Well, first let’s define what a recourse state is. A recourse state is a state such as NJ where the lender is allowed to come after you (recourse) in the case of default of a loan. For example, with a foreclosure, if you default the lender will foreclose on the property but if there is a balance (also known as deficiency judgement) the lender in the state of NJ has the right to come after you for that remaining balance.
There are 12 states that are non-recourse states and the remaining 38 states are recourse states.
Here is a link to see if your state is a recourse or non-recourse state:
Buckminster Fuller, famous financial writer and some say financial wizard, asks, “How many days forward can you go survive without a paycheck?” With unemployment now laster longer than ever before -21 to 24 months – and keeping in mind the fact that most Americans don’t save as much money as they could or should compared to Japan (they save at least 20% of their paycheck), what is going to happen when you run out of money and out of options to pay your mortgage?
Preparation. Discipline. Acceptance.
Prepare – Think ahead to what might happen if that day comes.
Discipline – You must be discplined to do what you prepared for.
Acceptance – In order to do either of the two, you must first accept that you could be in this position and you have to do something about it.
You could consider getting a heloc (home equity line of credit) but you must still be employed or you will get turned down. Remember, it is better to need it than to need it and not have it. If you get a heloc be disciplined not to use for a quick vacation or shopping spree – those things can wait or save the money in a separate account if you really must go but don’t use the heloc for that purpose.
Loral Langemeier of www.liveoutloud.com fame suggests that you make more money. In this economic climate don’t depend on just your job to sustain you and your family. Use your existing skill set to make extra money or even start a business. If you have great cooking skills, use them. If you have great driving skills – use. You get the idea. There is something we can all do to make extra money.
Well, what ideas can you use to make more money?
The Federal Housing Finance Agency will raise fees next year and lenders will have to pay more to have Fannie mae and Freddie mac to guarantee their loans. What does this mean for sellers and buyers in Atlantic County NJ? Not exactly sure yet but it could mean that the cost of getting this type of loan could go up and sellers may have to wait longer to find qualified buyers because buyers may have to qualify with higher scores and higher downpayments. With the jobs situation looking the way that it does now, this may not be good news for both sides.
Unfortunately, we’ll have to wait and see when it happens and all of the particulars are spelled out.
Well, it looks like we’re in a wait and see mode right now and time will tell. Stay tuned.
I have gotten a few phone calls from clients asking about surety bonds because of the death of a loved one. Most people don’t know what a surety bond is or why they need one so here it goes. A surety bond is like insurance for an estate and the beneficiaries involved. Unfortunately, a lot of our loved ones die without having left a will, also known as dying intestate and when this happens in NJ you may need a surety bond.
Another challenge with surety bonds is they require excellent credit and many people seem to have a problem being able to secure one. This creates a lot of tension and frustration because usually you don’t find out about this until you are in the midst of making arrangements for a loved one who has passed and this is the last thing you want or need to have to deal with.
The link below contains a great blog post about surety bonds. Check it out, http://yandy-ea.blogspot.com/.
Hooray! The Bulk Sales Law A-2748 was signed by Governor Christie exempting individuals, estates and trusts involved in purchasing one and two family residential properties from bulk sales notification requirements. The signing also makes the law retroactive to August 1, 2007 so that means that it’s as if the law never existed. Since this law delayed so many sales from going through, most pendings should be going through more quickly and buyers, sellers and the offices involved can all move on with their lives.
Good riddance to the Bulk Sales Law. Keep in mind if you have an LLC involved in your purchase of property the Bulk Sales Law still applies.
I was talking to my sister today and she was telling me that her electric bill was $450 a month and that’s with budget billing. Huh? That’s too much money for one month in a home where there are only 2 or 3 people and two left. What I also found interesting was that her girlfriend who lives around the corner down the road has a little smaller home but also has a pool and her electric bill is significantly lower by hundreds. How’s that?
I suggested that she get an audit. She said the electric company came out and she was told with all of her appliances that’s why her bill is high. Her home is in Pennsylvania. I say phooey. She has no more utilities than anyone else – washer, dryer, stove, frig, tv, computer – everyone has that. I suggests that she get a professional audit from an outside company that is reputable. If you are having the same problem or know someone who can benefit, share this link with them and get your electric bills lowered to a reasonable rate.
Actually, I think it’s a good idea in life to always have a plan B. When I moved to Atlantic City, it was my plan B. I planned to move to Sicklerville or Blackwood but I thought to myself well if this doesn’t work out, what is my plan B? As it turned out, it was a good thing that I had a plan B because I didn’t make it to Sicklerville or Blackwood. So if you’re selling your home now what is your Plan B? Will you rent it? Will you hold out? Will you take it off the market? What will you do for your Plan B?
Having a plan makes it easier for you to go through the process because you will be more in control of your situation and be better able to handle any frustrations that will definitely come your way during the process.
So, what’s your Plan B?