Questions you should ask about title insurance

Title insurance is a must have for home buyers.

Some questions about title insurance

Title insurance protects property buyers and their mortgage lenders against defects or problems with a title.

At Vested Land Services LLC, we are a policy issuing agent for several title insurance companies. In order to issue our policy we search land and court records to make sure there are no undisclosed interests in the property, unpaid taxes, pending legal action, errors, fraud or other problems with the title.

In New Jersey, the title must be insurable, meaning that the seller really does own the property and is free to sell it.

Home buyers typically pay for two title insurance policies at closing: an owner’s policy and a lender’s policy, which protects the lender.

Here are six questions a home buyer should ask about title insurance.

1. Are title insurance prices regulated?

In New Jersey, they are, so there won’t be a difference in premium quotes among companies.  However, some companies charge different fees for searches and third party services.  Quotes are sometimes misleading since certain charges may be left off or understated.

At Vested Land Services LLC, our quotes contain the standard charges for our files, including charges for services required by most lenders.  We're always ready to discuss out quotes.

2. How much coverage do I need?

Owner’s policies are issued in the amount of the purchase price.  They provide coverage against fraud, forgery, undisclosed heirs and spousal claims.  We'll be glad to provide you with a copy of the policy jacket while you shop for your title insurance agent.

3. Who pays for title insurance?

The home buyer or owner is responsible for paying for its policy and the lender's policy.

4. Is the seller pushing a specific title company?

If you pay for the title insurance, you have the right to select the company. 

Be wary if the seller is pushing his title company.  Are problems being buried? A fresh set of eyes could unearth title issues allowing them to be fixed before the closing.

5. Whom do I trust?

Real estate brokers often have a hidden relationship with a title agency.  If you select the real estate broker's recommendation, you may not be properly served.  If you have hired an attorney recommended by the real estate broker, tell her that you won't to select the title agency.

The same goes for referrals by mortgage lenders.

6. How much reassurance do I need?

Banks and insurance companies aren’t supposed to go under, but they sometimes do. If you want to verify that the underwriter issuing the insurance policy is sound, check its financial solvency with ratings companies such as Fitch Ratings, Demotech Inc. or A.M. Best Co.

You can also research the title insurance company and title agent on line.

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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Towns making money off of tax foreclosures?

DS News reports on a Michigan case where a property was foreclosed upon by the town for unpaid taxes, and then sold at a "profit."  A comment caught our eye, [our comments in brackets.]

A study from Quicken Loans revealed that as of 2018, 21% of Michigan homeowners were unaware their property was behind on property taxes, and another 61% of renters in tax-delinquent properties were unaware of the home’s tax status.  ["Unaware" sounds ludicrous to us.  Could a homeowner be that foolish?]

Here's the full story written by Seth Welborn.

Tax Foreclosures Under Scrutiny

The Michigan Supreme Court is being urged by Pacific Legal Foundation to halt a state law which allows counties to “profit” from the sale of foreclosed properties, after a home in Oakland County was sold for $24,500 after being foreclosed on for $8.41 in unpaid taxes.

“It is akin to stealing,” said Pacific Legal Foundation attorney Larry Salzman, in Bridge Magazine. “The government shouldn’t be taking more than is owed to them to cure the tax deficiency. I understand states are under [budget] pressure but government should not use citizens  as a bank teller or an ATM machine.”

According to Bridge Magazine, county tax foreclosure is a common practice in Michigan, and counties have foreclosed on over 177,000 properties in the state since 2012. Oakland County, the state’s second largest in population, foreclosed on over 5,500 properties between 2012 and 2017 according to state records, but 65% of county foreclosures took place in Wayne County (Detroit).

A study from Quicken Loans revealed that as of 2018, 21% of Michigan homeowners were unaware their property was behind on property taxes, and another 61% of renters in tax-delinquent properties were unaware of the home’s tax status. However, property tax foreclosures in Detroit are at a 14-year low. In 2018, 2,920 properties faced property tax foreclosure auction, down from 6,052 in 2017, and far below the peak of 15,000 in 2015.

“As Detroit comes back, we need to do everything we can to make sure those who stayed in our city through good times and bad are able to stay in their homes,” Mayor Mike Duggan told Quicken Loans. “We are seeing real progress in tax foreclosure reductions that impact all of our neighborhoods, and through programs like Neighbor to Neighbor, we will continue this important work in close partnership with the community.”

Although outreach programs have helped improve Detroit's tax foreclosure issues, the city still faces other foreclosure-related challenges. According to GOBankingRates and data from Zillow, 34.4% of homes are currently underwater, and the median home value at the Detroit-Warren-Dearborn metro-area level is $161,300, far below the national median of $226,300. GOBankingRates puts Detroit second on its list of U.S. cities most likely to enter a housing crisis.

Read the article on line.
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Your comments are always welcome.

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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A column not about title insurance.

Warning signs of identity theft.

Well, this sure isn't about title insurance but it's worth a look from our friends at ProtectMyID.  With identity theft on the rise, here are some tips that you might have been affected by identity theft.

1.Failing to receive bills or other mail

This could indicate that an identity thief has taken over your account and changed your billing address, says Siciliano. "Make sure to follow up with creditors if your bills don't arrive on time."

2.You're rejected for credit

"Being denied credit or being offered less favorable credit terms, like a high interest rate, for no apparent reason, is a sign your identity may have been compromised," Siciliano says.

3.You're getting bills for purchases you didn't make

If you start receiving bills or notices of overdue payments in regard to accounts you don't have, you have probably become a victim of identity theft, says Steven J.J. Weisman, a college professor who teaches white-collar crime at Bentley University and is the author of the book Identity Theft Alert. "In this case, you should contact the creditor and inform them that you have been a victim of identity theft and it is not your debt, and also file a police report. "While there is little chance of the criminal being caught. It helps prove that you have been a victim of this crime."

4.Your bank account, brokerage account, credit card account or other accounts have unauthorized transactions

"Again, look into the specific charges, file a police report and demand that the fraudulent activity be stopped and the institution reimburse you for any losses," Weisman says. "You should also be regularly monitoring your credit reports and all of your financial accounts to recognize fraud as soon as possible."

5.You receive a tax transcript in the mail that you didn't request

"Under this scenario, a fraudster logged on to the Internal Revenue Service website and tried to get your information and couldn't download it immediately because some security test failed," says Abby Eisenkraft, chief executive officer of Choice Tax Solutions, Inc. "Consequently, the IRS mailed it to you, instead, under the assumption you requested the document."

6.Your electronically led tax return is rejected

This a big sign your identity has been compromised, says Eisenkraft. "That's especially the case if your return is rejected and there are no typos and the Social Security number is correct. What likely happened is that an identity thief led a tax in your name, claiming a fraudulent refund."

7.You receive a tax refund you did not request

Here, you may get a check or pre-loaded debit card. "What happened is that an identity thief led a fraudulent return and will try to and the refund in your mailbox," says Eisenkraft.

8.Your employer lets you know you've got a data security problem

If a hacker has your Social Security number and the name of your current employer, they can try to collect unemployment benefits in your name. "In this case, if your company is on the ball you might hear from someone in human resources," states David Cox, an identity theft expert and CEO, and founder of LiquidVPN, in Cheyenne, Wyo. "Most hackers will check your social media to see if you just quit a job or just started a new job. With this information, they are much more likely to get away with it for quite a bit longer. Eventually, you will hear from your former employer or the unemployment agency."

9.You get two-factor authentication alerts

It's a problem when you get a text message sending you a six-digit pin to enter into a service or membership you don't recognize, says Ralph Rodriguez, an MIT Fellow, and chief technology officer at Conrm.io, a personal data security firm. "Maybe it's a new account," Rodriguez says. "Perhaps it's account recovery for your bank. The point is you don't know. And it's a very eerie feeling when it happens."

10.Your credit score is actually rising

Strange, but true, Rodriguez says — a rising credit score can mean trouble on the identity fraud front. "Check your credit reports frequently for accounts you didn't open and hard inquiries which could suggest fraudsters are trying to extend credit in your name," he advises.

11.You get small "test charges" on your credit card

Hackers often place a small charge for a couple of bucks on the card to see if it will go through before they initiate an attempt at a larger fraud later, says Ross Federgreen, CEO of CSR, a compliance solutions firm, and a data privacy expert. "If you have a small charge you don't recognize, don't ignore it," says Federgreen.

12.You get increased direct mail and phone solicitations for expensive items

The notices could be for cars, loans, and home improvement, and other big-ticket items," Federgreen says. "This could be the result of new high-ticket activity run on your account."

Read the full report at AAA.

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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Farmland taxes in New Jersey

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 Farmland Tax Assessment saves some people a lot of money.

Many NJ taxpayers are up in arms over the reduced taxes paid by some they consider wealthy or connected who happen to benefit from the reduction in real estate taxes when property is classified as farmland.

What's it all about?  NJMoneyhelp.com looks at the issue in this post:

Q. What is New Jersey’s classification for a “farm” for real estate tax purposes? For example, if I start keeping bees on my property, would that convert my property into a farm? I already have red oak trees on my property, and because red oaks produce acorns – which are edible – does my property constitute a “farm?”
— Wanna-be farmer

A. We’re guessing you asked that question after it was revealed that Kevin Corbett, the head of NJ Transit, paid only $19.42 in taxes for five acres of his Mendham Township property that’s assessed as farmland. He paid $20,609 in taxes in 2018 for the rest of the property, less than one acre, where his home stands.

That’s a big difference.

There are several requirements before your property can be assessed as a farm.

First, it must be at least five acres, said Neil Becourtney, a certified public accountant and tax partner with CohnReznick in Holmdel.

The second requirement is that the property must be actively devoted to agricultural or horticultural use for at least the two successive years immediately before the tax year for which farmland assessment is requested, he said.

“Land is considered to be in agricultural use when devoted to the production for sale of plants or animals useful to man – excluding dogs – or when the land qualifies under a federal soil conservation program that makes payments to the owner,” Becourtney said. “Land is in horticultural use when it is devoted to the production for sale of fruits, vegetables, nursery, floral, ornamental or greenhouse products, or when the land qualifies under a federal soil conservation program that makes payments to the owner.”

Land is actively devoted to agricultural use when the amount of the gross sales of agricultural products produced on such land, together with soil conservation program payments, and fees received for breeding, raising, or grazing livestock have averaged at least $1,000 per year during the two-year period immediately preceding the tax year at issue; or there is clear evidence of anticipated yearly gross sales, and the other sources noted, of at least $1,000 within a reasonable period, he said.

An application for farmland assessment must generally be filed on or before August 1 of the year before the tax year for which such farmland valuation is sought. The assessor can grant an extension of time, up to and including September 1, if it appears to the director’s satisfaction that the taxpayer’s failure to file the application form by the August 1 due date was due to the illness of the taxpayer or to the death of the taxpayer or a member of the taxpayer’s immediate family, he said.

“In your situation, assuming you meet the acreage test, you would need to reach the state’s sales threshold from selling acorns and honey that presumably the bees would be producing in order to obtain the reduced farmland assessment for your real estate taxes,” Becourtney said.

Read the post here.

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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Home buyers, can you wind up with a haunted house? Yes!

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 to Avoid Unexpectedly Buying a Haunted House—Because It Could Happen to You

Per this article on Realtor.com:

Footsteps late at night. Music randomly playing. Lights flickering. Unexplained shadows. True-horror fans might get a thrill out of moving into a house with a haunted past, but others might see it as a nightmare.

It wouldn't surprise us to hear that notorious homes like the Manson murder house in Los Feliz or the "In Cold Blood" house have experienced some paranormal activity. The same goes for homes in towns with notoriously gruesome histories, like Salem, MA, where about two dozen people accused of witchcraft were executed or died in jail in the 1600s.

“Salem is one of the markets where I practice real estate, and you never know what's lurking behind closed doors,” says Dana Bull, real estate agent at Sagan Harborside Sotheby's International Realty in Marblehead, MA.

Whoa!  So there is such a thing as an haunted house after all.  Read the full story, https://www.realtor.com/advice/buy/unexpectedly-buy-haunted-house/

We can't insure your home won't be haunted by spooks, but we can be sure that you are protected from other matters that haunt home buyers!  Give us a call.

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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