and older communities are gated and have private security. Find out exactly what kind of security your community will offer. If this is going to be your second home, the extra security can bring big peace of mind when you're away.

No one under 55 allowed

This one is a given. If you're thinking about a 55 and older community, you probably consider this a pro. But it can quickly turn into a con. You might not realize how much you enjoyed the sound of kids playing in the street until you don't hear it anymore. And if there's a family emergency, it might mean that your adult kids or grandkids couldn't live with you. There might also be restrictions on how long younger visitors can stay. And that might mean the end of Camp Grandma during the summer.

The old neighborhood

Don't underestimate the connection you feel with your old neighborhood, especially if it's where you raised your family. If that's the case, it might be worth it to keep both homes for now and work your first home into your estate planning. That way it can stay in the family.

HOA

All those activities and amenities come a at a price, homeowners association fees. Like any home with a homeowners association, there might be strict rules about things like what color you paint your home, how many (and what type of) pets you can have, and what you can plant in your yard. That might be a fair tradeoff for you, but if you're used to making home improvements on a whim, you might want to think twice.

This article was originally published on mortgages.com.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. Located in Fairfield, NJ, we are the #titleinsurance agent that does it all for you.

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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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.

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

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Where’s the light at the end of the tunnel? Bad loans continue to rise for NJ banks

The Record reports that

“Toxic loans held by New Jersey-based banks continued to climb in the second
quarter even as bad loans at U.S. banks declined, according to new government
data.”

“The Federal Deposit Insurance Corp. said Tuesday in its quarterly industry
profile that loans more than 90 days past due or no longer accruing interest at
New Jersey's 117 banks and thrifts rose to 3.61 percent of total loans as of June 30, up from 2.91 percent a year earlier. Those banks' combined seriously delinquent debt climbed in each of the past four quarters.”

Even the once vaunted Hudson City Savings Bank is feeling the pain. As the Record notes,

"Paramus-based Hudson City Savings Bank, the largest thrift based in New Jersey and a high-end residential mortgage lender, had 123 foreclosed properties on its books at the end of June, up from 52 a year earlier.”

Why?

“A weak economy, persistent high unemployment and a slow foreclosure process
have all contributed to the recent rise in bad loans throughout the state, said
Bill Brewer, partner at the Livingston office of Crowe Horwath LLP, a community
bank auditor. "Banks have had a hard time moving this stuff off the books," he
said. "The banks have the capital to withstand this, but it is a continuing
problem.’"

Read more of the whys and wherefores here.

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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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N.J. foreclosures coming to a court ordered halt?

Hot off the wire, New Jersey's Supreme Court is threatening to halt foreclosures by six lenders for "irregularities."

According to NJ.com, the state's chief justice writes that the court

"has become increasingly concerned about the accuracy and reliability of documents submitted to the Office of Foreclosure."

A special master could be appointed to review the foreclosure practices of companies including Wells Fargo, JP Morgan Chase and Citibank.

Of course, nothing is said of the substance of the "irregularities" or about the underlying fact that the loans are in default. More to follow.

Read the full report N.J. Supreme Court intervenes in mortgage foreclosures by six lenders NJ.com

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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From Realty Times - Bank of America ends foreclosure freeze

From Realty Times, back to business for Bank of America.

Part of the freeze is over for 23 states. Bank of America has announced that foreclosures are resuming in over two dozen states. The bank says in its review, it has not found a single occasion where a foreclosure proceeded in error.

The foreclosure freeze was brought about by allegations of wrongdoing by lenders across the country. Here in New Jersey, where foreclosures are supervised by a division of Superior Court, the allegations should prove erroneous. The safeguards are already there.

Read the full report: Real Estate Outlook: Freeze Over In Many States

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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Good News for Wells Fargo Customers - your modification may be around the corner

Attorney General Paula T. Dow announced today that Wells Fargo Home Mortgage has agreed to provide New Jersey consumers with nearly $67 million in loan modifications and pay the state $3.98 million to resolve allegations that companies it acquired – Wachovia Corporation, Golden West and World Savings — deceptively marketed adjustable rate mortgage loans.

What happened to bring about this announcement?  A loan with negative amortization, that's what.  Negative amortization loans generally kept your monthly payments artificially low.  They were not sufficient to pay down any principal and, in fact, usually neither the interest.  At the end of 5 years, you could owe as much as 125% of the money you borrowed.

New Jersey homeowners accounted for about 5 percent of the “Pick-a-Payment” loans acquired by Wells Fargo as part of its acquisitions of Wachovia, Golden West and World Savings in 2008.

Under terms of the settlement, Wells Fargo will provide across-the-board forgiveness of accrued interest and late fees for eligible delinquent borrowers who live in the homes on which they took out “Pick-a-Payment” mortgages.

Starting on December 18, 2010, the company also will provide loan modification terms that enable affordable payments and reduce principal for some consumers. Modified loan terms will vary according to the circumstances of the borrower, but can include principal forgiveness, loan extension, interest rate reduction, and principal forbearance (which gives the borrower additional time to pay off the loan principal). Borrowers who remain current on their modified payments over three years will earn additional principal forgiveness. Borrowers who qualify may also convert into a fixed rate loan. All modification fees and pre-payment penalties will be waived. The modification program will extend until June 30, 2013.

I'm sure by now we are tired of reading about lender's abuse of their customers but it's good to see that the state is doing something to correct a past abuse.

What do you think?
Read the full story from Real EstateRama- Attorney General Announces Settlement with Wells Fargo Home Mortgage

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

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Good news about jumbo loans

The New York Times reports "Lenders Loosen Reins on Jumbos." Writes Bob Tedeschi,

IT may be too early to announce a thaw of the mortgage market, but some early signs have emerged, at least in one important category: jumbo loans.

Mortgage industry executives say conditions are improving for those borrowing more than $729,750, the threshold for jumbo mortgages in the tristate region. Not only is it starting to get easier to qualify for these loans, they say, but rates are also coming down.

What does that mean for the market?

David Adamo, the chief executive of the Luxury Mortgage Corporation, a broker and banker in Stamford, Conn., said his company was offering jumbo loans on behalf of more lenders now than late last year. “It’s an indicator that the high end of the market is beginning to recover,” he said.

Too optimistic an approach? Perhaps, because "one element of the mortgage equation has not changed as sharply: borrowers must still have excellent credit to qualify for the loans."

I think it's too early to tell what the impact will be in New Jersey. What do you think?

Read the Times article here.

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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More Monmouth County, NJ residents need flood insurance

Coastal residents of Monmouth County, New Jersey are facing a deadline for the purchase of homeowner's flood insurance.

The Asbury Press is reporting, "On Sept. 25, the Federal Emergency Management Administration's revised flood zone maps for 12 coastal Monmouth County municipalities become permanent."

Flood insurance has long been a staple of life at the Jersey Shore but the revised maps, based on laser technology, expand the "areas that have a 1 percent annual chance of severe flooding."

The impact on Monmouth County residents is substantial.

FEMA'S revised maps have expanded the Bayshore's municipal flood zone areas, adding an estimated 4,300 property owners to the Raritan Bay-Bayshore zone. The new maps, released March 2008, add 1,820 homes in Middletown; 1,810 homes in Keansburg; 640 homes in Hazlet; and 15 homes in Union Beach.

Most homeowners, as a condition of their federally insured mortgage, now will need flood insurance.

Combined, the added policies will cost coastal Monmouth residents hundreds of thousands of dollars.

One planning expert said such mandatory flood insurance will bring, aside from premium payments, other secondary economic costs. "It certainly will result in higher monthly housing costs," said James W. Hughes, Dean of the Edward J. Bloustein School of Public Planning & Policy, Rutgers University. "Even if the(operating) price stays the same, you've got an additional monthly insurance premium that you have to pay."

Not all the news is bad.

Bayshore residents can reduce their initial flood insurance cost, said FEMA executives, by purchasing a "preferred risk policy" before the maps take effect. PRPs are only issued for homes not currently in the flood hazard area.

Property owners are then locked into the policy rated by an insurance agent using a low risk zone upon renewal. The PRP rate remains in effect until the policy's first renewal date.

Flood insurance has long been required for federally related mortgage loans--just about all mortgages written in the United States--since the inception of flood insurance. It's a necessary evil, saving homeowners from many tens of thousands of dollars in out of pocket losses when floods strike.

Read the Asbury Park Press stories, FEMA maps expand zones and Time to buy insurance is now. For more about the go to http://www.floodsmart.gov/floodsmart/

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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Piggy Back Seconds Blocking Modifications?

At our catbird seat in Northern New Jersey we have heard of many homeowners who have been frustrated in their refinance attempts by low appraisal values and other wrinkles, such as lender's instructing borrowers to go into default before applying for a modification.

The Obama Administration's attempts at freeing up refinance money just do not seem to be working. For instance, a New Jersey homeowner buys near the top of the market, has been making on-time payments, and is looking for a lower rate. Along comes the government's HARP program and a loan limit of 105% of appraisal value. If you bought a house for $300,000, put down $30,000, and your property is now worth $225,000, the arithmetic is simple--under HARP you qualify for a loan of $236,250.00. That's a far cry from the $270,000 =/- you are trying to refi.

What if you have a piggy back second mortgage from your closing? Kenneth R. Harney's Washington Report: Second Liens and Piggyback Loans discusses the issue.

Second liens and “piggyback” loans have been big impediments to successful
mortgage modifications for thousands of financially-stressed home owners. Now
the Obama administration has a new program to deal with the problem.

Under a plan outlined last week, the Treasury department will soon begin offering cash incentives and subsidies to lenders who lower troubled home owners' monthly payments on second mortgages and credit lines, or simply write them off their books.

How will this work?

• Treasury will enter into agreements with second lien holders to reduce interest rates to just one percent on fully-amortizing seconds and to two percent for interest-only seconds, for the next five years.
• Treasury will pay cooperating lenders $500 for each second lien they modify, plus $250 a year for each year the home owners stay current on payments. Alternatively, lenders may be offered a lump-sum cash payment from the government to cancel the second-lien debt altogether.
• Whenever first mortgage holders cut a borrower's principal balances by a percentage of the loan amount, second lien holders will be required to reduce balances owed by a similar percentage.

Will it work in markets such as New Jersey? Only time will tell. Read the full article here.

For your next title order, think:

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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How Democrats Make Millionaires

I love an eye-grabbing headline and today's The Wall Street Journal Online does not disappoint with "How Democrats Make Millionaires, According to tax proposals, lots of us are 'rich.'"

With the stock market down, kissing "goodbye to the bonus you were hoping to use to pay junior's college tuition" and worrying about there being a pink slip in your future, the advice is:

"Cheer up. Even in these hard economic times, Democrats across the nation are working on plans that will turn some of you into instant millionaires.

There's only one catch. You're not actually going to be bringing in a million-dollar income. But the tax man is going to treat you just as though you did."

How does this happen? In New York, Assembly Speaker Sheldon Silver coerced Governor David Paterson to impose a "millionaire's tax" on folks making $300,000 per year. New Jersey is the granddaddy of them all.

"In 2004, then Gov. Jim McGreevey became the first Democrat to get through a millionaires' tax whose reach extended to nonmillionaires. The McGreevey
"millionaires' tax" kicked in at $500,000. He justified it, moreover, by saying that any money collected would go toward funding property tax relief for the state's beleaguered homeowners.

"Five years later, we can see how that's turning out. Not only is Democratic Gov. Jon Corzine targeting property tax relief for many Garden State citizens, he wants to impose a "temporary" surcharge on the existing McGreevey millionaires' tax. "

Democrat Washington state legislators are floating the idea of a millionaire's income tax that would kick in at $500,000.

"And why not? So long as Democrats are willing to rewrite the tax code, almost anyone can wake up one day to find himself a millionaire."

Read the full column, How Democrats Make Millionaires.

For your next title order, try

Vested Title Inc.
648 Newark Avenue, P.O. Box 6453, Jersey City, NJ 07306
Tel 201-656-9220 - Fax 201-656-4506
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