Why You Should Own a Central New Jersey Home Instead of Rent
Published November 26, 2011 | 
There was a time in the not-so-distant past that renting a Central New Jersey home made more sense than owning one. When prices skyrocketed, it made many homes unaffordable for buyers. Now, rents are going up, home prices are going down and interest rates remain at incredibly low levels. Here are the top four reasons I believe you should own instead of rent:
Reason #1 – Equity. The simple fact is that you can’t have equity in a property you don’t own. When you rent, you’re paying someone else’s mortgage and, therefore, increasing their equity with every payment. The further down you pay the principal on your Central New Jersey home, the more equity you build up. Even with the extreme ebb and flow the real estate market has seen in recent years, owning property continues to be a profitable business over the long run.
Reason #2 – Budgeting. With a lease agreement on a rental property, your payment remains the same only for the length of the lease (typically, 6-12 months). After that, there will inevitably be an increase in payment. When you purchase your Central New Jersey home with a 30-year fixed rate loan, your monthly mortgage payment remains the same throughout the entire life of the loan. This can be an incredible help when you are creating a household budget or a long-term financial plan.
Reason #3 – Community Involvement. Homeowners tend to put more of an investment in their community at large when they own their homes. Renters typically see their communities as a temporary stop while homeowners know they’ll be staying there for a while. This will generally also helps make children feel a bit more stable.
Reason #4 – Bargains Galore! Prices have come down considerably in the past couple of years. In many places, they are beginning to go back up. The loose lending practices that helped many homeowners get into homes they couldn’t afford in the past are gone. That’s a good thing, though. You can still score a great deal on a Central New Jersey home as long as you have decent credit and a downpayment.
Many US citizens still believe that homeownership is a huge part of the American dream. It remains a good investment over the long run. Prices are great, inventory is available and low interest rates make homeownership more affordable than renting most of the time. If you’re interested in buying a Central New Jersey home, contact me today!
Ellen Manzi, your Central New Jersey Certified Distressed Property Expert
FHA Secure Helps Homeowners Avoid Foreclosure
Published November 18, 2011 | 
Central New Jersey homeowners with good credit who are struggling to pay their monthly mortgage payment due to a rise in their adjustable mortgage rate may have help. FHA Secure helps homeowners avoid foreclosure by refinancing. Even if you have missed as many as three payments over the last year, you may still be eligible. Your home mortgage loan doesn’t even have to be through the FHA either.
To qualify for the FHA Secure program, you must:
- live in the home that is being refinanced as your primary residence,
- live in a single-family, multi-family (up to four units) or manufactured home,
- meet FHA underwriting guidelines for the new loan,
- meet the current loan-to-value limits (your real estate professional can help you determine what that is),
- have fallen behind because of the ARM reset,
- have a good credit score to qualify for a regular home loan,
- show a debt to income ratio of less than 41%,
- show a consistently positive payment history for any and all other debts currently owed and
- provide proof that you have a steady income that will allow you to pay the new loan amount.
If you are current on your New Jersey mortgage payments but are in jeopardy of falling behind due to the ARM increase, you may qualify for the FHA Secure program whether you have a fixed or adjustable rate mortgage. However, homeowners who are delinquent on their payments can only apply for the FHA Secure program if they have an adjustable rate mortgage loan.
Please keep in mind that these are only meant as a guideline. They are in no way a guarantee that you will qualify for the program. FHA Secure can help homeowners avoid foreclosure by giving them a way to refinance their loan to a more manageable rate. For more information on this and other options you may have as a Central New Jersey homeowner, please feel free to contact me at any time.
Ellen Manzi, your Central New Jersey Certified Distressed Property Expert
Explaining the Homes Affordable Foreclosure Alternative Program (HAFA)
Published November 11, 2011 | 
A few weeks ago, I discussed the Home Affordable Modification Program (HAMP) as a possible alternative for Central New Jersey homeowners facing the possibility of foreclosure. The Homes Affordable Foreclosure Alternative Program (HAFA) was rolled out by the Obama administration in 2009 to help homeowners who were unable to modify their home loans through HAMP. If you are struggling to make your mortgage payment, the HAFA program could be a viable option for you.
To be eligible for HAFA, you must meet the following criteria:
- You purchased your Central New Jersey home and closed escrow on or before January 1, 2009.
- Your first mortgage cannot exceed $729,750.
- You can provide proof of a financial hardship which makes paying your mortgage difficult.
- The home being considered for the HAFA program is your primary residence.
- You’ve lived on the property in question for at least 12 months and you haven’t bought another property in the last 12 months.
- Your loan is financed through or backed by Fannie Mae or Freddie Mac funds.
The criteria listed above is meant as a general guideline only. Just because you meet these requirements doesn’t guarantee that you will be approved through the HAFA program. All HAFA applicants will be assessed on an individual basis. As a Certified Distressed Property Expert, however, I can help you fill out your application and provide useful information on what you will need to complete the HAFA process.
If you are having a hard time making your monthly mortgage payment, are worried about losing your home to foreclosure and don’t want to walk away from your financial responsbility, the Homes Affordable Foreclosure Alternative (HAFA) program may be just what you need. Contact me today so that we can discuss this and other possible alternatives. Losing your home is NOT your only option.
Ellen Manzi, your Central New Jersey Certified Distressed Property Expert
Four Foreclosure Alternatives
Published November 7, 2011 | 
Nobody purchases a Monmouth County home with the idea that they may be foreclosed upon sometime in the future. Unfortunately, many homeowners today find themselves facing foreclosure due to circumstances that are sometimes out of their control. What many homeowners don’t understand, however, is that foreclosure is the LAST option, not the ONLY option. Here are four foreclosure alternatives you may want to consider:
Traditional Sale – Just because you are struggling to make your monthly mortgage payment doesn’t mean you can’t try to sell your home in a traditional real estate sale. If you have some equity in your Monmouth County home, a traditional sale is definitely an option to consider. By selling your home outright, you avoid foreclosure and may actually be able to walk away with a little money in your pocket to purchase something that is more affordable for your household budget. You need to work with a real estate professional, preferrably a Certified Distressed Property Expert, who understands the foreclosure process in the tri-state area.
Short Sale – As I discussed in my blog post last week, a short sale happens when the bank agrees to allow the homeowner to sell the home for less than the balance of the mortgage loan. Negotiating the reduced price with the bank takes a skilled, knowledgeable real estate agent who is trained specifically for such things. When you are able to sell your home via a short sale, your credit score takes less of a hit than a foreclosure and you are able to purchase a home in much quicker timeframe (2-3 years) than a foreclosure (5-7 years).
Refinance/Modification – Homeowners who are struggling with their monthly payments but have not yet fallen behind and have at least a “good” credit ratingmay want to consider refinancing or modifying their home loans. Interest rates have fallen to their lowest levels in years. Even lowering your loan’s interest rate by 1/2 a percentage point can save you thousands of dollars over the life of the loan. For example, if you refinanced your $250,000 home loan at 4.4% and your original loan was purchased at 5.75%, you can save more than $200 per month. There are several government programs in effect at this time specifically to help homeowners avoid foreclosure. I spoke about the Home Affordable Modification Program (HAMP) just a couple of weeks ago. But that is not the only program out there that you may qualify for.
Rental – Another option New Jersey homeowners may want to consider is to move out of their home, move into a home that is more fitting to their budget and rent out the home they currently own. This works especially well with homeowners who have a monthly mortgage payment that is comparable to rent paid in the area. The rent would then cover the homeowner’s mortgage costs while they live in a more affordable property until they are able to either sell the home or are in a better financial position so that they can move back into the home.
There are positives and negatives with any of these four foreclosure alternatives I’ve discussed above. If one of these options doesn’t work for your situation, there may be something else that can be done. The most important thing to keep in mind is that you don’t always have to lose your Central New Jersey home to foreclosure. There are options. Contact me today to discuss exactly what your options are.
What is a Short Sale?
Published October 28, 2011 | 
Are you a Central or Southern New Jersey homeowner who has fallen on hard times and are finding it increasingly difficult to make your monthly mortgage payment? You don’t have to lose your home to foreclosure. One option that may be available to you is selling your home in a short sale.
In a short sale, the homeowner and their lender (usually with the help of a real estate agent) work out an agreement to sell the home in question for less than what is owed on the house. The homeowner typically has to prove a financial hardship to the lender in order to open up negotiations. That’s why an agent who specializes in distressed properties is an asset. A “hardship” can be a job loss, a divorce or death of a spouse, a forced relocation due to a job change, too much debt load or an increase in your mortgage payment that makes it too difficult for you to maintain. Your Certified Distressed Properties Expert can help you with this.
While a short sale has a negative impact on your credit, it is much less than a foreclosure. At the close of a short sale, the loan is reported to the credit bureaus as being paid in full but for less than agreed. This can lower your credit score by anywhere from 50-100 points and can stay on your credit report for up to seven years. However, if you keep your credit in good standing after the short sale, you can be eligible to purchase another Central or Southern Jersey home through Fannie Mae within two years. An FHA backed mortgage can be obtained within three years.
In a foreclosure situation, your credit score can fall by as many as 160 points, it also stays on your credit for seven years, you might be able to purchase another property within five years (with certain limitations) and you will have to disclose that your previous home was foreclosed on with any home loan application. If you answer “yes” to the foreclosure question, there is a good chance the mortgage company may decline your application. If you lie, you can face a criminal investigation for mortgage fraud. With a short sale, you can legally answer “no” because your home was sold, not foreclosed on.
The name “short sale” refers to selling your property “short” of what is owed on it. The short sale process itself can take a while to complete. Before you lose your Central or Southern New Jersey home in foreclosure, see if a short sale can be done. If this isn’t an option that works for your situation, you may have other alternatives you can explore. Contact me now to find out what will work best for you today.
Home Affordable Modification Program
Published October 21, 2011 | 
No one invites foreclosure into their lives. Unfortunately, many homeowners across the country are facing the possibility of losing their home to foreclosure every day. If you find yourself in this unenviable position, all is not lost. You may still be able to salvage your homeownership with the Home Affordable Modification Program (HAMP).
Under the Home Affordable Modification Program, homeowners work with their mortgage company to modify the terms of their original mortgage agreement through a mortgage servicer. The purpose of these negotiations is to reduce the payment for a specified period of time until they can get over their current financial bump in the road. If an agreement is reached, the temporarily reduced payment has saved homeowners $516 per month on average. The payment is set on a graduated scale, which means that it will go up incrementally over time until it is back to the original payment amount.
To qualify for HAMP, a homeowner must…:
- …currently be delinquent on their mortgage payments or will be delinquent in the next few months.
- …occupy the property in question as their primary residence (no rental or vacation properties are eligible).
- …have originated the mortgage prior to January 1, 2009.
- …have a balance of less than $729,750 on the home in question.
You will need to provide proof of the validity of your qualifications. Documentation is crucial when applying for HAMP. That’s where a Certified Distressed Property Expert comes in handy. They can inform you on which documents you will need and help you organize your information for a proper application.
If you don’t qualify for HAMP, there are several other options that you may be able to consider. The Home Affordable Modification Program is a good first step to help you stave off losing your home to foreclosure. Please contact me today to find out whether HAMP is right for you and to discuss any other options that you may be eligible for. Foreclosure doesn’t have to be in your future.
Facing Foreclosure? You Have Options!
Published October 14, 2011 | 
In today’s economy, many homeowners are struggling to make their monthly mortgage payments due to job loss, cuts in pay, decrease in hours or other financial hardships. Adding a foreclosure into an already stressful situation can be devastating. If you are one of the millions of people facing the possibility of foreclosure, don’t despair. You may have options!
In order to further assist my clients in dealing with the state of the real estate market today, I have become a Certified Distressed Property Expert (CDPE). As a CDPE, I will meet with you to personally go over your current situation, discuss the options available to you and help you develop a strategy to successfully put this behind you so you can continue on with your life. There are several alternatives to foreclosure if you act quickly enough.
If you or someone you know is facing foreclosure, please don’t hesitate to contact me soon so we can discuss which opportunity works best for you! You don’t have to go through this alone.
Ellen Manzi, your Certified Distressed Property Expert in Central and Southern New Jersey
Get Your Home Winter Ready
Published October 7, 2011 | 
Summer’s over, fall is here and Old Man Winter will be knocking on your front door soon. With the chilly weather comes higher heating costs. If you’re one of the thousands of people in the Monmouth Country area trying to reduce their household expenses, you will need to get your home winter ready. Fall is the perfect time to just that.
Check the Gutters – This is true for the entire year, but especially so right now. As the leaves fall from the trees and rainfall increases, the chances that your gutters get filled up with debris increase as well. If the gutters are blocked with debris, then water can’t run off of the roof. When roof water is stagnant, it can create a multitude of expensive problems. Make a habit of cleaning your gutters once every 4-6 weeks.
Store the Outdoors – Summer is a wonderful time for backyard barbecues and family get-togethers. But, some patio furniture isn’t meant to withstand the harsher fall and winter weather. Wrap up your cushions tightly in plastic (you can use garbage bags, if you need to), close them securely with duct tape over the plastic to keep bugs and moisture out and store your furniture away in the shed or garage for safekeeping. Placing a tarp over all your stored furniture will also help keep moisture (and rust) away.
Check for Air/Water Leaks – As I discussed in my blog post last week, a drafty New Jersey home can be expensive to warm up in the winter time. Replace old weatherstripping on windows (if you can’t afford to upgrade to more energy-efficient ones), add a kickplate or thick rubber strip along the bottom of your exterior doors to decrease air flow, seal around your electrical outlets and recessed light fixtures, make sure your pipes are working properly and keep them insulated from cold weather so they don’t burst.
Landscape Maintenance - Prune back your trees and bushes to keep them healthy during the winter. A heavy buildup of snow on overhanging branches can cause serious and expensive damage if left unchecked. Pruning them back will help decrease the likelihood of this problem. Mulch your flowerbeds and lawn to give them a good feeding before they retire for their long winter nap.
Change Your Furnace Filter – Just like air conditioning units, a furnace will not function properly if the filter is caked with old dust, dirt and debris. Do a test run to make sure your furnace is in good working condition. Now is the time to get it fixed, if necessary. You don’t want to wait until you really need it to find out it has problems.
Save yourself some money and get your New Jersey home winter ready now. The cold weather will be here soon and you don’t want to be left unprepared.
Check Your Home for Leaks
Published September 30, 2011 | 
The crisp fall weather is a reminder than Old Man Winter is lurking right around the corner. Many Monmouth County homes can get drafty during the winter, costing homeowners more money to heat. This puts a strain on energy resources as well as wallets. Now is a good time to check your home for air leaks so they can be taken care of before the biting cold sets in.
Doors and Windows – These are, of course, the most obvious places to check for drafts in your Monmouth County home. Old, cracked weatherstripping or poorly framed doors and windows can let warm air escape and invite cold air in. Consider replacing old windows with newer, more energy-efficient windows. Add a kickplate or heavy rubber strip to the bottom of your exterior doors to decrease the air flow. A good rule of thumb is, if you can see daylight through your doorway, you have an air leak.
Attic Entryway – The entryway to the attic can allow cold air into your home. Make sure the seal around it is nice and tight, whether it is a doorway, pull down stairs or even a simple hatch.
Fireplace – When you clean your chimney to ready it for winter use, check that the flue sits nice and tight when closed to reduce the amount of air coming through when the fireplace is not in use. The chimney flashing will also need to be investigated to make sure that it is in good condition.
Recessed Lights and Electrical Outlets – Yes, cold air can find its way in through these areas as well. Since the holes cut to fit the lights and electrical boxes are usually slightly larger than the actual items themselves, air can come in through the spaces in between. Adding some insulation around these areas can make a huge difference here. Check with your local home improvement store for the safest ways to do this.
Vents and Ducting – Any vent or ductwork that leads to the outside can also allow cold air inside. This includes air vents, dryer vents and your stove’s hood.
These are the biggest culprits of air leaks in your Monmouth County home. Reducing the amount of warm air that escapes as well as stopping cold air from coming in with help keep you nice and toasty in the cold winter months while using less energy (and money) in the process. That just makes good sense to me!
What to Ignore When Buying a Home
Published September 23, 2011 | 
When looking for a Monmouth County home, buyers shouldn’t stop their search at the front gate. Yes, curb appeal is important when selling a Tri-State area home, but not all sellers pay attention to that part of the selling process. As a buyer, you need to look past the stuff you can change and pay attention to the stuff you can’t change. Here are some of the things you should ignore when buying a home:
Curb Appeal – While a well manicured lawn and nicely trimmed shrubbery shows that the homeowner has most likely kept up maintenance on the house, you shouldn’t let an overgrown lawn with toys scattered about and some stains in the driveway deter you from looking beyond the front door. Consider this: if other buyers get turned off by the outside of the home you are looking at, there is less competition for it. That means, you might be able to buy it for less money and put the equity into it yourself by creating whatever look you want outside.
Color Palette – The current homeowner may have an affinity for the dramatic, with deep red walls and dark carpeting, but it’s just not your cup of tea. Look past the shag carpet and avocado colored kitchen appliances. Carpeting can be changed easily, new appliances can actually bring in a rebate and/or tax credit (talk to your salesperson about this when you buy a new appliance) and paint is relatively cheap.
Home Decor – The old adage is true: one man’s junk is another man’s treasure. Just because you’re not a fan of the classic velvet Elvis paintings or Dogs Playing Poker doesn’t mean that you shouldn’t buy this Tri-State area home. Remember, those knick-knacks and other personal items will be leaving with the current homeowner when they vacate the premises. You can decorate it however you like once you buy it.
I highly recommend you get a thorough home inspection done before you decide on a placing an offer on a Tri-State home. This can help spot potential problems. If you are interested in purchasing a home in the Tri-State area, please contact me today. I’ll be happy to walk you through what to ignore when buying a home and what you really need to pay attention to. We’ll get you in the home of your dreams in no time!
Premiere Properties for Sale
Learn how agents with the Certified Distressed Property Expert® designation are best suited to help distressed homeowners.Contact Ellen
Ellen Manzi
REALTOR® Associate - CDPE
222 Millstone Road
Millstone, NJ08535
732-446-4959 - Main 732-239-5199 - Cell
