Posted by
admin on May 7, 2010 in
Buying,
Editorial,
Misce4llaneous Property is, typically, a big investment and new property owners want to protect the money that they invest in their property. One of the fundamental things that property owners want to protect is their ownership rights. Accordingly, it is important to have a title search conducted on the property and to purchase title insurance in case anything was missed during the title search.
Title Search
A title search, if done properly, will give you a chain of title for the property, show any restrictions on the property, such as easements, and identify any outstanding liens on the property. A title search is done by searching the local land records in the town, city or county where such records are kept for the property.
Anyone can go to the office where land records are kept and perform a title search. However, many people choose to employ a title search company or an attorney to do the title search for them. It is important that a title search be thorough and reveal all encumbrances, liens, and owners of the property so that a person buying the property knows:
- that he is buying a piece of property that can be legally sold to him; and
- if there are any restrictions or encumbrances that he will become subject to or liable for when he becomes the property owner.
For these reasons, prospective property buyers should have a full title search done. Limited title searches may be done if property owners are not changing such as during a refinance of the property.
Title Insurance
While a thorough title search will reveal potential problems and give a buyer the opportunity to rectify them, it is always possible that the person conducting the title search missed something. Since the government only provides a method for checking property ownership and encumbrances and does not verify such ownership or encumbrances, it is important to protect your investment with title insurance.
Title insurance protects property owners from incurring financial losses because of a problem with the property’s title. Title insurance companies require policy owners to have a title search done before obtaining insurance. Most banks require mortgage applicants to obtain title insurance prior to issuing a mortgage so that they can be assured that their interest in the property will be honored if a previous lien, owner or other encumbrance should come to light in the future. Title insurance policies may be issued as an owner’s policy if it is purchased by the homeowner or a lender’s policy if it held by the mortgage lender. Typically, the cost of title insurance is a one-time fee and the insurance remains in effect as long as the same owner maintains ownership of the property. A subsequent owner would need to purchase his or her own title insurance policy as they are nontransferable.
Most United States jurisdictions maintain public, yet complicated, systems of land records. Home buyers should conduct title searches, or hire someone to conduct a search, and purchase title insurance in order to make sure that their property purchase is protected.
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Tags: home buyers, protecting your property, protecting your title, titel insurance policies, title insurance
Posted by
admin on May 1, 2010 in
Finances,
Misce4llaneous,
Real Estate
RESPA is a federal regulation that governs certain aspects of the closing and settlement process in a real estate transaction. Designed to protect consumers who are buying houses, the U.S. Department of Housing & Urban Development (HUD) enforces RESPA. Essentially, RESPA requires that buyers be given certain disclosures or information at various points during the purchase process, and outlaws kickbacks that might increase the costs of closing and settlement.
RESPA applies to most mortgage loans taken out for primary homes. When you apply for a mortgage loan, the lender must give you certain information about various real estate settlement services, a Good Faith Estimate as to the amount of settlement charges you will face if your loan is approved, and a Mortgage Servicing Disclosure Statement, which addresses whether the lender intends to service the loan or transfer it to another lender, as well as procedures for resolving complaints that you might have. Lenders have to give you this information at the time of your loan application, or mail it to you within three business days of your application. The only exception is if the lender turns down your loan application within three days; in this case, the lender is not required to comply with this aspect of RESPA.
A lender must also make certain disclosures before settlement and/or closing on the loan occurs. RESPA requires that you receive a completed HUD-1 Settlement Statement at least one day before closing. This document sets forth all of the charges that apply to both the buyer and seller at the time of closing. RESPA also mandates that you receive an Affiliated Business Arrangement Disclosure prior to settlement, if the settlement provider has referred you to a provider with whom it has some sort of business arrangement.
Furthermore, in addition to the HUD-1 Settlement Statement, RESPA also provides that you receive an Initial Escrow Statement at settlement or within 45 days thereafter, which sets forth the estimated property taxes and insurance premiums that you will pay during the first year of the loan. This Statement also must contain the total amount of escrow payments you will make, as well as any required minimum amount that the lender requires to remain in your escrow account at all times.
Following settlement of your loan, RESPA imposes an obligation on lenders to send you an Annual Escrow Statement that gives an itemized account of all payments and deposits on your escrow account. At that time, you will be refunded any overpayments, or be required to make up any shortages in your escrow account. You also are entitled to a Servicing Transfer Statement at any time that your lender sells or otherwise transfers the servicing of your loan to another company.
Finally, RESPA prohibits any kickbacks, fee-splitting, or other unearned fees that might unfairly increase your settlement costs. Violations of these provisions of RESPA can result in both civil and criminal penalties. Additionally, RESPA places limits on escrow accounts and outlaws lenders from requiring that you use a particular title company.
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Tags: hud-1, mortgages, real estate settlement procedures act, regulations, respa, settlement
Posted by
admin on Apr 18, 2010 in
Editorial,
Misce4llaneous
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Reduce your electricity bills by systematically purging your family room of wasteful energy practices. Read
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Cut your power consumption, lighting, and heating and cooling costs when you work from home. Read
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Lighting eats up as much as 20% of your annual electric bill, but using energy-efficient bulbs and making other simple changes can cut lighting costs dramatically. Read
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Maintain your large kitchen appliances is part of a smart home energy efficiency plan. Read
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Understanding your laundry room appliances is part of a smart plan to help you save energy in your home. Read
Visit houselogic.com for more articles like this.
Copyright 2010 NATIONAL ASSOCIATION OF REALTORS®
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Tags: energy efficiency, energy savings, home maintenance
Posted by
admin on Jan 12, 2010 in
Finances,
Misce4llaneous If you are impacted by the cold wave or saw your air conditioning bill skyrocket last year, now is a good time to think Efficiency.
Recently there has been a lot in the news about the tax credit for first-time homebuyers, but don’t think there is nothing for existing homeowners. Many sources have told consumers not to stop thinking “energy conservation” now that the price of oil is moderating. It’s a great time to make energy efficient improvements in their homes.
For a complete list of Energy related credits such as new heat pumps and Hybrid cars etc, Click Here. In last year’s stimulus package the government provided for a 10% tax credit of the cost of new windows, doors, roofing, insulation, furnaces, air-conditioning systems and heat pumps. The old rules had a lifetime maximum of $500 total credit.
TAX Credits For New Heating and Cooling Systems From: Houselogic.com
Many in the remodeling industry thought the meager 10% credit was not enough reason to undertake major renovations and they were right. There was no discernible increase in improvement activity tied to the tax credit.
CREDIT vs DEDUCTION As you may know, a tax credit lowers your total tax due dollar for dollar. If you owe the IRS $500 and have a $200 credit, that $500 gets lowered to $300. A tax deduction, however means you can reduce the amount of taxable income that you owe taxes on. The real benefit is seen after your apply your tax bracket. Most times when you figure it out, a Credit is better than a Deduction.
ENTER 2010: In order to both increase economic activity (remodeling) and expand energy efficiency, the new stimulus package raises the tax credit to 30% of the cost. It also tripled the lifetime maximum to $1,500. It is retroactive from Jan 1, of last year and expires at the end of 2010.
For specific information on new Windows and Doors click HERE
Complete Resources here on Energy.gov
The new provisions also apply to newly added systems such as solar-energy panels, water heaters and geothermal heat pumps.
A lot of what is included in the above actions are considered “Energy Star” approved. You can get a better picture of what is and is not covered at
http://www.energystar.gov/index.cfm?c=products.pr_tax_credits
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Posted by
admin on Dec 14, 2009 in
Misce4llaneous 1) Inspect all electrical cords, wall plates, and plugs for damage and wear. Check gauge on all fire extinguishers: recharge or replace if necessary.
2)Service snow removal equipment and have rock salt on hand to melt ice on walkways.
3)Insulate pipes that pass through unheated areas. Your home’s crawl space and attic are two such areas.
4)Lubricate the garage door, the automatic door opener mentor, chain, etc, and ensure the auto-reverse mechanism is properly adjusted. Replace filters in heating and cooling systems.
5) Vacuum bathroom fan grille. Vacuum radiator grilles on back of refrigerators and freezers, and empty and clean drip trays.
6) Inspect clothes washer hoses for wear or damage.
7) Make certain any kitchen, laundry, and bathroom ventilation systems are functioning properly and filters are replaced routinely.
8)Clean the dryer vent duct. Wash and clean lint screen on dryer to eliminate fabric softener build up.
9)January is Radon Action Month. The U.S. EPA recommends all homeowners test for radon and retest every two years. Contact an Safe & Sound Home Inspections to schedule a test.
10) Clean or replace filter in range hood.
11) During moderate rain, inspect gutters and downspouts for leaks. If any leaks are noticed, plan on caulking them during dry weather. Clean and inspect culverts and drainage tiles Broadcast grass seed on or about last day of winter
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In the last two days we have received numerous flyers in our e-mail from local mortgage representatives telling us that First Time Home Buyers can receive their $8,000 credit UP FRONT and use this money as a DOWN PAYMENT. This sounded too good to be true so we checked it out and we were right, this was too good to be true.
We personally phoned the IRS this morning, February 27, 2009 and spoke with an IRS expert on the First Time Home Buyers Credit. This is what we learned:
The 2009 tax credit is for $8,000 and for properties purchased in 2009 by first time home buyers and does not have to be paid back provided the buyer lives there for 3 years.
The buyer can apply for the 2009 tax credit on their 2008 income tax return if they have not filed yet. If the buyer has already filed their 2008 return and received their refund or paid their taxes, they can file an amended return and receive the $8,000 tax credit without having to wait to file the 2009 taxes. Of course, the buyer can wait and apply for the $8,000 tax credit when they file their 2009 income taxes next year.
This provision, while a little confusing, was designed to jump start housing market. However, under NO CIRCUMSTANCES can a buyer apply for this $8,000 credit BEFORE THEY CLOSE ON THE PROPERTY AND USE THIS MONEY FOR A DOWNPAYMENT. They are not a FIRST TIME HOME BUYER until they have (bought) closed on the house and have the keys in their hands.
If you think about this logically, you would realize that if in fact this was an $8,000 gift for a down payment, it would be all over the news. We wouldn’t need some mortgage representative to tell us about it. This very loose interpretation of the First Time Home Buyers credit is just another attempt to get around the rules.
We can think of some serious ramifications of applying for a tax credit you have yet to earn. We can sum it up in two words TAX FRAUD. We do not want any mortgage representative telling our buyers to commit fraud. We can imagine some nightmare scenarios that we do not wish to be involved, the least of which the buyer does not settle, for whatever reason and has applied for and received the $8,000 credit. The worst of this is that when the ‘buyer’ is audited the following year, for applying for a tax credit that they did not earn and they tells the auditor that their real estate agent told them to file for the money.
We suggest that anyone who is interested in finding out the FACTS regarding this $8,000 tax credit for first time home buyers, that they call the IRS directly at 1-800-829-1040 and ask to speak to an agent who is familiar with the FIRST TIME HOME BUYERS CREDIT and ask the direct question, “Can a first time home buyer apply for the $8,000 credit before they close on a property and use this money for a down payment?” The answer will be NO. But check it out for yourself. If you have a buyer who has been told this by a mortgage rep and does not believe you when you tell them they cannot apply for this credit before they close on the property, give them the IRS number. Keep in mind that you are calling the Federal Government and will be on hold for 15-20 minutes. But it is worth the wait to learn the facts. Use your speaker phone, the time will fly by.
If something sounds too good to be true, it is our responsibility to wade through the muck and verify, verify, verify. The last thing we need is another mortgage catastrophe a few years out
Linda Kerr Iwaniw & Terry Iwaniw
RESALES & INVESTMENT REALTY, LLC
Haddonfield, NJ.
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Posted by
terryriw on Feb 15, 2009 in
Finances,
Misce4llaneous,
Real Estate 
If you’d like to invest in real estate, but don’t want the hassle of managing it, try a real estate mutual fund. Money managers with Expansion Funds America in Phoenix say investors should have real estate positions beyond what’s in their homes.
Property prices don’t move up and down with stock market prices, and they provide diversification. Money managers recommend that you put no more than 25 to 35 percent of their portfolios into Real Estate Investment Trusts (REITs), or real estate mutual funds.
They also recommend gold, which can be held as bullion in gold-mining stocks and gold mutual funds. They recommend a 10 percent maximum for most portfolios.
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Posted by
admin on Feb 3, 2009 in
Misce4llaneous It can be difficult to figure out whether to sell your home first, before you buy, or vice versa in the busy real estate market. If you sell first and haven’t found your new home yet, where are you going to live? But if you buy first without selling how can you afford to cover the cost of owning two homes if yours doesn’t sell?
If you sell your home before you buy, you eliminate the financial guessing game. Maybe you like to play but I would like to know how much money I’m working with when I go looking for a new home! The only downfall to that approach is whether you have a place to stay or not. You may not find your new home in time, or if you do, maybe the possession dates don’t line up. Then you are stuck renting for however long, and if you are a growing family with lots of stuff, maybe storage comes into play.
So should you buy before you sell? In some cases you may have to. Say you found your perfect home, and you’ve been looking for a long time. It’s priced right and it will sell fast! In this case you may have to! But if you’re dealing with a slow market, it could be very dangerous. Now you’re looking into bridge financing, which allows you to own both homes, while trying to sell yours. But think of all that interest you are paying on a hefty lump some of money.
The ideal way this transition will happen all depends on timing. If you’ve done your research, know pretty well what you are looking for and what area you want to find it in, then you want to list your home first. If you do get an offer right away you can always add a contingency clause in the contract that is conditional on you finding your new house in a certain period of time. On the other hand, if your home hasn’t sold by the time you find your new home, you make an offer subject to the sale of your existing home in a certain time period. Depending on the market and the other home owners’ situation, sellers might not accept this, but if this works you are more likely to make the dates match and you’ve already got the ball rolling on your own house.
In conclusion, selling your home first is less risky and you’ll usually end up with a better price on both ends. Think of it this way, you’re not in a rush selling, so you won’t be forced to accept a low offer, and if you’re putting an offer on a house and haven’t sold yours yet, what sort of bargaining position are you in? You’re asking the seller to have faith in you selling your house and give you a deal on the new one! This is where your professional real estate agent comes in and works with you to make sure that the whole process is as stress-free and smooth as possible.
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Tags: buying a home, home buying, seller information, Selling, selling your home, the real estate process
Posted by
admin on Jan 16, 2009 in
Editorial,
Misce4llaneous,
Real Estate,
Selling (Edison, NJ) Preparing a home for sale in today’s market often requires more than just few cosmetic improvements – it requires keeping an open mind about what buyers are looking for, and staying up to date on the local housing market. Homeowners can change the way buyers view a property inside and out with some updated staging and marketing techniques, and should be open to their REALTORS®‘ more realistic suggestions for pricing.
“Buyers are benefiting from being able to pick and choose from a wide variety of homes on the market. They are going to be more thorough with their searches and sellers should be prepared for that,” said 2009 New Jersey Association of REALTORS® (NJAR®) President, Diane Dilzell. “In today’s market, buyers can get a great house at a great price so it’s important that sellers differentiate themselves from competing properties.”
Setting a realistic price. When it comes to selling a home, it’s important to keep in mind that value depends on what the buyer is willing to pay for your property and many factors contribute to their perceptions. Prices depend on local characteristics such as job opportunities, housing supply, school systems and more. Sellers should stay realistic and set the price with a REALTOR® who can help determine which factors are at work in a given marketplace. Also, the time the owner “must” sell or the amount of repairs the home needs can play a large role in setting a fair price.
“Sellers should be pricing to stay ahead of the market and can’t afford to rely on what the home was valued at several months ago,” added Dilzell.
“Our REALTOR® had a full understanding of today’s market and how people are shopping, and had sound reasoning for why the price we sold our home for would be beneficial, when I originally thought it was worth more. We had unbelievable traffic flow, several return viewings, and accepted a price we were comfortable with in 26 days,” said Mary Lee Hesselgrave, who sold her home in Hardyston this summer.
Get creative when marketing your home. The marketing of homes has shifted more towards new technology, rather than only putting an ad in the local newspaper. Sellers should be open to innovative and creative marketing techniques recommended by their REALTOR®. By considering virtual home tours and concentrating on well-lit, high quality digital photos for website listings can give your home a chance to be noticed in front of the increasing majority of buyers who turn to Internet listings first. Ask your REALTOR® about other ways to increase awareness about your home in places where buyers will notice.
Staging helps edge out competition. Buyers seek the least expensive home in the best neighborhood they can afford. The goal in staging a home is to maximize space and provide a clean slate for prospective buyers to make the home their own. Cosmetic improvements such as paint, wallpaper, and landscaping, are good investments to make a home generally more appealing. Mechanical repairs done to ensure that all systems and appliances are in good working condition are required to get a top price. REALTORS®, who see numerous homes, can provide suggestions that are consistent with local market trends. Simple tips such as storing away family photos or personalized decor, maximizing counter space and clearing items away from windows can be done in just a few days. Home staging professionals can even be enlisted to help get creative with renovations and changes.
“We took our personal items, put them in storage and completely staged the house,” said Cindy Sauber, who sold her home in West Windsor. “If we were going to sell, we knew we had to follow certain rules,” she said.
Stimulate buyer curiosity with curb appeal. Putting work into the inside of a home is of no use if prospective buyers don’t want to enter it. Curb appeal is the first chance to make a good impression. Curb appeal sells 49 percent of all houses, whether you have a townhouse, condo or detached home, according to the National Association of REALTORS®. Replacing light fixtures, removing dead leaves and ensuring snow is shoveled neatly from walkways and driveways are easy tasks that help entice a buyer into the home during the winter months. If a seller is unsure of what buyers are looking for, asking friends and neighbors for a fresh perspective can help them evaluate what looks old or run-down. Owners can get a “big picture” view by taking a photo from across the street.
NJAR® is encouraging New Jersey residents to Get the REAL StorySM on real estate in New Jersey with a public education campaign that features an informational website and an advertising campaign that also features real stories from recent buyers and sellers. For more information on the campaign, or simply to Get the REAL StorySM on real estate in New Jersey, visit www.REALstoryNJ.com.
The New Jersey Association of REALTORS®, with approximately 53,000 REALTOR® and REALTOR-ASSOCIATE® members, is one of the largest trade organizations in the state. NJAR®’s membership is comprised of real estate professionals who subscribe to a strict code of ethics and are members of the national and local REALTOR® organizations. As the leading advocate for the real estate industry and private property rights in New Jersey, NJAR® is committed to protecting the dream of homeownership. For more information, please visit www.njar.com.
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Tags: buying a home, home marketing, home owners, home sellers, housing market, selling a home, staging
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