Are Incentives the Way to Get Buyers?

Offering incentives is a marketing ploy to get buyers to come look. Builders have the best chance at attracting lookers since they can offer a wider variety of incentives than the average existing home sellers. Still existing home sellers are getting into the act offering to buy points (which would lower monthly payments) and pay fees (pool, lawn maintenance, etc). But for all of the incentives builders and sellers have come up with, paying for incentives instead of just reducing asking price seems the more prevalent practice. Sellers hope lookers see a dazzling incentive carrot and come nibbling. Whether lookers will actually make buy depends on the looker rather than the incentive. We have had about five years of sellers being in control of real estate transactions and now the pendulum has swung the other way. Price reductions bring out buyers rather than lookers.
Read Judy DeHaven's story on Sellers and Incentives

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For more information click here.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, FSBO, New Jersey Home Sales

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For more information on Real Estate in New Jersey visit here.

On and Off Again Katrina Aid

Add another avoidable disaster to those associated with Hurricane Katrina relief efforts. One would think U.S. District Judge Richard Leon would have known better; trying to force the federal government to explain itself clearly is a daunting task. The judge ruled that FEMA must get better explanations of its decision to cut aid to the 4200 Texas families affected by Hurricane Katrina. He pressed to get the explanation finished by today—but FEMA is appealing the decision and asking for an enforcement delay. The ruling on the delay will not come before the middle of the week at best and by then FEMA will have advised Texas officials of aid restoration and sent out letters to Katrina affected families. Should FEMA prevail in appeals court, they would then have to turn around and tell Katrina victims their wretched luck won again. What a mess!
Read CBS News article

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For more information click here.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Politics

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Tax Reform: Home for the Holidays

Legislators went home for the holidays without passing one piece of tax reform legislation. While some legislators wasted time being angry with Governor Corzine because he told them to work on reforming the pension and benefits packages of non-unionized, appointed and elected officials. Still they have gone home and passed nothing. Perhaps the job of policing elected officials is just too big for the legislature… after all it is their colleagues that are double-dipping into the benefits and pension funds. It would have been a lot easier to cut the benefits of the faceless unionized worker than mess with that guy/gal across the isle.
Read The Times article for a different point-of-view.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Tax, Tax Reform, Politics

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For more information on Real Estate in New Jersey visit here.

Affordable Housing: City or Burbs

With Governor Corzine’s campaign pledge to create 100,000 affordable housing units in the state, one needs to take a look at where those units will go. Many municipalities pay cities through Regional Contribution Agreements (RCA) to handle up to 50% of their afforable housing responsibility. These agreements ideally help all parties concerned but we don’t live in an ideal world.
For example, Trenton benefits from its RCA and is using a portion of its RCA funds to rehab houses and provide homeownership to low income families.
Read Eva Loayza article
Affordable housing in the suburbs is not progressing as well in part because of RCA’s but also because suburban municipalities are in dire need of residents who will not further distress their school districts. Also the infrastructure, at present, may not offer enough support these families.
Read Darryl R. Isherwood article
With State Assembly Speaker Joe Roberts introducing a bill that may eliminate the RCA practice, cities and suburbs may have to scramble to negate the negative effects. What is important though is that whether low income housing is effective in the suburbs will depend on the infrastructure low income families need. Meeting low income family needs beyond the roof over head requires serious consideration.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Affordable Housing, Low-income Housing, Politics

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For more information on Real Estate in New Jersey visit here.

Bold and Ambitious Tax Reform: Fantasy?

Well it looks like the legislature is going to pass the tax credit this year. What is unclear is whether the thing will be sustainable. Governor Corzine required a comptroller and a 4% increase cap on future increases. That legislation is on track. Now do get me wrong, the government letting me keep my money is real important to me, nice of them too; but, is that really what’s happening?
First up, the Democrats:
Have property tax assessments been decreased across the board? No, at this point it probably cannot just be decreased. Has anything been done to decrease the amount NJ residents will have to pay next year? Well sort of… If Democrats have their way, most New Jerseyans will pay 20 percent less and the municipality will collect that 20 percent from the state. The state would foot 20 percent of the bill for household with incomes below $100,000 with higher incomes getting less. They are working on making the thing sustainable.
Republican Naysayers:
Republican colleagues have complained that everyone should have the same amount of relief. (If everyone had the same income, equal credits would make sense – what NJ resident would mind an income greater than $100K per year?) Other Republicans say the credit is not sustainable. (Don’t you just hate naysayers who are just so stuck on their side of the isle agendas instead of helping slay the runaway property tax beast?)
Is it too much to hope for a bipartisan effort to reform property taxes that recognizes those most in need of relief have less gross income start with or is bipartisan teamwork a fallacious fantasy?
Read the McNichol and Hester article
Read the AP article.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Tax, Property Tax, Property Tax Reform, Property Tax, Tax Reform

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Governor "Encourages" Legislature to Stay on Task

Governor Corzine seems committed to property tax reform. He knows much like the legislature that the time and place to attempt unionized workers' pension and healthcare plan reform is the bargaining table but the place to reform legislative and non-unionized state workers plans is in the legislature. Double-dipping legislators and their collegues have to police themselves but it looks like top-cop Governor Corzine will push them to do just that. Governor Corzine has said he will use his conditional veto to make sure any legislation crossing his desk addresses the issues he has directed the legislator to reform. It looks like the new marshal in the state house means to stay on task, reform a double-dipping legislature and get sustainable property tax reform.
Read Deborah Howlett's story

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Property Tax, Tax Reform

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For more information on Real Estate in New Jersey visit here.

Double Dipping Legislature Offers Tax Savings

Well it looks like the legislature is doing it again. They offered a tax cut to those households that earn $100,000 or less dangling a carrot to household making more but not really digging into the meat of the property tax reform last week. Is the 20% savings sustainable? That's the big question, that and how are they going to sustain it? Frankly, messing with state worker pensions when some legislators are double dipping into the state pension and health care fund themselves is bad business practice. Why don't the current batch of the legislators have one pension and health care plan regardless of the number of state jobs? Compensation from the second job makes the purchase of extra healthcare/retirement coverage worker affordable and it need not involve the state. Instead these legislators are going to "reform" the benefits for workers with one state job. Just goes to show the real meat of reform is still not on the table and may not ever be until citizens reformers can get deal with double dipping legislators.
Read Ditch Double Dipping

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Property Tax, Tax Reform

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For more information on Real Estate in New Jersey visit here.

Median Price Falls

The National Assoication of Realtors says the median existing home price in the Northeastern United States dropped to $254,000 in October, a 5.2 percent decrease from October 2005.

The housing market is far from the bottom, not with the incredibly high inventory of unsold homes," said Joel Naroff, chief economist at Naroff Economic Advisors, a private forecasting firm. "Sellers will have to overcome their state of denial and start dropping prices even more to clear this market. And once that happens, we will then have to convince buyers that prices have stopped falling.
"We are a long way from that point."

Read Sam Ali's story
Still there is nothing a real estate professional likes least than having to have ahat with a seller about a price reduction. Whether the talk is at the listing appointment or after the property has been on the market for six weeks. Trying to explain to a seller that the market has changed so that what their neighbor got for their house six months ago is unlikely to be what they can expect for their house today. It is a difficult conversation for all parties but one the is necessary to help sellers understand today's market.
Read Julie Clairmont's story

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, FSBO, For Sale by Owner, House Sales

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For more information on Real Estate in New Jersey visit here.

October Report: Adjustment Continues

Well the numbers are in for October and compared to 2005 it is nothing to celebrate. But thinking that 2004-2005 were record years and the market would need to correct itself. That is what is occurring now. What is on everybody’s mind is how deep a correction can we expect? Nobody seems to have that answer. There are many guesses but nothing specific. What we are getting now is month data on how deep the adjustment is going.
Read Sam Ali’s article.

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Tax Time? Prepared?

As the new year approaches, it is almost that time again. What time is that? Tax time. Homeowners who are willing to itemize there deduction oftentimes reap a huge benefit. Deciding if the 1040 long is best for your personal situation takes some careful thought and Kay Bell of Bankrate.com gives a few tips.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Taxes, Property Tax, 1040

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For more information on Real Estate in New Jersey visit here.

Katrina and Company Changes Insurer's Path

The storms of 2005 have had an impact on how Allstate Insurance Company intends to do business in the future. While Allstate will continue in the property/casualty business but they are slowly cutting back on insuring home in Florida and up the Eastern seaboard. The suffered losses because of the storms last year and saw red ink in the third quarter of 2005. The company has returned to making a profit in 2006 and expects to continue doing so buy dropping, not renewing or raising premiums in service area that are not showing profit. It make sense because Allstate is a business and profit is part of that business.
Read the story in Forbes

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Insurance

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Church and Realtor Bamboozled

It a cold heart that doesn’t sympathize with the Hurricane Katrina victims displace in various states across the country but one woman’s actions just leaves a bad taste in the mouth.
After being selected to receive a free house, The woman sold the $75,000 house without ever moving into it.
Read Woody Baird’s story

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey

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For more information on Real Estate in New Jersey visit here.

Foreclosures Rise a Concern for Now

A few firms that track foreclosures released data that show the number of foreclosures increasing. The rate of increase notable here because New Jersey made the top ten list in October with 1 out of 675 homes in foreclosure here. That number represents a 42% increase from October 2005. For the year so far (ending with October), the rate is only up 5.3% according to RealtyTrac. Mortgage Bankers Association says New Jersey's actual rate is 0.3 percent.
The reasons for the increase in foreclosures varies. To name a few: adjustable rate and exotic mortgages racheting up rates, inability of homeowners to refinance to prime mortgages, or inability to sell the home before the foreclosure process concludes. The worst reason is the home is no longer worth the price of the mortgage because of the changes in the market.
Read Judy DeHaven's story in the Times.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Foreclosure

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Mansion Building on the Rise

Thought we could use a bit of humor today. Found this article and thought it fit the bill. Don't let its title mislead you though: "Housing boom reaches its tail end". I am not going to spoil the surprise but it is good to see Sam Ali use some humor in news reporting.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey

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Historical Preservation and Open Space Efforts Co-Existance

It took twenty years but the farmlands that belonged to John Witherspoon have been added to Princeton's "Central Park". Known as Tusculum Estate on Cherry Hill road was created in 1773 as Witherspoon's country estate. The sale of the 35 acres leaves another 23 acres still belonging to the estate.
The are some restrictions on the grant namely that 16.5 acre portion no structures except driveways and fences will be allowed so the that there is some historical continuity.
The original article by Lisa Rich of the Times of Trenton is currently unavailable online.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Historical Preservation, Open Space,

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Another Builder Reports Decreased Earnings

Hovnanian Enterprises, Inc of Red Bank, New Jersey chimed in with its fourth quarter report of a decrease in contracts of 36% from last year’s totals with cancellations representing 35% of the total.

”Our financial results for the fourth quarter continued to be negatively impacted by high cancellation rates and increased use of concessions and incentives, particularly on the resale of those homes which experienced contract cancellations," said Chief Executive Ara Hovnanian.

Read John Spence’s story

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, New Home Builder, New Jersey Builder, Home Builder

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Signed Contracts and Revenue Down

Tolls Brothers reported signed contracts down 55 percent and new home building revenue down ten percent compared to 2005, as the housing market continues to soften.

Nobody wants to buy something that they think will cost less two week later,” said Robert Toll, Chief Executive for Toll Brothers

Beazer Homes of Atlanta reported a 44 percent decline in profit. New orders for Beazer fell 58 percent.
Read Deborah Yao’s of the AP story.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey

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When Autumn Leaves Start to Fall

The falling leaves, drift by my window... If that was all they did it probably would be okay; but, gravity brings them to the ground where they make a slippery mess.
It is that time of year again gang. The trees are beyond their display of colors stage and are now dropping leaves all over lawns, cars, and garden furniture. Many homeowners are using these last mild days to rake the rubbish to the curb but a word of caution. Before you get in an afternoon of leaf throwing, blowing, or rolling, it might be in your best interest to check out the ordinances regarding yard debris for your town.
Some towns restrict not only the time when one can put leaves at the curb but also how close they may be to a storm drain. The ordinance will have some information on whether or not leaves may be bagged or otherwise contained and how soon one may put yard debris at the curb. Knowing the ordinance could keep you from having to pay a stiff fine or as in West Windsor from having to spend time in jail or do community service.
Read Joyce J. Persico's story

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey>, Home Maintenance

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For more information on Real Estate in New Jersey visit here.

Pending Home Sales Index Down

While things are expected to hold fairly steady through the end of the year that does not mean there won't be slight rises and fall. In August the Pending Home Sales Index at 110.3 was 4.7 percent higher than July at 105.6. September the index slipped 1.1 percent to 109.1. The September index is still 13.6 percent below last September. The PHSI is based on the number of signed contracts in given month. The numbers were seasonally adjusted.
Read the more here and here.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Sellers, FSBO

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For more information on Real Estate in New Jersey visit here.

NJ Urban Sales Booming

While buyers in the suburban housing market continue to shop and sellers find houses sitting instead of selling, the urban market is very active. Atlantic City is leading the way in sales according to Robert Gebeloff of the Star Ledger. In fact, sale prices in the 30 New Jersey cities seems to be booming.
Read Gebeloff’s story.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Housing Sales, FSBO, Sellers

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For more information on Real Estate in New Jersey visit here.

Sell Your Home Faster

The first thing to consider when attempting a quick sale is the amount of profit you want from the sale. If sellers would consider receiving less in profit then the sale (say 150% instead of 180%), then selling price of the home could become more attractive. Oftentimes sellers' pricing and profit taking are not in line with what the market will bear. If the timing of the sale of the present house is important to moving into the dream home, then less profit taking can prevent a disruption in the planned move.
The last two items to consider for a quick sale are financial incentives and a contingency offer.
Read Sam Ali's article for the Star Ledger

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, FSBO, For Sale by Owner, Sellers

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Home Prices Slide

Home sales slipped for the sixth month straight in September despite the dropped mortgage rates according to the National Association of Realtors. Nationally 6.18 million units sold in September down from 6.30 million units that sold in August and 14.2 percent below the 7.20 million units pace of September 2005. Also the median price of a home fell for the second month to $220,000.
Read Sam Ali's story in the Times

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, FSBO, Home Sales

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For more information on Real Estate in New Jersey visit here.

Tax Panel Begins Public Hearings

Public hearings will begin on the list of ways to cut property taxes proposed by the special legislative panel. The first hearing is today in Bordentown Township Hall, November 1st in Freehold Borough Hall, and November 9th at Bergen County Community Center. The meetings all begin at 7PM.
Read Tom Hester's Times story

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Property Taxes, Taxes

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Stubborn Sellers Lose in Declining Market

Housing prices have declined since last year and buyers are slower deciding to make purchases. Some sellers still overprice their homes. The consequence of stubborn overpricing: the loss of home value as prices continue declining.

Read Patrick Rucker’s story in Reuters

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, House Selling, Seller, Home Seller, Selling a House, FSBO

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For more information on Real Estate in New Jersey visit here.

New Leader Named for Housing Agency

The new head of the housing and economic development department in Trenton is Alan J. Greenwald. Greenwald will replace Assistant Business Administrator Dennis Gonzalez who was acting director since 2005. Greenwald lives in Trenton and wants encourage more state workers to resident in Trenton.

Read Eva Loayza’s story in Trenton Times

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey

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Corporate Housing

Relocating families have few options when the primary wage earner transfers to a location that requires moving the primary dwelling to anothers state. Until recently short-term housing meant family, friends, hotels, and a sprinkling of extend-stay facilities. Now however some developers have furnished unit available for corporate tranferees.
Read Beth W. Orenstein's article.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Corporate Housing, Short-term Housing

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For more information on Real Estate in New Jersey visit here.

FICO and Private Mortgage Insurance 101

Okay, let's use the fictitious Ed and Edna James again to help with this explanation. Ed and Edna are at the closing table on their new house. For the sake of this discussion, let's say their FICO score is 590 and they are only eligle for a sub-prime 2/28 adjustable rate mortgage; but, they are estatic at having succeeded in getting the mortgage and consider themselves one step closer to moving into the home of their dreams.

They do not really think about anything, other than leaving the table with the keys. They eagerly glance over and sign papers (planning to give them a more careful read in their new home), and only half listen to the talk that is going on around them until the talk turns to their total monthly payments. The payment is much higher than they expected. It is at the closing table that they learn their FICO score and their inability to pay a twenty percent (20%) or higher down payment on the property has increased the private insurance rate. The couple leave the table stunned but with the keys.

Private mortgage insurance (PMI) unlike any other insurance pays a third party, the lender, in the event the homeowner defaults on the loan; but, the homeowner pays the premium on the insurance. This insurance is required for loans. The borrower's FICO score helps determine the premium. While Ed and Edna should have gotten a good faith estimate of the cost of their anticipated mortgage and the PMI monthly payments, it does not always happen before closing. It is something every buyer with a mortgage should look for or ask about before going to closing and signing anything. Knowing the total monthly costs is something every buyer should know and consider before the going to closing.
Read more about FICO scores effect on PMI here.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Private Mortgage Insurance, Mortgage Insurance, Mortgage Rate

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In Today, Out Tomorrow?

The next two years will tell the tale of what will happen with homeowners with adjustable rate mortgages (ARM). To understand the problem here’s a scenario: Ed and Edna James purchased a 180,000 dollar house an financed it with a 2/28 ARM. The couple has a combined income of $30,354. Right now they pay $1265 dollars monthly. When the loan is fully indexed the couple will pay a whooping $1990 dollars a month leaving them about $125 dollars for food, utilities, fuel, etc. Hopefully, the fictitious Ed and Edna spent the two years of the low rate getting their credit in order and are now able to get a fixed rate mortgage loan otherwise they will be unable to pay their mortgage and will have to move.
Read Sam Ali's story

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, ARM, Mortgages

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For more information on Real Estate in New Jersey visit here.

Kara Homes Gets $5 Million Operating Loan

Kara Homes based in East Brunwick, NJ filed for Chapter 11 bankruptcy on October 5th. Today the builder has lined up a high interest loan that would allow it to continue operating if the bankruptcy judge grants approval. The hearing with Judge Michael Kaplan is on Thursday in Trenton.

Medical Capital Group loaned the builder 5 millions with a 18 percent interest rate over a six month term.
Read the entire story here.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, New Home Builders, Builders

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For more information on Real Estate in New Jersey visit here.

Judge Approves NJ Affordable Sale

The judge overseeing the NJ Affordable Home bankruptcy case approved the sale of some 200 properties belonging to the company. A new twist has developed in the story though. Some of the investors signed mortgage notes and so they may now be on the hook to pay the difference between what the homes sold for and the balance of the mortgage. It appears the difference is $2.3 million dollars. The lending banks have not declared their intention yet.
Source: Greg Saitz, Star Ledger Staff

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Real Estate Investing, Bankruptcy

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For more information on Real Estate in New Jersey visit here.

Home Buying: Four Tips

Just finished a good article by Holden Lewis of Bankrate.com offering consumers four tips on buying a house. What I like about the article is Lewis encourages buyers to do their homework. Yes, using a buyers' agent is good, especially in this market; but having the ability to express the qualities of your dream home requires some thought. Being able to answer the questions of what neighorhood, style, must haves, wants, and price range means your agent will be able to look for houses that meet or closely match your criteria.
I encourage clients to look online for properties, even if it is not in the neighborhood they desire. It is true a picture is worth a thousand words so if a client has a dream house in an undesirable neighborhood it is likely I can find something similar in the desired neighborhood. I will not waste my client's time showing them houses that they will reject. My clients are happy and when my clients are happy, I am also.
Here are the four tips:

• If you find the right house at the right price, buy it.

Waiting to see if prices go down could lose you the property.

• Put technology and a good buyer's agent to good use.

I call this doing your homework. Check out houses online. Make a list of wants, must haves, and any other pertinent facts about your dream home. When the time comes to
do comparative market analysis(CMA) on a property a good buyer's agent will be invaluable. Now, I am not just saying that because it is what I love doing, I am saying it because even though there are other means to do CMA's the buyer's agent brings human experience and knowledge to the table that technology has not been able to surpass.

• Negotiate effectively

A good buyer's agent will assist you in negotiating the best price, terms, and conditions for your home.

• Avoid Gimmicks

There are all kind of gimmicks out there but the business at hand is to purchase a home. If a gimmick is offered turn that gimmick into cash toward the purchase of your home. Good advice.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Home buying

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For more information on Real Estate in New Jersey visit here.

NJ Affordable Homes Liquidated

On August 30th we ran a story by Greg Saitz about Wayne Puff and NJ Affordable Homes which the SEC shutdown as being a Ponzi scheme. Mr. Saitz reports that in an attempt to raise money, last weekend there was an auction to liquidate the company’s assets: some 205 properties. The trustee held the 3-day auction and raised $20 million dollars well short of the $40 million dollars 500 investors sank into the company. Once the bankruptcy judge approves the sale and the various fees and liens paid, the trustee wants to split the money equally among the investors.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Bankruptcy, Auctions, Investments

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For more information on Real Estate in New Jersey visit here.

Alleged Housing Discrimation in Lakewood, NJ

Looks like the government (the Department of Justice) is suing Triple H. Realty LLC for discriminating against non-jewish black and Latina tenants. What they are alleged to have done just turns my stomache. It is not rocket science people. Discrimination is not just plain wrong, it is illegal. If this company is guilty then I guess they had some money they wanted to give away because the lawyer fees, fines, and monetary damages just might be enough to get them to obey the law if not get a moral conscience.
This story bares watching to see what happens.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Rental Properties, Housing Discrimination, Discrimination

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For more information on Real Estate in New Jersey visit here.

New Home Starts Down 16 Percent

Got a look at the Courier-Post online story that says new-home builder are aggressively controling their inventory because of the cooling of the resale housing market.

"The new home market is directly dependent on move-ups or move-overs (empty nesters). In order for those two dynamics to continue, the resale market must be robust," said Patrick O'Keefe, executive director of the New Jersey Builders Association.

In other words, until the resale market swings toward a healthy number of interchanges between buyer and seller or buyer confidence rises new home builders are going to have to be careful to sell their inventory to remain profitable.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, New Home Builders, Builders, Buyers

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Market Upside= Affordability + Mortgage Rate Decline

James Lockhart, director of the Office of Federal Housing Enterprise Oversight said the recent changes in the market have an upside for buyers.

"Housing starts are down. Permits are down. There is a significant change happening here. Hopefully the good news is houses will become more affordable." he said on CNBC's Squawk Box. (Source: MarketWatch)

In August the number of new home sales increased. Builders are offering incentives to move their inventory. Nationally the numbers rose by 4.1 percent and in the Northeast it rose 21 percent. (Source: Star Ledger)

Resale home prices fell in August as sellers began lower prices of homes for the first time in 11 years. This means that prices allow more buyers an opportunity to purchase. (Source: MarketWatch)

The 30year mortgage rate is the lowest it has been since March. The national average is about 6.31 (Source: Reuters)while the average for New Jersey is even better. (See above graph)

The signs are good for a quick buyer to get a new home or a resale one for that matter for an affordable price.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Buyers, New Home Buyers

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For more information on Real Estate in New Jersey visit here.

Evaluating Property? Appraise Exterior Greenery

Now that the buying frenzy of the last few years is over and buyers are taking their time before making purchases, paying attention to the exterior of the house, particularly the grounds, the slope, and which way water flows. should concern both buyers and sellers. Joel Lerner of The Washington Post says appraise tree, plant, and shrub health prior to purchase as they come with the home and enhance or detract from the property’s value.
Here is a link to the story. (subscription necessary)

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Buyers, Sellers, Homeowners

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For more information on Real Estate in New Jersey visit here.

Tips of the Day: Homeowners Tips

The tips this week is a recommendation to do-it-yourself homeowners: Get a hold of a This Old House Magazine for September 2006. There are a lot of good information about design, lighting and makeovers in the magazine but this issue is their 101st issue and they are celebrating by compiling 101 Homeowner Tips. The tips range from how to set a mouse trap to how to decrease the smell of latex paint. The magazine is worth the money (less than $10 bucks) for the handy tips alone. Check it out and get your copy before the month is out!

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Homeowners, Home Maintenance

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For more information on Real Estate in New Jersey visit here.

GMA Takes the Challenge

The Challenge: Sell it in a week. A Tom's Rivers couple got the attention of Good Morning America's Barbara Corcoran by issuing the challenge and now the Ms Corcoran has taken it up. It is an opportunity for do-it-yourself homeowers and others interested in a fast sale in this market to see what is necessary to make a quick sale.

1) Staging (removing the clutter and personal items, free up closets and cabinets)
2) Correct pricing for the market
3) Advertising (strategic placement of signs, newspaper and magazine ads)

Now admittedly most FSBO's and real estate professionals will not be able to reach as many potential buyers as Barbara Corcoran can, but if all else is right -- and the gods are feeling generous -- buyers will come.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, For Sale By Owner, FSBO

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Workshop for First-time Buyers

Workshops are being presented at area libraries for first-time homebuyers. The first of the series is tonight at the Ewing Branch of Mercer County Library at 6:30PM. The workshops provide information on how the mortgage process works.
The attendees will learn about a County program that will assist first-time buyers with downpayment and closing costs.
Worth a visit future buyers!
Source: Times of Trenton

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, First-time Buyers, Buyers

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Median Prices Fall Slightly

The median price for existing homes fell in August according to the National Association of Realtors. The median is the point where half the houses sold for more and half for less. In August the median price was $225,000. NAR's chief economist said the declining prices in July and August is part of the "expected price correction".

“This is the price correction we’ve been expecting. With sales stabilizing, we should go back to positive price growth early next year,” NAR Chief Economist David Lereah said.

There are a number of factors contributing to the increase in inventories, nationally.

In some areas, home sellers are not making sufficient adjustments in their listing price, so their homes are staying on the market and contributing to the build up in inventory,” says NAR President Thomas M. Stevens from Vienna, Va.

Though there is a backup of inventory NAR's economist says we are still going to have the third highest home sales year. Lereach also predicts we should see "positive price growth early next year."

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey

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Princeton Area Floods Now Too

Okay, the Trenton area has been experiencing increased flooding for years. Now Princeton residents had joined its neighboring municipality in flooding woes. Princeton Township residents near the Harry’s Brook stream have experienced an increase in area flooding in recent years.

"There were floodings, but ... we didn't keep track of that because it wasn't happening" that often, said Olivia Applegate, a Harry’s Brook area resident.

Harry’s Brook has experience 10 or 11 major floods in the last three years she said.
The township enacted and ordinance last year that required single-family homeowners to have drainage management in any plan that required resurfacing their property. Residents making lateral expansion of their homes or adding driveways have to manage storm water runoff. The action of requiring single family homeowners to take such measures was unheard-of and prehaps even unprecedented in any of the other municipalities. Still requiring homeowners as well as builders to manage storm water runoff is very good. Do the enacting of water management ordinances mean that Princeton homeowners will have to start thinking regionally? Hmmm...
Source: Times of Trenton

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey

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Fed Showing Interest in Housing Market

In a press release on Wednesday, the Fed held the interest rate at 5 ¼ percent but changed in its language concerning the cooling U.S. housing market. The August 8th press release suggested holding the interest rate at 5 ¼ percent.

”Economic growth has moderated from its quite strong pace earlier this year, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices.”

The September 20th press release has a subtle difference in its language that could suggest the Fed is paying attention to the housing market.

”The moderation in economic growth appears to be continuing, partly reflecting a cooling of the housing market.

Whether this means they are considering taking some action or are just concerned is anybody’s guess, but the Fed is known for using subtle shifts in language as a precursor to some action to slow the cooling process.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Interest Rate, Mortgage Rate, Fed Rate

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Meritage Homes Admits Decline in Orders

Well, another new home builder has reported a decline in new home sales this quarter. Meritage Homes Corporation says its third quarter results to be near or below expectations. Meritage reported net new orders fell 38% below last year.

"Demand has slowed and resale inventories have risen in many markets, making it more difficult for our buyers to sell their existing homes, and in turn causing higher cancellations and inventories industry-wide," said Steven J. Hilton, Meritage CEO...

Meritage Homes joins Toll Brothers and other new home builders who have been effected by the change in the housing market. Monday we reported Builder Confidence at 15 year low.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey

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Housing Price Rate Increases Slowly

The selling price for houses rose to a 4.7 annual rate this quarter according to the Office of Federal Housing Enterprise Oversight.

"Gains in home values have been a major contributor to U.S. economic growth in the past four years. Consumers who feel wealthier spend more and save less. The personal savings rate has been negative for 16 consecutive months. Many consumers have also been able to borrow against their home's rising value, pouring hundreds of billions of dollars into the economy." write Rex Nutting for MarketWatch

Seller can expect a much different buyer than last year. Today's buyers looks to maximize the amount of house or give-backs or inclusions they receive for their dollars. It is truly a different market out there and sellers must adjust get the sale.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Pricing News

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Home Builders Still Cautious

The September New Home Builders’ index is expected to go a bit lower than the August index of 32. The index measures builder confidence. With real estate professionals' inventories high, mortgage rate high, and buyers expecting more for the dollar, builders are feeling less confident about being able to sell regain their investment.

The expectation is that the index will drop to 31 -- the lowest it's been since February 1991.
Source: MarketWatch

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Builders, New Home Builder

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Mortgage Rates Still Falling

Nationally for nine of eleven weeks the mortgage rate has fallen according to Holden Lewis at Bankrate.com. In New Jersey mortage rate are also declining. The national rate moved slightly lower after a speech by president of the Federal Reserve Bank of San Francisco and Fed's rate-setting Open Market Committee, Janet Yellen to the Emeryville, Calif., Chamber of Commerce. Read the Mortgage rate fall for 9th week in last 11.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Mortgage, Mortgage Rate

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The Golden Triangle

Read about the traditional golden triangle in The Times advertising supplement yesterday. Sorry, I could not find it online. No, it is not really a gold triangle, unless you are a designer of kitchens. The three points of the triangle represent to the location of the refrigerator, the stove top or cooking area, and the sink in a kitchen design. The design strategy is allow the chef to pivot to each item for the most efficiency of movement while preparing meal. While there is no standard about the length of the “legs” of the triangle but the rough rule gives designers plenty of leeway. Designers still have to meet the needs of the client. Kitchens are often a gathering area in families. Oftentimes the members assist with preparation. A designer may have to alter the design to accommodate the different needs. Still making a kitchen with efficiency of movement during food preparation a priority can keep the fun in meal preparation.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey

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Tip of the Day: Winterize your Lawn

Well Labor Day has passed, the kids are back in school, the hot hazy days of summer are finally gone for 2006. Fall officially starts on September 23rd. With its coming it is time to get your lawn ready for winter. Here’s a link to DoItYourself.com
While you are preparing the lawn get the gutters cleaned too. Now before the leaves begin falling and as needed all year round. Pay particular attention now to the downspouts (clear clog and flush with the garden hose). Gutters help protect your home investment from soil erosion and water damage. Keep them clear to save on repair and replacement costs of misdirected water damage to your home.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Home Maintenance

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Municipality Update

This will be a recurring theme whenever something crosses my desk that fits.

Bernards' Takes on Bash and Build Trend

With many of us still grieving the senseless destruction of September 11, 2001, the story about a trend toward bash and build seemed particularly poignant. Imagine a community with modest Colonial and Cape Cod style houses. Imagine some of the older homes in the neighborhood torn down and replaced a McMansion. The ambiance of the community changes immediately and irrevocably. That is exactly what’s happening in communities in New Jersey. Bernards’ Homestead Village is one place where the mayor and council are going to try to enact codes that will prevent the bash and build trend in their community. Read Cathy Bugman's, Star-Ledger article.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, New Jersey Blogging, Real Estate Blogging

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FSBO's May Ask: Is An Agent Really Needed?

With the Internet making more tools available to do-it-yourself homeowners and home buyers one might ask if an agent is really necessary. Amy Hoak of MarketWatch wrote:

”Indeed, the housing slowdown now unfolding only underscores how crucial of a role that brokers have as property owners brave chilly new headwinds. This past week saw a steady drumbeat of reports highlighting a severe slump taking hold, including industry data showing the number of homes on the market soaring to a 13-year high.”

Internet savvy does not sell houses. While it assists the home buyer in communicating the style and area of a future home, getting the best price requires negotiation skill. Companies may promise to charge you less than real estate professionals but if you house sits on the market and doesn’t sell, has few agents actively showing the property, it will not sell. A real estate professional uses staging and targeted marketing to generate interest. The combination, staging and interest, sells houses at full market value or more.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Real Estate Blogging

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Proposed Ordinance Change

With New Jersey running out of building space one can expect communities’ redevelopment efforts to rise. Hightstown’s council proposes to change their redevelopment ordinance because builders would not submit plans that complied with the previous ordinance. The new ordinance draft will exclude the affordable housing units and increase the maximum number of units from 80 to 130. Read Nicole Castelli's article: Proposed ordinance a lure for developers

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, New Jersey Housing News, Housing News

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It All About Maintenance

A Robert Frost poem said "Good fences make good neighbors" but regular maintenance makes good fences. Washington Township residents want to spend less time tending their fences. In an article Ryan Tracy reports Residents desire easy-care yards in the Times of Trenton today. Residents want to replace the care and maintenance of wooden fencing with what they think is a low maintenance material, vinyl. Wooden fencing requires maintenance at least every other year and tends to crack and warp. Vinyl fencing tends to get dirty and will require washing or scrubbing or power-washing or some combination. No matter what the fencing material, to keep that ideal suburban look some effort is required of the owner, be it painting or scrubbing.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Home Maintenance

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For more information on Real Estate in New Jersey visit here.

Short-sightedness May Hurt Seniors and Working Poor

Steve Chambers of the Star Ledger writes Affordable housing in NJ nears its sunset. New Jersey, like other states, offered developers breaks to keep housing affordable for ten to thirty years. The affordable housing helped to assist senior citizens and working class families. Now that the term is ending these communities could see increases in their living space costs. The expiring contracts cover housing projects, assisted living units, section 8, and sections 202 and 515 housing loans. One wonders why 10-30 years rather than a permanent solution.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey

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Check Your Credit Report

Eileen Alt Powell reports that federal laws protect consumers' saving and loans in today's The Times of Trenton. Since mortgage companies use credit reports and FICO scores to determine whether a buyer is likely to default on their loan, it is in a buyer’s best interest to check his credit report at least once a year. Get reports from each of the three main bureaus – Equifax, Experian, and Trans-Union; it’s free.

“Often the first place that signs of ID theft show up is on your credit report,” said attorney Joel Winston, an associate director in the Federal Trade Commission’s bureau of consumer protection.

Disputing information found in the report and placing fraud alerts on their credit files can assist consumer who believe they are victims of identity theft. There are laws in place to protect consumers.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Credit Report

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Economic Growth Expected to Soften

Reuters reports on a Federal Reserve study that says it was technology and not speculation that drove the housing boom. The study debunks the bubble theory but the market is still deflating much like a balloon or tire with a leak. The study also said much of the economic expansion this period was driven by equity from rising home values. Economic growth could slow when these gains dwindle.

"The wealth effect is fading and the economy is slowing," said Elisabeth Denison, economist at Dresdner Kleinwort Wasserstein.

John Fisher and Saad Quayyum, economists at the Chicago Fed and authors of the report do not expect growth will soften too far below its long-term trend.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, New Jersey Housing Bubble, Housing Bubble, Housing Sales>, Economic Growth

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Too Good To Be True

Greg Saitz reports Wayne Puff and his alleged fraudulent NJ Affordable Homes is answering to the SEC and paying a hefty price in having assets auctioned off. The sell-off of 390 company properties is set for September 29 – October 30. The SEC alleged NJ Affordable Homes was a “Ponzi” scheme “Ponzi” schemes are pretty hard to differentiate from legitimate investment schemes, until they start to fall apart. Still the rule your grandma told you about if something looks to good to be true, it probably is... might not be a bad one to keep in mind. I just love it when Granny’s right!

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Real Estate Auctions, Real Estate Scams, Real Estate Fraud, Real Estate Bankruptcy

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Auctions Replace Negotiated Settlement? Not Likely

Just found a article at a fellow NJ blogger site talking about the Prudential, Fox & Roach deal with Sheldon Good & Co. Frankly, auctions are a marketing tool for a quick sale. It is true that there are bargains to be found at auctions, but everybody has to have done his homework and know the market value of the property at bid. Novice or inexperienced bidders can drive the price of a property well beyond the market value. Also non-motivated sellers can set unrealistic reserve prices that prevent the property from selling too. It all about executing the "Know". Perhaps Prudential can help with the "Know". We just have to wait and see.

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Technorati: NJ Real Estate News, Real Estate, NJ Real Estate Blogs, NJ Housing, New Jersey, Housing Auction, Prudential Fox & Roach, Sheldon Good, New Jersey

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