From the Record:
Jackson: If D.C. reform kills property tax write-offs, N.J. will feel the pain
Several deductions that help offset the high cost of housing in North Jersey and the property taxes that come with it may be scaled back as the White House and Congress debate ways to overhaul the federal tax code.
Among the 50 states, New Jersey is one of the biggest beneficiaries from the deductions of local property taxes, state income taxes and mortgage interest.
Given how federal policy usually scales back the value of benefits as wealth increases, and targets spending toward lower-income beneficiaries, the deductions represent a rare case where a high-wealth state such as New Jersey comes out near the top from a federal policy.
But economists also see these deductions as an expensive “tax expenditure,” with a national price tag last year of $181 billion that would have otherwise been owed to the federal government, according to the Congressional Research Service. And that high price tag makes them a tempting target for House and Senate tax committees trying to rewrite the code to meet different policy goals without raising rates.
For New Jersey, the three breaks combined were worth an average $9,879 per tax filer in 2011, about 80 percent higher than the national average.
One plan proposed by President Obama would cap the value of the deductions and bite harder in New Jersey than many other states.
A study by Citizens for Tax Justice found that while only 3.6 percent of taxpayers nationwide would pay more under Obama’s plan, the rate would be 6.7 percent — almost double the national average – in New Jersey.
And in some parts of North Jersey, tax data suggest the impact would be far higher.
“New Jersey is one of the richest states, and people pay a fair amount in property and income taxes, and they take deductions for them,” said Steve Wamhoff, the legislative director at Citizens for Tax Justice, which generally favors higher taxes on the rich. “It’s a combination of those things.”
Some in New Jersey say the wealthy can afford to pay more.
…
Obama, in his 2014 budget proposal, called for capping the value of the three deductions, along with other things, at 28 cents on the dollar for taxpayers in the upper-income brackets.Generally, that means there would be no impact on people in the 28 percent bracket or lower, defined this year as couples filing jointly with $223,000 in taxable income or less. Those in higher brackets, whose deductions right now are worth 33 to 39.6 cents per dollar, would have to pay more.
…
Pascrell said he would prefer a cap, like the kind Obama proposed, to a total phase-out of deductions for mortgage interest and state and local taxes. But he said he’s not sure the cutoff Obama set is the right one.“The president’s proposal is to limit itemized deductions, not eliminate any individual tax expenditure. It acts as an aggregate limitation,” Pascrell said. “That path is worth looking at, but my cutoff would be a higher one.”
This is going to be interesting…
From the Hudson Reporter:
Citywide tax ‘reval’ to begin Monday
Approximately 15,000 Hoboken property owners will see their taxes either rise or fall after a citywide real estate reassessment, or ‘reval’ that begins this Monday.
Hoboken homeowners, many of whom are still recovering from Hurricane Sandy, and all of whom haven’t seen their property values be publicly reassessed since 1988, will face a change based on whether their home is old or new.
From NJ Spotlight:
Net Property Tax Increase Much Higher Under Christie Than Corzine
Net property taxes in New Jersey rose 18.6 percent in Gov. Chris Christie’s first three years in office, compared to just 6 percent in Democratic Gov. Jon Corzine’s last three years in office, a New Jersey Spotlight analysis shows.
Christie, who has made attacks on “Corzine Democrats” a centerpiece of his reelection campaign, has been touting his record of holding down overall property tax increases. But when Christie’s rebate reductions are factored in, his property tax record is not so clear-cut.
hile Corzine doubled average property tax rebates from 2006 to 2009 and provided rebates to families earning as much as $250,000, Christie sharply cut the size of rebate payments and limited eligibility for non-seniors to those earning $75,000 or less.
As a result, average net property taxes — the actual cost of property taxes for the average New Jerseyan after rebates are deducted — rose from $6,244 in 2009, Corzine’s last year in office, to $7,405 in 2012, Christie’s third year in office, state Department of Community Affairs data shows.
In contrast, net property taxes rose just $350 from $5,894 to $6,244 in the previous three years under Corzine because of large rebate increases.
The net increase in actual out-of-pocket property tax payments by New Jersey residents occurred even though the 2 percent cap and other policies pushed through by Christie and Senate President Stephen Sweeney (D-Gloucester) limited the actual growth of property tax bills to just 8.3 percent from 2009 to 2012, compared to a 12.95 percent increase in Corzine’s last three years.
From CNBC:
Price Cuts for Mansions in Gatsby Country
n Jay Gatsby’s time, the mansions along Long Island’s Gold Coast were famous for their excess and price tags. Now, they’re more famous for their price cuts.
Hit hard by the recession, the grand estates and megahomes lining the North Shore have seen price cuts of up to 50 percent. Inventory remains high and homes are sitting on the market for an average of six months or more, brokers say.
Big price cuts are finally drawing buyers. In the first quarter, sales volume in Suffolk County was up more than 5 percent over 2012.
Brokers say the recent burst of activity is being driven by the broader housing recovery as well as strong interest from foreign buyers, especially from China and Russia.
“Luxury is on sale,” said Maria Babaev, managing director for Luxury Portfolio and owner of luxurylongisland.com. “The Russians …”
Babaev’s premiere listing is the Fort Hill House. The home, on 10 acres with a 25,000- square-foot Tudor mansion and deep-water dock, was originally listed for $22 million. Now, it’s listed for $11.7 million. “Suddenly we have a lot of interest,” Babaev said.
So tax attorneys – what’s stopping me from starting an LLC and shifting my paid off house into it, renting it back to myself, and deducting the property tax as a business expense (in addition to taking some additional tax deductions not available to owners, deducting insurance and repairs for example).
“The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.”
Vladimir Lenin
[4] grim
Blatant sham transaction. No economic substance. I’m pretty sure there’s a regulation on this already.
You could, in theory, do it thru an llc with 11 unrelated members, but the Econ substance issue likely predominates there as well.
[5] scrapple,
I believe he was quoting Marx.
The CTJ analysis likely ignores the fact that deductions for the wealthy are effectively wiped out by AMT. So they are tax indifferent to this proposal.
Since they know this already, what CTJ and the Dems must want is to soak the next tier, further leveling the curve and getting closer to the ideal of “from each according to his abilities, to each according to his needs.”
A study by Citizens for Tax Justice found that while only 3.6 percent of taxpayers nationwide would pay more under Obama’s plan, the rate would be 6.7 percent — almost double the national average – in New Jersey.
And in some parts of North Jersey, tax data suggest the impact would be far higher.
We’re insulated. Right? Right? I said, right?
@billmaher: Unemployment is down, deficit shrinking, home values up, stock market thru the roof – such a shame we have to impeach Obama for Benghazi
Yep property tax almost does not change my refund at all. I forgot to put it in turbo tax one year and when I did the check and added it back in I think a few bucks moved. If you are in AMT and live in a state with a high income tax it is near worthless.
Those great gatsby area mansions are on sale, I almost was tempted to buy a home out there in a town called Laurel Hollow. Owner had to sell as they were old and bought a trade up mansion in Florida for retirement. House was in mint condition. It was 2.5 acres, huge custom pool three car garage and 4,000 square feet and it sold for 1.215 million. Meanwhile houses ten miles closer to the city that price house walking distance to train is a 70×100 plot. Dual working couples with kids and a commute to the city that huge house is a nightmare. We dont have servants anymore.
People want a doorman coop in NYC and maybe a small beach bungalow or condo. Perhaps a timeshare or a nice four bedroom brick house on a 80by100 lot. walking distance to a train with an under 45 minute commute to NYC.
Huge houses in non train towns with long commutes to the city is so 1920s
Lots of huge houses built in train towns in the ’20s.
In fact, lots of huge houses were built specifically because they were in train towns, in the 1920s.
IMHO – Mountain Lakes would have never existed in it’s current form had the Delaware/Lackawanna Railroad not build the station in 1912, giving wealthy industrialists an easy way to get home to their country estates during the hot summer weekends. Hapgood wasn’t building houses for poor farmers in NJ.
Average income in the US in 1912, was a touch over $1000, median priced homes were approximately $2,500.
The smallest/cheapest Hapgoods were starting at $6,000, and the largest were selling near $20,000.
Why would Dems punish blue states by eliminating the deduction?
But there was no Fannie/Freddie back then. Must folks paid cash.
My Moms house was a plot of land bought by a newly wed couple who lived in a cold water flat in Brooklyn for $500 bucks in 1909. In 1922 they saved up enough money to buy a home from the Sears Catalog and had it shipped to the plot and built by local folk they hired and finished it 1923. The family lived their till 1973, when the Mom died of old age and their two sons sold it to my parents.
With no financing and low wages it took that couple a long time to get a house built. And by the way that was a 40×100 plot 3 bedroom one bath house.
Good news of that house is we sold it march 2003 to a flipper who restored house and finished it spring 2004 and asked a crazy price, when he could not get it he even threw more money into house to make it a show piece. He did not expand it, he just finished basement to add space. Then he put it back on market Spring 2005 for 325 over purchase price but was willing to take a 250K profit, when he did not get it he pulled listing Fall 2005 and put a tenant in. He never sold it.
I find it wonderful that the house will most likely be there another 100 years. The RE boom caused a Man to throw a 200K renovation into a house my Mom paid 36k for and the prior owner land and buying house and labor costs paid around $3,600
House is a bit of a mini white elephant. the land 40×100 and driveway make it only 28 feet wide of builder space. But it is amazing, I saw it after it was done. There were some pluses to the bubble, folks with easy money did stuff like this that made no sense. 50 years from now the next owner of the house will be amazed that a small house built in 1923 is still standing in mint condition. Plot is totally illegal today as it is now 60×100 zoning so you can never tear it down as you cant rebuild it!\
.
grim says:
May 13, 2013 at 8:57 am
Lots of huge houses built in train towns in the ’20s.
In fact, lots of huge houses were built specifically because they were in train towns, in the 1920s.
IMHO – Mountain Lakes would have never existed in it’s current form had the Delaware/Lackawanna Railroad not build the station in 1912, giving wealthy industrialists an easy way to get home to their country estates during the hot summer weekends. Hapgood wasn’t building houses for poor farmers in NJ.
Average income in the US in 1912, was a touch over $1000, median priced homes were approximately $2,500.
The smallest/cheapest Hapgoods were starting at $6,000, and the largest were selling near $20,000.
re#1 – yeah Hoboken’s reval is going to be painful for many. My friends 2+ million dollar brownstone is assessed at like 500k and he is already paying 25k in taxes. The Piloted high rises won’t see any change either.
re #4 – Grim shell company in the BVI with a Nominee Director who is unreachable is the the way the rich do it.
re #12 – Land of the Unicorns was also summer homes of for the rich not too far from NYC.
We did a school trip to this one as kids, it had tyhe largest collection of stuffed exoctic animals I have ever seen.
http://www.northjersey.com/news/Historic_Blauvelt_Mansion_in_Oradell_sold_in_foreclosure_auction_for_100.html
Jersey City is going through reval now, regeneration is great until the tax bill comes in. Searching google just looks like deja vu, similar problems in 1989 http://www.nytimes.com/1989/05/03/nyregion/jersey-city-s-revaluation-raising-anger-and-despair.html
Massive car bombs went off in NATO member Turkey over the weekend many killed and wounded killed, very little coverage in the MSM.
http://www.cnn.com/2013/05/13/world/meast/turkey-syria-violence/index.html?iref=allsearch
For those on the board who attended yesterday in Paterson,could you fill us in on all
the details. I understand Tawana left with a bag full of money
http://www.nypost.com/p/news/local/it_tawana_fe_z178pEfXuhZ2VlacVTvaQO
[20] freedy,
Seems she is continuing to scam, this time scamming her own, so to speak.
On a related note, I recall going to an Urban League event in Newark some years back. Our firm, as well as others, sponsored a table. So you had the prospect of a small sea of white lawyers sitting at all the up front tables.
The event honored an old civil rights attorney. When he got up to speak, he said that he was only going to say one thing and he did: “F*ck Whitey, F*ck Whitey, F*ck Whitey.” And yes, that is a verbatim quote though he may have said it 5-6 times, not just three.
I looked around the room and it seemed that there was a palpable and general sense of approval being displayed by all except the very uncomfortable sea of white lawyers in the middle.
Later that night, I discussed it to John Coffee, a Columbia Law School professor who was there, and he laughed it off, saying something to the effect that they were going to cut some slack for an old man. But, from my perspective, if the attendees for a business organization dedicated to promoting business opportunities for minorities felt that way, there’s no hope for any improvement on that front.
Scrapple’s right. It will end badly. Especially for guys like Coffee who have to live in both worlds.
[13] DL
“Why would Dems punish blue states by eliminating the deduction?”
That’s why they are on the horns of a dilemma. They want to punish the wealthy, and that includes many of you here even though you can’t afford private jets or yachts, but if they do, they wind up whacking their own states disproportionately. Collateral damage.
DL [13];
Why would Dems punish blue states by eliminating the deduction?
Because, on the aggregate, the few who would feel any pain are not voting D anyway, even in the bluest of “blue” states. That’s the whole idea behind making “Eat the Rich” your sole tax policy — you can still depend on winning popular elections. Did you notice the leftward push for National Popular Vote to elect the President? Let me know when you come up with the answer…
“A government which robs Peter to pay Paul can always depend on the support of Paul.”
Kagan authors opinion in favor of Monsanto that was just released today.
In an eerie coincidence, this article posted exactly three years ago.
http://archive.truthout.org/supreme-court-nominee-elena-kagan-goes-bat-monsanto-sides-with-conservative-justices59456
[23] moose,
Some rich are gazelles. But that isn’t stopping DoJ from turning over every rock. And I mean every rock.
http://www.bloomberg.com/news/2013-05-13/swiss-neue-privat-bank-cooperating-with-justice-department-probe.html
1.3B in assets puts these guys into the minor leagues, and they are an asset manager, not a bank. So unless DoJ is going after a particular target investor, it strikes me that the fishing expeditions are going much farther and that troubles me. Because a government that has to scrape that hard shows its desperation.
Some will argue that this Kagan decision means she sided with the conservatives on IP rights. But I also see in this decision that the Court went LEFT on interstate commerce. So was Kagan crazy like a fox???
“Respondent Monsanto invented and patented Roundup Ready soybean
seeds, which contain a genetic alteration that allows them to survive
exposure to the herbicide glyphosate. It sells the seeds subject to a
licensing agreement that permits farmers to plant the purchased
seed in one, and only one, growing season. Growers may consume or
sell the resulting crops, but may not save any of the harvested soybeans for replanting. Petitioner Bowman purchased Roundup Ready
soybean seed for his first crop of each growing season from a company
associated with Monsanto and followed the terms of the licensing
agreement. But to reduce costs for his riskier late-season planting,
Bowman purchased soybeans intended for consumption from a grain
elevator; planted them; treated the plants with glyphosate, killing all
plants without the Roundup Ready trait; harvested the resulting
soybeans that contained that trait; and saved some of these harvested seeds to use in his late-season planting the next season. After discovering this practice, Monsanto sued Bowman for patent infringement. Bowman raised the defense of patent exhaustion, which gives the purchaser of a patented article, or any subsequent owner, the right to use or resell that article. The District Court rejected Bowman’s defense and the Federal Circuit affirmed.
Held: Patent exhaustion does not permit a farmer to reproduce patented seeds through planting and harvesting without the patent holder’s permission”
[16] juice,
You can encourage Grim to evade taxes. I can’t.
http://codes.lp.findlaw.com/uscode/26/A/1/B/IX/280A
I can, however, find ways to skirt them. Not exactly easy in this area.
Nom [24];
Paid some attention to this case – This was a loser for the farmer all the way up the line. He was the wrong poster child to take a shot at genetic material patents. Beyond that, the real problem is that the product has been too successful – it seems you can hardly buy soybeans now that don’t have the Monsanto DNA in them. Reminds me of MS Windows when they had 85% market share and woefully insufficient lobbying expenditures; they ran into the anti-trust buzz saw. Big Farm-a doesn’t lack for lobbyists, however.
I’m actually a little more interested in what came out of the Federal Circuit on software patents Friday. Still reading.
Nom [25];
Its become more plain recently what a thugocracy the IRS is.
But the big question is, are we still prestigious? That’s the only thing that matters. :o
My wife is a new teacher in Elizabeth. She told me they don’t allow kids to stay back. If the kid has an average lower than 60, they make the teachers change the grades. I couldn’t believe this was actually a District policy, and thought maybe it was a crooked principal after a higher ranking or something. Today she forwarded me this letter…
To: Principals K-8
From: Rafael Cortes, Director of Secondary Education
Daphne Marchetti, Director of Elementary Education
Date: May 9, 2013
Re: Overriding Final Grades in PowerSchool
Please be advised that it is district policy that students in grades K-8 should not receive a grade lower than a 60. However, PowerSchool calculates the final grade for the year based on the actual percentage the student receives for the term. Therefore, it is necessary for the teachers to manually override the percentage to equal 60 if it’s lower than 60, so that PowerSchool will calculate the Y1 (year) grade accurately. Even though in grades K-5 the NI is between 0 and 69, if the percentage is below 60 the percentage should be changed to 60.
Attached are instructions on how to do a manual override in the teacher’s grade book.
Please contact me if you have any questions.
CC: Olga Hugelmeyer, Assistant Superintendent for Teaching and Learning
Jennifer Barrett, Assistant Superintendent for Schools
Jerome Dunn, Assistant Superintendent for Family and Community Outreach
YB,
I know a teacher in Orange. I can’t comment on manually overriding grades or anything like that… but I’ve been told time and time again, that no matter how many grades are failed or even how badly they are failed, the students never repeat and no more summer school either.
Didn’t Elizabeth just get in trouble for their free lunch lying?
(31) And you wonder how come non-Abbott district taxes are so high. Why do I not see an Assistant Superintendent of Pissing In the Woods? Other states don’t allow for this kind of nonsense. The average statewide property tax bill would be cut by at least a third if Abbott funding was pulled and redistributed per-student basis. When you give, they will surely take.
Jerome Dunn..hmm. Wasn’t there a former mayor named Dunn?
Young Buck, are you trying to get your wife fired?
Finally, on the IRS targeting scandal, something occurred to me that goes beyond the normal water-carrying that the IRS did for the left (and they did, okay?)
The TEGE div, especially the EO section in Cincinnatti is an incredibly busy, indeed overworked, division. They hardly have time to process the info they have, and applications sent to them take months, if not years, to be approved.
So how does this incredibly busy division find the time to create a new centralized function to review the “conservative” 501(c)(4) applications when they can barely keep up with the backlog they have now?
Coupled with the fact that the folks heading those functions now weren’t there when I was submitting applications prior to 2009, this observation furthers my belief that Lois Lerner is full of crap.
My $0.02. This does not represent the opinion of any tax body on which I, in real life, might belong to.
I never repeated a grade ever and only did one stint in summer school for algebra.
Teachers are lazy and the worst of the worst students you want to get through you school as quickly as possible. Heck one kid in my HS appeared on Americas Most wanted for kidnapping and rape, another kid was charged with attempted stabbing, teen pregancy and all around trouble makers like me. And I went to the school on one list at the time voted number one public HS in america. Why would any teacher in their right mind want to leave back the worst students. If teachers could they leave back the best students
joyce says:
May 13, 2013 at 12:05 pm
YB,
I know a teacher in Orange. I can’t comment on manually overriding grades or anything like that… but I’ve been told time and time again, that no matter how many grades are failed or even how badly they are failed, the students never repeat and no more summer school either.
33. Lib – yup, stealing from the lunch program still in the news. Board president Munn was finally forced to resign a while back. Now it came out a week or so ago that another board member, along with a board attorney and an outside counsel, tried to falsify said board members free lunch application during the investigation. Crooked boe member trying to cover his own ass is at least understandable. But 2 lawyers risking it all for a boe chump? I don’t get it. Unless of course said chump has other info on these guys.
35. State – how so? By broadcasting a district policy?
After looking at over 20 homes, I finally put in an offer on a house in Fair Lawn. The inventory in Fair Lawn right now is outright depressing and I found that anything listed that is move-in ready went under contract very quickly. I finally found a house that I thought was priced fairly but my agent told me (based on comps) that the house was overpriced. I offered 5% below their asking price so we’ll see what happens.
If I do get this house, the first thing I want to do before we move in is to put all new carpeting in the master bedroom and finish the basement (unfinished now but all electrical is installed). Can anybody here recommend a carpet dealer/installer as well as a company that finishes basements? I know our offer hasn’t been accepted yet but I want to have some contractors lined up in case I get this house.
Wall to Wall Carpeting? You you Austin Powers that is so Shagadellic.
F1rstT1meBuyer says:
May 13, 2013 at 1:25 pm
After looking at over 20 homes, I finally put in an offer on a house in Fair Lawn. The inventory in Fair Lawn right now is outright depressing and I found that anything listed that is move-in ready went under contract very quickly. I finally found a house that I thought was priced fairly but my agent told me (based on comps) that the house was overpriced. I offered 5% below their asking price so we’ll see what happens.
If I do get this house, the first thing I want to do before we move in is to put all new carpeting in the master bedroom and finish the basement (unfinished now but all electrical is installed). Can anybody here recommend a carpet dealer/installer as well as a company that finishes basements? I know our offer hasn’t been accepted yet but I want to have some contractors lined up in case I get this house.
Just witnessed the fastest roofing and gutter job I’ve ever seen.
4 hours – 4br Bi-Level
I can hardly believe it. These guys worked with surgical precision. Not even a dumpster, they carted everything away in their own dump trucks. Maybe 8 guys? Could have been more.
@41 LOL…is carpeting a big no-no nowadays? this is my first time buying a house so I have no idea what is en vogue and what’s not.
Wall to Wall Carpeting has not been in style since the early 1980s, if you have hardwood floors why would anyone carpet them. And in a bedroom it is a asthma/allergy nightmare. If you have cats or smoke the carpet catches everything.
Plus when they put it in they nail strips to your floor than more nails to bang it in. I have hardwood floors and you see the damage and woodputty marks from the 1970s when someone decided Wall to Wall Green Carpeting was the way to go. I find the fibers stuck in the cracks. Even better he had to shave the doors so it would clear the carpeting and he painted the oak staircase green to match. The prior owner got it all off in 1991 but you still see green paint wedged in cracks and wood putty. It makes me shiver to think in 2013 someone is doing that.
F1rstT1meBuyer says:
May 13, 2013 at 1:50 pm
@41 LOL…is carpeting a big no-no nowadays? this is my first time buying a house so I have no idea what is en vogue and what’s not.
Grim [42];
Not even a dumpster, they carted everything away in their own dump trucks.
Dumpsters cost money — in this state they probably cost more (money and other things). OTOH, emptying out the back of your truck onto a secluded lot is cheap if not free.
Comrade [36];
So how does this incredibly busy division find the time to create a new centralized function to review the “conservative” 501(c)(4) applications when they can barely keep up with the backlog they have now?
Just because they ask for lots of really intrusive information doesn’t mean they plan to read it. And if its just a workload management ruse not politically motivated, how many ‘Occupy’ groups got the same treatment?
http://www.huffingtonpost.com/2011/11/18/occupy-wilmington-files-f_n_1097351.html
Sure, scarring off some applicants lightens the workload. The selection of who got the scare treatment is still telling.
(40) FTB, Can you do the basement work yourself? If you can, you will save a boat load of money. Also, take time to figure out the basement. You will need to learn the flow of the house once you start entertaining there. If you have or will have kids, keep them in mind. That’s the best place for them. Sometimes, it’s not just about you. Also, find out from the town if your basement is an acceptable candidate. Many towns require two passage ways. Can you pipe in a bathroom before you start framing? Bathrooms in the basement are heaven to have. They make the built-in pumping units quite affordable now.
And…waterproof..moisture proof..insulate. Do it correctly from the beginning.
Good Luck!
Anon: Re 23: I imagine the rich don’t need mortages anyway; regardless how they vote. My suspicion is that doing away with the state and local tax deduction and mortgage deduction would punish blue states disportionately making even those who don’t pay taxes suffer as sevices etc. get eliminated to cover the shortfalls. I thought as long as the Dems control one house of Congress, the system wouldn’t change since it would benefit GOP and libertarians primarily. Then again, maybe they just want to punish Christie.
Picking up the what’s-stopping-someone-from theme from earlier this morning…
What’s stopping a homeowner in default from executing a 5 year below market lease* to screw the bank right before his notice of repossession?
My extremely limited research on this subject reveals, that as of 2009, the new-found renter cannot be evicted from the home unless the foreclosed property is sold to a new owner “who intends to occupy the home”.
*if the lease was for longer than six months, it is reasoned that the landlord knew about the proceeding against him, and had a duty to disclose to tenant. The tenant could then sue for breach of contract. However, if it’s kept all in the family nobody is commencing suit. Even better if one replaces “below market rent” with market rate rent which never gets paid.
Would the repossessing bank have any recourse against the borrower who effectively passes the free ride down to a friend for a few years?
49 – I believe that situation is generally looked at as fraudulent conveyance.
Dumpsters also require a permit which means you have to say what work is being done. Even with a roof stuff, workers comp is required, contractors license, liability insurance plus dumpster fees etc.
Everytime I had work done they pile it up in my backyard and bring a truck by to take it. Smart ones bring truck by on a Saturday as inspectors office is usually closed.
Shower in Basement you will need a sump pump. Sometimes move a sewer line. My old shower in basement would back up once year with a skunky sewer smell so it was never used. Cost me four grand to put in a sump pump and cut sewer line and make a PCV separate one for basement. Much better pitch. No more lint or poop causing backups. I have two sinks, a toliet, shower and a washing machine in basement sump pump is working OT, only trouble no electric you cant use lower level plumbing. Which is why I split main line in two. Upstairs is separate
Here’s a new one to add to the docs my mortgage broker is making me present to obtain the commitment. They asked me to forward to them the terms at which funds could be withdrawn from my 401K. In 2004, they didn’t even photo copy my drivers license. Today, every transaction in my bank account is scrutinized. I had a Friday withdrawal of $1,500 from my checking account and a $2,700 deposit on Sunday. I won a little in Atlantic City. I hope they buy it. It’s hard to document such things. My guess is that they are going to ask for the hotel reservation receipt next. Shouldn’t an >800 credit score plus a fairly low LTV, combined with the ability to pay off all mortgage debts with retirement dollars be enough to make this happen. Plus, I’ve had a nine-year relationship with them and have done a bunch of refinances with them already. I’m like their ATM. Next time, I’ll just do a government sponsored loan. They don’t seem to care as much. :P
JJ,
My contractor also does the pile in backyard thing to avoid inspections and the Saturday pick up as well. I swear the local inspectors have radar that picks up dumpsters. I also never get charged a separate dumping fee. He also stacks materials as centered as possible behind the house to avoid them seeing any work is being performed. There are no ads on his truck too.
You like to gamble and funnel funds in a 401K account that the bank cant touch in the case of a BK.
Libtard in the City says:
May 13, 2013 at 3:59 pm
Here’s a new one to add to the docs my mortgage broker is making me present to obtain the commitment. They asked me to forward to them the terms at which funds could be withdrawn from my 401K. In 2004, they didn’t even photo copy my drivers license. Today, every transaction in my bank account is scrutinized. I had a Friday withdrawal of $1,500 from my checking account and a $2,700 deposit on Sunday. I won a little in Atlantic City. I hope they buy it. It’s hard to document such things. My guess is that they are going to ask for the hotel reservation receipt next. Shouldn’t an >800 credit score plus a fairly low LTV, combined with the ability to pay off all mortgage debts with retirement dollars be enough to make this happen. Plus, I’ve had a nine-year relationship with them and have done a bunch of refinances with them already. I’m like their ATM. Next time, I’ll just do a government sponsored loan. They don’t seem to care as much. :P
Wait until being a conservative or libertarian can get you denied medical treatment.
This will happen.
“In a perfect follow-up to both President Obama’s earlier comments and the news that a hearing is to be held on May 17th, Rick Santelli has a few things to say. Clearly irritated at the incredible reality of big brother and government intervention, Santelli pushes his blood pressure to 11 on the dial as he comes to grip with the repercussions of the IRS actions. “Truth is power,” he exclaims, “you can’t assume someone is fair and honest,” just because a politician says so. His bigger fears lie in the IRS administration of Obamacare where he is concerned that “No stent for you,” will be heard when the powers that be know what groups you support, what thoughts you have, and what area you live in. Think he is exaggerating? Did you really believe the tin-foil hat wearers’ conspiracies that the IRS was doing this before it became mainstream news?”
http://www.zerohedge.com/news/2013-05-13/santelli-irs-witch-hunt-repurcussions-no-stent-you
The whole point of Obamacare is not about insurance or delivery of medical care. It’s about getting peoples’ personal information…then being able to act on that information to punish political opponents and reward sycophants.
Tard – they now question everything up to day of the Mortgage commitment. I moved around money and had to document including the deposit money.
Luckily for me I am not including my trading accounts or me pot of gold hidden at the end of the rainbow although explaining the rainbow would be kind of funny…
My “contractor” drives a minivan and wears business casual. His staff wears business casual to. He shows up at night before with tools that he keeps at your place for whole project. Supplies are shipped to your house directly and blinds shut while work is going on. He drives workers to house in a car pool so only minivan appears. When neighbor asked who he was he said our friend who came by to help me out with some painting.
Libtard in the City says:
May 13, 2013 at 4:01 pm
JJ,
My contractor also does the pile in backyard thing to avoid inspections and the Saturday pick up as well. I swear the local inspectors have radar that picks up dumpsters. I also never get charged a separate dumping fee. He also stacks materials as centered as possible behind the house to avoid them seeing any work is being performed. There are no ads on his truck too.
According to my credit report, (800 score), it would have been higher if I hadn’t paid off my car loan, didn’t charge so much on my credit cards (paid off in full every month) and didn’t have someone (my lender) ask for a credit report. I just bought a new car in cash; the bank is really not going to like that.
Shouldn’t an >800 credit score plus a fairly low LTV, combined with the ability to pay off all mortgage debts with retirement dollars be enough to make this happen.
No – Shut up and bend over.
Nobody ever pays off mortgage debts with retirement dollars. Plenty of folks walk away from 300K mortgages with 600K in the 401k.
The money in 401K is shielded from bank and it is before tax dollars. You touch that money all at once with penalty almost 50% is gone.
grim says:
May 13, 2013 at 4:21 pm
Shouldn’t an >800 credit score plus a fairly low LTV, combined with the ability to pay off all mortgage debts with retirement dollars be enough to make this happen.
No – Shut up and bend over.
zieba [49];
What’s stopping a homeowner in default from executing a 5 year below market lease* to screw the bank right before his notice of repossession?
I wouldn’t be surprised if such tenant-friendly laws exist, which is one of the reasons I prefer to take my chances in the financial markets over investing in being a retail landlord.
But as a general rule, you can’t trade what you don’t own. The “owner’s” rights in a mortgaged property are subject to any security lien (s)he granted against it. So are any of those rights that he subsequently gives. The Owner’s ability to lease the place presumes and is subject to his continued right to occupy it.*
As a practical matter, probably a bad idea to pay your rent 5 years in advance; nearly impossible to get a tenant out who’s determined to stick their thumb in the eye of anyone who would make them move when they don’t want to; isn’t 5 years the current backlog of foreclosed properties? Who needs a lease?
*Of course the state of NJ has not sanctioned me to practice law within its borders, so none of this is legal advice to be relied upon.
@44 JJ…fair enough. I should’ve mentioned the master bedroom is already lined with carpeting (into the bathroom!) so we’re looking to rip it all out and put new carpeting in. The previous owner bought the house in ’09 and looking at the carpet, I don’t think they installed it when they moved in. On average, how much more expensive is it to install hardwood flooring vs carpeting?
Another reason we were just gonna stick with carpet is to minimize the noise when the Mrs and I have our date night. Our current place has hardwood floors in our bedroom and the bed moves like crazy. We figured a nicely insulated carpet would help with it. ;)
@47 Xolepa – I wish i was handy enough to finish the basement myself but this is my first time owning (even living in) a single family home so I don’t know the first thing about doing handiwork.
Juice, et al. [57];
Tard – they now question everything up to day of the Mortgage commitment.
Underwriter on my note saw the picture of the front of the house with a double entry door; the house is on a double plot with two hyphenated numbers. Ergo, they wanted me to prove it wasn’t a two family. Hey, Jacka$$, you accepted the appraiser’s report — he was in the house and gave you a rudimentary drawing of the layout. If you don’t believe me (and obviously you don’t), go ask him if its a two-family and leave me the hell alone.
Unless you have two or more kids finishing basement is not important.
An old man told me his first year of marriage he put a quarter in a big jar by his bed every time he made love to his wife and the next 50 years he took a quarter out every time he made love to his wife and he never ran out of quarters.
Funny, but true story a girl we were friends with at the age of 31 marries a guy who is like 49. It is both their first marriage. Anyhow he never wants to fool around. She gets a priest involved. Turns out guy lived in NYC from 18-48 and screwed everything in sight till he was 45 and started to get sick of it and felt like getting married, reading the paper every night and getting a good night sleep like the other boring married men. Anyhow when she confronts him that she wants a divorce unless they start fooling around more, he goes look if I wanted to fool around every night I would have stayed single.
F1rstT1meBuyer says:
May 13, 2013 at 4:35 pm
@44 JJ…fair enough. I should’ve mentioned the master bedroom is already lined with carpeting (into the bathroom!) so we’re looking to rip it all out and put new carpeting in. The previous owner bought the house in ’09 and looking at the carpet, I don’t think they installed it when they moved in. On average, how much more expensive is it to install hardwood flooring vs carpeting?
Another reason we were just gonna stick with carpet is to minimize the noise when the Mrs and I have our date night. Our current place has hardwood floors in our bedroom and the bed moves like crazy. We figured a nicely insulated carpet would help with it. ;)
@47 Xolepa – I wish i was handy enough to finish the basement myself but this is my first time owning (even living in) a single family home so I don’t know the first thing about doing handiwork.
Took train into Newark today. Looks like goddam Mogadishu; a real Third World hellhole.
@66 JJ – I have 3 boys (7yr old, 5yr old, and a 10 month old) so we’re definitely going to have to finish the basement. I’d rather do it b4 we move in than to try to do it while we’re all moved in.
LOL @ the stories.
WTF?
http://www.nydailynews.com/news/national/saudi-man-false-passport-pressure-cooker-arrested-detroit-airport-article-1.1342659
http://bigstory.ap.org/article/govt-obtains-wide-ap-phone-records-probe
WASHINGTON (AP) — The Justice Department secretly obtained two months of telephone records of reporters and editors for The Associated Press in what the news cooperative’s top executive called a “massive and unprecedented intrusion” into how news organizations gather the news.
The records obtained by the Justice Department listed incoming and outgoing calls, and the duration of each call, for the work and personal phone numbers of individual reporters, general AP office numbers in New York, Washington and Hartford, Conn., and the main number for AP reporters in the House of Representatives press gallery, according to attorneys for the AP.
In all, the government seized those records for more than 20 separate telephone lines assigned to AP and its journalists in April and May of 2012. The exact number of journalists who used the phone lines during that period is unknown but more than 100 journalists work in the offices whose phone records were targeted on a wide array of stories about government and other matters.
In a letter of protest sent to Attorney General Eric Holder on Monday, AP President and Chief Executive Officer Gary Pruitt said the government sought and obtained information far beyond anything that could be justified by any specific investigation. He demanded the return of the phone records and destruction of all copies.
“There can be no possible justification for such an overbroad collection of the telephone communications of The Associated Press and its reporters. These records potentially reveal communications with confidential sources across all of the newsgathering activities undertaken by the AP during a two-month period, provide a road map to AP’s newsgathering operations, and disclose information about AP’s activities and operations that the government has no conceivable right to know,” Pruitt said.
I have a few guys. When I lived in Manhattan in the early 90s there was a guy who used to install metal bars on the windows and deadbolts on the door that required keys to exit. Also there is a guy I know who installs the padding you see all around the gym walls. I say then throw in a few xboxes and ipads and gaming consoles and a few hundred pounds of energy drinks and junk food and check in with them at least once a month.
Also if you get cable and dont lock the channels put a windshield wiper on the tv and keep a squeege handy.
Funny my Mom had two boys and that was the reason she never finished basement as we would distroy it anyhow. Cement walls and floors was very boy resistant
F1rstT1meBuyer says:
May 13, 2013 at 5:01 pm
@66 JJ – I have 3 boys (7yr old, 5yr old, and a 10 month old) so we’re definitely going to have to finish the basement. I’d rather do it b4 we move in than to try to do it while we’re all moved in.
LOL @ the stories.
Way down the rabbit hole now. Gubmint can do any damn thing it wants. Your job is to shut up and accept it.
Keep believing in those phony little green pieces of paper, too.
[65] JJ,
A married woman who says she isn’t getting enough sex from her husband? Now I know you are full of it!
[69] statler
On CNN, Borger just went all Fox News on The One over Benghazi. When you lose CNN, can you count on MSNBC to hold the dike alone?
Correction, roofers brought a team of 12, not including the gutter crew.
Election Day in JC tomorrow.
Vote early, vote often.
Pathetic listening to the dupes who’ve recently bought here spouting their belief that Fulop can somehow singlehandedly lower property taxes. As if.
When the reval hits, this town is DOA.
They will lower taxes here once they’ve chased out every small business and every solvent, employed property owner. Then- just like Philly, Memphis, Cleveland, etc- they will introduce all kinds of abatements to try and draw back the same people they chased away.
Then again, Healy should prolly have ended up as Solomon Dwek’s cellmate.
What are the oprions if an appraisal comes 20% below negotiated price and the comps comparison is flawed?
Mold – when basement vapor barriers are bad
http://nlcpr.com/Mold.php
rb (77)-
Appeal the appraisal. Start with the appraiser’s boss. Be prepared with documentation to defend your argument.
sc (79),
Thanks for replying.
Who should initiate the appeal process? buyer/seller/agent/mortgage broker…
rb (80)-
Any and all of you. If the RE agent is decent, that’s the person who can most easily build a fact-based rebuttal.
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