It’s getting harder for many to borrow money to buy a home.

Bob Tedeschi writes in the New York Times of the effect of falling pay on mortgage applications and approvals. He writes,

“LENDERS scrutinize all elements of a mortgage application, but one factor remains critical: the debt-to-income ratio, or the percentage of a borrower’s monthly gross income that goes toward housing expenses. If it surpasses 36 percent, lenders will typically reject the loan.”

Falling income makes it difficult to qualify for the lowest cost loan.

“The higher debt-to-income ratios are a function of the diminished income levels of many homeowners since the economic downturn, said Nicolas P. Retsinas, a senior lecturer in real estate at Harvard Business School and one of the authors of the report.”

“In some ways it’s counterintuitive to the big headlines about falling home prices and increased vacancies,” Mr. Retsinas said. “And while housing prices have moderated, they really haven’t tumbled enough to account for falling incomes.”

Just what the real estate market needs… more bad news.

Read the full story.

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 201-656-9220 - Fax 201-656-4506

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

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What’s in a real estate buyer’s name?

That’s the question being raised in a recent New York Times “Big Deal” column.

“WHEN you see the words “Bubble & Squeak,” what do you think of? A child’s toy? Bathroom cleanser? Or does the traditional English dish of fried leftovers like potatoes and cabbage come to mind?”

“How about property in Chelsea? That is correct, because in addition to the dish, Bubble & Squeak is the name of a small company that owns real estate.”

The company is a limited liability company, commonly called an LLC, that has become very popular with real estate investors in the last 10 years or so. LLCs provide a limitation on liability similar to that of a corporation but without the same tax consequences as corporate ownership. They also provide some anonymity.

“We absolutely advise people who want their identity confidential to buy in an L.L.C.,” said Shaun Osher, the chief executive of CORE Marketing Group, a real estate brokerage firm. “Most of the time, the L.L.C. name has some kind of a significance. Usually it’s personal, but it has some meaning.”

The column asks, “What do these names have in common: “Elroy L.L.C.,” “Astro L.L.C.,” and “Judy L.L.C.”?”

To find out, read the column.

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 201-656-9220 - Fax 201-656-4506

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

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If you want to sell your home, you better price it right

The Asbury Park Press carries an AP story of interest to home sellers.
Advice for home sellers - Pricing homes right in a housing slump

“The good news for sellers: Your house will sell. The bad? Only if the price is just right.”

That translates into taking a hard look at your listing price if you are serious about selling.

“The recently expired tax credits for homebuyers gave sellers a boost. Home sales surged and values edged up. The worst appeared to be behind us. But since the deadline passed at the end of April, housing has faltered. Job insecurity, tight credit and consumer confidence are undermining a sustained recovery, despite the lowest mortgage rates in decades.”

“Here's the disconnect facing sellers: The vast majority of sellers believe their homes are worth more than what their real estate agent recommends, according to HomeGain.com. At the same time, most buyers think for-sale homes are overpriced.”

And it doesn’t look things will change for a while. What do you think?

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 Title Inc.
165 Passaic Avenue, Suite 101 Fairfield, NJ 07004
Tel 201-656-9220 - Fax 201-656-4506
E-mail vti@vested.com - www.vested.com

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Housing Woes Bring New Cry: Let Market Fall

Please note our new address - see the end of this posting for new information.

Bad news in the forecast for homeowners on Labor Day?  The New York Times prints, "Housing Woes Bring New Cry: Let Market Fall."

The unexpectedly deep plunge in home sales this summer is likely to force the Obama administration to choose between future homeowners and current ones, a predicament officials had been eager to avoid.

The Obama administration has been trying to pull a rabbit out of the hat when it comes to the falling value of American homes and poor market demand.

Over the last 18 months, the administration has rolled out just about every program it could think of to prop up the ailing housing market, using tax credits, mortgage modification programs, low interest rates, government-backed loans and other assistance intended to keep values up and delinquent borrowers out of foreclosure. The goal was to stabilize the market until a resurgent economy created new households that demanded places to live.

As mentioned elsewhere in Vested Title News, with the exception of the tax credits gimmick, these programs have not been successful.  Maybe drastic action is in order.

Some economists and analysts are now urging a dose of shock therapy that would greatly shift the benefits to future homeowners: Let the housing market crash.


When prices are lower, these experts argue, buyers will pour in, creating the elusive stability the government has spent billions upon billions trying to achieve.

 There is a lot at play here; financially and emotionally.  We've complained before about "strategic defaults" where a homeowner walks away from his home because its market value has fallen below the value of the mortgage.  And we've mentioned that every seller thinks her home is worth a million dollars when it's listed for sale.

Maybe the "shock therapy" is what is needed.

Read the full column, and let us know what you think.

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 201-656-9220 - Fax 201-656-4506

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

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We've moved to our new offices in Fairfield, New Jersey!

We've moved!

As of Tuesday, September 7, 2010

Vested Title Inc.'s new offices are located at

165 Passaic Avenue, Suite 101

 

Fairfield, NJ 07004

Tel 201-656-9220 - Fax 201-656-4506

E-mail vti@vested.com - http://www.vested.com/

Our telephones and fax lines will be up and running.  If not, please contact us at our email address or this alternate fax number

973-556-1628

We look forward to serving you from our new offices with the same high level of service that we have for the past 30 years.

Susan L. Kruger, President

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