From the Record:
North Jersey foreclosures haunt neighbors
Maywood homeowner Joe Leichtnam spent some time recently trimming the shrubs, mowing the lawn and fixing the siding.
Not at his house; at the empty house next door. It’s a small effort to contain the chaos at the property, which is in foreclosure and has been vacant for several years. The house has a blue tarp covering a hole in the roof and overgrown bushes that threaten to engulf the deck.
The house on Edel Avenue is just one of thousands of vacant homes left by the housing bust all across North Jersey. Neighbors say they’re discouraged and disheartened by the sight of these neglected homes, which can remain empty for years while the foreclosure process grinds slowly forward.
If a neighboring house is empty and in disrepair because of a foreclosure, homeowners can complain to their town’s code enforcement officer. The town then has the power to contact the foreclosing lender, which by law is supposed to correct violations of the property tax code. If that doesn’t work, the town can send in workers to clean up the property and then place a lien on it to pay for the work. That way, the town is repaid either when the lien is purchased by an investor or when the house is sold at sheriff’s auction.
“It just detracts from the whole neighborhood,” said Leichtnam, a retired telecommunications professional. “It definitely has an impact on the value of the homes in the area.”
These homes are orphans of the real estate storm. The homeowners are gone. Foreclosing lenders don’t own the property, and generally do the minimum — mow the lawn or board up windows. Towns can step in, but their workforces are already stretched, and they don’t know when they’ll be reimbursed for the work. Without the level of care that homeowners typically give, the properties can fall into neglect and disrepair. So neighbors like Leichtnam, who see the value and appeal of their own homes threatened, take matters into their own hands.
The blight has not hit just lower- and middle-income areas. On McCain Court in Closter, for example, an empty McMansion sits in a cul-de-sac of half a dozen similar houses. The owner paid $929,000 for the home in 2000, but lender Keystone Nazareth Bank and Trust filed to foreclose in July 2008, according to public records.
Today, the house sits with expensive but overgrown landscaping, a knocked-over mailbox and signs of damage in a high corner where the side wall meets the roof. There’s a notice on the door from United Water, dating to December, warning that the water’s about to be turned off because of an unpaid bill of $1,367.
…
Mortgage companies will often turn off the water in a house to prevent burst pipes. But they don’t always act in time. Theresa Rolaf says an empty house on her street, Terrace Street in Bergenfield, was flooded when an upstairs pipe broke.“I called the police and they came to shut the water off,” said Rolaf. “I’m sure there is a lot of damage inside.” The house is now owned by JPMorgan Chase, according to property records. A note on the door from the bank’s lawyers indicates that the homeowners gave the bank the deed, to head off a foreclosure.
…
The homes can stay vacant for years. It now takes, on average, more than 2½ years for lenders to go through the legal process to evict New Jersey homeowners who can’t pay their mortgages. The New Jersey foreclosure pipeline came to a near-halt in 2011 over sloppy paperwork by lenders — called “robo-signing” because lender representatives allegedly signed documents without checking them, in the rush to evict homeowners. The foreclosure machine has shown recent signs of starting up again in New Jersey, but with the backlog of properties in the system, distressed properties are likely to linger for years.Because vacant homes can be a “calamity” in a neighborhood, Affuso, of the bankers’ group, said the state should try to streamline the foreclosure process on empty properties, since the homeowners obviously aren’t contesting the foreclosure. A recent bill proposed in the Legislature to turn foreclosed homes into affordable housing would help, because it sets out a way to identify vacant homes and allow banks to repossess them more quickly, he said.
From the APP:
Home prices still sliding at the Shore
With the latest slide in median housing prices in the region that includes Monmouth and Ocean counties, home values are now down by an average of 30 percent from their 2006 peak.
The median price of $292,400 for the first quarter of this year was down 3.6 percent over the same period a year ago, according to the National Association of Realtors.
The median housing price in the region that includes Monmouth, Ocean, Middlesex and Somerset counties topped out at $415,300 in 2006.
Housing prices fared better in other parts of the country in the first quarter of this year, rising in 74 of 146 metro areas measured by the NAR. Only 29 showed gains in the fourth quarter. The national median housing price was $158,100, down 0.4 percent.
From the WSJ:
Is Now the Time to Buy Your First House?
It’s been a scary few years for the housing market. But at some point, the nightmare has to end (please?). Is now the time? Should first-time home buyers consider jumping into the market?
After all, home prices have fallen 34% from their 2006 peak and mortgage rates are hovering at or near record lows.
On one side are those who argue that homes are more affordable than they have been in decades, based on how much monthly income a mortgage consumes and whether owning is less costly than renting.
An uptick in home buying by investors already is under way, they say—an indication that those who wait may miss out on a good buying opportunity.
On the other side, pessimists insist that the housing slump is far from over, and that prices will continue falling—perhaps as much as 20% or more.
Excess inventories, they say, are the problem, and some estimate it could be four years before the market absorbs all of that extra supply.
Good Morning New Jersey
The city has been mowing the lawn for the last two summers a couple of houses away from my mother.
From the Press of Atlantic City:
Bottom Lines: An early sign that fewer are leaving New Jersey
The state Realtors have found another ray of hope to add to firming prices and increased activity in the spring housing market: The trend of people leaving New Jersey has slowed.
The Governmental Research Foundation of the New Jersey Association of Realtors has studied state migration patterns since 2001.
From 2001 through 2007, an average of 979 more households moved out of New Jersey each year than moved into it. In 2008 and 2009, the net loss of households was just 333 per year.
Migration matters to Realtors because households moving to New Jersey need houses and those leaving don’t. In the long run, out-migration reduces demand for homes.
The characteristics of those migrating also matters, and happily for those in real estate, the households moving into the state had incomes 28 percent higher than those moving out in 2009.
Perhaps as a result, the median price of a home bought by those coming to the state was $396,500, half again more than the median price of the homes being sold by those leaving, $260,000.
…
The survey also asked what reasons were given most often for interest in leaving the state, and the top answers predictably were taxes — but New Jersey’s highest-in-the-nation property taxes came second, mentioned by 78 percent of respondents.
That was edged out by the also-high state income tax, cited by 85 percent. Coming third was state inheritance and estate taxes.
“New Jersey has been, or is at risk of, losing affluent households who contribute to the state not only as taxpayers but as operators of businesses,” the Treasury survey concludes.
…
The Realtors study found that in 2009, those leaving New Jersey paid an average of about $2,900 a year in property taxes in their new location. Those coming to New Jersey paid about $7,200.
Gooners will be joining us soon enough in Europa League.
Rather be dead than Red.
California’s budget deficit is now 16 billion…just a weensy bit more than the 9.2 bil projection. Blame goes to shrinking tax revenues.
At what point do we declare the whole state a Third World sinkhole and ring fence it?
ResCap files bankruptcy. Green shoots.
http://online.wsj.com/article/SB10001424052702303505504577401911741048088.html
Nobody goes to jail. We made a few mistakes .
Where’s Jon Corzine , new hire at JPM?
You are really a excellent webmaster. The web site loading speed is amazing. It seems that you’re doing any unique trick. Also, The contents are masterpiece. you have done a magnificent task in this subject!
Guess this bailout didn’t work. Ally files a BK
http://online.wsj.com/article/SB10001424052702303505504577402422338125022.html?mod=ITP_moneyandinvesting_2
Wow. Just wow.
http://i.dailymail.co.uk/i/pix/2012/05/14/article-2143889-13131077000005DC-851_634x856.jpg
http://www.dsnews.com/articles/shadow-inventory-update-46-months-to-clear-supply-of-distressed-homes-2012-05-14
Hurry/Rush to your local realtor. Never a better time to buy now. Don’t wait.
Once in a lifetime
The benchmark 10-year yield slid six basis points, or 0.06 percentage point, to 1.78 percent. :Cant believe Mortgage rates head down again.
Schiller in WSJ today said homes have 22% more to fall. YES!!!!!!!
The New York City metropolitan statistical area (MSA) has the highest months-to-clear in the nation, at 202 months.
S&P also reported that the U.S. monthly first default rate fell to 0.67 percent in March 2012, the lowest level since May 2007. The first default rate is the percentage of loans that became 90-plus-days delinquent in that month for the first time, as a percent of all loans that have never before been at least 90 days or more past due.
This means that properties are entering the shadow inventory at a slower rate. S&P says with this improvement, the speed at which servicers can liquidate or cure nonperforming loans will determine the size of the shadow inventory going forward.
Default rates have been falling since first-quarter 2009 and the average national liquidation rate has stabilized, according to S&P—both factors that bode well for getting a handle on the magnitude of the industry’s shadow inventory and its inevitable impact.
Ally is not filling a BK. Ally is a strong bank. Ally has two units GMAC and Rescap. GMAC was bailed out. Rescap was not. Rescap is a sep company with its own financials. But letting Rescap go BK it frees them from that legacy subprime sludge and leaves them with a strong bank and GMACs strong auto loan portfolio. Actually that is a sign the bail-out worked. GMAC was bailed out not ally. Late model used cars residual values have rose greatly in last 12 months, that combined on an auto loan you only have 2-5 years to pay off loan so you pay down principal rapidly. Allys and GMAC loan portfolio is solid. Rescap is a toxic dump. Imagine a company created under the illusion housing was an investment, that is crazy talk.
freedy says:
May 14, 2012 at 7:46 am
Guess this bailout didn’t work. Ally files a BK
The North Shore in Sydney is one of the nicest places to live in Australia. Kirribilli House a prime example… qanda
Bond of the Day. Have not done one in two years. Bond is trading at Par, issue at par in 2009. Straight up 7% coupon/yield. That is around 410 BPs above comparable maturity treasury.
JPMORGAN CHASE CAP XXVII
07.00000% 11/01/2039ISIN #US48125BAA26 SEDOL #B56RT2
JJ Do I need a cast iron tummy to buy those?
#2 It’s been a scary few years for the housing market.
Scary? It has been refreshing.
http://media.ally.com/index.php?s=43&item=543 The RES/Cap bk
Zero Default Risk. Absolutely Zero. However, big headline risk, liquidity risk and interest rate risk.
However, if grandma needs income, a 10K A rated investment grade bond yielding 7% would throw off $700 a year. A Chase Checking account at 1/10 of 1% is throwing off $10 bucks a year interest income. Grandma does not worry about rates rising or maturity as she will be long dead before bond matures. Chase survived civil war, WWI and WWI, 9/11 and 2008 Financial Crisis. Two billion loss on a One Trillion balance sheet is a rounding error. Remember when Chase got Bear and Wamu they got them without any liabilities unlike BAC with countrywide. Those loan portfolios have matured and are seasoned, meaning the Bear and Wamu loans that were going to default did default.
Mike says:
May 14, 2012 at 8:49 am
JJ Do I need a cast iron tummy to buy those?
GMAC bonds were up last week on this pending news. Rescap bond holders are very happy most bought at pennies on dollar between December 2008 and April 2012. The retail bondholders long sold off to vulture investors. People like Paulson and Fortris own these bonds.
GMAC has not repaid TARP, uncle SAM can let them go BK as Uncle Sam has pref stock which is below bond holders and Uncle Sam would get wiped out in a GMAC BK.
I bought GMAC bonds back April 2009 and at time has a 27% yield to maturity. After three years of 27% interest I would say Uncle Sam is doing a fine job. .
freedy says:
May 14, 2012 at 8:54 am
http://media.ally.com/index.php?s=43&item=543 The RES/Cap bk
Schiller in WSJ today said homes have 22% more to fall. YES!!!!!!!
You don’t need anything more than common sense to see this one coming.
Brian,
Know what I did all weekend? I installed MySQL on a Windows server and Linux server, configured it, initalized it and started the processes. Then, I had to determine whether I was using localhost or another port that needed to be configured so that I can run an install package… which, had to be unzipped, untarred, permissions on the shell script changed and then figure out the stack overflow error while I tried to run it. I’m not done yet… 80% complete… still need to install a UI from command line in Linux. Oh, BTW folks… this is how the new interview process works in the real world.
[13] brian,
That sort of symbolism coming from Newspeak is not really surprising. It is the most left-leaning of the major (hah!) newsmags. And it’s evident in their makeup: Last time I checked, they had two (one admitted) socialists on their editorial board, including the former EIC.
Vacant house story – I was mountain biking in an unfamiliar mountainous region of West Virginia by myself (not recommended, BTW) when I came upon a very passable unpaved road, mostly gravel. I followed the road for a little while until I came upon about a half dozen abandoned houses. Gave me a very weird Deliverance-like vibe. I got off my bike and snooped around a bit, expecting they were depression era but was surprised to find modern, but cheap, bathroom and kitchen fixtures and the houses weren’t in terrible disrepair. I continued down the road where it declined steeply off the ridge thinking maybe this would be an easier way back to the house I was where I was staying. When I got to the bottom of the road I saw why the houses were abandoned. Where there should have been a bridge, all that remained were the pilings of a bridge. My guess is that the county decided it was cheaper to buy out the homeowners than it was to rebuild the bridge after losing it to a flood. The bridge was probably built with the funds that caused it to be needed, hydro-damming the Cheat River making Cheat Lake in 1925.
Cool. I always liked creating or building something. It kind of forces you to understand how something works. I’ve always found that interesting. I don’t really like being tested though. Hopefully I don’t get fired, my weekend went a bit differently.
I bought a 1/4 barrel of miller light and a new tank of CO2. Cleaned out all of the lines on the keg refrigerator and hooked up my new Miller lite tap. I let it chill for a while and let it settle while I mowed the lawn. Meanwhile, I had several pint glasses in the freezer waiting for my return. Also, wifey was marinating some vegtables and making some yummy pink slime infused homeade hambugers.
Called my brother to come over and enjoyed some refreshing tapped beer in ice cold frozen glasses. I love it when the beer foam runs over the side of the glass and freezes. Sooooo refreshing. MMMM.
26.gary says:
May 14, 2012 at 9:14 am
Brian,
Know what I did all weekend? I installed MySQL on a Windows server and Linux server, configured it, initalized it and started the processes. Then, I had to determine whether I was using localhost or another port that needed to be configured so that I can run an install package… which, had to be unzipped, untarred, permissions on the shell script changed and then figure out the stack overflow error while I tried to run it. I’m not done yet… 80% complete… still need to install a UI from command line in Linux. Oh, BTW folks… this is how the new interview process works in the real world.
Brian [29],
Just to reiterate, this is all part of an interview process! lol! It’s a far cry from being a house tour guide, don’t you think? :)
Because somebody has to say it and Jamil isn’t around anymore:
http://www.nypost.com/p/news/national/the_bribe_to_silence_wright_io9jneobl3fUF0cb7LpcNM
Seeing as it is first person, one thinks it would have more cred than the Romney “bullying” story that has mysteriously evaporated (cough >Rather< cough). But I don't expect to change minds.
Yeah I get that. Hopefully if they’re making you do all that, they consider you to be a serious candidate and are just confirming your job skills.
Or maybe it’s a sign that the job market is terrible, housing market is in the pooper, Europe will descend into chaos and riots, the moon is on a collision course with earth and we’re all going to die.
30.gary says:
May 14, 2012 at 9:40 am
Brian [29],
Just to reiterate, this is all part of an interview process! lol! It’s a far cry from being a house tour guide, don’t you think? :)
Went to an open house this wknd. House still has original everything in it but “it is priced for renovations” the broker said before he said “and you can make an offer today.” It was a 1-5pm open house, I went at about 3pm and there were 3 other parties there to see it.
[32] Brian,
“the moon is on a collision course with Earth”
Damn. No nompound can help with that. Time to drink.
Brian [32],
The job market is atrocious and yes, they’re are testing my resolve and my technical abilities… because they hold the cards. I fully expect them to ask me to strap on knee pads for the next phase if I make it through this round. This is what’s to be expected for anyone that will eventually get ousted from their fat @ss, do-nothing jobs. You’ll need to really show something substantial when being considered for a job; else, beg for a bowl of rice while sitting under a bridge for protection from the elements.
seif [33],
Tell the realtor to call you when the sellers reach the “in tears” stage.
36 – I said “i could make an offer but i don’t think you would want to hear it.” he laughed.
The job market is red hot depending on skills. If you can throw 100 mph with deadly accuracy the Yankees have a job for you today. Trouble is employers are holding out for rock stars they can pay fast food prices for.
gary says:
May 14, 2012 at 10:05 am
Brian [32],
The job market is atrocious and yes, they’re are testing my resolve and my technical abilities… because they hold the cards. I fully expect them to ask me to strap on knee pads for the next phase if I make it through this round. This is what’s to be expected for anyone that will eventually get ousted from their fat @ss, do-nothing jobs. You’ll need to really show something substantial when being considered for a job; else, beg for a bowl of rice while sitting under a bridge for protection from the elements.
After all, home prices have fallen 34% from their 2006 peak and mortgage rates are hovering at or near record lows.
Why isn’t property taxes mentioned when that includes 50% of the monthly payment?
a serious question for the “less taxes” proponents. god only knows why, but at some inebriated point over the weekend I was pondering this. do you feel less taxes/tax cuts is the answer because:
A. Less taxes is the right move for the country; it will give money to the “job creators” and businesses who will use that money to create more jobs, stimulate the economy and get this country back on the right course for prosperity more quickly.
or
B. Things are heading in a bad direction around here and I need to keep as much of the money I earn as I can. There is a clear and documented ever-widening gap between the haves and have-nots in the U.S. and I need to make sure I end up on the right side of that fence; taxing me more will make that difficult…I need to hold onto everything I can.
JJ – “rounding error”
I read in the WSJ that the entire department is getting harpooned including the London Whale.
No more trading for you….
http://online.wsj.com/article/SB10001424052702304192704577402500885560924.html
Newsweek: Obama, “The first g@y president.”
He’s also the first tabloid president as well. All the reason more why the proletariat will re-elect him.
JPM should shut down whole London Office. Letting a middle aged lady from Manufacturers Hanover/Chemical Bank manage money was first mistake. Second mistake was being in England, third mistake was hedging a bad hedge with another bad hedge. You have to hedge or sell positions to reduce risk. Hedging on Hedges gets dice and computer models get funky, plus a hedge on a hedge in an iluiquid seasoned CD tranche where you are majority of market screws up black box pricing theories. Finally, having limeys trading outside normal business hours is stupid. Shut down england. The Japs at Chase work 12 hours, New York Office works 12 hours. No need for England as they already cover 24 hours.
Juice Box says:
May 14, 2012 at 10:21 am
JJ – “rounding error”
I read in the WSJ that the entire department is getting harpooned including the London Whale.
No more trading for you….
JPM’s Fourth mistake was moving into the old Lehman Brothers office.
30-year bond yield 2.935%. Seven-year yields hit a new all-time low of 1.175%,
WOW.
Have more low balls out today then a nursing home. Hoping for a mini flash crash today.
Seif,
Where were you looking (county/town)?
Some observations – limited quality, it is all way over priced & still being taxed at the $ amounts from the peak market of ~ 5 yrs ago. Ridiculous.
Dealt w/ a Somerset county realtor recently. Can’t mention town, too many specifics to follow. Second MLS on this property (one late in 2nd half of last yr). These sellers excluded all appliances (refrig, w/d) and lighting! Oh, and no renovations since then – only a new hw heater & HVAC (single zone). Yet, was told that sellers were highly motivated. I didn’t tell him I’m preapproved and could close w/i 2 weeks of the inspection reports – saving that for when the sellers cry aloud.
He called/emailed, still no appliances or lighting, and of course, no price move (we’re $45k apart – solar field not disclosed, retaining wall needs replacement, septic issues, electrical issues – you get the idea). Agent wants full commission, too. Clearly, he doesn’t understand the concept of skin in the game. Poor agent rep for unreasonable sellers. Just incredible!
I guess the downsizing couple is delaying having to eat the $80k loss from the price they paid during the peak. They’ll be eating it soon, though. And it’s not any of our faults that they paid the huge premium, put down 20% and immediately w/d 10% under a revolver, all while having kids and yet, being infidelous. It’s not my deal to finance their get well.
I’m in no hurry, so on to the next one!
Forgot to do the math in #47
So the price their asking is…to get them back their net 10% down. Uh….No!
Toucan Sam,
Clearly, he doesn’t understand the concept of skin in the game. Poor agent rep for unreasonable sellers. Just incredible!
That’s par for the course. It’s the norm, the standard. That’s why the sellers and their house tour guide assistants need to be slapped like a slow, step-child.
[40] seif,
To answer your question: Yes.
#39 gary: Because if they mention property taxes, that would force one to think, and if one thinks, one may say no way, prices still too high vs. amount of property taxes. Don’t you know that being a house should be a feel good emotional decision, not a rationale decision.
[40] seif,
If you want to go down the rabbit hole with me on this issue, it defies simple explanation. Put aside the byzantine complexity of the tax code, and the reasons why changing it are well nigh impossible, and consider just how to impose “fair” taxes on an incredibly complex, global, disaggregated, and assymetrical economy. There is no agreement even on the broad overlays.
So in a word, yes, there are optimal tax solutions that we haven’t or won’t adopt, and yes, since the world is doomed, best for me to hang onto as much as I can so I can buy ammo.
(52)
Comrade,
Are you suggesting the tax code is impossible to change for politcal reasons? which I would agree with, or are you saying it can’t be changed for other reasons?
Wait the moon is going to collide with the earth? guess I shouldn’t be spending so much time focusing on the NHL playoffs.
Love the newsweek cover, now if the boys over at South Park can get him to marry mister slave and get in a 3 way with mister garrison my life will be complete. For Obama’s next move he should award himself the congressional medal of freedom and the medal of honor. Get a spiffy uniform throw some more bangles on and be done with it.
What a complete f*cktard society we are. We deserve to die out. RIP America you had a good run.
Barrack O. As President Flexible http://www.youtube.com/watch_popup?feature=player_embedded&v=-Czo5Vf8KZs
Painhrtz [54],
Is this the best comedy ever, or what? The Chinese and Russians are f*cking geniuses! They knew the way to beat us was to get America fat and stupid and let us die by our own sword. It’s the equivalent of pitching a perfect game.
brain (29)-
I had you pegged as a light beer drinker all along.
That’s just what I drink when I’m dehydrated
57.There Went Meat says:
May 14, 2012 at 11:40 am
brain (29)-
I had you pegged as a light beer drinker all along.
seif (40)-
Both.
Interesting how they ignore the fact that rising property taxes nullify any benefit of low mortgage interest rates.
Here comes the pump.
http://www.bloomberg.com/news/2012-05-13/apple-founder-wozniak-to-buy-facebook-regardless-of-price.html
gary – If you can install and configure MySQL, you can do the same with some flavor of MS SQL Server 2008 R2 on Windows Server 2008 R2. You might have to invest in some 64 bit HW, but it may end up being worth it. Then I would suggest downloading the 180 day trial of Sharepoint and slog through that install, it’s a little tough but an interviewer might be impressed if you told him you know how to run a Powershell script to install all the prerequisites(Google it). Once installed, Sharepoint is just point and click to administrate, but there’s lots and lots of levels to Administrate, so most DBAs and Admin types are confused by the web interface and shy away from any involvemen. Consequently, there are lots of Sharepoint jobs out there. Seems to me if if you really know the ins and outs of Sharepoint it will put you above SQL Server DBAs and IIS Admins.
#35,
Wish you the best, Gary. Unfortunately don’t overestimate the seriousness their intentions. Some people provide their value by interviewing candidates. If candidate gets hired they lose their value. Two bobblehead girls in PM group have been interviewing people for two months. It is beyond ludicrous. It dawned on me that this is their role. Crazy times.
#60 Stopt it!!! You are thinking!!! You are not supposed to do that!!!
Expat [62],
I hear ya and I do use Sharepoint from sort of an admin perspective, currently. The Windows and Linux environments are hosts supplied to me to toil on from the interviewer. They give me the IP addresses and I had to do the rest. It’s pushing my boundaries but I learned a lot this past weekend alone. I know there’s a lot of Sharepoint positions but let’s see if this employer takes a shot with me. It’s a proprietary software with lotsa moving parts and I sort of like that. I may be stressed out with this position but it’ll certainly pad my background as well.
Bystander [63],
Thank you. The guy raking me over the coals is a technical rock star. He’s throwing terms at me at 100 mph. But, this is a full time position with GOOD money and GREAT benefits. In this economy, one has to fight for scraps.
I have a meeting out of blue with the guy who does the MYSQL mumbo jumbo, any good issues, findings or dirt I can bring up in meeting. You know those things where I put my hand on my jaw think three seconds and then say something surprisingly brilliant that the MYSQL guy did not think of.
JPM predicting ten year at 1.5%, interesting if it hits that it means everyone who bought from 2009-April 2012 should refinance. But I thought NAR said they were locking in all time lows in RE prices and in mortgages.
1.5% ten year will be crazy in the quest for yield will lead people to junk, structured notes, subprime MBS, Junk Munis, 30 year bonds and when yields rise will be crazy.
I’m considering refinancing from a 30yr to 15yr. Any recommendations for a mortgage broker/loan officer? How much do closing costs usually run? Any restrictions associated with refinancing an FHA mortgage?
Quick search for refi rates on bankrate.com came up with 8 lenders offering 2.875% (varying APRs) on a 15 year fixed. I’m currently at 4.5% and according to my house’s Zestimate I have about 32% equity.
jj (67)-
Why don’t you give that guy your Bond of the Day pick?
You could throw him off balance and pepper him with questions like is the database cloud ready? Is it scalable? What’s the ROI on a one year payback period? What are the advantages of keeping the DB on SQL over Oracle or IBM DB2.
While he’s struggling with those because he’s annoyed with you, tell him this SQL joke:
What kind of undergarments to DBAs wear?
Well, (who’d have guessed it) Depends…
yb…I’m waiting for 2.5 and wham, I’ll be refinancing both homes if possibles.
Glen Ridge primary is – CitiMortgage – 20-year at 3.875%
Montclair multi is – GMAC Mortgage – 20-year at 4.75%
Investment property costs .75 to 1 percent hit. Problem is, I’m not sure I will be at 80/20 anymore. I’m pretty damn close. It would be up to the appraiser.
I also don’t want to jump the gun too early like I did with the last refinance that gave me the amazing rates you see above.
a 2.5 15-year would be a thing of beauty. Let’s all hope Europe does a Titanic.
A Query goes out for a drink and was soon surrounded by subQueries – it was then he realized he had walked into an Array Bar.
A lot of good computer jokes on the net. Trouble is, I’m the only one laughing when I tell them. :(
Brian…those are weak. :P
Guess what Microsoft Word’s dictionary suggests if you use my name? (Stu)
#69:
My mortgage holder contacted me and offered to re-fi at 2.125 % lower than what I have, at no cost to me. Closed a week ago and true to their word, it did not cost me a dime. I would not have done it otherwise. I asked “How does anyone make money off of this?” Answer was, “It’s part of HARP.”
God Bless Obama.
A SQL query walks into a bar and sees two tables. He walks up to them and says ‘Can join you? Then a waitress walks up and says ‘Nice view’!
Ba Doom Tish
Brian,
Let me hear your Chewbacca impression.
Young Buck,
“according to my house’s Zestimate I have about 32% equity”
Thank you for this gem. I haven’t laughed so hard in a long time.
Zillow’s estimate making ability is so abysmally poor that it is laughable to create any statistic based from that estimate. I actually saw the Zestimate for one house go back and forth from 300’s to 200’s depending on how far zoomed in on the house you were. If you hovered over the house the number would change from one value to the next as if it were some sort of sick game. Not only were the numbers inconsistent on the site but they were laughable when compared to real sales around the area. Zillow is NOT a reliable or sufficient way to value your house.
Telling people those jokes in a bar and telling them that you work in IT is the most powerful form of birth control known to mankind. The ladies will run away from you as fast as you can and you have no chance of ever getting laid.
78.Libtard in Union says:
May 14, 2012 at 1:35 pm
Brian,
Let me hear your Chewbacca impression.
#77 Brian – …where I like ‘that’ order by 1 asc
stu (72)-
It’s as good as baked in the cake. Grab a lawn chair and some fruity drinks.
“Let’s all hope Europe does a Titanic.”
Won’t be so funny when the vultures hit our shores and we end up hitting the reset button.
lib (78)-
He only does Chewbacca after 3-4 light beers.
pos (76)-
Was that refi deal enough to buy your vote?
It’s a 2 family with one of the units being my primary residence. So I guess I should expect the .75 to 1%. Thanks.
Doesn’t make sense for me to wait. The house was so cheap (2009 short sale) that the difference between 2.875% and 2.5% is less than $20 per month.
72. Libtard in Union says:
May 14, 2012 at 1:21 pm
yb…I’m waiting for 2.5 and wham, I’ll be refinancing both homes if possibles.
Glen Ridge primary is – CitiMortgage – 20-year at 3.875%
Montclair multi is – GMAC Mortgage – 20-year at 4.75%
Investment property costs .75 to 1 percent hit. Problem is, I’m not sure I will be at 80/20 anymore. I’m pretty damn close. It would be up to the appraiser.
I also don’t want to jump the gun too early like I did with the last refinance that gave me the amazing rates you see above.
a 2.5 15-year would be a thing of beauty. Let’s all hope Europe does a Titanic.
Yea figured someone was going to jump all over that. I’m actually in the market for another 2 fam in my area (Elizabeth), so I follow the MLS daily. My estimate is somewhat higher than Zillow’s, so I’m confident I have the equity requirement for a refi covered.
79. Nicholas says:
May 14, 2012 at 1:36 pm
Young Buck,
“according to my house’s Zestimate I have about 32% equity”
Thank you for this gem. I haven’t laughed so hard in a long time.
Zillow’s estimate making ability is so abysmally poor that it is laughable to create any statistic based from that estimate. I actually saw the Zestimate for one house go back and forth from 300′s to 200′s depending on how far zoomed in on the house you were. If you hovered over the house the number would change from one value to the next as if it were some sort of sick game. Not only were the numbers inconsistent on the site but they were laughable when compared to real sales around the area. Zillow is NOT a reliable or sufficient way to value your house.
Translated from a comment on http://bankingnews.gr :
We will not get out of the euro, the world failing. And we want to keep us by force. In recent days there is huge capital flight from Europe only to the idea of leaving the country from the euro area. They know very well that when the fence chortarenios called Greece fall, come in order of all regional countries and finally France and Germany. The failure of the design of euro crises facing capital is the big problem. The wake of the American crisis arriving slowly in Europe, which dealt with Greece and will have to shield the same currency, due to the diversity and the different European banking interests. This crisis will all pay sooner or later. The country needs to get good and hard decisions now and not excluding the changeover which must now seriously put to question, otherwise we will get even worse in the coming years downhill because of the same coin. I note that the currency has appreciated 65% since the days of creation, while the country is in constant decline losing only the last 3 years 25% of GDP, or otherwise $ 6,000 in per Cephaeline income. Each European country apparently looks just the party. It is time to look at our own.
40, seif,
Neither. My main interest is getting government spending down. The provision of goods and services work best when both the provider and buyer transactions are freely and voluntarily arranged. I’m interested in the funding of a “nightwatchman state” with adequate court, police, and military functions to protect the individual rights of the citizens. Everything else is gang warfare and looting. I’d be willing to pay 50% income tax for a fixed period of time for an iron-clad guarantee that all levels of government spending would be cut to under 10% of the economy, retaining only the functions that protect individual rights, and using the surplus tax revenues to pay down debt.
Once people learn to live without easy access to other people’s pockets, and government debt is paid down, plan B of lower taxes across the board can be implemented.
But first I want fire and salt applied to the leeches on my life.
“retaining only the functions that protect individual rights,”
so you wouldn’t include infrastructure? how would that be built, maintained and upgraded?
and to those who answered “both,” how can it be both? under A wouldn’t B theoretically not occur?
just googled godot. ah now i get it.
I had you pegged as a fruity drinker all along.
82.There Went Meat says:
May 14, 2012 at 1:47 pm
stu (72)-
It’s as good as baked in the cake. Grab a lawn chair and some fruity drinks.
“Let’s all hope Europe does a Titanic.”
(87)
Please be careful in Elizabeth. They have tenancy rules stricter than the state and let me know how long it takes to evict there. Consider the example of a non-payer: 1 month? 3 months? 6 months? Warren and Hunterdon counties take less than 1 month to evict for non-payment.
47 – I look in Closter, Tenafly, Old Tappan, Norwood mostly.
Comment about real estate agent and skin in the game: Just as you the buyer should not suffer because of the mistakes of the seller, neither should I. Agents negotiate a commission agreement with the seller up front. If a seller wants to negotiate commission the time to do it is at the time of listing. I will give you the right to sell the house yourself without a commission, take a flat amount on a high priced home or negotiate the listing side down to 1% if you price at market, but I will not cut my commission after the seller and I reach an agreement.
The commentor said he and the seller were $45,000 apart or something in that area. When did the real estate commission become part of that discussion and why? If you do want the agent to negotiate to get a deal done, shouldn’t the commission be greater than the amount the buyer and seller are apart? Sounds as though you have the cart in front of the horse!
Problem is the buyer is paying the commission not the seller. I bought a house and I gave a check at closing and then part of my money went to his RE agent. I don’t recall the seller paying the agent anything. It is kind of an odd concept. I am a seller, it is a ton of work to sell a house, listings,open houses, advertising, lots and lots of leg work, closing issues etc. So I decide I will price my house worth 475K at 500K to bake in realtor fee so I don’t have to do all this hard work. I as a seller sign a legal contract with broker. Then the broker does a ton of work for a few months and spends a lot of time and effort, maybe on deals that fall through.
The one day Suzie drops by her best friends house and sees house for sale next door. She rings doorbell and says I am friends with your next door neighbor and am interested in your house. Suzie who rang doorbell herself and did not even see and ad is asked to pay 500K for a house worth 475k as seller entered a contract and realtor did a ton of work non-related to Suzie. Why is Suzie paying the $25K. Now Suzie says look I really like house, but I am only willing to pay 485K can realtor give up 10K afterall I never hired him, never asked him to do anything and I rang doorbell. Realtor says no, I have a contract and spent a lot of time with other people showing house so I need 25K.
It is an odd concept from a buyers point of view. Imagine if I sold a used car out of my driveway and when you rang my bell for a test drive a Car Realtor showed up drove you around block and when you offered 10K for car I told you it is actually 10K plus a 6% car realtor fee. He would go what. But in homes we are used to it.
30 year realtor says:
May 14, 2012 at 3:43 pm
Comment about real estate agent and skin in the game: Just as you the buyer should not suffer because of the mistakes of the seller, neither should I. Agents negotiate a commission agreement with the seller up front. If a seller wants to negotiate commission the time to do it is at the time of listing. I will give you the right to sell the house yourself without a commission, take a flat amount on a high priced home or negotiate the listing side down to 1% if you price at market, but I will not cut my commission after the seller and I reach an agreement.
The commentor said he and the seller were $45,000 apart or something in that area. When did the real estate commission become part of that discussion and why? If you do want the agent to negotiate to get a deal done, shouldn’t the commission be greater than the amount the buyer and seller are apart? Sounds as though you have the cart in front of the horse!
30 Year (95)-
Amazing how many of these chumps who try negotiating 11th hour commish reductions are the same ones constantly accusing you and me of being d-bags.
JJ: TruPS for the masses….
http://www.cnbc.com/id/47360886
I’ve only been in the landlord business for 3 years, and thankfully I haven’t had any real tenant problems yet (PITA tenants yes, court appearances no). Honestly, everything I’ve read on landlord/tenant law has been for NJ as a whole. I didn’t know Elizabeth had any stricter ordinances. I’ll be looking further into this. Thank you for pointing it out.
93. xolepa says:
May 14, 2012 at 3:26 pm
(87)
Please be careful in Elizabeth. They have tenancy rules stricter than the state and let me know how long it takes to evict there. Consider the example of a non-payer: 1 month? 3 months? 6 months? Warren and Hunterdon counties take less than 1 month to evict for non-payment.
seif (90)
Infrastructure is considered a special class of services mostly because the govt has made itself the monopoly provider of such services. You can see the crumbling inefficient results around you. The government should auction it all off, raising money while boosting future efficiency by transferring assets & investments to those seeking a return. Users of transport would also then start to be charged something that resembles the cost of transport, assets would be invested where value was greatest rather than where political pull is greatest, etc.
Of course when you explain to people drenched in socialism that in capitalist countries people have to buy their own shoes, and buy their own food, they assume that without the state, everyone would be barefoot and hungry. Similarly people drenched in govt-run transport have difficulty picturing free-market transport.
Anyway, covering the transport sector for many years, its easy for me to conclude that private sector transport (and infrastructure investment) dramatically outperforms the government sector.
No tenant problem exists that can’t be fixed with a metal baseball bat.
west (100)-
You are addressing the ultimate collectivist sheep.
Mr. Buck,
You’ll have to read between the lines. Those ordinances aren’t written. They are disseminated as part of a culture of redistribution. My next door neighbor sold out many years ago there because: landlords don’t live in town and thus don’t vote. Renters and friends can and do vote when there is a need. Unless you hire the ‘inside’ attorney ($$$) it will be grief. Leave Elizabeth to the locals.
Can you say value?
Facebook’s bankers are increasing the IPO price range to $35-$40, up from $28 to $35
BPOP, ZIONS, STD, MBNA are four top yielding Trups right now. BPOP is bustin 10%. I like JPM a lot if you can get it for par. I had low ball bids in today but none hit. I will try tommorrow again.
Shit. My Facebook page is encouraging me to friend Carla Katz.
Young buck-Landlord Tenancy issues are all heard in County court. Unless you as a Landlord are in breach of the NJDCA Truth in Renting Guidlines (get it and memorize it from http://www.nj.gov/dca) you’ll almost always get a fair shake. Non-payment of rent is an easy eviction done without an attorney. Evictions for other reasons do take some time, but there are some good LL/T law mills that can get you in and out, often without any appearance for about $250. The only local issues you’ll deal with are rent control/leveling which are gotten from your Township housing office and typically are pretty straight forward. Being a Landlord is not for the meek, but it’s also not that complicated.
Seems Mr. Saverin is well advised:
http://finance.yahoo.com/news/facebook-co-founder–america-is-ok–it%E2%80%99s-the-rules-that-are-a-pain.html
He said exactly what he should say: He denied taxpatriating, he gave plausibe non-tax reasons for renouncing, and he did it through a spokesman. Well handled.
Why you ask? Because the USG can still deny him a visa if he renounced for tax reasons. If he admits it, they would almost have to do so. Naturally, no one believes that his compliance costs due to FATCA were the reason; those are much, much less than the tax he will save.
Ironically, FATCA compliance gives renouncers a valid excuse. Before now, they had to be able to point to some plausible reason other than taxes. Not everyone could contrive a reason, but under FATCA, everyone can.
My sister called me to tell me that she and her husband jumped back into the investment property market. She put me down as the attorney and told me I could expect a call.
FWIW, they started unloading their multis before the crash, holding only 1 or 2 SFHs and their Nompound. Now they are getting back in. Take that for what its worth.
What about the Facebook founders who didn’t expatriate?
http://online.wsj.com/article/SB10001424052702304543904577395971333422002.html?KEYWORDS=facebook
And I promise that I will try to make this my final word (okay, not my words, actually) on Saverin:
http://taxprof.typepad.com/taxprof_blog/2012/05/seto-kleinbard-explain.html
Nom [108],
Best comment on that yahoo finance story …
Wondered why the Romney “bullying” story suddenly dropped off the radar after Fox reported some pretty gaping holes in the story. Now some in the media are actively calling for it to be dropped.
http://news.yahoo.com/for-romney–and-obama–is-it-time-for-a-statute-of-limitation-on-controversies-.html
My guess is that there is a fear that (a) the media is going to get the Dan Rather treatment all over again if it persists, and (b) declare that turf off limits before reporters feel compelled to dig into the Chosen One’s distant past (though he has already admitted drug use and threatening girls).
69.
Wells Fargo offered me 3.125 no closing costs on a 15 year. I took it. I could get 2.875 with a direct lender but I dont want to pay closing costs of about 3k. Its a no brainer.
68.
JJ,
I believe the 10 year hit 1.55 in the run up to Operation Twist. Rates never got lower than 3.75 on a 30 or 2.875 on a 15 conforming. Could happen though.
Thanks for the good writeup. It in fact was a amusement account it. Glance advanced to more introduced agreeable from you! By the way, how can we communicate?
85 Meat:
No, but if he throws in a new car I might consider it.
113 – could it perhaps have dropped off because we live in a 24-hour news cycle, that story was around for 4 days and now that story is soooo last week?
[118] seif,
A story that salacious? And as a counterpoint to the “evolving” view of our fearless leader? If it were incontrovertible, it would still be running.
You’re a good liberal seif. You don’t question the party line.
Nom cats out of the bag, hitting the tube saw chart 08, 258 people give up citizenship. Chart goes straight north till now 1758. Saw issue on two, three different shows Saverin may have just done the country a favor.
This I know: both Magic Underpants and Bojangles are world-class douchebags.
122 – Your condescension is comforting…it is like your signature move.
How much mileage can they get out of it? We have already moved on to Romney’s ridiculously pandering commencement speech at an institution that thinks HE belongs to a cult. What a sap.
Hello, I check your new stuff regularly. Your story-telling style is witty, keep it up!
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