John Malkowski Blog

Bergen County experienced another major storm which effected many in our area with power outages and flooding problems.  I wrote the following in my blog a couple of years ago concerning storm preparedness for homeowners in the area.  I believe it still has relevance for our area given the recent storm.

“Flooding problems, power outages and storm damage highlight issues for Bergen County homeowners in the past several months.  Even those homes equipped with sump pumps experienced water damage in their basements due to power failures which prevented the pumps from operating normally.  Options which homeowners should consider include battery backup or permanent backup power for critical home services.  Although the most popular back up method has been battery backup, homeowners should be aware that in prolonged power outages, even battery backup will fail after several hours.

Home Improvement Centers such as Lowe’s or Home Depot are offering more resilient solutions such as portable generators or permanent power backup systems.  These solutions provide you with the ability to have power during emergency situations and maintain your critical home systems.  Many professionals do caution that portable generators need to be properly ventilated to avoid carbon monoxide poisoning.  A permanent backup solution, as featured on many home improvement television shows, provides continuous power for your home.  Many of these systems automatically start when they sense that the power from the electric utility has been disrupted.”

While many residents of Bergen County are familiar with the recycling program for harzardous waste materials (paint, varnishes, solvents, etc.), they may not be aware that the county also sponsors a program to recyle electronics equipment. Many computers and other electronics equipment do contain toxic material and heavy metals which could be potentially harmful to the environment. Bergen County NJ has an environmental program which enables residents to drop off electronics equipment at designated collection points during the 2010 calendar year.

Bergen County will be sponsoring four collections during 2010 for residents. Two collections will occur at the Bergen County Community Services Building in Paramus on April 25 and August 21, 2010. The other two collections will be at Bergen County Campgaw Mountain Reservation on June 26 and November 6, 2010. Collection hours are from 9 A.M. to 2 P.M. at all locations.

This is available at no charge to all county residents who must show proof of residence when bringing electronics ( computers, tv’s, fax machines, monitors, computer components, etc.) to the collection sites.

For further information on this recycling program and other collection dates for hazardous waste residents can visit the Bergen County Utilities Authority web site.

For further information about hazardous waste materials:

What every buyer or seller needs to know about household toxins

As mandated by the New Jersey Legislature in 1995, the Department of Education reports on each school district in the state on an annual basis. The school report is provided so that local towns and their school systems can assess school accountability. The latest report for 2009 has been posted to the New Jersey Department of Education website for interested and concerned residents.

http://education.state.nj.us/rc/rc09/index.html

John is a lifelong resident of Bergen County. He provides the ability to search listings at http://www.njhousehunter.net/search-listings.asp. There is additional information about communities within Bergen County at http://www.njhousehunter.net/community-info.asp

On Thursday, March 4, 2010, Bank of America will be sponsoring a HomeBuyers Workshop at their office in Englewood, NJ.  It is located at 21 Park Place.

The agenda for the workshop includes the following:

• Benefits of owning a home
• Determining how much home you can afford
• Understanding, establishing and repairing credit
• Steps to obtaining a mortgage, including prequalification
• A variety of affordable mortgage programs offered by Bank of America

I will also be in attendance to answer any questions homebuyers may have about working with a realtor in finding a home.  Some of the pertinent topics include timeframes for the Federal Tax Credit, Considering Short Sales, Buyer Agency and a lot more. 

Oil is one of the more common ways for homeowners to heat their home during the fall/winter months.  Over the years oil tanks have been located outside the home, in the basement or buried underground.  The underground oil tanks have become an issue for many homeowners or buyers over the years, as environmental concerns have led to increased liability cases.  In fact, many buyers and sellers may find that they will be unable to obtain homeowners insurance if a known underground oil tank has not been removed or replaced. 

In the state of New Jersey, there is a program to assist homeowners with the removal of underground oil tanks.  All homeowners with a net worth of less than $500,000 (not including the value of their primary residence) are eligible for this credit. Interested Homeowners can go to www.newtanknj.org for further information on the program. 

If a seller or buyer suspects that an underground oil tank previously existed on the property, they can contact testing companies who will search for evidence of an underground tank.  One of the better options is to have a tank search with penetrating radar to accurately determine the presence of a previous tank.  If a tank is found, soil testing will need to be done to assess environmental impact.  During a real estate transaction this can become an issue during home inspection for many sellers where a buyer needs the removal of the tank for homeowners insurance.

I recently attended a roundtable discussion concerning home inspections and the issue of mold.   Some interesting examples were cited where homeowners who were selling their homes found out during the home inspections that there was the presence of mold in their homes.  In both cases this resulted in the sales transaction being delayed until the seller remediated the mold problem.  While mold issues are prevalent in the southern United States, it is also a potential problem in the state of New Jersey.

While buyers typically request the home inspection prior to closing on a home purchase, sellers can avoid delays in the sale of their home with some proactive measures.  Sellers can request a pre-inspection by a qualified inspector who can perform mold tests.  One test uses a bio-tape sample whereby tape is used to stick visible mold on the sample for testing at a lab. This test can determine if the mold needs to be remediated.  Another test takes air samples outside and inside the home.  If the samples are higher inside the home there is a potential mold problem which might need to be remediated.  This test will identify mold issues which may not be visible to the home owner.

More information can obtained by calling a qualified inspection company or working with your realtor who can provide some professional recommendations.

Buyers and investors are certainly aware from news stories that there has been a rise in the amount of foreclosures throughout the country.  This would seem to present an opportunity to many buyers/investors who are looking for a bargain in the current housing market.  Experienced investors who are savvy when viewing foreclosed properties are aware of the expectations and pitfalls when considering a purchase of a foreclosed home.  For many first time buyers or new investors, the rewards of a foreclosed property may overshadow the reality of what can be involved in buying a foreclosed home.

When buying a foreclosed property in New Jersey potential buyers should be aware of the process involved.  As a lien theory state, the deed is in the name of the borrower and the mortgage lender must initiate a judicial proceeding for foreclosure.  This can take some 12-15 months in New Jersey, so buyers need to have the patience to wait out the process.  Once the Bergen County Sheriff’s Sale occurs, the successful bidder will receive a Sheriff’s Deed.  However, unlike a normal home sale where a title company will provide clear title to the property, the Sheriff’s Deed does not give clear title.  All outstanding liens must be satisfied before a buyer will obtain clear title.  While the Sheriff’s Sale will pay off the cost of the sale and the mortgage, there could still be other lien encumbrances placed against the property by other creditors.

Moreover, in the State of New Jersey, the current owner of the foreclosed property has the right of redemption for 10 days after the sale.  This means that even though a buyer may have successfully bid at a Sheriff’s Sale, the original owner can still retain title to the property.  Also, if the borrower objected to the sheriff’s sale, the redemption period may be longer until the courts can rule on the objection.

Buyers also need to be aware that foreclosed properties are sold “as is.”  In a normal real estate transaction, the buyer has the ability to perform a home inspection and do a walk through prior to the closing.  In a foreclosure, the buyer usually has limited or no access to the property in order to assess the condition.  Sometimes buyers are faced with additional expenses to repair a foreclosed home due to structural damage, missing fixtures, and may have to replace missing appliances, cabinets and plumbing. 

It is good practice as in a normal real estate transaction to seek the advice of a professional when considering a foreclosed property.  Talk to your local real estate agent, seek representation, and obtain the advice of your attorney.  It is also good practice to seek advice of counsel when dealing directly with the owner of a pre-foreclosure home. 

John is a lifelong resident of Bergen County.  He provides the ability to search listings in Bergen County NJ at  http://www.njhousehunter.net/search-listings.asp. There is additional information about communities within Bergen County at http://www.njhousehunter.net/community-info.asp

While many residents of Bergen County are familiar with the recycling program for harzardous waste materials (paint, varnishes, solvents, etc.), they may not be aware that the county also sponsors a program to recyle electronics equipment.  Many computers and other electronics equipment do contain toxic material and heavy metals which could be potentially harmful to the environment. Bergen County NJ has an environmental program which enables residents to drop off electronics equipment at designated collection points during the 2009 calendar year.

Bergen County will be sponsoring four collections during 2009 for residents.  Two collections will occur at the Bergen County Community Services Building in Paramus on April 26 and August 22, 2009. The other two collections will be at Bergen County Campgaw Mountain Reservation on June 13 and November 17, 2009.  Collection hours are from 9 A.M. to 2 P.M. at all locations.

This is available at no charge to all county residents who must show proof of residence when bringing electronics ( computers, tv’s, fax machines, monitors, computer components, etc.) to the collection sites. 

For further information on this recycling program and other collection dates for hazardous waste residents can visit the Bergen County Utilities Authority web site.

For further information about hazardous waste materials:

What every buyer or seller needs to know about household toxins

As mandated by the New Jersey Legislature in 1995, the Department of Education reports on each school district in the state on an annual basis.  The school report is provided so that local towns and their school systems can assess school accountability.   The latest report for 2008 has been posted to the New Jersey Department of Education website for interested and concerned residents. 

http://education.state.nj.us/rc/rc08/index.html

John is a lifelong resident of Bergen County.  He provides the ability to search listings at  http://www.njhousehunter.net/search-listings.asp. There is additional information about communities within Bergen County at http://www.njhousehunter.net/community-info.asp

There has been quite a bit of focus in the local media concerning the rising rate of foreclosures in our area.  Many homeowners often become nervous, confused and anxious when this subject is discussed.  Here are some things to consider if you have friends or relatives facing foreclosure.

• Foreclosure can effect your credit for a period of some 7-10 years, which may impact your ability to buy another home in the the future. 
• If the sheriff’s sales doesn’t bring in enough money to cover your debt, the bank can still obtain a deficiency judgement which still makes the homeowner responsible for the debt.
• Don’t ignore notices from the mortgage lender in the event you miss mortgage payments.  Usually, the lender will work with the homeowner to negotiate a workout plan based upon the homeowners circumstances.
• You may be able to negotiate a “short sale” with your lender.  In this case, the bank must be willing to approve the sale of your home for less than what is owed on the mortgage.  The homeowner must provide a hardship case to the bank and may list the home through a realtor.

In New Jersey, if faced with foreclosure, these are some other considerations of note:

• New Jersey is a lien theory state.  This means, that the borrower holds title to the mortgaged property.  In order to recover the debt the mortgage holder must go through a judicial process.  In New Jersey, this process can take up to 12-15 months.
• Once the homeowner has missed three monthly payments, the lender will initiate the legal process to seize your property.
• Once the lender receives a judgement in favor of foreclosure, the Bergen County Sheriff will schedule the sale.
• In New Jersey, the homeowner has the right of redemption until 10 days after the sale. 

For further resources and information:

US Department of Housing and Urban Development 

State of New Jersey Foreclosure Resources