The Rental Alternative to Foreclosure

refinance New Jersey mortgages title agency
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.

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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VA Mortgages - the borrower's friend

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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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