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Jan-Mar 2018

In this issue‌ Is Home Staging the Same as Decorating? Screening Potential Real Estate Tenants Divorce and Real Estate Unique Appraisal Problems faced by Business-Oriented Real Estate Owe Back Taxes? Overview of VA Purchase Loans REALInsights Jan-Mar 2018


With our inaugural issue complete and subsequent issues already in the works, we are pleased to announce the launch of our new e-Magazine RealInsights. It has long been a goal of ours to create our own magazine. Yet, we have never once sent out a Veltri & Associates, Realtors Newsletter. During this time, we often wrestled with creating valuable Internetbased content that our readers would appreciate. As people who regularly receive large amounts of emails, etc., we never just wanted to contribute to the noise. Our goal with this e-Magazine is to create something that is candid, genuine and beneficial to our readers. We chose a quarterly schedule to ensure that our correspondence is never overwhelming and that the content delivered is relevant.

Publisher Albert S. Veltri

Albert S. Veltri, Broker of Record Veltri & Associates, Realtors

PUBLISHED BY Veltri & Associates, Inc. 2400 Route 88 Point Pleasant, NJ 08742 SUBMISSIONS ADVERTIZING GENERAL 1-866-483-5874 Disclaimer: The opinions, beliefs and viewpoints expressed by the various authors and advertisers in this magazine do not necessarily reflect the opinions, beliefs and viewpoints of Veltri & Associates, Inc., Veltri & Associates, Realtors, its affiliates and subsidiaries or official policies of Veltri & Associates, Inc.

TOMS RIVER - Waterfront! Magnificent views of the Barnegat Bay! Easy access to open bay and still protected. MLS #21736062 • 1-855-400-0400 REALInsights Jan-Mar 2018

BARNEGAT - Updated Barnegat Colonial located in a desirable development on a quiet cul-de-sac. MLS #21803473 • 1-855-400-0400

BAYVILLE - JUST LISTED - Bayville ranch on spacious lot! Great location close to Rt. 9 for commuters . MLS #21744586 • 1-855-400-0400

BELFORD - This is not your ordinary split level home. Sitting on a 107x140 lot, with two driveways. MLS #21801531 • 1-855-400-0400

WALL - Come checkout this ranch situated on a nice size lot, just under one acre. Walk out basement with serene views. MLS #21746005 • 1-855-400-0400 2


Spotlight Local Veltri Sales Associates Honored with State Sales Award The NJ Realtors Circle of Excellence Sales Award is considered one of the most prestigious honors awarded to Realtors in New Jersey. It is highly regarded throughout the industry and recognizes members who have excelled in the field of salesmanship.

REALInsights Jan-Mar 2018


Brick NEW JERSEY Brick Township (also commonly known as Bricktown or Brick) is a township in Ocean County, New Jersey, United States. As of the 2010 United States Census, the township had a population of 75,072,making it the state's 13thlargest municipality and the third most populous municipality in Ocean County (behind Lakewood Township and Toms River Township), having seen a decline of 1,047 residents (-1.4%) from its population of 76,119 in the 2000 Census, when it was the state's 12th most-populous municipality. While the majority of Brick Township is located on the mainland, Ocean Beaches I, II and III are situated on the Barnegat Peninsula, a long, narrow barrier peninsula that separates Barnegat Bay from the Atlantic Ocean. The mainland and beach area of the town are not geographically adjacent. Brick Township was incorporated as a township by an act of the New Jersey Legislature on February 15, 1850, from portions of both Dover Township (now Toms River Township) BRICK - Ranch home located off Lanes Mill and Howell Township. The township was named after Joseph Brick, the owner Rd., close to Parkway, High School, Base- of Bergen Iron Works located on the Metedeconk River.Portions of the townball Fields, etc. ship were taken to form Point Pleasant Beach (May 18, 1886), Bay Head (June MLS #21801120 • 1-855-400-0400 15, 1886), Lakewood Township (March 23,1892), Mantoloking (April 10, 1911) and Point Pleasant (April 21, 1920). In 1963, voters rejected a referendum that would have changed the township's name to "Laurelton".

BRICK - This is a home you must see to appreciate. Home has numerous possibilities, could be a great mother/daughter. MLS #21745739 • 1-855-400-0400

BRICK - Beautifully remodeled bi-level on a cud-de-sac. Come take a look at this gorgeous home, MLS #21735604 • 1-866-483-5874


BRICK - Remodeled ranch ready for a quick sale! Home has a new roof and many interior upgrades throughout. MLS #21802132 • 1-855-400-0400

REALInsights Jan-Mar 2018

BRICK - Greenbriar I- Cypress Model, 2 Bedrooms W/ Large Closets, 1 Bath, Over sized Garage. Many newer upgrades! MLS #21803031 • 1-866-483-5874 4

Municipality Statistics For 1/1/2017 To 12/31/2017 Residential

Active in Range


Asbury Park

Average List Price



$ 137,461,650

$ 393,873

Average Sold Price

Average Sold DOM







$ 371,980


Bay Head


$ 143,057,194

$ 1,703,062




$ 1,411,444




$ 75,526,844

$ 234,555




$ 220,782




$ 119,180,738

$ 799,871




$ 624,413




$ 536,579,118

$ 248,186




$ 200,100




$ 1,003,751,788

$ 394,092




$ 290,657




$ 163,055,827

$ 886,173




$ 621,199




$ 524,518,265

$ 364,249




$ 318,291



$ 44,361,628

$ 492,907




$ 340,943




$ 631,727,567

$ 352,920




$ 329,167




$ 334,940,550

$ 305,882




$ 258,329


Island Heights

Lake Como


$ 35,882,097

$ 491,536




$ 424,637




$ 722,842,159

$ 347,687




$ 296,772




$ 174,340,885

$ 979,443




$ 789,634




$ 143,883,989

$ 799,355




$ 712,670




$ 317,131,998

$ 160,087




$ 143,403




$ 178,170,399

$ 3,125,796




$ 2,307,885


Point Pleasant


$ 278,804,025

$ 546,675




$ 438,317


Point Pleasant Beach


$ 175,735,015

$ 747,809




$ 599,588


$ 5,740,951,736

$ 370,265




$ 293,719




Information is deemed to be reliable, but is not guaranteed. © 2017 MLS and FBS. Prepared by Albert S. Veltri, ABR,SRES,ePRO on Thursday, November 02, 2017 11:45 AM.

Find out what your home is worth at….

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REALInsights Jan-Mar 2018


Serving the Jersey Shore for over 16 years!


16 Great Oak Drive, Short Hills, New Jersey AMAZING OPPORTUNITY TO OWN IN A DESIRABLE SHORT HILLS NEIGHBORHOOD FOR A VERY REASONABLE PRICE! The paver driveway and walkway will lead you to your new home. Entering the home you will find the spacious living room and dining room with chair rail and crown molding, family room with fireplace, half bath, HUGE eat in kitchen with oversized center island, cherry colored cabinets, granite counters and stainless steel appliances. The first floor is completed with the master suite that has two walk in closets and master bath with shower stall and private access to the yard. The second level offers three additional bedrooms, a full bathroom and attic storage. $999,999

Find your next home at….

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REALInsights Jan-Mar 2018


Serving the Jersey Shore for over 16 years!


BRIELLE - A must see! Custom built 5 bedroom 4.5 bath home on a wonderful culde-sac. Huge floor plan with many possibilities. MLS #21803947 • 1-866-483-5874

FREEHOLD - Lovely five bedroom colonial located on quiet & secluded street w/ exceptional private office. MLS #21743861 • 1-866-483-5874

FREEHOLD - Colonial style home off Rt. 33 with four bedrooms, 1 bathroom. Close to all local highways. MLS #21746337 • 1-855-400-0400

HOWELL - Ramtown ranch on 2.39 acres. Home is set back off the road, large treed yard . MLS #21744992 • 1-855-400-0400

HOWELL - If you are looking for a big home with some old historic charm, this is the home for you! MLS #21741411 • 1-855-400-0400

JACKSON - First level condo in 60 Acres. This condo is located by the main entrance for easy access to Bennetts Mills. MLS #21801413 • 1-855-400-0400

KEANSBURG - Foreclosure. Large corner lot 1,342 square foot home only a block in from the water. MLS #21744989 • 1-855-400-0400

LAKEWOOD - bedroom home with an extra large family room. 1 car garage. Located close to all amenities and major roads. MLS #21735710 • 1-866-483-5874

LAKEWOOD - This custom remodeled Baronet offers new windows, fresh paint and new flooring throughout the unit. MLS #21802229 • 1-866-483-5874

LONG BRANCH - Coastal casual yet elegant describes this truly beautiful seashore home. No expense was spared in the updating this condo. MLS #21823896

NEPTUNE TWP - When you pull up to your new home you will find a paver driveway, new siding, exterior doors, some new windows and more. MLS #21803622

OCEAN GATE - Location!!!Location!!! Location!!! This charming Carriage Style home is full of character. MLS #21801081 • 1-866-483-5874

REALInsights Jan-Mar 2018


Is Home Staging The Same as Decorating?

By: Teresa Costantino

As a home stager, I go into many well-decorated homes to show the owners how to prepare their homes for sale. Some initial comments I get from homeowners are, “I had a professional interior designer create this,” or “Everyone who comes over always comments on how lovely my home is,” or “But these are my favorite things, why should I get rid of them?” While these homeowners have lovingly decorated their homes, decorating is not the same as home staging, and does not necessarily prepare the home for sale. When we decorate a home, the purpose is to create a personalized space for our own enjoyment. We decorate for many reasons. Sometimes it is to surround ourselves with our favorite things or to make the home look beautiful to us. Other times it might be to impress our visitors or showcase treasured travel items or collectibles. In some homes, it may be strictly for the function of everyday life. Staging is very different. When we stage, we must create an environment that appeals to the greatest number of potential buyers and evokes emotion in them. The end goal is to sell the home quickly for the highest price possible. Think of it as a marketing tactic.

Teresa Costantino is owner and founder of Home Preppers, a home staging company based in New Jersey ( Teresa has spent her career in real estate as a top-producing Realtor, a home stager, and real estate investor. She has a passion for all things real estate and enjoys helping sellers uncover hidden equity and shorten marketing times. She juggles her time between managing her company, being a wife to her husband Mark, and being mom to her 4 children.


Although in decorating, a designer might create a dynamic setting with bright or bold colors, most times the color would be taste specific and would likely be a turn-off to some people, reducing the buyer pool. With staging, we keep the house neutral, which opens up the potential to appeal to many more people. When we stage, we work to create and define spaces by minimizing and rearranging furniture and décor. We want to accentuate architectural features of the home. After all, buyers are buying the home, not the items in the home. Home staging will keep the focus on the house by minimizing the things that draw the eye away, such as figurines, collections, or unusual and bold pieces of art. It is important to remember when transforming a home from decorated to staged, the home will be marketed with pictures online. This is where potential buyers will develop their first impression of the home. Your pictures can either say, “Come see me!” or “Don’t bother.” Sometimes the items we decorate with are not going to photograph well. A professional stager knows which items photograph well and which items do not. I know going through the process of a staging consultation can be difficult. Often it feels like the stager is criticizing your home and it’s easy to take offense. It might even feel as if the stager just doesn’t like your decorating at all. This could not be farther from the truth. I personally go into many beautiful homes I love that can still benefit from home staging. As discussed here, decorating and home staging are two different things. I encourage you to try to be open to the suggestions given by your home stager, knowing this will increase the appeal of your home to potential buyers, and therefore bring you a quicker sale and increased home value.

REALInsights Jan-Mar 2018


REALInsights Jan-Mar 2018


Screening Potential Real Estate Tenants

By: Dennis L. DeMay, CEO

Adam Safeguard’s RentSafe© program was designed to provide a quick and easy option for rental agents to ensure they are providing the best possible tenant to their clients or for their own rentals. For successful tenancy, it is important to diligently screen applicants. Past credit problems, financial issues, evictions, fraud, criminal history and sex offenses not only indicate potential problems, but could leave you responsible in negligent litigation.

Did you know that in the first quarter of 2017, consumer debt rose to $12.73 trillion, exceeding its peak in the third quarter of 2008 and almost 795,000 people filed for bankruptcy in 2016? With the current economy, we can only expect that number to increase!

Dennis L. DeMey, CEO Adam Safeguard Private Investigator for over 45 years Expert • Author Trainer • Consultant

Did you know that over 30% of civil litigation involves contract dis-

Adam Safeguard (732) 506-6100

putes such as evictions?

Did you know that over 13 million arrests are made annually in the United States – these range from fraud to sexual and violent offenses?

With our RentSafe program, you can obtain accurate and valuable information that will help you or your client to make an informed decision on the best tenant candidate. You will be able to check applicant supplied information, determine credit worthiness and level of responsibility, diligently check for criminal history and check for past eviction history with minimal involvement. Your prospective tenant will complete the entire process directly with Adam Safeguard through our online portal – including paying and electronically sign the Release! They would receive the completed Report and it would be their responsibility to bring it to you. As the rental agent, your only involvement would be to either provide us with the subjects name, e-mail address and phone number or handing them our paperwork and they can call us directly to get started. Easy as pie! Adam Safeguard has been a trusted source for background screening services and investigations since 1973. There are no hidden fees to you or your clients and no set up charges. Our data platform is safe, secure, convenient and user friendly.

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REALInsights Jan-Mar 2018


Serving the Jersey Shore for over 16 years!


PINE BEACH - Foreclosure. Looking to buy a home for under 110k? This could be the opportunity for you! MLS #21802131 • 1-855-400-0400

POINT PLEASANT - Foreclosure - occupied. This is an auction property, ask your agent for details. MLS #21800580 • 1-855-400-0400

POINT PLEASANT - This home is screaming potential and located in a desirable section of Point Pleasant. MLS #21744829 • 1-855-400-0400

SHORT HILLS - The paver driveway and walkway will lead you to your spacious new home. MLS #21803052 • 1-855-400-0400

MANCHESTER - This Pine Lake Park ranch is ready for a new owner! Heading into the home you will find a large living room and more! MLS #21746705 • 1-855-400-0400

TOMS RIVER - Spacious Colonial on a corner lot, only 7 years old! Offering a kitchen with beautiful cabinets, SS appliances, slate tile and More! MLS #21802250

TOMS RIVER - This large waterfront home in the Silverton section of Toms River WAS NOT significantly damaged. MLS #2171783 • 1-855-400-0400

TOMS RIVER - Beautiful redone condo located in the desirable Saratoga Community offering three spacious bedrooms! MLS #21802030 • 1-866-483-5874

TOMS RIVER - This lovely two-story home was totally rebuilt and renovated in 2010 which inc. a second floor with a huge gorgeous master suite. MLS #21738020

TOMS RIVER - Lovely maintained Madison model located in Holiday Heights. This home offers 3-season sun room. MLS #21736767 • 1-866-483-5874

TOMS RIVER - *** Reduced $30k *** This expanded Yorkshire has been tastefully renovated with style and class. MLS #21733949 • 1-866-483-5874

TOMS RIVER - Magnificent Mansion, Epic Estate, Colossal Castle, Vast Villa, or even Perfect Palace. MLS #21744753 • 1-866-483-5874

REALInsights Jan-Mar 2018


Divorce and Real Estate

By: Richard A Nocks, Esq.

As a Divorce and Family Law attorney, I am often called upon to negotiate the settlement of the parties’ house and other real estate holdings. All divorces start by obtaining an inventory of all marital assets including the real estate, and ultimately, seek to equitably distribute that real estate. Equitable distribution means that the parties are free to distribute their property in any way they believe is fair and reasonable. Clients usually strive for a 50/50% distribution, but it need not be. One of the spouses may receive more or less than this, or receive it all, or waive off on the real estate completely in exchange for something else. While the parties can be as creative as they wish in terms of the overall divorce, the settlement of the real estate most often falls into one of three basic categories. First, the parties can immediately list the house with a reputable and capable realtor and have it sold to a third-party buyer. The normal process of selling the house will occur, such as the marketing, attorney review, closing, and the like. On the day of closing, all liens such as all open mortgages and lines of credit, attorney’s fees, and related fees are completely paid off. The divorcing parties divide the net proceeds in whatever percentage they had negotiated, whether 50/50% or some other formula. Second, the parties may agree that one spouse will buy out the other spouse’s equity in the property and keep the property. This will most often require that the party who wants to keep the house obtain a refinancing loan in which to (1) pay off the current mortgage and (2) pay to the other spouse his or her equity. The owning spouse will then own the property 100% and be fully responsible for its upkeep and the new mortgage. The former spouse will sign a Deed to the remaining spouse once he or she is paid off.

Richard A. Nocks, Esq., is a graduate of Rutgers College and the New York Law School. He has been practicing law since 1990 and specializes in Divorce and Family Law matters. Mr. Nocks’ law offices are headquartered in Monmouth County - the heart of New Jersey - and he handles family law cases all over the State including Monmouth, Ocean, Middlesex, Hunterdon, Passaic, Essex, Somerset and Union Counties. He is also the Chairman of the Family Law department at Calcagno & Associates in Cranford.

In the third category, the parties keep the house for an extended period of time, such as until their youngest child graduates from high school. Richard A. Nocks, Esq. This can occur when the parties do not want to displace the children. In (800) 891-6620 this case, the parties would stipulate that the house will be occupied by one of the spouses and be listed with an agreed-upon realtor no later than a specific date in the future. During the occupancy period, the remaining spouse would be responsible for the upkeep and overhead of the house, and may even be asked to pay a token rent to the absent spouse. Then, when the agreed-upon listing date approaches, the parties then begin the process of getting the house ready for sale. These three basic approaches to handling the real estate in a divorce can be modified, adjusted or combined to suit the specific needs of the parties or the children. Any spouse interested in dissolving their marriage should consult with an experienced divorce and family law attorney who is available to answer any and all questions. THE ABOVE IS PRESENTED FOR GENERAL INFORMATION ONLY AND NOT AS ACTUAL LEGAL ADVICE. IT IS NOT INTENDED TO BE A SUBSTITUTE FOR SPECIFIC LEGAL ADVICE AND SHOULD NOT BE RELIED UPON AS A SUBSTITUTE FOR SUCH ADVICE. ALL PERSONS INTERESED IN DISSOLVING THEIR MARRIAGE AND/OR WHO OWN REAL ESTATE SHOULD CONTACT AN ATTORNEY OF THEIR CHOICE PERTAINING TO THEIR SPECIFIC SITUATION.

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REALInsights Jan-Mar 2018


Serving the Jersey Shore for over 16 years!


REALInsights Jan-Mar 2018


Unique Appraisal Problems faced by Business-Oriented Real Estate

By: Bruce E. Jones, MAI

A common property type that creates unique challenges for appraisers, tax assessors and lenders are properties that are often purpose-built to operate as a small business. Examples include restaurants, gas stations, car washes, funeral homes with crematoriums and hotels/motels. What makes these property types challenging for appraisers using traditional real estate appraisal techniques is that, unlike many traditional types of real estate, these small business properties sell as going concerns, with elements of personal property and often a business enterprise component. Additionally, in contrast to most traditional real estate assets, like office buildings and shopping centers, the income that supports the real estate for going concern properties is derived from business revenues, rather than from rent. It is the operating business that pays the mortgage and maintains the property.

Bruce E. Jones, MAI, BCA, CMEA, CTA has over 30 years experience and holds the distinguished MAI designation from the Appraisal Institute. He is also certified as a business appraiser through the International Society of Business Appraisers and recognized as a “Qualified Source” for business appraisals by the SBA. Bruce is certified as a Machinery/Equipment Appraiser and also is also a Certified Tax Assessor

Bruce E. Jones (732) 374-9064

Problems with traditional valuation approaches Real Estate appraisers and tax assessors often encounter problems when they apply the traditional real estate appraisal techniques to these property types. In applying the sales comparison approach by presenting recent sales of comparable properties, many of the available sale comparable data in the market included sales of going concern properties, and thus included elements of personal property and business enterprise value. The result is often a value indication that is more accurately termed the Value of the Going Concern. However, in New Jersey personal property and business value are exempt from assessment. To illustrate the significance of incorrectly including these non-realty components in the assessment value, business and personal property worth approximately $335,000, added to real estate value, results in over $10,000 per year in excess tax payments, assuming a 3% tax rate. The traditional income approach also presents challenges for real estate appraisers and tax assessors. The reason is that many of these properties are infrequently leased. They are more commonly owner operated, or in the case of franchised operators, long-term lease rates are set based on cost + profit to the developer, and not based on market lease rates. Most small businesses operate based on margins and are managed by ratios of expenses to gross sales. The ability to remain profitable enough to stay in business depends on the ability to maintain costs at sustainable levels. For restaurants, food and beverage costs can account for 30%-40% of gross sales, while salaries/wages typically account for 25%-35%. However, a combined cost of these two categories reaching 70% is often a “red flag”, since REALInsights Jan-Mar 2018


Unique Appraisal Problems faced by Business-Oriented Real Estate cont. there are other expenses, including occupancy costs such as rent, utilities, insurance and building maintenance, as well as other costs such as marketing, credit card processing, music/entertainment, etc. According to the National Restaurant Association, Income Before Income Taxes averages 6.1% and 6.6% for full service and limited service restaurants. The point is that their profit margins are relatively narrow and provide little room for financial missteps. According to the National Restaurant Association, Income Before Income Taxes averages 6.1% and 6.6% for full service and limited service restaurants. The point is that their profit margins are relatively narrow and provide little room for financial missteps. As a result of the economic realities of these types of business oriented properties, economic rent is “sized for affordability” based on consideration of economic as well as physical parameters. In other words, rental rates are more commonly established via references to revenue. For restaurants, rent-tosales ratios are commonly in the range of 6%-9%. Golf courses and car washes commonly can pay 20% and 25%, respectively for rent. Contrary to the more traditional use of lease comparables, economic rental rates for these properties are more reliably based on implicit consideration of business volumes in addition to the physical aspects. These are long -standing practices designed to test affordability as part of prudent underwriting.

TOMS RIVER - Magnificent Manse, Epic Estate, Colossal Colonial, Vast Villa, or even Perfect Place. MLS #21800554 • 1-866-483-5874

UNION BEACH - Foreclosure! Union Beach listing close to highway 36 and last home on a dead end street! MLS #21804091 • 1-855-400-0400

WALL - Ranch located close to Belmar border, Rt. 35, 195, retail and area beaches. Home offers a BRAND NEW ROOF. MLS #21743796 • 1-855-400-0400

WALL - This colonial sits on 1.13 acres on a wide lot with large deck and inground pool and in-law suite. MLS #21742315 • 1-855-400-0400

WHITING - New listing in Country Walk. This home is located in a desirable location, only a short distance to the clubhouse. MLS #21746837 • 1-855-400-0400

WHITING - Welcome to beautiful Pine Ridge South. This is a lovely adult community nestled between the Parkway and RT. 70. MLS #21737034• 1-866-483-5874

REALInsights Jan-Mar 2018


Owe Back Taxes? The IRS May Grant You Uncollectible Status By: Christine Matus, Esq.

Sometimes people with disabilities or their families find themselves owing past-due federal taxes they cannot afford to pay. Although notices from the IRS can be especially frightening, there are solutions. If the sum owed is less than $50,000, the IRS will accept monthly payments over five years. For example, if $6,000 is owed to the IRS, monthly payments of around $100 can be made. There are also laws in place that provide that persons unable to pay their taxes can be placed on Currently Not Collectible (CNC) status with the IRS and not have to pay their pastdue income taxes. The IRS is generally very understanding and helpful towards people with lower incomes applying for currently not collectible status. Those especially low incomes can often obtain CNC status by simply phoning the IRS at the number on an IRA collection notice. You can ask the collector to file “53” on your case, which means filing IRS form 53 (only a collector or IRS official can do this). You will not need to file detailed financial paperwork. For example, a person with a monthly income of $1,200 and rent of $600 obviously will have no extra income to pay any past-due taxes.

Christine Matus was admitted to the Bar of the State of New Jersey and to the U.S. District Court of New Jersey in 1995. She graduated from Douglass College, Rutgers University with a Bachelor of Arts in Economics in 1992. Christine Matus is a member of the New Jersey State Bar Association and a Board of Trustee of the Ocean County Bar Association. She is also a member of the Asian Pacific American Lawyers Association and the American Bar Association where she serves on its Advisory Panel.

Christine Matus, Esq. (732) 281-0060

However, you may be asked to complete a financial form that shows you do not have any surplus income after paying necessary monthly living expenses. This form, IRS 433-A, can be found here. Tips on Applying for Uncollectible Status Here are some guidelines and requirements for applying for CNC status: •

The financial information supplied must prove to the IRS that the individual does not have any surplus income after paying their necessary monthly living expenses and that they have no significant additional assets.

Individuals may need to submit their bank statements along with this IRS financial statement and any other relevant financial documentation for review.

Look carefully at this web page At the bottom of the page are links to budget standards the IRS uses in determining whether a person qualifies for uncollectible status.

If you are going to apply by phone, carefully prepare a budget ahead of time that shows expenses within those budget standards that consume all your money so it is clear there is no extra money with which to pay taxes.

If applying by phone, the IRS collector might try to get you to say that you can pay something when you can’t. Review on the IRS website the suggested budget numbers and national standards for where you live. Do not underestimate your expenses, which many people do. If you fit within the criteria, you qualify for CNC status.

REALInsights Jan-Mar 2018


Owe Back Taxes? Cont. Once taxpayers are placed on CNC status, they will maintain this status for at least a year. In the case of those with disabilities, the status may be indefinite if income is more or less unchanging. If an individual’s account keeps its CNC status until after the statute of limitations on the debt runs out, usually around ten years, the IRS will be permanently prevented from collecting the debt. If you are unable to work something out with the IRS over the phone, you can contact the Taxpayer Advocate Service (TAS). This free government service ensures that every taxpayer is treated fairly and understands his or her rights. The TAS is an independent organization within the IRS, headed by the National Taxpayer Advocate. Each state has at least one Local Taxpayer Advocate who is independent of the local IRS office and reports directly to the National Taxpayer Advocate. To contact TAS, call (877) 777-4778 or see its website for a list of local TAS offices. What About State Income Taxes? Not all states have procedures in place to put persons on uncollectible status for past-due state taxes owed. Federal law protects Social Security, pension, disability and VA benefits from garnishment by states for taxes owed. Unfortunately, not all state taxing agencies will tell people that their income is protected from garnishment; instead, they continue collection efforts. (Click here for information on a law Oregon enacted in 2015 to put an end to this practice.) If a person receiving any form of Social Security, including SSDI or SSI, is garnished by a state tax collector, twice the amount of monthly Social Security deposited into a bank account is automatically protected from garnishment, no matter the source of funds in the account at that time. Federal banking regulations require a bank to determine an account into which Social Security is deposited and disregard any garnishment, including for pastdue state taxes owed. So for example if the monthly Social Security payment is $1,000, then up to $2,000 in the account into which Social Security is deposited is automatically protected by the bank.

REALInsights Jan-Mar 2018


REALInsights Jan-Mar 2018


Overview of VA Purchase Loans

By: Louis Formato, NMLS#180462

A common misconception with the VA loan program is the amount of ‘red tape” involved. However, this isn't the case. Many lenders can acquire your Certificate of Eligibility online, and in many cases eligible borrowers can also be processed without a manual underwrite or VA review. Additionally, if the lender is approved under VA’s Lender Appraisal Processing Program (LAPP), the lender may review the appraisal completed by a VA-assigned appraiser and close the loan on the basis of that review. The LAPP can get borrowers to loan closing faster. The bottom line is average closing times for VA loans rarely differ greatly from those for conventional loans. Let’s take a closer look at the basic steps involved when using a VA loan to purchase a home. Prequalifying for a VA Loan To start the VA loan process, contact a VA-approved lender either online or via phone. A VA loan specialist will ask basic questions about the borrower’s financial history and homebuying goals to determine if a loan suits the borrower right now. Prequalification helps borrowers and lenders establish an immediate sense of eligibility and start building a foundation for the next stage, which is loan preapproval.

Louis Formato is a Mortgage Originator. Louis has been successfully in this business since 2008. He is a retired Postmaster having worked for the United States Postal Service for 31 years. Louis attended Kean University from 1976 to 1981. He specializes in FHA, VA, USDA and Conventional financing.

Louis Formato (908) 447-6696

VA Loan Preapproval The main difference between prequalification and preapproval is typically the verification of information. Preapproval shows lenders that a borrower is a capable homebuyer. The process requires effort from the borrower as paperwork collection and submission becomes important. Helpful VA lenders fill out chunks of the paperwork for you, as well as prepare and organize anything you need to complete. You may be able to do some or all of this process online. When the lender receives the borrower’s documents, the borrower receives a preapproval letter that outlines anything the borrower must do to officially finish the VA loan paperwork. These conditions in the preapproval letter must be met in order for you to get to closing day and into your home. Real Estate Agents and Home Hunting Once a borrower has a preapproval letter, it’s time to find a real estate agent and look at homes. Some military buyers may want to seek out veteran-friendly real estate agents that better relate to military families’ particulars and understand the VA loan program thoroughly. Make an Offer It’s a thrill for military borrowers to pick their home, but there’s still some work to do: make an offer and agree on a contract with the seller. It’s imperative that borrowers work with real estate agents and loan officers who are knowledgeable about VA loans so the contract is properly drawn up to help veterans get the biggest bank for their buck.

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Overview of VA Purchase Loans, cont. VA Loan Closing and Processing Before the loan closes, the VA lender orders an independent appraisal of the property. Along with assessing the property’s value, the VA appraisal helps assess whether the property meets the VA’s property condition standards. If there are problems (e.g. water damage, termites, leaky roof), they may need to be addressed before the loan process can move forward. Every situation is different. An underwriter then closely combs through the entire VA loan package. The underwriter’s job is to confirm all information and make sure all documentation is in place. If anything is missing or is not on par with VA or lender guidelines, the underwriter requests what’s needed to make it right. When the underwriter approves a VA loan, there’s only a few things for the borrower to do: Prepare for your closing day, when you’ll sign a lot of final paperwork and get the keys to a new home.

Although we believe that the large national brokerages may be a fit for some buyers and sellers, we know that many clients are looking for something “different”. So if you are looking for a more personal, one-on-one experience, we are here to better fulfill your goals and offer you a more specialized choice of information, expertise, knowledge and customization through our boutique business model. We’re not so large that you’re not going to get the attention of management or ownership. REALInsights Jan-Mar 2018


REALInsights Jan-Mar 2018


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866.483.5874 Corporate Office

2400 Route 88 Point Pleasant, NJ 08742 REALInsights Jan-Mar 2018


REAL Insights Jan-Mar 2018  

Welcome to this issue of Real Insights! A magazine for real estate enthusiasts! This issue contains valuable and entertaining articles abou...

REAL Insights Jan-Mar 2018  

Welcome to this issue of Real Insights! A magazine for real estate enthusiasts! This issue contains valuable and entertaining articles abou...