Summit, NJ

You may have seen the headlines last week about the Federal Reserve continuing its policy of keeping interest rates low to stimulate the economy. But you might have missed a major byproduct of that move that's certain to have a direct impact on home real estate: Thirty-year fixed mortgage rates slipped below the five percent mark for the first time in nearly half a year, dipping to 4.9 percent.

	New Jersey Estates/ Real Estate Group Paul Stillwaggon September 2009 LINKING THE LATEST TECHNOLOGY TO OLD FASHIONED SERVICE Copyright © 2009 Realty Times All Rights Reserved.

Fifteen year fixed rates are just 4.4 percent.

Now, there's nothing more stimulating for home buyers than mortgage money at rates that are about as low as they go. And sure enough, applications for new mortgages jumped by nearly 6 percent last week, according to the Mortgage Bankers Association.

Applications to buy homes using FHA financing soared to the highest share in the history of the Mortgage Bankers' index - which goes back to 1990.

Meanwhile, existing home sale closings took a breather from the rapid increases of the past several months, according to the National Association of Realtors. Sales in August declined by 2.7 percent, but remained 3.4 percent higher than they were in August of 2008, said Lawrence Yun, chief economist for the Realtors.

He attributed the slightly lower rate of closed sales in part to clogs in the system -- more contracts being written, but longer wait times to go to closing, leading to a higher rate of fallouts.

In other key developments:

The index of leading economic indicators, which is produced by the Conference Board and forecasts economic activity three to six months down the road, was up again last month -- by six tenths of a percent.

That was the fifth straight month of higher readings for the index, and would have been higher had unemployment not held it back, according to analysts.

Home prices continued their slow gains, according to the Federal Housing Finance Agency. Its home price index, which is based on Fannie Mae and Freddie Mac transactions, found prices up by three tenths of a point nationwide in the latest survey month.

That coincides with most private price indexes, which have found that we're past bottom and headed back up in most parts of the country.

Finally, the private mortgage insurance industry, which virtually eliminated low-downpayment financing opportunities in many markets during the past year by declaring them "declining" or "distressed," has begun reversing course.

Genworth Mortgage Insurance Company last week removed 63 of its 68 previous designations of "declining markets." That should open up non-FHA cash-out refinancings and low-downpayment home purchase mortgages to thousands of people who'd been squeezed out under the old rules.


Written by Kenneth R. Harney
September 29, 2009

New Jersey Estates
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Luxury is relative, not absolute, so your point of view on the subject really matters. In the midst of these stressful times, the need to rejuvenate and refresh your thinking has never been greater. This "mental space" is not a luxury, but a necessity.

	New Jersey Estates/ Real Estate Group Paul Stillwaggon September 2009 LINKING THE LATEST TECHNOLOGY TO OLD FASHIONED SERVICE Copyright © 2009 Realty Times All Rights Reserved

When and where do you give yourself time to listen to nothing and to think about what drifts into your over-stimulated mind? Luxury, and its adjective form luxurious, are overused, often poorly-applied words in marketing. The concept at the root of them is something that few people really stop and think about. Do you know what luxury really means to you? Rarity, cost, quality and craftsmanship are integral elements of generic luxury. Salesmanship reveals the value of luxury in real estate and design to targeted consumers. But luxurious materials or craftsmanship do not always create true luxury. For instance, a cleverly-created floor of rare marble is not automatically a luxury. If it lies in an entrance way where it frequently becomes wet with tracked-in rain, and therefore as slippery as a sheet of ice, it is definitely a liability. Museums often house items of luxury as do money's-no-object homes and the businesses that cater to these owners, but luxury is not always material nor is it the sole domain of the extremely wealthy. Life without at least occasional luxury is hard. Increasingly, as maturity naturally shifts personal value from the acquisition of "you can't take it with you" material objects and toward character-building, value-reaffirming experiences, boomers and their multi-generational families will chase luxury differently and in different places ... but that's a discussion for another time. Here, we explore Decisions & Communities, so this perspective on luxury has a pre-defined context. You can apply the ideas to your personal life and if, your work requires you to view the world from your clients' perspective, through theirs as well. When it come to real estate, luxury is not just the high-end finishes and materials described in marketing. Deciding what is an important luxury to you is essential to determining value, especially in discretional spending, whether that's for interior design features or when shopping for recreational property. For instance, if you live a fast-paced, noisy life, driven by responsibilities and the wishes of others to plan every moment of every day, then calm, unstructured time, filled by your impulses and your reactions to interests and adventures is a luxury. This could be as delicious as time to sit and read in the midst of a striking natural setting or as simple as resort living that offers everything with flair, including the time and space to do nothing. As research for my next book, I visited Poets Cove on Pender Island, British Columbia (BC) to explore their fractional offering, While there, I was struck by how a physical setting and the time to enjoy it has become a luxury in today's frantic world. It also became clear that, tainted by recessional thinking, we may ignore the replenishing power of a mental holiday as a starting point for turning this "lemon" economy into something decidedly palatable. Yes, they tell us the recession is over, but what will shift your thinking into a creative forward mode? To take a break, seek out a definite change from the familiar. For instance, a 40 minute ferry ride from the BC Ferry Terminal at Swartz Bay on Vancouver Island and you're on North Pender Island, which is joined to South Pender Island by a short, picturesque, one-lane bridge. The winding road to Poets Cove Resort & Spa takes you through towering forests and past one-of-a-kind waterfront recreational homes, rugged rocky shorelines and pastoral farm fields until at the last curve the view opens up to reveal colourful arts and crafts buildings on the hillside sloping down to the inlet of Bedwell Harbour. Build in 2004 by Alberta developers intent on bringing up-scale fractional ownership to the Southern Gulf Islands, Poets Cove remains Pender Island's stunning surprise. It skillfully blends high-comfort design with BC-style outdoor living. Boaters and sailors seek out this spot, as do those who chose to fly from Victoria, Vancouver or near-by American cities. On trend with eco-sports and back-to-nature pastimes like hiking Mount Norman or kayaking in Beaumont Marine Park, will keep you busy, but this is also a great place to do nothing. The busy marina is a pleasure to watch even if you prefer land sports. Both outside pools offer terrific views and great contemplative lounging if you want a change of pace from the patio off your lodge suite, villa or private cabin. Yes, there's wireless, but if you can bring yourself to disconnect, this is a great place to unplug your brain. What local spot came to mind when you read that description? Mental time out is both restorative and energizing. If you don't have your own Poets Cove to visit, where and when do you turn it all off? "There's nothing to do," should be your goal. Not because there aren't activities galore and distractions to explore, but because you've actually decided to stop working, texting, tweeting and acting like the world can't get on without your input for a few days. So the goal is to do little but rest and luxuriate-everything that this means to you. Perhaps you're fortunate enough to have a home or cabin that affords this "mental space" if you'd just unplug and take advantage of it for a few hours or a few days. You may have a favourite park or inn that is your escape from the high tension world. Check out rates and specials. Most businesses are making it easy for us to say yes to a visit. If you would like to buy a haven, why not explore the fractional and recreational offerings in your chosen area for a value equation that makes sense to you? Those considering a move to a condominium or lifestyle complex may discover that a guest suite is available at a very reasonable rate, so they can experience the community first hand. Sometimes telling everyone you're going away for a few days, then staying home and unconnecting can be that luxury mental break. When's the last time you visited your favourite place to think? Written by PJ Wade September 22, 2009 New Jersey Estates Real Estate Groups Web Site www.NewJerseyEstates.Net Unique Visitors August 2009 14,460 Visitors July 2009 18,268 Visitors June 2009 16,365 Visitors -- Contact Us - Back -

Paul Stillwaggon, For All Your Real Estate Needs Contact: NJ Estates Real Estate Group E-mail: njestates@gmail.com Web: http://www.newjerseyestates.net 908-561-5492 (Paul S) 908-310-1358 (Cell) NJ Estates Real Estate Group Weichert Realtors 908-561-5492 55 Stirling Road, Watchung, N.J. 07069 Equal Housing Opportunity

The current economic climate has dramatically changed the real estate landscape. Locally, in the Portland/Vancouver metro area in the 12 months ending May 31, 2008, only 2% of the homes sold were Bank Owned or Short Sale properties. In the 12 months ending May 31, 2009, it was 11%. Today, 16% of the properties on the market for sale fall into these categories. In some markets around the country these statistics and trends are even more staggering.

New Jersey Estates/ Weichert Realtors Paul Stillwaggon & Pat Cornish

August 2009 LINKING THE LATEST TECHNOLOGY TO OLD FASHIONED SERVICE

Copyright © 2009 Realty Times All Rights Reserved

With this market shift comes new challenges for buyers, sellers, brokers and lenders. There also seems to be a lot of confusion when it comes to the differences between a Bank Owned asset (REO) and a Short-sale, who the parties are, paperwork, how to structure a winning deal and expectations of buyers, sellers, brokers and lenders. What follows is an overview that may help reduce this confusion.

Bank Owned Properties:

Ownership: Typically a local bank or a national servicer. With the assistance of brokers, all negotiations are basically made between a Buyer and an employee of the bank/servicer (as opposed to an owner/seller).

Paperwork/Rules for Offer Submission: Standard purchase and sale agreements are used as well as the banks' own addendums and disclosures. Offers must be complete and filled out in accordance with the banks' rules. Many brokers representing buyers resent or resist following these rules and submit offers that are not in compliance. These offers are either delayed until corrected or rejected by the bank regardless of the price being offered. Any delay on a desirable property severely limits your chances of getting your offer accepted.

Formulation of an Offer: Before a Bank forecloses they have one or more brokers provide an opinion of value. Then at the time of foreclosure/listing they have the listing broker determine if that value is still valid. Most of the time the Bank is pricing near market and is expecting to transact the property close to the asking price. If you feel the asking price is well over market it is best to perform your own market analysis (something your broker can do) and provide that information to the listing broker along with the offer. Stories, letters, opinions etc that are not supported by facts are of no value and cannot be used by the listing agent to help your offer. Many times the listing agent is working within a system where all they do is go online and fill in a few boxes - price, loan type, down payment, close date, indicate if the earnest money is in cashier form or not and if there is a preapproval. The lender never has the opportunity to see additional paperwork nor do they care. But if the market analysis is done well, the listing broker might be able to use that to justify a lower price thereby making your offer acceptable.

Repairs: The Bank prefers not to make repairs so an "as-is" sale is best. If a few repairs need to be made to facilitate FHA or Conventional financing the Bank might be willing to accommodate that so it is certainly ok to ask for. It's best for supporting bids for the repairs to accompany the offer so the Bank knows the buyer is not just making numbers up. Often times the house will be a fixer or in a condition such that traditional lenders will not lend on the property. In those cases, an all cash offer or possibly a construction loan are necessary to get the deal done. Submitting an offer using an FHA loan in a case where all cash is necessary only creates frustration for all parties involved and will turn out to be a waste of everyone's time. So be realistic.

Earnest Money: It will need to be in the form of a cashier's check (not a note). Proof of funds for the down payment and loan approval for the balance will also need to accompany the offer.

Closing Date: As for closing, keep the date as tight as possible. Fewer days on the market mean lower holding costs for the Bank which works to your favor. Many institutions are beginning to have penalties for closings that run beyond some date so make sure your lender can perform in that time frame. If there is any doubt you either need a different lender or need to have the lender agree to cover those late fees if they don't perform timely.

Response and Timing: Once a buyer's broker has submitted all the appropriate paperwork in accordance with the bank's rules you may receive an answer within hours or it may take up to a week. In all cases, the listing broker does not have any control over the response time no matter what timeframe you put in the offer for acceptance. The best approach is to ask the listing broker for an approximate length of time needed for response and use that in your offer. If the offer is for far less then the asking price do not be surprised if the response is an outright rejection. Banks are trying to maximize their returns and are not looking to give properties away. They are also usually unwilling to go through multiple counter offers and if they feel the potential buyer is trying to "steal" the deal they will not try to negotiate. If the offer is a solid offer (close to asking, few contingencies) it may get accepted without a counter.

Key point for Bank Owned REO: In Oregon, Banks do not give properties away.

Short-Sales:

Ownership: Legally the property is owned by a person or entity (LLC) and the house could be occupied by an owner or tenant or it could be vacant. However, the owner is in a negative equity situation (the sales price less closing costs is less than the debt on the property) and needs lender approval to affect the sale.

Paperwork / Rules for Offer Submission: A standard purchase and sale agreement is used along with an addendum acknowledging the fact that this is a short-sale transaction.

Formulation of an Offer: As opposed to a Bank owned REO the listing price for the property may be well above market, well below market or at market. The seller might be pricing it low to encourage multiple offers, might have it high to try to recoup as much money as possible or it might be priced correctly. In most cases the lender has not approved a sale at the list price so a Buyer doesn't know if his offer even at list price will be accepted. To help support an offer the prospective buyer is encouraged to perform their own market analysis and make an offer close to that. Submission of the market analysis to the listing broker at the time of offer may also be beneficial.

Repairs: While it might be nice to have repairs made, the seller certainly doesn't have the resources to make them and the lender is very unlikely to do so since they don't own the property. So an "as-is" sale is the best and most likely to be successful. This makes trying to buy a short-sale property that needs repairs using conventional or FHA financing challenging at best and an exercise in futility at worst. This also contributes to the low success rate of completing a short-sale transaction.

Earnest Money: This should be in the form of a note that is converted to cash (check to Escrow) after acceptance or even after removal of the inspection contingency. A Buyer can be flexible with this unlike a Bank REO situation. The Buyer should also supply proof of funds for down payment and pre-approval from the lender for any new loan to make your offer stronger.

Closing Date: Closing can occur within 30 days but the 30 day clock will not start until the lender gives their approval - see below.

Response and Timing: Initially this type of offer is handled like it would in a non-short-sale situation. The listing broker will present it to the seller but once they approve it, it will be forwarded on to the lender for their approval. At that point the listing broker has no control over the process and is in a wait and see mode like the Buyer. This approval process may take one week or it may take up to three months. One thing to keep in mind is that while all parties are waiting for an approval of the offer another department of the lender/bank is working on the foreclosure and may actually foreclose on the property with offers in for approval. If that happens, the deal is dead and the listing terminated as the former seller is no longer the owner of the property and does not have authority to sell. If that happens and the Buyer is still interested in purchasing the property work with your broker to follow-up on the property as it will come back to market with a different listing broker and usually a different listing price.

Short-Sale Negotiators: In addition to brokers, a short-sale negotiator may be involved who attempts to negotiate with lenders on behalf of the buyer and seller. By having experience working with lenders the hope is that they will be more successful than the inexperienced seller going it alone. It has proven to be somewhat effective but there is also a fee involved. It is a contingent fee that typically runs in the $2,000-$5,000 range and it is expected that the buyer pays this fee if they are successful. If the seller is using a negotiator it should be disclosed in the listing description so if you don't see it, ask the question to avoid a surprise down the road.

Key point for Short-Sale Transactions: Have Patience; good things may come to those who wait.

This overview is just that, an overview. It is not intended to make you an expert in the field of working with Bank Owned REO and Short-sale properties. This is something skilled brokers at Bluestone & Hockley are here to do for you. We also have a property management group that would be happy to manage your new single family investment making this the perfect time to start or add to your real estate investment portfolio.

About the Author: Marvin Kau is a licensed broker in both Oregon and Washington and has over 20 years experience as an investor and broker in the Portland Metro area. Marvin holds a Bachelor of Science Degree in Accounting from Portland State University and has worked in a financial capacity for a number of Fortune 500 companies including a national real estate developer. Marvin also serves on the Board of Reach CDC, a non-profit provider of affordable housing in the Portland area.


Written by Marvin Kau
August 6, 2009

www.NewJerseyEstates.Net
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July 2009 18,268 Visitors
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Internal Revenue Code changes have averaged one--per--day over the past eight years ---- with 500 revisions in 2008 alone. Who's counting?

	New Jersey Estates/ Weichert Realtors Paul Stillwaggon & Pat Cornish July 2009 LINKING THE LATEST TECHNOLOGY TO OLD FASHIONED SERVICE Copyright © 2009 Realty Times All Rights Reserved.

Nina Olson, the National Taxpayer Advocate, announced the statistics in her annual report to Congress. An independent organization within the IRS, the Taxpayer Advocate Service helps taxpayers resolve complaints with the agency when problems cannot be resolved through normal channels.

Will Advocate Olson's reports convince our lawmakers to draw back from their drawing board? Not during these troubled times. Expect them to enact even more alterations to an already confusing code in the immediate future.

How do individuals who need to focus on tax planning all year long keep on top of all those major and minor modifications? Most decide to become clients of tax professionals -- advice -- givers adept at assuaging affluent angst and able to avoid pitfalls adroitly while capitalizing on opportunities to diminish, delay or deep--six amounts that otherwise would swell IRS coffers. And that kind of advice does not come cheap. In locales like my neck of the woods near New York City, such clients should expect to pay hourly fees of several hundred dollars and up for guidance.

Help is available from lawyers, CPAs, financial planners, or Enrolled Agents -- persons licensed to practice before the IRS, who are neither attorneys nor CPAs, but who are former IRS employees or have passed rigorous tax examinations administered by the IRS.

Fortunately, pricey professionals are not the only source of succor for Americans apprehensive about their financial futures and their retirement prospects. There are alternatives that are easier on the pocket. One option is to sign up at places like high schools and community colleges for inexpensive adult education courses on various aspects of personal finance -- for instance, tactics that trim taxes or methods for investment selection.

But people who need financial advice should be wary of free lunch seminars that are actually showcases for hucksters. Seminar sponsors usually promote their programs as educational events, with free meals thrown in. But the seminars generally feature hard -- sell pitches for substandard investments designed to enrich the sponsors -- many may be Uncle Bernie wannabes -- and impoverish investors, especially unwitting seniors.

It is also possible to obtain advice at no cost from knowledgeable, disinterested professionals. This resource is available to an ever--increasing number of individuals who belong to affinity groups or work for companies that offer such advice. Individuals eligible for assistance can call centers staffed primarily by financial planners who offer advice only -- untainted by compensation linked to commissions on product sales.

But what is available for people in need of instant advice who are without access to call--in centers? Thanks to technology, there are person-to-person Internet advice sites that let them talk to experts on topics like taxes and investing. It is important to note, however, that these sites do not vouch for the accuracy of their experts' advice.

A major purveyor of telephone counseling and hand--holding is Keen -- a company that describes itself as "Your Personal Advisor," offering live, immediate advice for everyday life. In the interests of full disclosure, I was among the first dispensers of tax advice recruited by Keen, when it debuted in 2000.

Keen's specialists cover a broad range of financial topics -- anything from tax -- efficient maneuvers that callers can implement themselves, to new theories to test out on real -- world advisers, to portfolio diversification strategies.

Keen allows callers to check out advisors' backgrounds and their ratings by previous customers. Another confidence booster is that Keen makes the call to both parties -- ensuring that its online oracles are clueless about callers' names, phone numbers and other personal information, unless the callers choose to divulge such details.

What does a service like this cost, and how does one pay? As with most Internet sites, Keen accepts credit cards and bills per--minute, but frequently discounts fees for first--timers. There is no minimum fee commitment and callers decide when to conclude the conversations, so they are in control at all times. The result is helpful advice at far less than the cost of in--person sessions.

That noted, Keen is not ideal in all situations. At least some of its mavens will lack your mom's smarts and accessibility, and none can compete with her, whose 24/7/365 counsel comes at no cost at all! Still, Keen is particularly well suited for several common situations. Its advisors can provide inexpensive reassurance when taxpayers want to verify that information received from their advisors or the IRS is correct or when their returns are being audited.

Keen is particularly useful during tax filing season when other advice lines may be overloaded. According to the Government Accountability Office (GAO), taxpayers trying to dial into the IRS telephone assistance system for comparable help may be stymied by busy signals or put on "hold" only to endure lengthy waits. But Keen's advisors offer prompt answers.

Throw in another plus for last--minute filers choosing Keen over the IRS: They improve their chances for obtaining advice on circumventing stiff, nondeductible penalties for late filing (as much as 25 percent of the balance due on a return submitted after the due date) and late payment. The IRS charges interest on penalties and back taxes. Whereas taxpayers can count on Keen's availability on April 15, that is the day when "abandoned calls" -- the GAO's term for calls to IRS telephones that go unanswered -- surge. And, in case you forgot, that is also the day the Titanic sank.

To contact Keen, go to www.keen.com, or call 1-800-ASK-KEEN (275--5336). If you log on to the Web site and browse its directory of tax advisers, you can select one by clicking on a "Call Now" icon. Or you can follow the voice prompts in the case of the 800--number.

That may be all it takes to speak with someone who can staunch the hemorrhaging to the IRS.

Julian Block is an attorney and author based in Larchmont, N.Y. He has been cited as "a leading tax professional" (New York Times), "an accomplished writer on taxes" (Wall Street Journal) and "an authority on tax planning" (Financial Planning Magazine). For information about his books, visit julianblocktaxexpert.com.


Written by Julian Block
July 16, 2009

www.NewJerseyEstates.Net
Up 6000 Unique Visitors
June 2009 over May 2009 -- Contact Us

For further information Phone: Paul Stillwaggon (908) 561-5492 Cell: (908) 310-1358 Pat Cornish (908) 561-6499 Cell: (908) 578-0890

You can Email us at: njestates@gmail.com We are located at: 55 Stirling Road, Watchung, NJ 07069

COMPLETE INFO UPDATED WEEKLY

Current Listings Info
Luxury New Homes
Custom Build A New Home
Land & Building Lots
New Jersey Estates
All New Jersey Homes
Real Estate Listings Blogs
Real Estate Info Blogs
Open Houses & Directions
Our Testimonial Letters
Going Green/ Complete Info