Martin D. Eagan, Esq.'s Blog

The NJ Realty Transfer Tax is a fee imposed on the transfer-or of real property and is due at the time that the deed for such transfer is recorded.   There is also a separate fee imposed on the transferee (buyer) of real property if the purchase price is over $1,000,000 and the transfer falls into one of the following four classifications: residential; farm land; commercial property; cooperative units.  Generally speaking the fee comes out to be just under 1% of the purchase price for sales between $350,000-$1,000,000.  Under $350,000 sale price is even less.   The fee is reduced if one of the Sellers is 62 years or older, blind or disabled. 

 

The following website offers a free rate calculator to determine the applicable Realty Transfer fee and provides exact tax amounts:

http://www.titleinsurancenj.com/Sites/0/Module/TransferTaxCalculator/NJTransferTaxCalculator.aspx. 

If you have any further questions, feel free to contact me at 973-898-7300.  My website is a good resource as well:  www.martyeagan.com

HAFA is an acronym for Home Affordable Foreclosure Alternatives, a government-sponsored program that helps individuals and families who are experiencing difficulty in selling their homes. In conjunction with the Home Affordable Modification Program(HAMP), HAFA was initiated on November 30, 2009 by the U.S. Treasury Department under the Obama Administration with the goal of revitalizing the housing market.  To find out more information about the HAFA program, please visit their web site:  www.whatishafa.org

HAFA Resources 2009-2010, “What is HAFA?” (online) available at www.whatishafa.org

  

A short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank's Loss mitigation department. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale.

Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market climate and the individual borrower's financial situation.

A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owner, the advantages include avoidance of having a foreclosure on their credit history and the partial control of the monetary deficiency. Additionally, a short sale is typically faster and less expensive than a foreclosure. In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount. 

If you think that a short sale is something you need or want to consider, give me a call and I can help you make the right decision for you and your situation.

Marty
973-898-7300 x126
marty@martyeagan.com
www.martyeagan.com

The residential real estate closing is customarily held at the office of the Buyer's attorney. The closing will be attended by you and your spouse or partner, and you will be represented by an attorney from our law firm.  Often, the Realtors and sometime the mortgage representative will also attend the closing. The average closing usually takes approximately 1 to 2 hours.

 

At the closing you will need to bring a certified check, bank check, or cashier's check payable to the attorney's trust account.   Personal checks cannot be used at the closing. You will be provided with the exact amount of the check when the numbers are available to us. It is also a good idea to bring a few personal checks in the event minor adjustments need to made between the parties at closing.

If you have any questions, please don’t hesitate to contact me at 973-898-7300,
Ext 126.  My web site has great information too, www.martyeagan.com.

Attorney review begins once the Contract is signed by both parties and the fully executed contract is distributed to both parties.  It typically lasts three business days, not including weekends.  While in Attorney review, the attorneys representing the respective buyer and seller will ensure that all terms are clearly understood and acceptable to both parties.  Once all are in agreement, both attorneys’ will approve the contract.  It is then a legally binding contract.

It is important to make sure that the real estate agent sends a copy of the executed contract to both attorneys.  The attorney review period runs, even if your attorney has not received the contract. 

If you have any questions about attorney review, or any other part of the process, please give me a call.  973-898-7300 x126.

Marty Eagan
www.MartyEagan.com

 

It is important to know that the closing date in the contract is not an absolute deadline. Assuming that the Buyer's mortgage commitment comes on time, the closing is usually within ten (10) days of the date originally set. Additionally, please note that the buyers generally expect to conduct their final "walkthrough" inspection about two (2) hours prior to the scheduled closing. It is expected that the property will be vacant and broom cleaned prior to closing. You must schedule your movers accordingly.

If you have any questions, please don't hesitate to contact me at 973-898-7300 x126 or reply to this blog.

Marty Eagan
www.martyeagan.com