What happens when a new bank takes over

The FDIC closes a bank, offers that bank for sale, finds a buyer and agrees to cover some of the losses that the buyer incurs. That's how it works when your bank goes under.

But, what happens after you become a loan customer of the new bank? Is it all peaches and cream? Not necessarily so.

According to a report on CharlotteObserver.com, banks often put roadblocks in front of their borrowers and either hound them to pay off  their loans or face foreclosure.  One borrower wouldn't roll over and took the bank to court.  It WON!

Read the full story 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
dba Vested Land Services LLC

165 Passaic Avenue, Suite 101

Fairfield, NJ 07004

Tel 973-808-6130 - Fax 973-227-0645

E-mail Stephen AT vested.com

Hurricane Sandy makes you think about waterfront living

Two stories in the 11/4/12 edition of the New York Times talk about the weather and its impact on living on the water.

My opinion boils down to this – build on the waterfront, be it ocean, lake, bay, lagoon or river, the Federal and state governments no longer step in to help you rebuild.

IF tropical storm Irene last year was an eye-opener, was a reality check. Waterfront property in the New York area is some of the most coveted in the nation, but after back-to-back years of supposedly once-in-a-generation storms, public officials, developers, brokers and homeowners are being forced to re-evaluate.

Read the full story.

Real Luxury: A Way Out The damage caused by Hurricane Sandy speaks to something so obvious it is often overlooked: New York City shores are not fit for living.

Read the full story 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

Tel 973-227-4724 - Fax 973-556-1628

E-mail Stephenstitle AT comcast.net - www.stephenstitle.com

Big jump in VA mortgages reported

refinance, mortgages, reverse mortgages, closing, settlement,
Applications for VA mortgages jumped 50% according to a story in the New York Times.

MORTGAGES guaranteed by the Department of Veterans Affairs surged by 50 percent in the fiscal year ended Sept. 30, as tighter credit standards on conventional financing made these programs all the more attractive to current and former military members.

VA mortgages are available to former and current members of the military. My parents obtained one when they bought their home in 1960. The attractiveness of the VA loan program is due to low rates guaranteed by the US government. Borrowers also benefit now that rates have dropped.

Borrowers who already have a V.A.-backed mortgage can get an interest-rate reduction relatively easily. The department’s streamlined refinance program doesn’t require these borrowers to “re-prove” that they qualify, said Nathan Long, the chief executive of Veterans United Home Loans, an online broker of V.A. loans. Information about VA loans is readily available on the Internet.

 Read the full story 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

Tel 973-227-4724 - Fax 973-556-1628

E-mail Stephenstitle AT comcast.net - www.stephenstitle.com

Closing fees high, don't blame the title agent

Vested Land Services title agent title insurance refinance new jersey
Closing fees are a component of the home purchase or refinance.  This article from the New York Times is a tad misleading about these costs and where the blame, if that's the right word, lies.

 FOR some people, a major hurdle to homeownership is the closing costs that come on top of the required down payment. There are fees for everything from title searches to deed recordings, and if you happen to be buying in New York or New Jersey, you’ll find some of the highest costs in the country.

But these fees have been easing, according to a report released last week by Bankrate.com, which found that average closing costs, including mortgage origination fees, fell 7 percent nationwide from 2011 to 2012. In New York they fell 12 percent.

OK, so where do these high fees come from?  Not from third party suppliers such as title agencies, but from lenders and government officials.

Yet, the article continues,

Title insurance is the biggest cost, averaging around 1 percent of the loan balance. Mr. McBride suggested that borrowers shop around, eliciting good-faith estimates from a number of lenders.

Poppycock.  Rates in New Jersey are regulated as they are in New York and costs will be identical from title agent to title agent.  Companies such as ours survive based on the level of service we provide our clients to get buyers and borrowers to the closing table as safely and expeditiously as possible.  (Unless your title agent is owned by a bank or controlled by a real estate agency whose goal is to get you to the table no matter what.)

But the buyer/borrower cannot escape government charges.  The county recording fee for an average mortgage in New Jersey is $240!  And, in New York, you must add government mortgage taxes that add thousands to the cost of a home or mortgage.

The only place where the buyer/borrower can maneuver is with the lender.  There are three words to remember when applying for a loan, shop, shop and shop for the mortgage and if the loan officer cannot explain something to your satisfaction, run for the hills.

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

Flood insurance - a good investment in your home

Terry Sheridan of Bankrate.com has a timely article on flood insurance and the need for this particular type of insurance. As Sheridan says, "You probably need it." refinance mortgage closings

Highlights FEMA says flooding is the most common and costly type of disaster in the U.S. There's a lag time, so you can't wait until water is rising to buy flood insurance. A flood policy in a high-risk area can cost thousands of dollars a year.

Flooding is the most common and costly natural disaster in the U.S., according to the Federal Emergency Management Agency, or FEMA. FEMA administers the National Flood Insurance Program, or NFIP, the primary source of coverage for homeowners and renters. Congress recently agreed to a five-year extension of the program, which insures 5.6 million property owners.

This have you scared? Don't be, flood insurance is relatively inexpensive when you consider the coverage it provides. For more information about the need for flood insurance and costs involved, 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

Time to tap your home’s equity? Banks are making it easier.

The New York Times’ Vickie Elmer writes about good news for potential home equity borrowers.
mortgage refinance title insurance closing heloc
Seems that the Office of the Comptroller of the Currency “noted that one in five lenders nationwide loosened up underwriting standards on home equity loans, while another 68 percent kept them unchanged from a year ago.” That’s a big improvement over 2009.

“Lenders also have been lowering the credit scores and equity levels needed to qualify, industry experts say. “You may not need to have as much equity as lenders may have demanded two years ago, when housing prices were going to fall,” said Keith Leggett, a senior economist at the American Bankers Association. This is especially true, he said, in areas where home prices are appreciating.”

Advice for tapping your home’s equity-

“Borrowers must decide whether they want a traditional home equity loan, sometimes called a second mortgage, which has a fixed interest rate and fixed payments, or a home equity line of credit, known by its acronym, Heloc. A line of credit usually has a variable rate and can be drawn down incrementally. The variable-rate Heloc is one and a half percentage points lower than the fixed-rate home equity loan, which in turn is around three percentage points above the average 30-year fixed-rate conventional mortgage.”

Once you are approved for a home equity loan, you will have to select a title agency to close your loan. For my two cents, avoid the one recommended by the lender because experience shows that borrower’s need the personal touch when it comes to closing the loan, not some production line outfit. Personal service, that’s something we’re proud to be able to provide.

Read the full article 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

Tel 973-227-4724 - Fax 973-556-1628

E-mail Stephenstitle AT comcast.net - www.stephenstitle.com

Closing costs sound too high? They could be in more ways than one.

Bankrate.com has a great column that answers questions from borrowers and those just shopping around for a mortgage. Dr. Dan Taylor is one of the experts on the Bankrate.com panel. Here's a recent question-

I am halfway to paying off my mortgage. It is a 15-year 5.5 percent fixed-rate mortgage obtained in 2004 for the amount of $90,000. It has an outstanding balance of $47,000, and the monthly payment, including interest, principal and escrow, is $800. I would like to lower the monthly payment. I tried to refinance with a lender, but the estimated closing cost was almost $5,000, so I didn't go with the refinance.

Closing costs are not the only consideration in this type of transaction. Where are the cost savings going to bring you when you are, in effect, extending your mortgage by 7-8 years.

I can understand your reluctance to pay $5,000 in closing costs to refinance a $90,000 loan balance. Bankrate's national average for closing costs in its 2011 Closing Cost Survey is $4,070, although the survey results were for a $200,000 purchase mortgage, not a $90,000 refinancing. While your closing-cost estimate is high, it may be reasonable for your part of the country.

If you're halfway done on your original 15-year mortgage, refinancing into a new 15-year mortgage will cost you money, even with the lower interest rate, because you're extending your existing 7.5-year mortgage into a new 15-year mortgage.

 A lot to consider, isn't there?  Real 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

Your property survey - don't buy a home without one

Property purchasers are always advised by their attorneys to obtain a survey of the property. The survey plat, or drawing, will show the location of the dwelling and other improvements as well as things that interfere with your ownership of the property such as easements and rights of way, fences and the like.

Realty Times has published a good article on surveys, Survey Reality: Is What I See, What I Get? by P.J. Wade.

As I stand on my front porch admiring my small, but spectacular, spring garden, nestled under my two towering spruce trees, I am very wrong about everything I see. Most of my urban garden - plants, trees, rocks, retaining wall… - is not “mine," but the government's.

That's because properties seldom begin at the street curb line, but further in to a spot somewhere on your lawn.  The full article, which can be read here, goes a long way in disclosing common misconceptions about your visible boundaries and the need for a survey.

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

Good news from Supreme Court for NYC renters - rent control stays in place

A lawsuit filed by property owner in New York City went against them at the US Supreme Court. The issue, whether NYC's rent stabilization law requiring landlords to accept rents that are below market value is an unconstitutional taking of property prohibited by the 5th Amendment to the Constitution. The court said it was not. As reported by the New York Times,

Tenants in nearly a million apartments subject to New York City’s rent regulations could breathe a sigh of relief on Monday. The United States Supreme Court, after indicating it might be interested in hearing a challenge to the regulations, decided to let them stand. As is customary when the court declines to hear a case, the justices gave no reasons. There were no published dissents. Perhaps one in a hundred petitions seeking review by the court is granted, meaning that the decision not to hear the case sent no larger message.

The suit did not directly challenge the rent control law, an older system that applies to far fewer tenants. The Harmons said that requiring them to accept below-market rents amounted to an unconstitutional taking of their property.

“We still believe that the Constitution does not allow the government to force us to take strangers into our home at our expense for life,” Mr. Harmon said in a statement issued after the court turned down the case on Monday. “Even our grandchildren have been barred from living with us. That is not our America.”

Obviously, New York City and State officials were delighted with the outcome. Renters vote, too, you know.

Read the full article 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

Tel 973-227-4724 - Fax 973-556-1628

E-mail Stephenstitle AT comcast.net - www.stephenstitle.com

Good advice about partner's bankruptcy

Bankrate.com's bankruptcy adviser has a timely article on the effect of your partner's bankruptcy.

Dear Bankruptcy Adviser,
I am going to marry someone who has filed bankruptcy. He gave up his house as part of the bankruptcy and came to live with me. His bankruptcy has since been discharged. My house is all paid for, and I have no debts other than a car loan, which I can easily cover. I have an excellent credit rating and have never gotten into difficulties financially. Will there be any problems for me once we are married?

Excellent question, I think.  Here's more,

It's smart to be concerned that your positive financial credit history could be affected by his negative one. I would suggest not putting him on any of your accounts for the foreseeable future. You might want to open up a joint checking account, but try to keep your finances separate until he has recovered his credit rating.

At the end of the day, the goal is to rehabilitate your partner's credit without dragging you down into the muck an mire.

Read more: Make Sure Fiances Bankruptcy Wont Affect You

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

Mortgage interest rates to rise due to hidden fee

Loan fees are about to rise, and you won't even know it.  The fee in question is a guarantee fee collected by Fannie Mae and Freddie Mac that is part of the interest rate you pay.  It's not set forth on the settlement statement because it does not have to be disclosed.

According to the New York Times,

INSIDE the interest rate quoted on your home lies a small hidden fee that has been charged by government-sponsored entities like Fannie Mae and Freddie Mac for more than three decades. It’s an add-on rate known as the guarantee fee.

Everyone has to make a living, including Fannie Mae and Freddie Mac, don't you think?  But just think of the fees collected over the years that seem to have been squandered in the so-called "sub-prime crisis."  In any event, it means a small rise in interest rates is coming in the days ahead.

Read the full story 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

Tel 973-227-4724 - Fax 973-556-1628

E-mail Stephenstitle AT comcast.net - www.stephenstitle.com

Sometimes “let’s make a deal” works to sell a house.

Fairfield nj title agency refinance stephen's title agency llc

The New York Times Antoinette Martin writes about “Going Beyond Price Cuts” on February 12, 2012.

“A PERSISTENT recession in house sales has led to a surge in “concessions” for buyers. In listings and brochures, and most recently through a program started up on Zillow.com, real estate agents are trumpeting the news: even sellers who have reduced asking prices by a lot are often willing to do more.”

“That means contract concessions, in which sellers may agree to cover a buyer’s closing costs, provide a gift card for a certain amount, pay in advance for renovations, or even subsidize taxes by allocating funds from their proceeds at closing.”

One of the keys is that the seller has to be creative.  Taxes too high?  Pay some of them on a going forward basis.  Buyer is a little cash strapped?  Give them cash.

The house must still fully appraise, but, hey, isn’t that what life’s all about.

Read the full story here. 

Do you have a story about concessions?  If so, we’d like to hear from you.  Please post your comment below.



For your next title order or
Despite what you may have read to the contrary about concessions, “as long as concessions are written into a contract” and are clearly disclosed on the HUD Settlement Statement, … many banks in New Jersey are approving mortgage loans with up to 3 percent of purchase price in seller concessions.”  FHA loans can be approved with concessions as high as 6 percent.

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