NJ In On Request for Distressed Homeowner Tax Relief

NJ Signs Into National Letter to Congress

By: Brian Kordell

The New Jersey Attorney General, Jeffrey Chisea has signed into a national letter requesting Congress to extend the the expiration of the 2007 Federal Mortgage Debt Relief Act, which allows homeowners who have had mortgage debt forgiven after a foreclosure or short sale, or through loan modification to be excluded from the homeowners taxable income on their primary residence only. Currently, the taxpayer relief is only in effect til December 31st, 2012. Attorney General Chisea is among 42 others to sign the letter addressed to Congress.

With many homeowners across the nation benefiting from the huge National Mortgage Settlement awarded from the 5 largest mortgage servicing companies in the U.S., and while many banks are offering loan modification and debt relief for distressed homeowners.

The New Jersey Attorney General talked about the importance of extending the tax exclusion, to keep from deterring consumers who cannot afford an unexpected tax from participating in the settlement meant to help them.

Are you an underwater homeowner in New Jersey? You may not need a loan modification or debt relief. Another option out there for homeowners who are current on their mortgage but underwater on their home value is available, in the HARP refinance program.

NJ Foreclosure Maintenance Measure

NJ Mortgage Lenders May Be Required to Maintain Foreclosures

By Brian Kordell

Senator Ron Rice is the primary sponsor for a bill making its way through legislature requiring mortgage lenders to keep their foreclosed property inventory in good maintenance.

Reasons listed for this bill is health, safety and neighborhood value. When foreclosed homes go attended, they can deteriorate, be a target for crime and cause the value of the surrounding neighborhood to drop.

Think of it this way - If you are looking to purchase a home, you are going to want to look at the neighborhood around any potential contenders before you decide on the right one for you. If you have a family, you might be looking at nearby parks, school district ratings and potential neighbors. You drive through each neighborhood as you go to view a new possibility, and notice that the home next door to the one you are viewing is vacant with wood over the windows or a sagging porch or  even may be vandalized. The home you are looking at may be beautiful, but with the eyesore next door, you might think twice.

This same house may sit on the market until the owners decide to drop the price to motivate potential buyers. Thus, potentially bringing the overall value of the neighborhood down when another owner looks to sell, and the appraiser reviews recent selling prices of the surrounding properties.

The same issue comes up when another household in the neighborhood is looking for mortgage refinance.  If homes in the neighborhood recently sold for less, it can be taken into consideration in an appraisal causing the homeowner to have a higher loan to value and less opportunity to refinance.

Senator Rice indicated in a statement that mortgage lenders should be taking responsibility for the homes they foreclose on, whether they themselves are located in or out of the state their properties are located. The measure would force mortgage lenders to fix any building violations with their foreclosed inventory within 30 days or pay the same fines a homeowner would. This measure could help not only a future borrower for the foreclosed property keep rehab costs low, but keep neighborhood home values from significantly dropping.

If you are looking for a local, New Jersey Mortgage Company, please contact us for all your home financing needs, we are sure to have a NJ mortgage loan that works with your unique situation.