One of the misconceptions for some sellers is that once the contact of sale is signed this has “sealed the deal”. Obviously, this is not the case. A seller seems to always be holding the bag when a buyer backs out. If I am selling my house in this current economic environment, the last thing I would want to do is try to find a new buyer. So, how do I choose the right a buyer and keep him/her bound to the contract?
Let me begin with this: no seller can prevent a situation where a buyer wishes to default. However, there are things that you can do to preserve your deal or protect your rights under the contract of sale. [click to continue…]
New York State, pursuant to Title 11, Chapter 26, Administrative Code, Tax Law Section 253-a imposes an additional tax to the borrowers of lending transactions for (the privilege of) borrowing monies against real property. How does that affect me? Here is an example, you love a beautiful two family home in New York City (it does not matter where), you offer $500,000 and you apply for a $400,000 mortgage amount. New York City and New York State has the right to impose a mortgage tax for monies borrowed. So, your closing costs just when up by $7,170 ($400,000 multiplied by 1.8% minus $30.00).
These closing costs are not often anticipated by your lender (if located out-of-state) and are substantial enough that it should not be overlooked. Some lenders do not disclose this amount properly as it varies in each county in New York State. [click to continue…]
How did this happen?
The real estate market runs in cycles. Presently, we are in an economic period, which mortgage delinquencies are on the rise. Some of the causes of the increased foreclosure rates are higher interest rates on mortgages making payment unaffordable and the declining value of homes. Some homeowners with adjustable interest rates are particularly stressed as their payment amounts increase, stretching their budgets to the limit. Others see the value of their homes are less than the amount owed on the mortgage and make a business decision to not make payments. The information herein will help you understand the short sale and how you can prepare for a short sale transaction.
What is a mortgage foreclosure?
Foreclosure is the legal proceeding in which a mortgagee, or other lienholder, usually a lender, obtains a court ordered termination of a borrower’s interest. A lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. If the borrower defaults, the lender may has the right to repossess the property through this legal proceeding.
What is a short sale?
A short sale means the seller’s lender is accepting a discounted payoff to release an existing mortgage.
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by Paul on February 28, 2010
In an effort to stabilize the declining housing market, the federal government has offered a tax credit to qualified first-time home buyers of up to $8,000 and Repeat Buyers of up to $6,500.
First off, please seek the services of an accountant to see whether you qualify for the First-Time Home Buyer Credit.
Some useful facts to know for the First-Time Home Buyer Credit and Repeat Home Buyers (Long-time Residents) are as follows:
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by Paul on February 25, 2010
A survey is defined as a horizontal projection of the premises showing the physical facts of possession with reference to the perimeter lines (see Law of Title in New York and Compendium of Real Property Title by William C. Hart). What does that mean? Put more simply, a survey is a map of the property, as determined by the opinion of a surveyor, at a moment in time, which discloses where improvements lie in comparison to the property lines.
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by Paul on February 24, 2010
Selling your home is a time consuming process and can be an unnerving experience. Everyone wants to sell their home for the highest price possible, and for the most part, want to sell their house as soon as possible. In some cases, selling your home becomes even more complicated when you try to coordinate your sale with a purchase of a home.
So, where do you begin?
Gather your paper work. [click to continue…]
by Paul on February 24, 2010
First off, I do not want to assume that everyone knows what this term means, so here is the definition.
“Short sale” is a term to describe a situation where the proceeds of the sale of a home are less that outstanding liens that exist against the property. For example, you owe the lender $400,000.00 but your house is worth $200,000.00. If you are unable to pay your loan, you may attempt to sell your home by requesting that the lender accept less money than what is owed.
How much do I offer the seller?
Obviously, one of the pros of purchasing a short sale is lower purchase price. Generally, offers for short sales are lower than straight resale offers. Why? The seller is not going to gain from the proceeds of the sale of the home, so it is no matter to a seller what the offer is (bearing in mind that this is a primary residence). Of course, the seller would like the offer to be reasonable with the ultimate hope that if the offer is at fair market value, the lender is more likely to accept the short sale offer. Another reason may be the financially distressed property may be in disrepair. [click to continue…]
by Paul on February 23, 2010
So, you want to buy a house. There are so many thoughts running through your head. Can I afford this house? How much money do I need? Is now the right time to buy? Where do I start to look? Where do I begin? Which realtor should I choose? Do I need an attorney?
All these answers to these questions are not so apparent. From my own personal experience of owning a home, there are so many variables that I did not consider when purchasing a home. For example, my utility bills being so high; my property taxes increasing; furnishing the home; repairs; did I mention the heating bills? Be realistic about the expenditures that you will be making when you purchase a home. Most certainly, you should be informed and you can do this by asking questions to the realtor and the seller of the home you are purchasing. Ask the seller for utility bills and this request is not unreasonable. Ask your inspector about the upcoming recommended repairs or useful life of appliances and mechanical systems. Ask your realtor, the seller, or your attorney about the amount of the property taxes. Ask about the any association fees or whether the property is located in a flood zone (which would require you to purchase a flood insurance policy). Okay, so I scared you off a little bit. I just wanted you to be educated about your purchase. After all, being an informed buyer may save you in the long run. [click to continue…]
by Paul on February 15, 2010
The Law Firm of Paul A. Sarcona, PC was established by Paul A. Sarcona in 2004 and serves the legal needs of businesses and individuals throughout New York and New Jersey.
We are committed to delivering superior client service with a focus on results. Our philosophy is offering personalized attention to all clients with cost effective legal representation. We, also, integrate the importance of building long-lasting client relationships into our practice so that you will come back to us for all your legal needs. We always work to effectively protect the rights of our clients and explain the risks and rewards of each transaction.
Our areas of practice stem from representing businesses and individuals in all aspects of real estate, business formation and transactional representation, landlord-tenant disputes, wills and trusts drafting and estate administration.