Misunderstandings in foreclosure and bankruptcy- how to protect your home

Bankrate.com has an excellent article on keeping your home in the pending face of a foreclosure. It asked its expert Justin Harelik to address this question:

“I'm filing bankruptcy. I am behind on my mortgage payments but not in foreclosure. I plan on reaffirming the loan but can they still choose to foreclose instead of reaffirming with me? If that happens, I was also going to hire a foreclosure defense attorney to challenge their ownership of the note, but don't know if I can do this through the bankruptcy process or wait until I reaffirm the loan?”

The expert’s answer-

"Unfortunately, I don't think you are getting correct information. You are discussing one thing that is not an option and another that is highly speculative."

To get a handle on what’s wrong with these two approaches and a suggested approach to the writer’s problem read the full article “Preforeclosure options to keep a home.”

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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Refinance costs - how often can they be deducted?

Here's an interesting question from a Kiplinger's reader:

Although I refinanced my mortgage less than two years ago, interest rates are so low that I plan to refinance again. What costs can I deduct when I refinance for a second time?

Folks who refinance and refinance, again, are called serial refinancers. We saw the phenomenon grow during the days of sub-prime lending. But with interest rates now so low, it may make sense to refinance sooner rather than later.

To answer the question,

Serial refinancers get an additional tax break on top of the usual mortgage-interest and property-tax deduction. You can deduct the points you pay to get a mortgage in the year you buy a home -- even if the seller paid the points for you (a point is equal to 1% of the loan). You can also deduct points paid to refinance a mortgage, but normally that deduction must be spread out over the life of the loan. So if you paid two points ($5,000 in this example) on a $250,000, 30-year mortgage, you can deduct just $166.67 per year for 30 years.

The income tax consequences for making a mistake are not light. So caution is in order.

Read the full article, Get a Tax Break for Refinancing Again

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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Seller’s can help themselves with digital decorating.

Have an empty house or apartment to sell. Well, apparently nothing comes across the Internet than posted photos of one. Real estate brokers have resorted to “virtually” staging to make vacant apartments and homes more inviting.

From Vivian S. Toy, writing the New York Times,

“ANY broker will tell you that selling an empty apartment is much harder than selling a beautifully furnished one.

“But staging a home with rented furniture can cost thousands of dollars, and that’s money that most sellers aren’t willing to pay. So brokers at Halstead Property and Brown Harris Stevens are using a service that furnishes rooms virtually with the décor of the broker’s choice, adding color and life to photographs of otherwise bland and blank boxes.”

Wow, what will they think of next in this economy? I hope it’s not virtual buyers.

Read the full story, Furnished With Pixels.

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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Avoid probate yes, but taxes no. Living trusts work for some.

Every so often, we in the title industry get to see that someone has bought a book that attempts to teach the reader how to avoid probate. The idea behind these books is that the person who follows the plan will not only not have to have an estate administration but can avoid estate taxes, too.

So we were pleased to see that Karin Price Mueller writing for the Biz Brain in The Star-Ledger, answered the following question:

“What are the benefits to having a living trust fund compared to a regular will?”

“Living trusts, also called revocable trusts or revocable living trusts, are sometimes touted as an absolute essential.”

“While the person who set up the living trust is still alive, there are advantages for those who will help manage that person’s affairs if they’re unable to.”

But living trusts are not fool proof and must be done with the assistance of an attorney. Rely on a do-it-yourself book and you’ll get burned.

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 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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NJ homeowners get break on filing for homestead benefits

From the NJ Division of Taxation-

Deadline for Homeowners to File Homestead Benefit Applications

Extended to Jan. 3, 2011

The deadline for homeowners to file 2009 Homestead Benefit applications has been extended to Jan. 3, 2011, to allow more people to file, Treasurer Andrew Sidamon-Eristoff announced. The old deadline was Nov. 1.

Applications were mailed to homeowners in September, and many potential applicants still need time to file. Homeowners who meet the eligibility requirements and file timely applications will receive a partial credit against their property tax bill for the second quarter of 2011 for property taxes paid in 2009.

New Jersey residents who owned a home that was their principal residence on Oct. 1, 2009, and paid property taxes on that home, will qualify for a Homestead Benefit, provided their 2009 New Jersey gross income was $75,000 or less, or if they are senior or disabled homeowners and their 2009 New Jersey gross income was $150,000 or less.

Homeowners who need additional information on the Homestead Benefit Program or who require assistance in filing an application may call the Division of Taxation’s Homestead Benefit Hotline at 1-888-238-1233 from 8:30 a.m. to 4:30 p.m., Monday through Friday.

Information on the Homestead Benefit Program is also available on the Division’s Web site at:
www.state.nj.us/treasury/taxation/2009homesteadinfo.shtml and through its Automated Tax Information System at 1-800-323-4400 (Touch-Tone phones only). Text teephone service for the hearing impaired is provided at 1-800-286-6613 or 609-984-7300.

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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