Monday, January 31, 2011

Curbing Closing Costs

The New York Times’ Lynnley Browning addresses the expenses of closing title.
“BORROWERS have some weapons for keeping closing costs down, the result of recent guidelines requiring lenders to disclose certain fees, but perhaps the most underutilized consumer tool simply involves old-fashioned haggling.”
“Good-faith estimate rules, part of a tougher Truth in Lending Act that emerged from the mortgage crisis, mean that lenders must provide a clear picture of the costs involved in buying or refinancing a home. Yet consumers may not realize that some of those numbers are actually negotiable, mortgage experts say.”
“Closing costs can run a borrower 3 to 6 percent of the price of a property, according to the Federal Reserve. In 2010, the average cost for a $200,000 purchase rose by nearly 37 percent, to $3,741, according to Bankrate.com, a financial data publisher; the average in New York State was $5,623.”
The pitfall in closing is that
“Most borrowers pay less attention to closing costs, focusing instead on the interest rate offered by a lender. But because many of the fees associated with closing are not set in stone, mortgage experts say, consumers should review the line-by-line estimates with a view toward challenging them. Lenders are required to outline all the estimated closing costs within three days of receiving a loan application.”
As with many things in life, shop around. But perhaps the most important rule is to ask questions. That's what we're here for.

Read the full article.


For your next title order or
if you have questions about what you see here, contact
Stephen M. Flatow, Esq.
Stephen's Title Agency, LLC
165 Passaic Avenue, Suite 101
Fairfield, NJ 07004
Tel 973-227-4724 - Fax 973-556-1628
E-mail Stephenstitle AT comcast.net - www.stephenstitle.com

Saturday, January 15, 2011

Guidelines for condos could slow market

While it may seem simple to buy a condominium unit, government guidelines are actually making it harder to get mortgage financing reports the New York Times.
Stricter guidelines that govern which buildings are approved for conventional mortgages — rolled out by three government agencies in stages since December 2008 — are locking out thousands of buildings nationwide. States like Florida and Arizona are especially hard hit; mortgage brokers say that some buildings in the New York area have also been affected.
The guidelines and approvals come from Fannie Mae, the buyer of home mortgages; Freddie Mac, its smaller competitor; and the Federal Housing Administration, which insures loans. The rules were meant to help strengthen their balance sheets as they faced a surge of loan defaults in the condo market.
Condominium associations are being called upon more frequently to open their books to Fannie Mae, Freddie Mac and the FHA. 

For instance:
Condo associations are required to set aside 10 percent of their budgets for maintenance and “reserves”; and new developments are ineligible for Fannie-backed financing unless 70 percent of their units have sold or are under contract (the threshold used to be 51 percent). Freddie Mac adopted similar guidelines last year.
 Waivers are available but none are sure things.  Fannie Mae does have a website that lists approvals as does FHA.

Read the full report, Stricter Lending Guidelines for Condos

For your next title order or
if you have questions about what you see here, contact
Stephen M. Flatow, Esq.
Stephen's Title Agency, LLC
165 Passaic Avenue, Suite 101
Fairfield, NJ 07004
Tel 973-227-4724 - Fax 973-556-1628
E-mail Stephenstitle AT comcast.net - www.stephenstitle.com

Monday, January 10, 2011

Court Voids Foreclosures by U.S. Bancorp and Wells Fargo

The New York Times reports on a Massachusetts court voiding foreclosure actions because of irregularities.

The name of the game is to balance the rights of the lender with those of the defaulting homeowner.

See how this one plays out: Court Voids Foreclosures by U.S. Bancorp and Wells Fargo

For your next title order or
if you have questions about what you see here
contact
Stephen M. Flatow
Stephen's Title Agency, LLC
165 Passaic Avenue, Suite 101
Fairfield, NJ 07004
973-227-4724 * 973-556-1628 Fax
stephen AT stephenstitle.com

Tuesday, January 4, 2011

157 bank failures in 2010

Deposits.com reports on bank closures for 2010.
This year ended with 157 bank closures which was 17 more than failed last year. The number bank failures grew considerably when the financial crisis began in 2008. The number of failures went from 3 in 2007 to 25 in 2008. It's hard for me to remember the days before 2008 when bank failures were rare.

Depositors with large savings have a little less to worry about in terms of bank failures. The FDIC $250K coverage limit became permanent when the Dodd-Frank Wall Street Reform and Consumer Protection Act became law in July. This same coverage limit also applies to NCUA-insured credit unions.

The higher coverage limit was nice, but it didn't make a difference for the vast majority of bank failures this year. In these cases the FDIC was able to find buyers for the failed banks that assumed all regular deposits.
So, what's the impact on consumer depositors?
The main issue for depositors when banks fail is the loss of the high interest rate on their existing CDs. By law the acquiring banks are allowed to lower the interest rates on existing CDs. Many of the acquiring banks did make use of this allowance. The depositors are free to close the CDs without a penalty, but in today's interest rate environment, it's impossible to replace those CDs with new ones with the same high rates.
Here's to a better 2011! Read the full report, Review of the 2010 Bank Failures and Their Effects on Depositors

div align="center">For your next title order or
if you have questions about what you see here, contact
Stephen M. Flatow, Esq.
Stephen's Title Agency, LLC
165 Passaic Avenue, Suite 101
Fairfield, NJ 07004
Tel 973-227-4724 - Fax 973-556-1628
E-mail Stephen@stephenstitle.com - www.stephenstitle.com

Monday, January 3, 2011

Homeowners overlook the powder room

Want to make an impression on your guests or that homebuyer? The powder room is a place not to overlook.


“Averaging just 4 feet by 5 feet, the first-floor powder room normally is the home's smallest room.

“Yet it's much used and often treated as an afterthought during remodeling, or overlooked altogether.”

Here are some of the things you can do to maximize this minimal room:

Take advantage of wall space; upgrade the medicine cabinet; select a comfort-height toilet; furnish the room, and splurge on a granite or marble countertop.

Read more here.


For your next title order or
if you have questions about what you see here, contact
Stephen M. Flatow, Esq.
Stephen's Title Agency, LLC
165 Passaic Avenue, Suite 101
Fairfield, NJ 07004
973-227-4724
Stephenstitle AT comcast.net