Category: Real Estate Law

November 8th, 2013 Real Estate Law No Comments »

Low Mortgage Rates are Enticing Potential Homebuyers

For many people who have been recently considering purchasing a home they are just one step closer to making a decision to purchase a home because of another recent drop in mortgage rates.  Low mortgage rates are driving potential homebuyers to purchase the homes that they have been considering and with the housing tax credit this may just be the thing to push a lot of people who were undecided off of the fence.

Making a decision to purchase a home is something that many people are considering with the home prices as low as they are, foreclosures and short sales as high as they are and mortgage rates as low as they are.  Currently 30 year fixed mortgages have dropped for the 5th straight week in a row to 4.71% (Freddie Mac).

The cause for the recent drop of mortgage rates is two fold.

  • The Federal Reserve has indicated their intents to extend the period of time that they will be offering short-term interest rates.
  • Strong demand for government issued funds

If you would like more information about purchasing a home or have legal questions concerning purchasing a home your best move is to contact a real estate attorney.  A real estate attorney will be able to explain the process you need to go through to purchase a home from beginning to end.  Understanding the importance of a contact of sale, getting your mortgage committment, having a clear title and closing title are all things that can be explained by an experienced real estate attorney.

If you would like to speak with a real estate attorney regarding the purchase of a home in New York or New Jersey contact Steven T. Decker Staten Island real estate lawyer.  Steven T. Decker will be able to assist you with understanding the legal side of purchasing a home and will also be able to represent you throughout the entire real estate purchasing process.  To speak with Steven Decker you can either call 718.979.4300 or 800.976.4904 or fill out our web form.

Also, if you are considering using our Staten Island real estate law firm for your real estate transaction and closing of title we recommend that you read Steven T. Decker’s book “5 Myths that Can Ruin the Purchase of Your Home“.  If you would like a copy we are currently offering this real estate book at no cost and no obligation to those considering purchasing property in New York or New Jersey.

November 8th, 2013 Real Estate Law No Comments »

Staten Island and Brooklyn Lawmaker Speak Out on the Housing Tax Credit Extension

As you may have heard the time you have to purchase a house and take advantage of the housing tax credit was extended officially and went into effect yesterday.  The extension will be a four month extension which will being the extension to April 30, 2009.

Michael McMahon, Congressional representative for the 13th district of New York which includes Staten Island and Brooklyn, said that he “encourages all who are able to take advantage of this extension”.  The extension was not only extended as far as a time extension is concerned but is also being extended to current homeowners who have have owned their home and been residents of it for five years or more.  Current homeowners taking advantage of the tax credit will receive a tax credit of 10% of the purchase price up to $6,500 and first time homeowners will be given a credit of 10% up to $8,000.

For many Staten Island and Brooklyn residents this is a great time to purchase a home and the new housing tax credit may be just the thing to cause them to make a move to purchase a new or first home.

If you are interested in buying a home in Staten Island or Brooklyn there are five things that you may want to consider to avoid ruining your home purchase.  If you are interested in finding out how to avoid these five things request a free copy of Steven Decker Staten Island real estate lawyer’s book “5 Myths that Can Ruin the Purchase of Your Home“.

Also if you would like to speak with a real estate lawyer regarding a possible Staten Island or Brooklyn home purchase or if you just have real estate legal questions that you would like answered before you decide to purchase a Staten Island or Brooklyn home contact us at 718.979.4300 or 800.976.4904 for assistance.

November 8th, 2013 Real Estate Law No Comments »

Lower Mortgage Interest Rates: Should I Refinance or Modify my Mortgage?

If you are currently a homeowner and have a high mortgage rate that you are locked into or if you have an adjustable rate you may be interested in lowering your mortgage rate or locking into the current rate.  Recently the mortgage rates dropped down to under 5% for the first time in months.

The governments efforts to make sure new buyers and current homeowners receive low mortgage rates are not only benefiting the new buyers and homeowners seeking to purchase a new home but it is also benefiting those who are looking to modify or refinance their mortgage (although studies have shown that many people have not been choosing to modify their mortgage but rather prefer to refinance). A study which was done over the past year showed that only approximately 10,000 people modified their mortgages whereas approximately 3 million mortgages were refinanced and on average the people who refinanced their mortgages saved an average of $150 per month.

A lot of people believe that the reason mortgage modifiications are not as popular as refinancing is simply because banks have offered refinancing options to their clients for years and it is a simple process that they are used to doing.  Another reason for mortgage modifications being less popular among homeowners looking to lower their monthly payments is possibly because they are not fully aware of what modification to their mortgage is whereas, similar to the banks, they are used to the idea of refinancing.

To help you understand what mortgage modifications are and what refinancing is here is a description of both:

  • Loan Modification – The process where the terms of the mortgage is modified outside of the original terms of the mortgage agreement (contract) agreed to by the borrower and lender.  The loan may be modified to change the terms of the interest rate, loan terms, loan balances, the length of the loan or any other part of the loan agreement.
  • Loan Refinance – The process where an existing debt obligation is replaced with a new debt obligation with different terms.  You are essentially paying off an old loan with a new loan with different terms.

Refinancing or modifying your loan may be a smart thing for you to consider if you:

  • Currently have a high mortgage rate
  • Have an adjustable rate mortgage (commonly known as ARM)
  • Need extra cash
  • Want to consolidate high interst credit cards

If you would like to discuss the legal side of refinancing with a real estate attorney to make sure your best interest is being looked after contact Steven T. Decker Staten Island real estate attorney at 800.976.4904 or 718.979.4300.

November 8th, 2013 Real Estate Law No Comments »

Purchasing an Investment Property in a Down Economy

With the housing market still in the process of recovering and housing prices still at a low it is very easy to understand why buying a house in today’s market could be beneficial to a potential home buyer.

Those considering purchasing a home as an investment property are in a great position at this point in the economy.   If you are purchasing an investment property to flip in a few years, even though you may not be able to take part in the housing credit (see why by clicking here) you are still at an advantage when compared to a few years ago when the housing market was doing well and home prices were much higher.

A recent survey by Move.com showed that the percentage of people who purchase houses because they are interested in investing in real estate have doubled since March 2009.  Among the main reasons people are being drawn to invest in a property by buying a house are affordable houses and foreclosures.

  • Affordable Prices – Low housing prices are one of the main attracting factors when people consider buying a house as an investment property at this point and time.  Right now the economy and the housing market have began to recover but have not recovered nearly enough for sellers to raise the sale price on their homes.  Those looking to purchase a home at a low price now have the opportunity to hold onto it for the next few months or years – basically until the housing market improves enough to sell the house at a higher amount – and then sell it.  Low housing prices may not only be attributed to just being low to be sold but may also be because of many family’s choosing to sell their property as a short sale.
  • Foreclosures – In recent months foreclosures have been at an all time high.  While this is bad for the people whose houses are being foreclosed on it is beneficially to people looking to invest in a house.  Buying a home at as low as a price that one may be able to find a home that is being foreclosed can be very beneficial to the purchaser.  At times foreclosures need to be fixed up and may have underlying problems that you may not be aware of but if you are will to invest money into a house and fix it up if necessary this may be a great move for an investment house.

Regardless of if you are purchasing a home for the first time or if you are looking to purchase a home to invest in the value of an experienced real estate attorney cannot be replaced.  Hiring a real estate lawyer is key when you are purchasing a property and should not be overlooked.  Make sure that the real estate lawyer you choose is knowledgeable and experienced in the type of sale or purchase that you are considering.  Always ask the attorney you are considering questions so you will know if they are the right attorney for your real estate transaction.

November 8th, 2013 Real Estate Law No Comments »

Housing Tax Credit Extension Approved | It is Time to Take Advantage of the Housing Credit

It is finally official after months of protesting to the lawmakers real estate agents, builders and banks finally voiced their concern for the housing market loud enough that their concerns were taken into consideration and were granted the tax credit extension they were looking for.  The First Time Homebuyers tax credit will now be extended until mid 2010 (military members who are deployed will have a longer period of time to take advantage of the tax credit) and will not also include additional housing tax credits for current homeowners looking to sell their house and purchase a new house.

The decision to extend the tax credit to existing homeowners purchasing homes was decided becuase 60% of buyers currently own a home or have owned a home within the past 3 years whereas only 40% are first time home buyers.  Congress figures that by extending this credit to current homeowners it will boost home sales even more, by an estimated 10%, over the next few months.

If you are interested in taking advantage of the housing credit you will want to start your search for a home sometime within the next few months because you want to allow yourself enough time to find a house that you like and can see yourself living in for the next few years.  You will also want to allow enough time to get approved for a mortgage, if you plan on obtaining one, and to make sure the title is clear of all violations.

Finding the best Staten Island or Brooklyn real estate lawyer is key to making sure that your real estate transaction goes smooth and is done properly.  To contact Staten Island real estate attorney Steven T. Decker regarding your Staten Island, Queens, Brooklyn, Bronx, Manhattan or northern or central New Jersey property purchase you can either call 800.976.4904 or 718.979.4300 or you can fill out our form on the web and someone will get back to you about your purchase.

November 8th, 2013 Real Estate Law No Comments »

NY & NJ Real Estate Transactions: Top Reasons to Buy a Home in New York or New Jersey

Deciding to purchase a home for the first time or purchasing a new home if you are an existing home owner is a big decision to make in this market.  You may be wondering if it is safe to buy a home or if it is in your best interest to buy a home with the economy not fully back to normal.  While these are all valid concerns the market may actually be the reason you should buy a home.  First, before we get into the reasons you should buy a home, I want to start by saying you should never feel pressured into purchasing a home.  Always make sure that when purchasing a home you feel comfortable with your purchase.  Keep in mind that you will be in this house probably for many years to come and you want to be happy with your house purchase.   You will also want to make sure you are able to afford a mortgage payment if you will be considering getting a loan for your home purchase and you will also want to make sure you get a home inspection.

Now that we have established some ground rules for purchasing a house here are some things to may help you decide to stop just thinking about buying a home and actually go do it within the next few months:

  • Reason #1 – Housing Tax Credit – If the extension of the housing tax credit is approved (which more than likely it will be approved by the end of the week) not only will the provisions of the First Time Homebuyers Tax Credit be extended until the end of April 2010 but it will also be extended in the sense that a reduced credit will now be available to certain existing homeowners.   The new tax credit would consist of a tax credit that is 10% of the house’s purchase price up to $8,000 if they have a sales agreement in hand by April 30 and close title on the house by June 30, 2010.  This credit would be available to first time home buyers of those interested in buying a house that have not owned property in the past three years.  The limit for the household income if single will be $125,000 or $250,000 for a couple.  The next credit is a new incentive to take advantage of the housing tax credit which offers a reduced tax credit of up to $6,500 to certain existing homeowners.
  • Reason #2 – Prices are Low – Because the economy is not stable enough to say it has fully recovered or come close to fully recovering yet housing prices are still low.  In fact, sellers in Staten Island, Brooklyn, Bronx, Manhattan Queens, most areas of New Jersey and nationwide are faced with having to list their houses at a low price and are sometimes forced to lower that price even more to sell their house.   For buyers this is a great thing because they are able to get a house that a few years ago would have cost tens of thousands more than what they are selling for now.
  • Reason #3 – Foreclosures and Short Sales are at Record Highs – Distressed homes accounted for a significant number of houses sold this year.  Distressed homes include foreclosure’s being sold and short sales which usually sell for anywhere between 15 -20% less of market value.  Taking advantage of these types of homes can potentially benefit you as a buyer but buyers should also beware of the possible risks associated with short sales and foreclosures.
  • Reason #4 – Low Mortgage Rates – Rates for mortgages currently run around the 5% APR range for a 30-year fixed mortgage.  This is much lower than previous years and the rate of a mortgage that you are eligible for is a huge factor in deciding factor in whether or not you will purchase a house and how much you are willing to spend on it.  The lowered mortgage rates are a big incentive for many people who are deciding to purchase homes right now.
  • Reason #5 (applicable if you are purchasing a home in New York) – Mortgage Tax Credit – A mortgage tax credit is available if you are purchasing a home in New York City.  The tax credit can be used if you are a first time homebuyer and can be combined with the federal First Time Homebuyers Tax Credit.   If you do a real estate transaction in New York for a New York City home and obtain a new fixed rate mortgage through certain types of loans you will be eligible to receive up to 20% off of your mortgage tax for the entire life of the loan.
  • Reason #6 (applicable if you are purchasing a home in New Jersey) – State Housing Grants – There are many New Jersey state housing grants available to first time home buyers looking to complete a real estate transaction for a New Jersey home.  There are many different types of New Jersey housing grants and the terms to each vary.

 

November 8th, 2013 Real Estate Law No Comments »

Extension for First Time Homebuyers Tax Credit in Process and Extension of Increased Loan Amounts: Why it May be the Right Time to Buy a House, Especially in New York and New Jersey

If you are interested in possibly purchasing a house there is some good news in store for you whether it is your first time purchasing a home or whether you are an experienced home buyer.  The extension of Fannie Mae, Freddie Mac and FHA loans to be set at higher loan limits was announced yesterday as the National Association of Realtors thanked Congress for their speedy action to extend the higher loan limits.  The increased loan limits were set to expire at the end of this year but Congress decided that it is in the best interest of buyers, sellers and the economy to extend the increased loan limits through 2010.   FHA, Fannie Mae and Freddie Mac loans will be increased to 125 percent of local median home prices and will have a limit of $729,750 in high-cost areas.   Congress and the National Association of Realtors are hoping that by extending the first time home buyers tax credit and extending the period of time to apply for an increased loan amount the real estate market will be able to fully rebound.

Congress decided on the decision to extend the increased loan limit for FHA, Fannie Mae and Freddie Mac loans earlier this week and the Senate plans on deciding on extending the first time home buyers tax credit and its provisions by the end of this week.   The proposed provisions for the extension of the tax credit includes an expansion of who can apply for the credit which will now include single filing individuals who make $125,000 or less and couples who make $225,000 or less and will be extended until April of 2010.

Those looking to take advantage of the first time home buyers tax credit once the extension is made and are interested in investing in a home may also be interested in applying for state grants (New York state grants for homebuyers | New Jersey state grants for homebuyers) if they are considering buying a home in New York or New Jersey.  Those considering purchasing a home in New York or New Jersey can now receive a free copy of our book “5 Myth that Can Ruin the Purchase of your Home”.  To request a copy of this no cost, no obligation real estate book click here.   This book was written by an experienced Staten Island real estate lawyer and looks out for the buyers interest in a real estate transaction.

November 8th, 2013 Real Estate Law No Comments »

Alternative Options to Consider if you are not Eligible for the First Time Homebuyers Tax Credit

So if you are not eligible for the first time home buyers tax credit should you still consider buying a home?  For most people the answer will probably be yes as long as you have the necessary income to make a down payment and to pay your mortgage every month while still having enough money for additional expenses.

The home buyers tax credit requirements are not able to be filled by everyone looking to purchase a home especially if you have owned a home within the last three years so where does that leave the buyer who is not eligible for the tax credit but still is looking for a break.  Here are some some reasons to buy a home now if you are not eligible for the first time homebuyer tax credit:

  • Low interest rates – For some who are considering purchasing a house they may find that their monthly mortgage payments for their house will actually end up being less expensive than renting an apartment. Mortgage rates have been at record lows over the past year and right now are still low (in the 5% apr range).
  • Special provisions for military members – There is a special provision in the first time home buyers tax credit for military and some federal members that was recently added by Congress that allows military member to not have to abide by all of the requirements for the first time homebuyers tax credit.  A military member does not have to live in their new home as their primary residence for the first three years if they receive PCS orders to depart from their unit and get restationed within that period of time.  The will be able to sell the house or rent it out to someone else and will still be eligible for the $8,000 credit.
  • Lower house prices – While home sales are up house prices are still down lower than what they were worth a few years ago.  Sellers are still not able to raise the prices of their homes if they want to sell their house quickly or, in some circumstances, at all.

If you are interested in purchasing a house in New York you will want to cover all of your grounds before signing a contract.  One of the first steps you will want to take once you have found a home you are interested in is to contact a New York real estate lawyer, such as Steven T. Decker a Staten Island real estate lawyer, and discuss your home purchase with him/her.  Your real estate attorney will go over your contract of sale with you so that you understand its terms and conditions.  To speak with a real estate attorney call 718.979.4300.

November 8th, 2013 Real Estate Law No Comments »

Senate Considering Housing Credit Extension

This week Senate leaders have been more open about the talks of extending the housing credit that is available to first time homebuyers.  While Senators have yet to come to a decision as to what type of extension will be put in place they are highly considering some type of extension.

Senator Majority Leader Harry Reid and Senate Finance Committee Chairman Max Baucus are proposing that the housing tax credit be extended throughout 2010 but decrease in amount quarterly.  The credit would continue at $8,000 until the end of the first quarter and if successful would continue into the second quarter but will only be for a tax credit of $6,000 and so on and so forth until the end of 2010 at which time the last quarter would consist of a $2,000 tax credit for first time homebuyers and then would end at the end of 2010.

Another idea that is being proposed by Senator Banking Committee Chairman Christopher Dodd and Senator Johnny Isakson which is that the first time home buyer tax credit should be extended until June of 2010 but will be able to used by all first time home buyer couples who make less than $300,000 a year.

While the Senate has not decided on the exact terms of the extension yet House Speaker Nancy Pelosi said “generally we do support it” when asked about the tax credit extension but she also said that it is still too premature to determine if and under what conditions the first time homebuyers tax credit will be extended until the Senate reviews the situation and comes up with a proposal.

The consideration to extend the housing tax credit comes after mortgage brokers, real estate agents and home builders have been putting pressure on lawmakers to extend the first time homebuyer tax credit which they believe will cause the housing market to slump if taken away prematurely.

November 8th, 2013 Real Estate Law No Comments »

How to Find the Right Home in New York and New Jersey

Deciding to purchase a home is a big step that most people take at one point and time in their life.  It is a time in most peoples lives where they decide what area they want to live in, how big of a house they need and how much money they are willing to spend on the house.  Making sure that you get everything you want from your house is important, especially if you plan on living there for a while.  Most people wonder “How will I know which house is right for me?” you will want to make sure you figure out what you need in a house before looking for one this will help you and your realtor because you will both be on the same page and you will not find yourself purchasing a home that you are just “settiling” for.

So how do you know if you are buying the right house? There are many different things you will have to decide on as far as your house goes that you will want to decide and make your real estate agent aware of when you are looking for a house in New York or New Jersey. Here are some things you will want to decide on to help you find the right home in Staten Island, Brooklyn, Manhattan, Queens or the Bronx, New York or New Jersey these tips will help you find what you are looking for:

  • Decide on what type of neighborhood you want to live in.  Do you prefer to live in a quiet suburban area or in a urban area.  Suburban areas are often more quiet because you are further away from your neighbors most of the time and they are often slightly less expensive in price when compared with city houses.  Urban areas or “city” areas are often more populated and have less of a commute to work and school but also usually have slightly more expensive homes, are noisier and sometimes have higher crime rates.
  • Decide on what type of location you want to live in.  Once you have decided on whether you want to live in a city or in the suburbs you will want to decide if you prefer living on a busy street or on a more secluded street.  This is really just a personal preference if you are a person who likes it completely quiet all of the time you will want to avoid homes that are on busy streets or that are next to the highway because of the noise from the traffic, but if you are not bothered by the noise purchasing a home on a busier street is usually a few thousand dollars cheaper – just remember that since it can be purchased for thousands cheaper also means that when you sell it there is a chance it will probably sell cheaper.  You will also want to decide if you want to live on a corner lot or not.
  • Find an area with a good education system.  If you have children or plan on having them sometime in the future while you reside in the house you are considering purchasing you will want to make sure the area has a good education system.
  • Decide what type of home you want.  Are you interested in a single family home, multi-family home, condominium, townhome or cooperative (co-op)?  Single family and multi-family homes are usually quieter and have more appreciation but require a lot of maintainance.  Condominiums, townhomes and cooperative units usually require less maintainance but noisier and not as private because you share common walls and/or ceilings with your neighbors.  This category of homes is also usually less expensive than a single or multi-family home.
  • Determine what style of home you want.  Do you want a single story home, split level or a multi-level home? Deciding what type of style home you want is most commonly based on how much space you need, what type of layout you find more appealing, whether or not you have medical conditions that prohibit you to one floor, whether you feel safer in a one floor home or a multi-story home and if a multi-floor home is more or less convienient for your daily activities.
  • Decide what interior specificiations are important to you.  You will want to determine what specific needs you and your family have and what they need from the house for everyday living.  How many bedrooms do you need?  Will you need extra bedrooms in the future for a baby, in-law or parent?  Do you need a guest room?  Is one bathroom okay for your family or do you require 2 or only 1 1/2 bathrooms?  Determining the specific needs your family has will help you decide what qualities you need inside of your house.
  • Figure out if you want a home that is newer and will require less fixing or if you are looking for a “fix-up” home.  Regardless of whether or not you are buying a home that is apparent that it needs to be fixed up or if you are looking for a home that requires little to no repairs you will always want to make sure you have an engineers inspection (home inspection) done to make sure there are no “hidden problems” but deciding if you want to pay less for a home that needs to be fixed up or if you want to spend a little extra and purchase a home that is newer and does not require and fixing up will not only help you in the long run but will also help you map out the amount you may need to invest in the house to fix it up.
  • Try to figure out if there are any “little things” that are important.  Determining if there are any small things that will be a make or break the deal is important to figure out before hand also and sometimes are not thought about until the purchase process is already occuring. A few things to consider are does the house offer gas or electric heat, does it have central air or will you have to put a window unit in, do you want a swimming pool, if you are buying a condo or co-op are you allowed to have pets, are you willing to buy a house if it is a short sale or a foreclosure? – there are many questions that you may want to figure out the answers to before making a final decision and signing a binder for a house.
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