Jun. 11, 2009 - Good news on New Jersey foreclosures

A steep drop seen in May

The Star-Ledger reported yesterday that foreclosure action on homes in New Jersey dropped more than 40 percent in May versus the same period the year earlier.  "New Jersey continues to have proportionally fewer homes affected than the rest of the country. Hunterdon and Somerset counties proportionally had the least number of homes affected, while Union, Sussex, Essex and Atlantic counties saw the greatest proportion of homes with notices." 

Time will tell if this is a trend that will help to reduce housing inventory and stabilize pricing.  Read more.

Apr. 28, 2009 - 2nd mortgage borrowers to get help

US to pay off mortgage investors

Mortgage servicers that own a small stake in costly loans will receive a cash payment to either erase the debt or agree to accept a reduced return on their investment. 

Tuesday's announcement will build on President Barack Obama's housing rescue plan announced in February that aims to reduce the cost of homeownership for up to 9 million borrowers straining to make their monthly payments. (Read more)

Apr. 27, 2009 - Tour De Franklin a Success

Good weather brings out crowds

Tour De Frankin is an annual community event to raise funds for the Franklin Township Food Bank. The routes were designed for all levels of expertise and physical abilites.

Fore more information about the Franklin Township Food Bank and how to give click here

Apr. 15, 2009 - Is now a better time to buy a home?

78% of buyers say...Yes!

Potential first time home buyers surveyed in March, 2009 by Century 21 say that mortgages are now affordable by 72%.  According to the findings the features that first time buyers look for when choosing a home is price. It is the primary consideration with 87 percent saying this feature is "very important," followed closely by neighborhood safety (80 percent) and the condition of the home (71 percent).  Having enough money for a down payment is a top concern of potential first-time home buyers as nearly half (46 percent) said they are "very worried" about the issue. 

In addition to affordable home prices and mortgage rates, the survey also showed strong interest in taking advantage of the recent government stimulus. More than three-quarters (77 percent) of potential first-time home buyers say they are more likely to buy a home in the next six months because of the $8,000 first-time home buyer tax credit offered in the American Recovery and
Reinvestment Act of 2009.

Most respondents (86 percent) are in the market for single family homes. Tom Kunz, Century 21 President/CEO is interviewed on CNBC.

Apr. 1, 2009 - NJ forclosures 34th in nation

Foreclosure Rates drop in February

Some credit  for the drop in foreclosure rates is being given to Govenor Corzine's signing of the Mortgage Stabilization and Relief Act, in January.

Mar. 25, 2009 - Century 21 Moretti Realty comes to Franklin Township

Century 21 Moretti Realty and Century 21 Our Town Realty join forces

Earlier today the Century 21 offices of Moretti Realty and Our Town Realty joined forces for the purpose of expansion.  The new entity will be known as Century 21 Moretti Realty with office locations at 225 Maple Ave, South Plainfield and 852 Easton Ave, Somerset, New Jersey.

With combined sales of $135 million and 75 sales associates, the company will be among the top Century 21 companies in the State of New Jersey.  Century 21 Moretti will be servicing Middlesex, Somerset, Hunterdon, Union, Mercer and Monmouth counties.  Toni Moretti, co-owner, said "The cultures of both companies compliment one another while our combined strengths offer our customers more marketing resources."  

I couldn't agree more with Toni Moretti. Building upon the strengths of these two well established and respected companies will only serve to benefit our customers and clients.  I am excited by this announcement and by the new opportunities it will bring me to provide greater services to you.

Mar. 18, 2009 - Fed's actions may lower rates

Is it time to refinance?

Literally, time will tell.  Possibly as early as tomorrow mortgage rates may reflect the Federal Reserve's stunning plan to buy up to $300 billion of long-term government bonds and $750 billion in additional mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac. The national average rate on 30-year, fixed mortgages was 5.15% on Wednesday, according to financial publisher HSH Associates, up slightly from a day earlier. Rates could drop up to .50%.

Here are two ways refinance may benefit you:

As homeowner #1 - A long time home owner with a mortgage balance of $87,800 might save more than $26,800 in interest charges over the life of the loan by refinancing from 5.75% to 4.75% and reducing the loan from 30 years to 20 years.  In this scenario, the monthly payment would actually increase approximately $7.40 a month while paying 2 points at closing.    You would need to stay in your current home for at least 24 months in order to yield savings.  That's how long it will take for the monthly interest savings to offset the closing costs attributable to refinancing.

As homeowner #2 - Using the same basis numbers of a remaining $87,800 balance with a rate reduction of 5.75% to 4.75% and paying 2 points at closing but refinancing for 30 years the monthly savings would be approximately $102.  However, you would pay an additional $1,885 (approx.) in interest charges over the life of the mortgage.

Consult your financial or mortgage advisor to see how refinancing may benefit you.  Compare current refinancing rates with the HSH Showcase of Lenders

With Spring just days away, homeowners may begin thinking of home improvements. if you are thing of refinancing to extract home equity to improve your home's energy efficiency you might be eligible for up to a 30% tax credit.  For more information, visit EnergyStar.gov

Mar. 13, 2009 - Corzine Budget Hurts Property Owners

Save the Homeowners tax deduction  

Governor Jon Corzine, to a joint session of the New Jersey Legislature, announced plans to eliminate the ability for all non-senior households, regardless of income, to deduct property taxes from their state tax filings. 

At a time when the global economic crisis weighs heavy on the minds of Garden State residents, this proposal is counterproductive and will hinder recovery efforts.  The loss of the deduction will make it even more difficult for families struggling to afford to stay in their homes.

This is impotant for homeowners and future homeowners, alike.  Please join with me and let our state representatives know that this ill conceived plan is unacceptable.   

To learn more about this issue now, Click here to take action.  Please share this posting with neighbors, family, friends and co-workers. 

As the leading advocate for homeowners and the real estate industry in the state, the New Jersey Association of REALTORS (NJAR) is adamantly opposed to this proposal.   

Mar. 5, 2009 - What does Obama's housing plan mean for you?

Details released yesterday

Yesterday the Obama administration released more details of the American Recovery and Reinvestment Act of 2009 that features a maximum $8,000 tax credit for first-time buyers (only) who purchase a home on or after Jan. 1, 2009 and before Dec. 1, 2009.  A first-time buyer is defined under the tax credit as an individual who has not owned a home in the last three years.

Additionally, qualifying details were given for homeowners seeking to modify their mortgage terms or refinance to avoid foreclosure. 

The temporary credit is only available for home purchases made from January 1, 2009 to before December 1, 2009 and is equal to 10 percent of the cost of the home, up to a maximum credit of $8,000. (For example, a home purchased for $80,000 or more would qualify for the full $8,000 credit while a $70,000 home would only qualify for 10 percent or $7,000) 

Eligible properties include anything that will be used as a principal single-family residence including condos and townhouses.  Search for local homes.

Buyers may claim the credit on their federal tax return to reduce their tax liability. If the credit is more than their total tax liability that year, the buyer will get a refund check for the balance.

For married joint filers, both must meet the first-time homebuyer test to take the credit on a joint return.

There are income guidelines on the credit. Individuals with an adjusted gross income up to $75,000 (or $150,000 if filing jointly) are eligible for the full tax credit. The credit is phased down for those earning more and is not available for those with an income above $95,000 (or $170,000 if filing jointly).

The new tax credit does not have to be repaid if the buyer stays in the home at least three years. But if the home is sold before that, the entire amount of the credit is recaptured on the sale.

People who purchased homes under the 2008 $7,500 tax credit program will still be required to repay that credit to the government over a 15-year period.

 For current homeowners seeking help, here’s more of what you need to know.

Feb. 18, 2009 - The foreclosure super fix

Obama's $75 million plan to save the day

NYT- Seeking to stabilize the floundering housing market, President Obama is offering a plan to help as many as 9 million families refinance their mortgages or avoid foreclosure, according to a summary released by the White House Wednesday morning.

I must admit that I have reservations about the plan President Obama is reported to have in the effort to stem the tide of rising home foreclosures.  While I fully understand and agree that "something" must be done to normalize the struggleing housing market, in order for the overall economy to rebound, I think the proposed plan falls short.

Where the plan falls short is there is no mention of homeowners who are playing by the rules and are making regular payments regrdless of the interest rate, current home value and/or falling incomes.  Many families struggle, but stay above water and Obama's plan seems to make them invisible. Help is afforded to only those who follow the rules and are on the "verge" of defaulting under Obama's proposal

The President will release his plan, later today. In the meantime, here's what the media is reporting what we should expect. Where do you fit on the housing pyramid and what do you think of the plan?

Feb. 4, 2009 - US Senate doubles the pleasure

Home buyer tax credit passes

Earlier this evening, the U.S. Senate passed legislation that would double the current $7,500 tax credit to a maximum of $15,000 or 10% of the value for the purchase of a new or existing home.  Current law provides for a $7,500 tax break for the purchase of new homes only.

The proposal may be changed or even deleted as the stimulus measure makes its way through Congress over the next 10 days or so.

To read more, go to: http://tinyurl.com/atwnnf

Jan. 30, 2009 - Survey shows a jump in first-time buyers

Annual profile of NJ home buyers and sellers

It's that time again when the New Jersey Association of REALTORS^® releases findings from the previous year's profiles of buyers and sellers.  The data is gathered from a survey of recent home buyers and sellers conducted on NJAR^®'s behalf.

• The number of first-time buyers rose from 36% in 2007 to 49% in 2008.
• The majority of home buyers believed the purchase to be a better investment than stocks.
• Of recent buyers, 32% reported that their first step in the home-buying process was looking online for properties for sale.  The median age of home buyers was 36 years.
• 50% of home buyers used social media sites such as Facebook, MySpace and Linked.In 
• In 2008, 84% of home buyers used a real estate agent or broker to purchase their home, as compared to 76 percent in 2007.
• Sellers typically sold their homes for 96% of the listing price, while 33% of people did not reduce their asking price before their home was sold. 
• The typical home was on the market for 12 weeks.
• The median age of home sellers was 48 years.
• 42% of sellers traded up to a larger home when purchasing their next home.
• 88% of sellers used the services of a real estate professional to sell their home.
• Of all For sale by Owner sellers, 40% reported difficulties in selling their home.

To read the entire executive summary of the 2008 report click here

Jan. 29, 2009 - Straight talk about today's market

Five things you need to know

Those who follow me on twitter.com might already know that my previously planned posting for today somehow became lost in cyberspace.  Nevertheless, while reading some of my favorite real estate blog sites, I came across Jovan Hackley, of VARbuzz.com who asks the the very interesting question: What five things would you tell buyers/sellers about today's market? 

Jovan said to give it straight. So, minutes ago - straight as an arrow, I posted my response to the question, below. 
 

Real estate is local. The follwowing is for Franklin Township, NJ:

1. Sellers: According Garden State MLS, 602 local residential transactions took place in 2008.

2. Sellers: For 2008, the average days on market (DOM) was 84 at 96% of asking price for those that sold.

3. Sellers: If you are not doing all the right things to sell your home then you are helping to sell your competition s’. Homes are selling in Franklin Township.

4. Buyers: If your credit scores are at least 720, you have an adequate downpayment and can document all that is required; it can be a great time to buy.

5. Buyers: Your house is not a bank. Work the numbers. The longer you plan to live in your home with a fixed rate mortgage, the benefits of home ownership will be greater. Congress is proposing a true $7,500 tax credit for first time buyers.

Jan. 19, 2009 - Mortgage modifaction - what a mess!

Roadblocks and hurdles

In slightly more than 24 hours, we will enter into a new American era. President-elect Obama and the 111th Congress will begin the hard work in resolving the housing crisis.  Regardless of the plan, there will be roadblocks along the way.  MSNBC has provided an excellent report on why it is (and will continue to be) so hard to modify a mortgage.

At the heart of the problem is the fact that, "Most mortgages written during the peak of the lending bubble were bundled into pools of loans whose monthly payments are paid to the holders of a series of mortgage-backed bonds. The original lender no longer has an interest in the mortgage. " - from MSNBC

So, even if the servicing mortgage company agrees to modify the interest rate, it is much more difficult to get the outstanding loan amount also modified.  Don't attempt to accomplish this alone.  Many forclosures begin with the homeowner modifiying their mortgage.  You may be better served to seek legal council at the outset.  To learn more about the process and for the complete story visit MSNBC

Jan. 16, 2009 - Century21 leads the way online

Century 21 pulls money out of TV

Last week Tom Kunz, president and CEO of Century 21, in an interview with Welcomemat's Frogpond TV announced advertising dollars previously spent on television advertising will be shifted to strengthen its interactive online media presence in 2009.   "It is where consumers are really at." Kunz told Susie Hale during the interview.

As a Century 21 agent, I am especially excited about this announcement.  It is in-line with my professional agenda for 2009 to incorporate more innovative technologies; making your home buying and/or selling process less stressful for you.  So I invite you to continue to reading my post here and follow my "tweeps" at http://twitter.com/somerset08873

Jan. 6, 2009 - It's a new year, so now what?

Refining focus

As I write my first post of 2009, I am refocusing and refining my energies to what will be most effective in my business and for my clients and customers.  I plan to deliver more value to you by providing timely information that you can use. I will incorporate more innovative techonolgies; making your home buying or selling process less stressful for you.  

Looking back at 2008's local real estate market, here in Somerset, I must say the situation was tough for sellers and buyers.  Sellers who failed to adjust to current market conditions and demands had their homes languish.  Buyers with credit less than stellar had difficulty obtaining financing.

As tough as one might think it was for Franklin Township real estate it was not as bad as other locations around the country.  I will provide the usual stats in a separate posting. However, on average fifty to sixty local real estate transactions per month were conducted last year. So, if you were a seller without a buyer and your home is still on the market, it is time to refine your focus to what your competion did right.. Then refine your plan to emulate success.

For first time buyers, 2009 may present one of the greatest oppurtunities to obtain the American Dream.  Inventory remains high, prices have come down and mortgage rates are the lowest that they have been within the past five years.  Buyers who have eliminated bad debt, maintained good credit, are gainfully employed, have sufficient downpayment and can provide documentation to lenders may very well benefit the most this year.  

This year remains to be an excellent time to upgrade to larger home, particularly if you plan to reamin in the area.  What you will save on the larger purchase price will more than offset any loss that you might have on your current home.

Dec. 31, 2008 - A message to my readers

May the New Year

Bring

Peace, Health and Prosperity

But Most of All

May You Be Blessed

Happy New Year

Dec. 29, 2008 - Tenant's rights and foreclosures

It's the law

New Jersey Public Advocate, Ronald K. Chen, issued a stern warning to real estate licensees and attorneys that residential tenants in New Jersey cannot be evicted solely because the property where they live is in foreclosure or has been foreclosed.  

It was also said that the law demands when a bank or other lender forecloses on a residential property, it takes that property with the tenants still in it. When the property is resold to a new owner, that owner takes the property with its tenants.

Chen and Department of Banking and Insurance Commissioner, Steven M. Goldman, warned real estate licensees and attorneys involved in the process of evicting tenants from properties in foreclosure or foreclosed that they may be subject to disciplinary action affecting their professional licenses if they intentionally mislead tenants that they must move from their residence solely because the property is in foreclosure or is foreclosed. 

You can, however, be evicted for non-payment of rent.  If you, as a residential tenant are caught in a similar situation and are unsure where to send your payment, the Public Advocate's office suggests setting the money aside.  Pay the rent as soon as it is determined who should receive it.

If you have questions you may call the NJ Public Advocate at: 609-826-5070

View Rights of Tenants During Foreclosure Brochure

Dec. 23, 2008 - HUD program a failure

No Hope for the Hope Program

Critics have been saying that the Federal Housing Finance Agency program would not do enough to prevent "unnecessary foreclosures."  Although the Hope For Homeowners program was off to a sluggish start, Obama points out that making mortgage modifications will be necessary to stimulate this economy.  Incoming HUD secretary, Shaun Donovan, will have his hands full. According to the FHA Mortgage Guide, not one homeowner has been helped, to date. 

Fingers are being pointed between Congress and the White House.  Secretary of Housing and Urban Development Steve Preston said the centerpiece of the federal government's effort to help struggling homeowners has been a failure and he's blaming Congress. For the full story, see HUD Chief Calls Aid on Mortgages A Failure

Dec. 14, 2008 - This Bank Can't Fail

We are Blogging out Hunger in New Jersey

We've heard all about failed financial banks such as: Washington Mutual, Ameribank, IndyMac Bank.  But....

Did you know that this past September our local food bank served 64% more clients than the same month last year?   Did you know this year more than 320 new families asked and received help from the Franklin Township Food bank?

Right now, the Community Food Bank of New Jersey needs our help.  Join Bruce Springstein to help ensure, This Bank Can’t Fail.

To learn more of how you can help in Middlesex County click Here

Contact the Franklin Township Food Bank through this link or call 732-246-0009 

There are large food barrels at the following Franklin Township locations wher non-perishable food staple donations can be left for our volunteers or staff to pick-up 

• Franklin Township Public Library
• Community Senior Center (in the Municipal Complex on DeMott Lane)
• Stop and Shop, Rutgers Plaza Easton Avenue, Somerset, NJ
• Shop-Rite, Elizabeth Avenue, Somerset, NJ 

Follow the link to see the participating Bloggers in today's Jersey Bites Campaign.