Category: Real Estate Law

November 8th, 2013 Real Estate Law No Comments »

Military Members Looking to Purchase a Home Can Now Take Advantage of First-Time Homebuyers Tax Credit

If you are a military member who is looking into purchasing a home for the first time you may be curious to know if you qualify for the first time homebuyer tax credit that everyone has been talking about this year.  Many service members that purchased a home over the past year using this tax credit have quite possibly had the question run through their head “Will I have to pay back the first time homebuyers tax credit if I have to get re-stationed?” or “I just came back from a deployment – do I have enough time to purchase a house before November 30 when the tax credit deadline is?”.  Thanks to an extension and revision of the bill these questions have now been answered.

The Service Members Home Ownership Act of 2009 was presented not even a month ago for approval and last week Congress approved both the extension of the first time homebuyers tax credit for an additional year for service members who were deployed outside of the U.S. for over 90 days in 2008 and it would also allow service members to not have to pay the $8,000 credit back if they have to get re-stationed before the initial three years of owning their home.

Many military personnel who purchase homes usually either have to sell their homes or rent them out if they are getting changing locations and are no longer going to be able to live in the home.  This was causing a lot of military members to not want to purchase a home and take advantage of the first time home buyers tax credit because more than likely they would have to relocate within the first three years of owning the home and the chances that the new home could remain their primary residence is usually slim.  With the Service Members Home Ownership Act of 2009 military members no longer have to worry about these provisions in the First Time Homebuyers Credit.

Robert Dietz, the director of tax issues for the National Association of Home Builders, predicts that the approval of the Service Members Home Ownership Act of 2009 will probably result in an additional 10,000 home sales.  While he says this won’t have an impacting effect on the national level of the housing market it will have an effect on the local communities, especially the communities that are near Army, Marine, Air Force, Navy or Coast Guard bases.

No matter if you are in the military or if you are not there are certain tips you will want to use when purchasing a house whether it is in New York, New Jersey or anywhere in the U.S.  To get more information on what steps and precautions you should take when purchasing a home get a no cost, no obligation copy of “5 Myths that Can Ruin the Purchase of Your Home” by Steven T. Decker.  This book is being offered free to residents and those who are looking to become residents of New York or New Jersey.

November 8th, 2013 Real Estate Law No Comments »

Buying a Short Sale in New York or New Jersey

In the past couple of years foreclosures have hit a record high and short sales became more popular for homeowners trying to avoid a mortgage default going on their credit report.  Prior to short sales becoming more popular most people did not even know what a short sale is.  A short sale is when a seller can no longer afford their mortgage payments and are risking a mortgage default and the lender agrees to accept funds less than what the mortgage is worth.  Short sales can be a great thing for both the seller and the buyer but it may not be an easy road getting there.

Here is a brief description of the process of a short sale:

  1. Purchaser will want to have an engineers inspection or a home inspection done
  2. Contract of Sale must be signed by the purchaser and the seller
  3. Short sale documents requested by the lender must be submitted by the seller
  4. Lender has to approve the short sale and the price the house is being sold to the buyer for – if the bank does not agree on the price they may request that the sales price be raised or they may not approve the short sale.
  5. Purchaser, as with any other real estate transaction, must get approved for a mortgage if they do not plan on paying cash for the house.
  6. Title must be cleared of any violations and liens.
  7. Closing of title must take place at which time the deed is signed over to the purchaser.

Short sales are great for the seller because they do not have to have a foreclosure listed on their credit report; they are great for the lender because it allows them to not lose as much money on the loan as they would if the house was to be foreclosed on; and they are very attractive to the prospective purchaser because they sell for less than a regular sale would be listed for but they have to opportunity to treat the process as more of a home purchase rather than a foreclosure purchase.  Although this may sound appealing to the potential homebuyer, and may turn out to be a great and well worth experience, there are a few things that the buyer should be aware of regarding the short sale process such as the length of time it may take to get the short sale approved, the risk of putting money out for legal fees, appraisal fees, mortgage application fees and the cost of an engineers inspection report.

A recent announcement by the Treasury Department said that they are looking to approve a widened incentive program for short sales that would entice lenders to be more likely to consider the approval of a short sale instead of allowing the property to be foreclosed on.  If approved, the program, which is part of the Obama Administrations Home Affordable Modification Program, would offer $1,000 to the lender for going through with the short sale, up to $1,000 if there is a second lien holder and would offer the borrow $1,500 towards closing costs.

Here are a few things you may want to consider before purchasing a short sale in New York or New Jersey:

  • Hire an experienced real estate agent.  Hiring an experienced real estate broker for your purchase will help
  • Check public records. You can check the public records for the property to see if there was a foreclosure notice filed yet and to see how many loans the seller has open.
  • Be aware and open minded. If you decide that you are willing to take the chance associated with a short sale purchase be aware that the seller is awaiting bank approval keep and open mind to the fact that the seller may not end up getting approved for the short sale and if they do you could possibly be asked to pay an additional amount of money for the purchase price.
  • Be sure to have a home inspection done. When you are purchasing a short sale you are purchasing the home as is so it is important to have a home inspection (engineers inspection) done to determine if there are any major property defects in the home.
  • Hire a knowledgeable and experienced New Jersey or New York real estate attorney.  Hiring a knowledgeable and experienced real estate attorney is a critical asset to your home buying process, especially if you are purchasing a short sale.  Whether you are purchasing a short sale in Staten Island, Brooklyn, Manhattan, the Bronx, Queens, New York or New Jersey you will want to make sure you select a lawyer who has experience in short sales.

 

November 7th, 2013 Real Estate Law No Comments »

Purchasing a Condo in New York is Becoming More Popular

In recent months you may have hear a lot about the increase of sales of newly constructed homes but a report released by Miller Samuel Inc., a New York appraisal firm, recently shows that New York condo sales are up 45.6% from last quarter.  While this number is still down 16% from a year ago this is still a significant jump in for condo sales.

The report released by Miller Samuel Inc. also showed that more people selling a condominium in New York had to drop their sales prices by 5.7% compared to last quarter and 16.5% from last year.

With prices at such a dramatic low it is time for those considering to purchase a condo in New York to make a move.

Many people, especially if they are single, a young couple, or elderly, may consider purchasing a condominium unit.  Condo’s have become increasingly popular over the past few years because they allow the buyer to purchase a home of their own without having to have the complete responsibility of certain things.  Some of the advantages to buying a condominium are:

  • Most condominiums include amenities that you normally may not be able to afford.  Certain condo’s the extras you may be looking for such as swimming pools, a gym, volleyball court, tennis courts or basketball courts.
  • The cost is less than a detached home.  Condo’s normally sell for anywhere between 20-30% less than a single detached home so you are getting the experience of owning your own home and you are able to do it for less than purchasing a detached house.
  • Costs are shared. In a condominium the cost of repairs are shared with the other owners of the condominium so instead of having to pay for something yourself, while the cost for materials may be more than for a detached home, the final cost to you will probably be much less because it is being shared with everyone else in your condo.

To find out more information about purchasing a condominium in New York or if you currently own a condo in New York and are looking to sell it contact Steven T. Decker, Staten Island and Brooklyn real estate lawyer.

November 7th, 2013 Real Estate Law No Comments »

First Time Homebuyers Tax Credit Bill for Service Members | Military Personnel Purchasing a Home in New York and New Jersey

Late last week the House Way and Means Committee unveiled the a bipartisan bill that is currently being taken into consideration by the House of Representitives.

The Service Members Home Ownership Act of 2009 would correct a problem that was previously occuring for military members with the First-Time Homebuyers Tax Credit.  Many military members were not taking part in purchasing their first home and taking advantage of the $8,000 first time homebuyers credit because of the concern that they would have to pay back the money they receive from the tax credit if they get transferred to a different station before they have owned and resided in the home for 36 months.

The first time homebuyers tax credit has a clause in it that prevents first time homeowners from selling their house or renting out their house before the initial 36 months has passed.  If you choose to move out prior to the 36-months or are not using the home as your primary residence you must pay back any tax credit that you received from the program.  The Service Members Home Ownership Act of 2009 would change the requirements for military personnel.

The main benefits that service members will see if the bill is passed are:

  •  Certain service members would be exempt from paying taxes if they are forced to sell their home at a depressed price. Among those eligible for the tax exemption would be wounded service members and service members who had to sell their home because they were permanately assigned to a new duty station.
  • Service members and certain federal workers who buy a home before December 1, 2009 will not have to repay the $8,000 tax credit if they sell their home or stop using it as their primary residence within the first three years if they are forced to sell or rent out their house because of government orders.
  • Service members, foreign service officers and members of the intelligence community who were deployed outside of the U.S. for 90 days or more between January 1 and December 1, 2009 will have be able to close on a house after December 1, 2009 and still be able to take advantage of the first time homebuyers tax credit.

This bill  is passing throught the Senate quickly and will possibly be signed and put into place within the next two weeks.

If you are a military member purchasing a home in New York or New Jersey and need a real estate lawyer in Staten Island, New York contact Steven T. Decker at 718.979.4300.

November 7th, 2013 Real Estate Law No Comments »

More Home Buyers Purchasing Newly Constructed Homes as New Housing Permits Continue to Rise

A recent report released by the U.S. Department of Commerce showed that housing starts and building permits rose to the highest they have been since last November.  This news comes a month after the housing report for July was released which announced that home sales rose 9.6%, which was the largest monthly increase in sales in the past four years.

While the report showed that construction starts of single family homes dropped 3%, it showed that multi-family homes rose 25.3% after coming off of an all time low a month before in July.  Total housing starts rose 1.5% and building permits rose 2.6%, although the majority of the rise in building permit applications were for two-family, three-family and four-family homes and larger buildings such as condominiums.

All of this information listed in the report released by the U.S. Department of Commerce was released one day after and corresponds along with the report released by the National Association of Home Builders who released a statement saying that its home builder confidence level rose for the third consecutive month in September to the highest it has been in 18 months.

So what does all of this mean for you as a home buyer? The large increase in building permit applications and large number of building permits that have already been issued to home builders will create a larger number of homes for those looking to purchase a house.  Because numbers rose so high in the area of multi-family homes it also mean that there are more condominiums being constructed.  With the rising numbers of people looking to buy new homes home builders are trying to create new affordable homes for the buyers.  Home builders are also hoping that the bill to extend the home buyer tax credit will pass.  In the case that the bill does pass it will more than likely mean that that there will be an even larger number of people in the market to purchase a home.  A larger number of people looking for homes also means a larger number of people who will be interested in purchasing a home that is newly constructed.

If you are interested in purchasing a home in the Staten Island area and need a lawyer to represent you contact Steven T. Decker.  Steven T. Decker is a real estate attorney in Staten Island and represent clients purchasing, selling and refinancing their homes in New York and New Jersey.  If you would like to speak with Steven T. Decker to discuss your purchase, sale or refinance of your home you can contact him at 718.979.4300.

November 7th, 2013 Real Estate Law No Comments »

Homebuyer Tax Credit May Be Extended and Also May Include More Than Just First Time Homeowners | First-time Homeowner Purchasing a home in Staten Island or Brooklyn New York

In the past few months there has been a growing concern among realtors, banks, brokers and real estate lawyers that the economy may suffer a large downslope if the $8,000 tax credit that is currently available to first time home buyers ends on November 30.   This is the exact reason that many real estate professionals have joined in a campaign in an effort to get Congress’ attention on this very important subject.  The slogan of the campaing is “Don’t Let America’s Real Estate Recovery Expire”.

Many expert real estate professionals understand and know that the first time home buyer tax credit is something that can be used to continue to revive the economy.  While this is not the only thing that needs to be done to improve the economy from its current state, it is a very large part of it.

The homebuyers tax credit was started in February of this year and is set to expire November 30, 2009.  In July is when most home buyers started looking to take advantage of the $8,000 tax credit so that they could close on the house by November 30 of this year.  Sales in July reflect the benefits of having the $8,000 first time homebuyer tax credit in place.  The sales on existing homes rose 7.2% and sales on new construction homes rose 9.6%, according to the Realtor and Commerce Department.  That was the first time in over two years that home sales increased by such a large percentage.

A lot of banks are afraid that those interested in becoming first time homebuyers will begin to back off from the idea of purchasing a home within the next month or so becuase the process to obtain a mortgage takes about 60 days and they would need to close on or before November 30, 2009 to be able to take advantage of the tax credit.  This reason has caused many real estate professionals to push Congress harder for an extention on the tax credit.  Also, the idea has been presented to Congress to not only extend the tax credit but also allow it to include individuals who already own homes, couples who make $75,000 to $150,000 annually and would increase the tax credit from $8,000 to $15,000.

The bill to extend the homebuyer tax credit and to change its provisions to include a larger range of people is currently gaining support with the Senate becuase of bill sponsor, John Isakson.  When asked about the bill he is sponsoring to extend the tax credit he said that he just wants to continue a program to help boost homes sales by more than 1 million in just the last year.

White House spokesman Robert Gibbs tolds reporters that President Barack Obama’s team is currently looking at the bill for the new tax credit and “evaluating the impact” it will have on new home sales.

If you are a first time home buyer interested in purchasing a home in Staten Island, Brooklyn, Bronx, Queens, Manhattan or New Jersey contact an experienced real estate lawyer.  Decker, Decker, Dito & Internicola, LLP, a Staten Island law firm, has over 35 years experience in real estate law.  To have us help you throughout the process of purchasing a home and for us to represent you at the closing of the title on future house contact us at 718.979.4300.

November 7th, 2013 Real Estate Law No Comments »

Mortgage Credit for First-Time Home Buyers Purchasing a Home in New York

New York state is offering a tax credit to first time home buyers who are purchasing a home in New York (including New York City – Staten Island, Brooklyn, Manhattan, Queens and the Bronx) in addition to the $8,000 tax credit for first time home buyers.

The additional credit will be given to first time home buyers buying a home in New York and obtaining a new fixed rate mortgage – including Fannie Mae, Freddie Mac, other conventional loans, VA loans and FHA insured loans and will offer a tax credit of up to 20% of the mortgage tax credit for the life of your loan.

The credit is called New York State Mortgage Credit Certificate and you apply for it at the same time you apply for your mortgage and upon approval you can claim the tax credit on your federal taxes along with IRS form 8396 (mortgage interest credit form).

There are restrictions on who can apply for the loan, some of the qualifications are listed below:

The borrower must…

    • Be a first time home buyer as defined by SONYMA;
    • Meet SONYMA’s Household Income Limit requirements (click here to see Household Income Limits for your area);
    • Occupy the home as their permanent residence;
    • Not have used more than 15% of their current residence (or a prior residence) for a business or commercial use in the past year.
      • The property must…
    • Be located in New York State;
    • Have a sales price that does not exceed SONYMA’s Purchase Price limits;
    • Not have been used for any business or commercial purpose;
    • Be one of the following property types:
      • Existing or newly constructed one family home (includes condominiums and cooperatives);
      • Existing two, three, and four family home that is at least five years old as of the SONYMA loan application date and has been used only as a residence during the past five years;
      • Two family home located in a Target Area that is newly constructed or was constructed within the five years prior to the SONYMA loan application date; and
    • Have a maximum of five (5) acres.
      If you are a first time home buyer that is considering purchasing a home in New York the Mortgage Credit Certificate (MCC) may be something that you are eligible for.  In order to find out how much of a tax credit you will receive if you apply for this program NY Homes has created a calculator.
       to help you determine how much of a credit you will receive.
      Unlike the federal home buyers tax credit of $8,000 the New York Mortgage Credit Certificate does not have an expiration date on it as of yet.  The Mortgage Credit Certificate can be used with the federal first time home buyers credit of $8,000 if the closing occurs on or before November 31, 2009.
      Also,

if you are purchasing a home in New York you will need a New York real estate attorney with experience to represent you in your real estate transaction

      .  You will want to make sure you find the right New York real estate lawyer because this will be the person guiding you throughout the process of your purchase, explaining the contract to you, making sure you get what you want out of your purchase, working with the bank to help you get approved for your mortgage and representing you at closing.  If you would like more

information about finding the right New York real estate attorney

         contact our law firm which has over 35 years of real estate experience.  You can contact our Staten Island real estate law firm office at 718.979.4300.  We are located at 1610 Richmond Road, Staten Island, New York 10304.
November 7th, 2013 Real Estate Law No Comments »

Lower Interest Rates for Smaller Downpayments

The general rule used to be that if a homebuyer did not put at least a 20% down payment on a house they would face the risk of expensive private mortgage insurance and higher interest rates.

Rules put in place by Fannie Mae and also adopted by Freddie Mac at the end of 2008 made it so that people putting down between a 20 - 25% downpayment were considered “riskier” mortgages to lend out than those who are in the 20% or lower range or than those above the 25% range.

People who put down below 20% on a house are usually required to pay for private mortgage insurance but received the same interest rate as those who put down 20%.  Whereas those who put down over 20% but less than 25% were considered a higher risk and were offered higher interest rates even as high as a whole percent higher than those in a different down payment class.

Fannie Mae and Freddie Mac representatives said that the reason they count them as a riskier investment is because they are they are at the lower end of downpayments that do not require private mortgage insurance.

If you are interested in purchasing a home in Staten Island or Brooklyn, New York or New Jersey contact Steven T. Decker, an experienced New York real estate attorney, at 718.979.4300 to discuss how we can represent you in the purchase of your home.

November 7th, 2013 Real Estate Law No Comments »

First Time Homebuyers Considering Purchasing a Home in New York and New Jersey Need to Act Now to Receive Tax Credit

If you are considering purchasing a house for the first time you are probably aware of the first time homebuyers tax credit of $8,000.  One of the conditions of the tax credit is that you must close by November 30, 2009.  While many people are fighting to try to get the deadline for the tax credit extended there has been no update as to whether or not it will be extended past the current deadline.

If you are planning on taking advantage of this first time buyers tax credit now is time to start on the purchase process, if you have not started to do so already.

Many first time homebuyers may not be aware of the time period that it takes to purchase a home in New York or New Jersey.  Most homes take about 45 – 60 days from the time the contract of sale is signed to the time of the closing date.  This date can vary depending on if you are applying for a mortgage and if the seller is ready to move out right away and also can depend on various other factors such as if there are any title issues or not.

The first step you need to take is to find the right New York or New Jersey home for you and your family.  The next step that will happen once you have found a house you are interested in is you will be given a binder to sign.  The binder will be signed by you and the seller and will include information such as the sales price that was agreed on and what will be included in the sale of the home (washer, dryer, refrigarator, etc).   The binder will be sent over to the New York or New Jersey real estate attorney of your choice and the seller’s attorney will prepare the contract of sale and send it over to your real estate attorney.  Once your attorney has received the contract of sale they will contact you to come into the office to review the contract with you, make any proposed changes and sign the contract.  The contract will also include the amount of time you, the buyer, have to obtain a mortgage commitment.  Once you obtain you have received approval from the mortgage company and any and all issues with the title company are cleared to close to go to closing (In New York the closing date is an “on or about date” meaning that it is an estimated date of closing.  Usually closings must take place within 30 days of this date).

As you can see this process requires some time and effort on your part if you plan on obtaining a mortgage to purchase your new home which is why many real estate experts are advising that you get started on the purchasing process now if you want to close by November 30 of this year and reap the benefits of the $8,000 tax credit that will be given to first time homebuyers.

We at Decker, Decker, Dito & Internicola LLP, a Staten Island firm, have over 35 years of experience in the real estate field.  If you are looking for an experienced real estate attorney for your New York or New Jersey property purchase you can contact Steven Decker or Arthur Decker at 718.979.4300 to discuss the purchase of your home.

Also, we recommend that our clients read “5 Myths That Can Ruin the Purchase of Your Home” written by Steven T. Decker.  This book debunks many myths that you may have heard before about purchasing a home and will help you throughout your purchasing process.  To obtain your NO OBLIGATION NO COST copy of “5 Myths That Can Ruin the Purchase of Your Home” you can either place your order online or contact us at 718.979.4300.

 

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