Financing a vacation home, banks will make it harder to get that mortgage

The NY Times reports on Financing a Vacation Home.  The quick conclusion -

Buying a vacation home these days requires plenty of cash on hand.

Mortgage down payment requirements are considerably stiffer than for primary residences, and lenders are scrutinizing income more closely, which can make financing especially difficult for the self-employed.

And we just don't mean looking at the amount of money you have.  There are many other factors to consider.  To find out what they are, read the full article.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. 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

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Condo and Coop - what's the difference between them

Cooperatives and Condominiums, Coop or Condo, they go by several names, is a legal form of property ownership with big differences between them.  Here's an informative article from Realty Times that you can fnd here.  Abstracts follow.

The general public often confuses condominiums with cooperatives. In reality, as far as living standards go, there are few differences. However, from a legal - and financing - point of view, there are major differences.

There are many definitions of cooperatives, but the one I like best is that a cooperative is a multi-unit apartment building, in which each resident has an interest in the entire building, and a lease (or contract or share of stock) enabling the owner to occupy a particular apartment unit within the building.

If you own a condominium, you actually own your entire apartment, as well as a percentage of the common areas (called the "common elements"). A cooperative owner -often called a shareholder -- does not own the unit. In fact, you could call such owner a "tenant".

Perhaps the most important distinction between a condominium and a cooperative is that most cooperative associations require that a prospective purchaser be approved by a membership committee comprised of current cooperative owners.

Remember that each state has different regulatory laws for coops and condos.  Before purchasing either, we recommend that you consult an attorney with real estate experience.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. 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

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Get the right real estate broker

Some words of advice from Realty Times about selecting a real estate broker.

When you're buying a new home, you can't afford to have your needs lost in translation. However, it can be difficult to put into words exactly what you want. After all, when searching for the perfect home, it could be a matter of you'll "know it when you see it." A good real estate agent can translate your desires into a dream home.

I remember my first house hunting experience.  It was if the broker and I were speaking different languages.

The lesson learned?  Shop for a real estate broker as you would a doctor or any other professional.

Read the full article here.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. 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

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Big trouble in reverse mortgage land?

Welcome to Vested Land Services LLC.  Whether you are an investor in commercial real estate, contemplating a home purchase, mortgage refinance, reverse mortgage or home equity loan, we are the title insurance agent to turn to; we do it all.

The New York Times headline reads - "A Risky Lifeline for Seniors Is Costing Some Their Homes."  It's not a pleasant story.

The very loans that are supposed to help seniors stay in their homes are in many cases pushing them out.

Reverse mortgages, which allow homeowners 62 and older to borrow money against the value of their homes and not pay it back until they move out or die, have long been fraught with problems. But federal and state regulators are documenting new instances of abuse as smaller mortgage brokers, including former subprime lenders, flood the market after the recent exit of big banks and as defaults on the loans hit record rates.

So why is this happening?  One of the drawbacks of reverse mortgages is the fees associated with obtaining the mortgage. 

Now, as the vast baby boomer generation heads for retirement and more seniors grapple with dwindling savings, the newly minted Consumer Financial Protection Bureau is working on new rules that could mean better disclosure for consumers and stricter supervision of lenders. More than 775,000 of such loans are outstanding, according to the federal government.

Yet,

Used correctly, reverse mortgages can be a valuable tool for seniors to stay in their homes and gain access to money needed for retirement. Seniors who have built up equity in their homes can borrow against a percentage of that and take out a lump sum or a line of credit. The loan doesn’t have to be repaid until the homeowner moves out or dies, but borrowers still have to pay property taxes, maintenance and insurance.

To be sure, three major lenders, MetLife, Bank of America and Wells Fargo have left the marketplace.

Into the void left by the big banks have moved smaller mortgage brokers and lenders. Some of them steer seniors into expensive, risky loans with deceptive sales pitches and high-pressure tactics, according to regulators, housing counselors and elder-care advocates.

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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"Divorce specialists" for real estate sales?

New Jersey has it all- great beaches, miles of parkway and turnpike, entertainment, you name it.  Now it seems that there are real estate brokers who specialize in sales of property where the owners are undergoing divorce.  So reports the New York Times.

[L]urking with quiet devastation behind many “for sale” signs is the big, sad shift that almost always requires that somebody move out: divorce.

For real estate agents and brokers, deals that spring from divorce are an inevitable slice of the business, and over the years, many find themselves gathering answers to questions they hoped never to ask.

How does one represent two people who won’t speak to each other? How does an agent show an apartment that has been divided by awkwardly placed locks or temporary walls? And what if your client’s highest priority is making sure their former partner does not come out ahead?

Two real estate brokers in Livingston, New Jersey, not far from our office in Fairfield, believe they have built-up an expertise in divorce sales.

“We specialize in it,” said Vicki Stout, an agent at Keller Williams Suburban Realty in Livingston, N.J., who proclaims herself to be a “divorce specialist.”

“But it is hard to advertise,” added Bob Bailey-Lemansky, her business partner. “No one is going to go to our Facebook page and ‘like’ divorce.”

Read more here.

For your next commercial real estate transaction, house purchase, mortgage refinance, reverse mortgage, or home equity loan, contact us. We can help. 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

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