How to Sell Your Home Before Your Lender Forecloses

nj bankruptcy attorney

Many times here on our bankruptcy blog, we describe situations where homeowners want to save their homes. Filing for bankruptcy sets the Automatic Stay into motion, which in turn prevents a home from being foreclosed upon. The length of the bankruptcy case and the anticipated outcome of a discharge of debts allows those homeowners (who desire it) the ability to adjust their debt-to-income ratio enough to keep their home via reaffirmation.

However, sometimes, a financially distressed homeowner doesn’t want to save their home. They may wish to downsize or move into a more affordable geographical location. Foreclosure, then, is not their ideal outcome, because they’ll end up with no money from the sale of the home, their credit scores will drop, and they could end up owing a deficiency judgment.

In these situations, selling the home is the desired outcome.

What’s the problem, then? Just sell the house and get on with things, right? The dilemma arises when homeowners have fallen behind on their mortgage payments and their lender is threatening to foreclose before they have a chance to get the house listed on the market.

If you do not want to keep your current house, but you’re simply short on time due to the immediate threat of foreclosure and sheriff’s sale, you’re in luck. You came to the right place, because we can help gain you enough time to get your property sold to a proper buyer rather than through a foreclosure bidding auction.

Why not just let your home go to foreclosure sale? A sale’s a sale, right?

Actually, no. Very, very much NO. However, many homeowners who’ve found themselves face-to-face with a foreclosure don’t realize they can take action toward an end goal of selling their home even when the home is actively being foreclosed upon. That’s right – this is possible even if you’re behind on your mortgage payments – or not making them at all.

Homes that sell via foreclosure auction or “sheriff’s sale” (find out why it’s called that here) almost always sell for significantly less than their real time market value. That is the #1 reason that you should consider trying to list your home for sale before sheriff’s sale.

For those homeowners who know they cannot continue living and maintaining their current lifestyle (i.e. high mortgage payments and property taxes), the last thing needed is the possibility of a deficiency judgement.

A deficiency judgement isn’t the only reason to avoid foreclosure.

By beating your lender to the punch and selling your home before they have a chance to pull the rug out from under you, you gain the opportunity for a substantially higher sale price. This will guarantee that all of your missed payments, late fees and interest is paid back to your lender, causing a domino effect of good results:

  1. Your foreclosure will be dismissed.
  2. You may end up with some equity in your pocket.
  3. Other dischargeable debts can be eliminated or greatly reduced.

Filing for bankruptcy in New Jersey should be viewed as a valuable tool that can be used to right a financial situation gone awry. The key to getting all of your ducks in a row, however, is working with the right NJ bankruptcy attorney. Timing is everything; don’t delay making a move on what can potentially turn into a disaster. Take action now, and you can walk right into a story with a happy ending.

 

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Bidding on a NJ Foreclosure Property: The Lowdown

NJ foreclosure

Buying a home at a NJ foreclosure sale (or sheriff’s sale, as they are commonly called) can be a fantastic way to score a property at below-market price. While there are some risks and pitfalls to be aware of when bidding at a foreclosure auction, if you’re well-informed, you’ll likely come out of the process happy and (hopefully) successful!

Naturally, the most obvious advantage of purchasing a home via sheriff’s sale is the low price you’re likely to pay. Foreclosure sales are a great way to gain ownership of a rental property or a home you intend to “flip.” Homes that are being auctioned at a New Jersey foreclosure sale have been through the judicial foreclosure process that our state requires, and the lender has been permitted by the court to move forward with selling via auction.

How can I find out about upcoming NJ foreclosure sales?

This is one of the best parts about buying a foreclosed property in New Jersey. Sheriff’s sales are required to be advertised for a minimum of 30 days. You can find listings of upcoming sheriff’s sales in local newspapers for each county. Many jurisdictions also have sheriff’s sale listings online on their county court website.

How does a sheriff’s sale work?

In New Jersey, foreclosure auctions are controlled or led by the sheriff’s department of the property’s county. All local county rules must be followed, however, there are several general rules that are consistent across all counties, according to NJ law.

  1. NJ foreclosure properties up for sale must be sold subject to the first mortgage held on the property. This information can usually be found within the property’s first lien.
  2. Any NJ foreclosure sale will also be subject to any/all local state or federal liens on the property.

Because of the above information, all bidders at NJ sheriff’s sales would be remiss to fail to run a complete title search on the property in question before even considering bidding. Failure to do so could land you with a property that is deeply encumbered by multiple liens, for which you will be 100% responsible.

In New Jersey, foreclosure sales usually start with the lender being given an opportunity to open the bidding. Most lenders will start with a $100 bid. Bidding on the property continues via voice auction between all of the interested parties present at the auction.

The usual course of a NJ sheriff’s sale/auction continues with bidding the price of the property higher and higher until a highest bidder remains. If you are the lucky bidder, you will be required to pay a 20% deposit of your bid price.

Upon conclusion of the bidding, the sale is considered to have ended. However, the end of the sale triggers what is known as the Redemption Period. This is a ten day period during which the original owner (who was foreclosed upon) is allowed to “redeem” the property. This can only be done if the original owner can completely pay off the foreclosure judgement amount, including any additional fees and costs (and potential liens).

At the end of the Redemption Period, if the original homeowner does not choose to redeem the home, you will be given a sheriff’s sale deed. When you receive this deed, it is expected that you will make full payment of the balance of your successful auction bid. You’ll also have to handle any fines that accrued relating to the property, after which you will be able to officially transfer the title from the former owner to yourself!

NJ Foreclosure Sale: What is an Arm’s Length Transaction?

When a piece of real property is scheduled for NJ foreclosure sale (also known as and commonly referred to as the Sheriff’s Sale), an interested buyer, investor or “house hunter” may reach out directly to the homeowner. Even when a homeowner’s property is in foreclosure with the Sheriff’s Sale scheduled, they (the owner) have the legal right to attempt to sell the home.

A home that is in NJ foreclosure is likely to sell at Sheriff’s Sale for substantially less than its real value. This can end with the original homeowner owing the lender the difference between how much they still owed on their mortgage loan and the foreclosure sale price. This is called a deficiency, and although lenders do not always pursue a deficiency judgement from the court, sellers should know that it is always a possibility.

Armed with information about a potential deficiency judgement, a homeowner going through the foreclosure process is smart to attempt to find a buyer before the Sheriff’s Sale date. In fact, should the homeowner find an “arm’s length” buyer prior to the foreclosure sale, it’s good news all around. The lender doesn’t have to move forward with their sale, which saves them time and money, and of course, the original homeowner may very well receive a better offer outside of a Sheriff’s Sale. Lastly, the new buyer can feel good about purchasing a foreclosure property before it is up for public sale, eliminating the competition.

What is an Arm’s Length Transaction?

When a homeowner’s lender moves forward with foreclosure, the homeowner still retains ownership and the ability to sell the property before the Sheriff’s Sale, but there are several stipulations in order to guarantee that a seller in this situation can only sell to a party who is considered an Arm’s Length buyer.

For a transaction like this to be considered fair, New Jersey real estate laws state that both the buyer and the seller must not be in any kind of relationship that is closer than “arm’s length.” The following are examples of relationships that are not arm’s length, and therefore would not be ideal buyers before the Sheriff’s Sale:

  • Family members
  • Close friends
  • Employer/employee
  • Parent company/subsidiary
  • Trust/beneficiary

As long as the homeowner is negotiating with someone who is not acting in the homeowner’s best interest (for example, a parent buying the home below market value only to allow their child, the seller, to keep living there), the end result of a transaction prior to foreclosure sale is typically a good idea.

An Arm’s Length Transaction must involve two parties who are independently acting for their own self-interest. Also, the best and fairest deal that is close to the home’s market value should ultimately be the goal of this type of transaction.

Is it Illegal to Participate in a Non-Arm’s Length Transaction?

While it is not necessarily illegal to sell to a non-arm’s length buyer, when a homeowner is already immersed in the foreclosure process, it is advisable to follow the recommendations of an experienced NJ foreclosure/real estate attorney. Ask your attorney to hook you up with a reputable tax professional as well, because transferring property to a non-arm’s length buyer comes with additional tax implications.

Learn more about your rights during foreclosure!

 

What is a Cloud on a Title Report?

As much as we all love to capture images of the beautiful and interesting “cloudscapes” above us, we know too, that clouds can signal storms. This holds true figuratively as well as literally. A cloud found on a title report during a real estate transaction can be quite disconcerting as well as potentially predictive of an impending problem.

Here at Veitengruber Law, we like to make sure that our clients as well as our blog readers have a clear understanding of as much legal language as possible. We’re the first to admit that almost every area of the law is absolutely bursting with legalese that can make many legal processes mind-boggling. We deal with these terms on a daily (dare we say ‘hourly’?) basis, but we know that you probably do not – so we always try to view legalese through your eyes.

What does it mean if there is a “cloud on title?”

If you are in the process of buying or selling real property (real estate), one crucial step in the process is the title search. This step is typically performed by a real estate attorney or a title company. The earlier in your real estate process the title search is performed, the better, because discovering a clouded title right before closing will put a real damper on your excitement.

When a title search comes back as “clouded,” one of several main reasons is generally the cause:

Issues with probate

These issues usually arise with older homes who have had a multitude of owners. There are a lot more opportunities for error when previous owners have died while still in possession of the home. Locating the necessary death certificates and other documentation can prove to be rather time consuming.

Previous foreclosures

While foreclosure on its own isn’t a sufficient reason to cause a cloud on a title, if there were problems with the foreclosure procedure or the judgement, they may appear as a cloud on a title. In order to clear up foreclosure issues, it may be necessary to resubmit foreclosure documentation or potentially re-open the foreclosure case.

Fraud

Although a rather uncommon reason for a clouded title, it is possible that the deed to the property was at one time recorded fraudulently. While rare, if fraudulent transfer of the deed has occurred, you’re in for a long road to resolving the matter.

Liens

The most common reason a property may have a cloud on its title is because the property has one or more liens attached to it. A lien is a notice indicating that the current owner of the home owes money to one or more creditor. Any outstanding liens must be cleared up before the property’s title will officially be called “clear.”

Paperwork/recording mistakes

Even though we’ve been living in the Technology Age for nearly two decades, it is only very recently that governmental agencies/bureaucracies have made the move to computerized record-keeping. This means that most past transactions of the property in question were likely done solely on paper, which is much more likely to lead to errors. Many recording errors can be relatively easy to fix, but some can prove to be quite challenging.

As you can see, a clouded title can often be rather difficult to fix. As you absolutely cannot move forward on your real estate transaction without a clear title, it is best to work quickly with a New Jersey real estate attorney who has experience with clouded titles. Attempting to fix the problem yourself or hoping it will go away on its own may very well end without the sale or purchase of your dream home.

Can I “Cramdown” my Mortgage in a NJ Chapter 13 Bankruptcy?

While it may invoke images of a young parent’s attempt to eat dinner in between meeting the constant needs of a new baby, the term “cramdown” actually has nothing to do with food (at least in our context).

Debtors who file for a chapter 13 bankruptcy have determined that they can no longer stay above water paying their monthly expenses for their current lifestyle. Chapter 13 applicants typically have a dependable job with a decent income, and they are able to pay back at least a portion of the money they owe to creditors.

During NJ chapter 13 bankruptcy proceedings, a reconfigured payment plan will be laid out for the debtor that will allow them to avoid losing valuable assets. A home loan modification and a reorganization of other unsecured debts may also be part of a chapter 13 plan.

What exactly is a “cramdown?”

Another very effective strategy employed in many chapter 13 reorganization plan is called a “cramdown.” In order for a debtor to “cram” a loan down, it must be a personal property loan, like a loan for a car, home furnishings or appliances, or investment property. An important restriction here is that, unfortunately, mortgages on principle residences cannot be crammed down.

Here’s how it works:

Let’s make it easy and use a car loan as an example. These types of loans are often crammed down in chapter 13 cases due to the rapid depreciation of all vehicles immediately upon being purchased.

If a debtor borrowed $30,000 to buy a car a number of years ago, and today still owes $20,000 on that loan, it’s important to learn the current market value of the car. Let’s say the vehicle is only “worth” $15,000 now (we’re using easy figures for this example – your numbers may vary). Even though the debtor technically owes $20,000 to the creditor, a chapter 13 allows them to cram that balance down to the amount the car is actually worth. In this case, the debtor will benefit from a reduction of his loan balance by $5,000, only owing the current value of the vehicle, or $15,000.

This same process can be applied to other personal property loans that are currently upside down. To be upside down on a loan means that a debtor owes more than the property is currently worth. The cramdown strategy can only be used during a chapter 13 bankruptcy.

The amount “left over” when a loan is crammed down in a chapter 13 will be treated like the rest of the debtor’s unsecured debts, which include loans for things that are not physical property. A portion of a debtor’s total unsecured debts can be discharged, but only after they have completed their chapter 13 payment plan (which is usually spread out over 3-5 years).

The most common types of unsecured debts in New Jersey today are credit card debt and medical debt. Other examples include personal loans, student loans, alimony arrears and child support arrears. Not all debt is dischargeable in bankruptcy. Discuss your specific debt with your bankruptcy attorney.

In addition to the lump sum reduction in the amount due on a loan, a chapter 13 bankruptcy cramdown allows many debtors to reduce the interest rate they are currently paying on some (or all) of their personal property loans.

There are other benefits to a loan cramdown as well as some limitations and timelines that must be closely adhered to. Talk to your New Jersey bankruptcy attorney to learn more, and to find out of a chapter 13 bankruptcy could be the answer you’ve been seeking.

Dealing with Surprise Liens on a NJ Title Report

While there are many unknowns when it comes to real estate transactions, when those unknowns become unpleasant surprises, the sale of a property can slow to a halt. One common reason for a stalled or cancelled real estate transaction is surprise liens that the seller wasn’t aware of.

What is a property lien?

“Lien” is one of those terms that gets tossed around all the time in the real estate world, but oftentimes real estate professionals find that their clients don’t fully understand what a lien is.

A property lien, in simplest terms, is a notice that becomes attached to a property (in this case, the home that is listed for sale). The notice states that the current owner of the property (i.e. the seller) is indebted to a creditor.

The reason creditors file liens on real property is because they are of public record. This means that the creditor is more likely to be able to collect the money they are owed.

How does a lien affect the sale of a home?

One of the steps in any real estate transaction is a title search – usually performed by a title company or a real estate attorney. The property up for sale must come back with what is called “clear title” – meaning no liens were found.

If your title search shows a lien on your home that you weren’t expecting, don’t panic. Mystery liens do happen, and as such, most real estate purchase agreements give sellers 30 days to address property liens without significantly delaying the closing.

Do I need an attorney to clear up liens on my property?

While it is possible for some homeowners to reconcile their debt with the creditor in question, many people need to clear up any property liens quickly in order to allow the sale of their home to continue. NJ real estate attorneys who are well-versed in handling surprise property liens can quickly and completely eradicate your lien(s), making their services invaluable at such a time.

Not only will your real estate lawyer help you with any surprise liens, he will also provide legal review of all paperwork surrounding the sale of your home, including the sale contract itself. Working with an experienced real estate attorney in New Jersey will reduce the time it takes to clear up any surprise liens and will ultimately give sellers (and buyers) an optimal result.

Additionally, if your property liens were placed by the IRS because you failed to pay your taxes properly, working with an attorney is in your best interest because of the possibility of tax fraud charges.

What are my options to contest a lien?

In the rare occasion that a lien is found on your property and you feel confident that it was placed in error, it’s possible that the debt was in fact repaid but the lien was simply never removed. While this may sound like an easy problem to resolve, it actually presents sellers and their attorneys with a challenge. Your NJ attorney will have to locate the original lienholder in order to obtain official lien release documentation.

If you refuse to make good on a lien that exists on your property (that has not been paid off already), you will be found in breach of contract. It is rare that a buyer decides to handle paying of a seller’s lien(s), but it does happen if a buyer is very motivated to purchase your property. Upon your refusal to clear up any liens, your buyer is more likely to simply walk away from purchasing your home.

 

 

 

 

Understanding a NJ Home Inspection Report

For those who are looking to buy or sell a home, the home inspection is a crucial part of the process.Whether you are the buyer or the seller of a property, you must have a solid understanding of all of the details found in your New Jersey home inspection report. This report will ultimately determine the overall condition of the property in question, and will specifically itemize any problems, both large and small.

Typically, the home inspection is ordered by the home buyer after they have signed a purchase contract. It is important to work with a professional, licensed and well-respected home inspector to ensure that nothing substantial is missed.

While the seller is required to disclose any and all existing issues with the house, they can only disclose problems that they are aware of. The job of the home inspector is to dig beneath the surface to find problems that may not be visible to the untrained eye, such as damage to any area of the home including: the foundation, pipes and plumbing, HVAC system(s), electrical systems, roof, walls, attic, ceilings, floors, doors and windows.

After he has inspected your potential future home, your NJ home inspector will provide you with a detailed report. This report will explain any and all findings of the home inspection. Some home inspection reports can run upwards of 30 pages, which can be a little bit intimidating to the novice home buyer.

Understanding Your Home Inspection Report

Home inspection reports can also come in different formats. Some home inspection teams report with a checklist, while others use a summary along with a longer narrative portion explaining the summary in detail.

Typically, home inspection reports will include a table of contents for ease of navigating through each portion of the report. Professional home inspection teams will include an introductory portion that provides important industry definitions along with details about the report, including: date completed, home address, age of the home, weather conditions during the report, and people who were present during the inspection.

Following any introductory sections will be the meat of any home inspection report. This portion of the report should be divided into areas of the home or home components that the inspector evaluated. Here, notes will be made and details will be listed about the condition of each home area/component (roof, plumbing etc.) along with suggestions, recommendations and any applicable photos and or videos that the home inspection team acquired during their review of the home.

Is a Home Inspection Really Necessary?

It is extremely important that anyone looking to purchase a home invests in a home inspection during the contingency period of the home purchase. Any New Jersey real estate contract/purchase contract is conditional until the home inspection has been completed. This means that the contract is not official until after the home inspection and can be terminated if there are significant issues discovered by the home inspector.

Many times, minor issues can be negotiated between the buyer and the seller, allowing the sale to proceed. Aesthetic changes, such as fresh paint or minor kitchen repairs can be added to the contract as the seller’s responsibility. Before closing, the buyer will have a final walk-through of the home, at which time they can determine whether or not all of the requested repairs have been made as agreed to in the contract.

 

Image by Andy Piper – licensed under CC 2.0

How the New Jersey Senior Freeze is Making a Difference

Property taxes are defined as taxes that are collected by the local jurisdiction in which a real property is located; the amount of property taxes any homeowner owes is based on the assessed value of the home(s) they own multiplied by the current tax rate in their local jurisdiction. New Jersey’s average property tax rate is one of the highest in the United States.

Owning a home in the Garden State has a lot of benefits, and those of us who are living and raising a family here wouldn’t dream of doing it anywhere else. We may have to grit our teeth every time the quarterly tax bill makes its appearance, but pay it we do. Life in New Jersey is worth it – offering tight-knit neighborhoods, reputable public schools, and, of course, the Jersey Shore! However, as NJ homeowners reach retirement age, many have begun struggling to keep their homes, in many cases because they’ve fallen behind on their property taxes.

As New Jersey’s real estate market continues to take hits, lawmakers are now taking steps to help struggling seniors so they don’t have to leave the state in order to afford to own a home. The Property Tax Reimbursement Plan, commonly called the “Senior Freeze,” is one of the programs that is making a real difference.

Under the Senior Freeze, or the PTRP, New Jersey seniors who meet a list of requirements will be eligible for reimbursement of the cumulative increase in their property taxes since the first year they became eligible, which is called the base year.

In order to qualify for property tax increase reimbursement under the Senior Freeze program, New Jersey seniors:

  • Must have lived in New Jersey for at least ten consecutive years – either renting or owning their own home
  • Have resided in the home they currently own for a minimum of the last three consecutive years
  • Should be at least age 65 or have a spouse who is at least 65 year of age – ALTERNATIVELY – those who do not meet the age requirement but are receiving Federal SSDI (disability) benefit payments can also qualify
  • Must meet specific income requirements

The year in which New Jersey seniors are able to meet all of the above eligibility requirements is considered their base year. The base year is essentially the year in which their property taxes will be “frozen,” so to speak. Any increase in their NJ property taxes that they have paid out since the base year will be repaid to them.

Ex: Ruth turned 65 in the year 2010. She has lived in and owned her current New Jersey home with her husband for 20 years, and she also met all of the additional requirements in 2010. Ruth will be reimbursed using this formula: The property tax amount she paid in 2017 (current year) minus the amount she paid in property taxes in her base year (2010). The difference equals her reimbursement amount.

Every year forward, Ruth’s property taxes will remain frozen at the amount she paid in her base year of 2010. Combined with assistance from the Homestead Benefit Program, New Jersey senior citizens have a better chance at maintaining their standard of living into retirement, and they can continue to enjoy the wonderful Garden State for many years to come.

 

 

 

 

What to Expect When You’re Expecting to Close

Now that you’ve invested extensive time and energy into the process of buying a home in NJ, it can feel a bit overwhelming to realize that you still have one hurdle to clear – the closing. Most people have at least a vague, general knowledge of the fact that you have to “close” on a property before it officially becomes yours. But what exactly does this mysterious “closing” entail?

The How (to prepare):

To ensure that your closing (or settlement, as it is often called) goes smoothly, it’s best to be fully prepared in advance. Because contract language can be confusing and lengthy, it is in your best interest to have an experienced New Jersey real estate attorney review all of your loan statements and the purchase contract during your three day attorney review period, which is required by law to begin within three business days of your official closing date.

Along with having your attorney carefully review all of your paperwork, you should be allowed to do a last walk-through of the home 24 hours before the closing. This walk-through has two main purposes: to ensure that everything is in the condition that the seller agreed to in the contract, and to make sure that the seller has fully and completely vacated the premises (unless it has been otherwise negotiated in the contract).

The Who:

State laws dictate who must be present at a real estate closing. In New Jersey, the buyer(s) must be present to sign all of the official paperwork and final loan documents. The buyer’s attorney can be present if there are any questions still left unanswered, but your NJ real estate attorney is not required to attend the closing. Your real estate agent and/or title company representative will typically handle all of the closing details.

Other people who may attend the closing include: the seller, the seller’s real estate agent and occasionally, a representative from your lending institution.

The Where:

New Jersey real estate closings most often take place at the buyer’s attorney’s office or at the buyer’s realtor’s office. The location is negotiable so that it is as accommodating as possible for everyone involved.

The What (to bring):

On the day of your closing, you’ll to bring proof of your identity, proof of your homeowners insurance policy, any home inspection reports and a copy of the contract that you have reviewed with your attorney. You’ll need this copy to verify that no changes have been made to the official contract that you will be signing.

This is also the time to fork over your down payment and closing costs. You cannot make these payments with a personal check, so be sure to verify with your closing agent beforehand what form of payment is preferred. It will likely be a cashier’s check or, in some cases, a wire transfer. If there are any smaller surprise fees that need to be paid at closing, you should be able to pay for those with a check.

The What (to expect):

Once you arrive at your closing or settlement meeting, you can expect to do a lot (and we mean A LOT) of signing your name on all of the closing documents and final loan paperwork.

The transaction will be recorded by a representative from the title company, who will then file the deed with the appropriate township/municipality.

Just as your hand starts to cramp uncontrollably from all of the signing you have to do, it will be over and you’ll be handed the keys to your new NJ home!

 

 

 

 

Hiring the Right Professionals for Your NJ Real Estate Purchase

When it comes time to purchase a home, whether you’re a first-time home buyer or an experienced home buyer, you want to put together a superior professional team. In doing so, you will give yourself the best chance at landing the home of your dreams within your price range and ideally, within your desired timeframe.

Living in the technology era makes it extraordinarily easy to access information regarding almost any topic – and this includes the real estate market. While any tech savvy home buyer can access a home’s stats, asking price and any other information associated with the listing, does this mean that you don’t need to hire a realtor? And while were at it, who else do you need to hire help you bring this thing “home?”

Real estate professional/agent

While it’s true that you can easily access listing information about virtually any property that is listed on the MLS (Multiple Listing Service), it is imperative that you take the time to research, interview and select the right real estate agent.

Real estate agents have so much more to offer you than what you can find with the click of your computer mouse, namely: experience. The right real estate agent for you will become your advocate and will help you get the best deal possible. Experienced real estate professionals can also make the home buying process more effective by helping you narrow down specifically what you are looking for in a home.

While it is possible for you to go it on your own without a real estate agent, it is not advisable unless you have solid experience in the real estate field yourself.

Lending agent/mortgage company

Naturally, you’re likely going to need to mortgage this significant purchase, and choosing the right mortgage company can make a big difference in your overall satisfaction with the home buying process.

Look for a lender who is highly reputable in your area and has solid reviews from customers as well as a good BBB rating. The ideal lender will present you with a variety of different mortgage programs and down payment options. They should be able to tell you rather quickly how much house you can afford. Quick response time and a history of in-house processing, underwriting and funding are also important factors that many home buyers find invaluable.

Real estate attorney

The process of buying a home is a very serious transaction with a plethora of details and minutiae. A financial decision as large as buying real property has many legal issues that only an experienced New Jersey real estate attorney is qualified to answer properly. No real estate agent should be giving you legal advice about your home purchase. Everything from translating legalese within the purchase contract to tax obligations and any existing or surprise property liens is best handled by your lawyer.

Working with a real estate attorney is especially crucial if you are purchasing a home via NJ short sale or Sheriff’s Sale (foreclosure). The added legal implications surrounding these types of home buying cement your need for a New Jersey real estate attorney who also specializes in foreclosure defense.

Title agent/company

Most experienced real estate attorneys can also perform title searches, but title companies have one job and one job only: making sure the home that you purchase has a clear title search. You will probably still want to purchase title insurance, as there is no guarantee that long-lost liens on the property will pop up in the distant future, but this is a decision that your real estate attorney can help you make along with your title agent.

Home inspector

Soon after you sign a purchase contract, you will be given the opportunity to do a professional home inspection on the property before the contract becomes official. In order to avoid making a significant financial blunder in purchasing a house that is wrought with problems, it is essential that you hire a home inspection company or professional home inspector who has substantial experience under his belt. Your home inspector will be able to discover any existing structural problems with the home that either weren’t disclosed by the seller or weren’t known to the seller. You will then be able to work with your real estate agent to either negotiate to have repairs made (at the seller’s expense), or, cancel the transaction if a satisfactory compromise cannot be made.