April Housing Starts and Permits/Jobless Claims

Posted on May 17, 2013 by Steve Royek

NAROFF ECONOMIC ADVISORS, Inc.

Joel L. Naroff
President and Chief Economist

INDICATOR: April Housing Starts and Permits/Jobless Claims

KEY DATA: Starts: down 16.5%; Permits: up 14.3%/Jobless Claims: 360,000 (up 32,000)

IN A NUTSHELL: “With permits outstripping construction, look for a rebound in housing starts over the next few months.”

WHAT IT MEANS: New home construction plummeted in April, so should we worry? Not me. It’s not as if weather doesn’t matter as we saw yesterday with the industrial production number being whipsawed by utility output. So let’s not get too crazy about the drop in housing starts. Indeed, it is hard to explain a 28% drop in the South to a level not seen since last August. Has the housing market really dried up there? I doubt it. There was a double-digit decline in starts in the Northeast and a smaller fall off in the West with only the Midwest showing a gain. It is worth noting that the first number to exceed one million units annualized in nearly five years was posted in March. Also, for the first four months of the year, starts are up 29% compared to the pace posted in 2012, so it would be asking a lot to expect an even larger increase. And finally, permit requests soared over the one million-unit level and they are running above starts. As I have pointed out on a number of occasions, you need to watch the permit requests since developers are not spending the money unless they are pretty sure they will be building the houses. Indeed, the April jump in units authorized but not started is a clear indication that we should see a rebound in construction next month. The solid pace of construction so far this year has increased the supply of homes on the market and, with inventory being an issue in the existing home market, this could lead to stronger new home sales.

Jobless claims surged but that also may be a non-event, maybe. These numbers are hugely volatile and the four-week moving average rose only modestly. However, with sequestration layoffs starting to kick in, maybe there is something here to look at more closely. I don’t worry about one month increase or decrease but we have been looking for signs that sequestration is hurting and this may be the first one. We shall see over the next couple of months if that is the case.

MARKETS AND FED POLICY IMPLICATIONS: The falloff in construction and the rise in jobless claims are not what anyone wants to see. The markets, especially the bond market, have started to price in a rebound in growth. But the hurdles of tax increases and sequestration are still to be cleared and the impacts are likely to be felt more and more over the next few months so any sign of slower growth is something to watch carefully. How will investors react? These are data that argue for continued Fed aggressiveness so that is generally good. But whether that outweighs the weakness in the numbers is another issue. As for me, these numbers tell me little as they seem to be just the usual ebb and flow of volatile data.

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RE/MAX Connection Realtors is not a licensed financial advisor and is not providing any financial advice. You should consult with a licensed financial advisor prior to making any financial decisions. RE/MAX Connection Realtors only is providing this economic statement from Naroff Economic Advisors, Inc. for informational purposes.

Our company accepts no liability for the content of this email/blog, or for the consequences of any actions taken on the basis of the information provided. Any views or opinions presented in this email/blog are solely those of the author and do not necessarily represent those of the company. Finally, the recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.

RE/MAX Connection Realtors, 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053 www.goconnectionnj.com

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February Case-Shiller Home Prices/1st Quarter Employment Costs

Posted on May 2, 2013 by Steve Royek

NAROFF ECONOMIC ADVISORS, Inc.

Joel L. Naroff
President and Chief Economist

INDICATOR: February Case-Shiller Home Prices/1st Quarter Employment Costs

KEY DATA: Case-Shiller (20-City): 1.2%; Year-over-Year: 0.3%/Wages and Salaries (Year-over-Year): 1.6%

IN A NUTSHELL: “A sluggish economy may be holding back wage gains but it is not stopping the surge in housing prices.”

WHAT IT MEANS: And the beat goes on. For those who think the Fed’s policy of keeping rates down is a failure that will only lead to surging inflation, well, you are wrong and right. Wrong because the sector that the Fed is targeting the most, housing, remains the one truly bright light in the economy. Right because housing prices continue to rise sharply, as we saw in the February S&P/Case-Shiller Home Price Index report. The gain over the month was impressive and we are approaching double-digits compared to 2012 price levels. When adjusted for seasonality, every metropolitan area posted a gain both over the month and over the year. The increases from February 2012 range from a low of 1.9% in New York City to 23% in Phoenix. Half the areas had increases in excess of ten percent while another three are poised to join the ranks as their gains exceeded nine percent.

While prices in the housing market may be rising, worker earnings remain restrained. Compensation rose modestly during the first part of the year though wage gains did pick up a touch. The growing manufacturing sector is paying more and wages in the public sector are rising much slower than in the private sector, which is not going up very quickly at all. Looking across the country, compensation jumped the most in Atlanta and the least in Phoenix.

MARKETS AND FED POLICY IMPLICATIONS: The sharp jump in housing costs may make some worry but I have my best Alfred E. Neuman face on. The more people who get back above water, the more homes that will come on the market and the bidding frenzy that is going on in some places will ease. Limited supply, coupled with the low prices, is allowing people to bid up asking prices but how long that will last is good question. The Fed started its two-day meeting and some are looking for a sign that the massive easing program will be ending this year. With first quarter growth less than hoped for and with sequestration and tax increases kicking in, the FOMC is in no hurry to allow rates to start rising. That should keep the demand for housing up and price gains high. The lack of wage increases is an issue as prices continue to rise. Qualifying becomes more difficult. But for now, the benefits of strong home price increases far outweigh the risks to the housing market of the modest worker compensation gains. Investors should like these reports as they point to controlled business compensation costs and continued housing strength. But this is still earnings season and the markets have come a long way so who knows where the indices will go on any given day.

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RE/MAX Connection Realtors, 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053 www.goconnectionnj.com

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GUARDIAN SEMINAR TO FOCUS ON HOME INSPECTIONS

Posted on April 23, 2013 by Steve Royek

GUARDIAN SETTLEMENT SEMINAR FOR MAY
TO HIGHLIGHT VALUE OF HOME INSPECTIONS

For more information, contact
Drew Whipple at 856-985-9007
or awhipple@goguardianinsurance.com

EVESHAM (April 23) – Steve Hunn and Mike Buckley from U.S. Inspect will be the featured speakers at the next “Guardian Hour of Power Lunch Seminar” to be held on Wednesday, May 8.

Hunn and Buckley will address the topic “How to Assure a Home Inspection Does Not Kill a Deal.” U.S. Inspect bills itself as the one-stop solution for home inspection needs, including tests for radon, termites and more. Hunn is the Philadelphia/South Jersey/Delaware region manager and Buckley is one of the company’s Building Consultants.

Sponsored by Guardian Settlement Agents, one of the state’s leading title agencies serving all of New Jersey’s 21 counties, the seminar will begin at 12 p.m. noon on Wednesday, May 8 at Guardian’s South Jersey headquarters at 1000 Lincoln Drive East, Suite Two, in Marlton (08053). Lunch will be served and there is no charge to attend.

To register for the seminar, contact Guardian Settlement Agents President Drew Whipple at 856-985-9007 or awhipple@goguardianinsurance.com.

“Home inspections are an important part of every residential real estate transaction,” said Guardian CEO Christopher J. Brown. “It’s important for Realtors and other industry professionals to know what is new and important in the field. This presentation is another example of the valuable information that’s available at our monthly Hour of Power seminars.”

U.S. Inspect was founded nearly 25 years ago and has a customer satisfaction rating of more than 99 percent. Hunn and Buckley are part of a highly experienced nine-member regional inspection team. Hunn, who has been a manager with U.S. Inspect for 10 years, has taken part in close to 4,000 home inspections in his 16-year career.

Hunn and Buckley will focus their Hour of Power presentation on how U.S. Inspect uses strong communication skills to properly set expectations among the key players in a home inspection: The inspector, the Realtor and the customer.

“If we make sure everyone understands the process, we will have fewer communication issues down the line,” Hunn said. “We explain the process in detail to the customer and their Realtor before we start an inspection. Once they learn how a true, professional inspection is performed, we eliminate most – if not all – of the potential problems.”

Hunn said some home inspection companies feel compelled to find problems in an effort to justify their fee. At U.S. Inspect, he explained, they “tell is like it is” to the Realtor and the customer and stand on the merits of their work. The ultimate goal, he emphasized, is to make sure the deal goes through and – if there are problems – to make sure they are fully explained and understood.

The next “Hour of Power” seminar will be held on the second Wednesday of June, the 12th, and will feature Jenny Ryan, owner and publisher of Southern New Jersey Business People magazine leading a discussion on effective networking techniques for small businesses.

Guardian Settlement Agents has offices in both Burlington County – at 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053 (Phone: 856-985-9007, Fax: 856-985-9977) – and Somerset County – at 54 Grove Street, Suite 3 & 4, Somerville, NJ 08876 (Phone: 908-575-9995, Fax: 908-575-9996). Both offices are on the web at www.goguardianinsurance.com.

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RE/MAX Connection Realtors accepts no liability for the content of this email/blog, or for the consequences of any actions taken on the basis of the information provided, unless that information is subsequently confirmed in writing. RE/MAX Connection Realtors is providing this transmission for informational purposes only. Any views or opinions presented in this email/blog do not necessarily represent those of the company.

The recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.

RE/MAX Connection Realtors, 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053 www.goconnectionnj.com.

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March Existing Home Sales

Posted on April 23, 2013 by Steve Royek

NAROFF ECONOMIC ADVISORS, Inc.

Joel L. Naroff
President and Chief Economist

INDICATOR: March Existing Home Sales

KEY DATA: Sales: down 0.6%; Year-over-Year: up 10.3%; Median Prices (Year-over-Year): up 11.8%

IN A NUTSHELL: “Home prices are soaring even as sales are stagnating.”

WHAT IT MEANS: Existing home sales eased a touch in March as the demand for housing seems to have plateaued. That is true for both single-family and condo units. For the past five months, sales have ranged between 4.90 million units annualized and 4.96 million units, a very tight shot pattern. Sales were flat in the Northeast, up modestly in the Midwest and down modestly in the South and West. In other words, not a whole lot of changes were going on. In part, that may be due to the relatively modest level of inventory on the market, which is helping drive up the price of houses. The increase over the year was the largest since November 2005. The jump in prices, though, may be having the desired effect on supply. After having bottomed in January, inventories have increased over nine percent in the past two months. With the big sales period starting and with more people seeing that they just might be able to sell their homes for a decent price, I expect that the number of houses being listed should continue to increase. As for distressed homes, they were the smallest percentage of sales since the National Association of Realtors started following that number. That is good news as it indicates that the market is moving back toward more typical buyers and sellers and is less dependent upon investors.

MARKETS AND FED POLICY IMPLICATIONS: The housing market, like a number of other segments of the economy, has started to hit a wall. It is not faltering: It’s just that the strong gains we had been seeing are dissipating. That is not surprising as we are beginning to reach more normal levels of sales, which makes large increases more difficult. The rise in prices and more limited supply, especially of distressed homes, are playing a role in the moderation. But there is also the economy itself. I know that many would like to believe that you can cut government spending and raise taxes without doing any harm to the economy. But that is just not the case, as we are starting to see. So we have a variety of factors at work that are restraining housing though not stopping the progress. With investors wondering if the rally went too far, another number that has disappointed cannot help. On Friday, we get the first reading of how the economy did during the early part of the year. It should be pretty good. But that was then and with the markets having hit record highs, some caution only makes sense given that second quarter growth is not likely to be nearly as solid as what we had during the first quarter.

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RE/MAX Connection Realtors, 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053 www.goconnectionnj.com

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March Housing Starts and Permits

Posted on April 18, 2013 by Steve Royek

NAROFF ECONOMIC ADVISORS, Inc.

Joel L. Naroff
President and Chief Economist

INDICATOR: March Housing Starts and Permits

KEY DATA: Starts: up 7%; 1-Family: -4.8%; Multi-Family: +31.1%; Permits: down 3.9%

IN A NUTSHELL: “Housing starts soared but the momentum may not be sustained as builders are taking out permits for new construction much more cautiously.”

WHAT IT MEANS: Wow. For the first time since June 2008, housing starts breached the one million units annualized pace. That is really good news as it points to strong construction activity, a key to stronger growth. The large increase was posted despite a slowdown in the Northeast. The Midwest and South were up about ten percent but the West rose much more modestly. Still, I am not irrationally exuberant about this report. First, all the gain came in the multi-family segment of the market. It would be nice if all components were up but I am not that worried since the data do bounce around. What concerns me are the permit numbers. They were down and for the past two months are running well below the construction pace. Also, the number of permits authorized but not yet used is also trending downward. Finally, both the number of homes under construction and that have been completed are up. Softer permit demand, lower permit inventory and higher supply do not bode well for future construction activity.

MARKETS AND FED POLICY IMPLICATIONS: This was a great report as far as first quarter GDP is concerned. Housing should add solidly to growth and we could be looking at a three percent rate. But the details are a concern for spring activity. I suspect we will see some slowing in residential construction though not a major turn down. In other words, don’t expect us to be above one million units on an annualized basis again for a while. With consumer confidence questionable, the tax increases and sequestration cuts kicking in, the outlook is for slower second quarter economic activity. That said, this is positive news for investors, who have to digest good inflation numbers but not so great manufacturing production data. Add that to the tragedy in Boston, where I lived for three years, and yesterday’s massive sell-off and who knows where the markets will go in the next few days.

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RE/MAX Connection Realtors, 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053 www.goconnectionnj.com

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RE/MAX CONNECTION AMONG TOP 500 AGENCIES NATIONALLY

Posted on April 13, 2013 by Steve Royek

RE/MAX CONNECTION MAKES “TOP 500” LIST
OF NATION’S REAL ESTATE COMPANIES

Contact: Kevin Bayzath
Phone: (856) 988-1800
Email: kbayzath@aol.com

MARLTON (Apr. 12) – RE/MAX Connection Realtors, New Jersey’s number one-ranked RE/MAX real estate company for the past two years, made the national Top 500 list of real estate agencies for 2012 in both number of transactions closed and sales volume achieved.

The three RE/MAX Connection offices – in Marlton, Mantua and Turnersville – successfully closed 1,396 transactions in 2012 with a sales volume of more than $239 million. This gave the company national rankings of 436th in sales and 451st in transactions in the 25th annual “Power Broker Survey” conducted by RIS Media, publishers of the industry’s leading publication, Real Estate magazine.

“We believe we have the strongest team of Realtors in South Jersey and this recognition, once again, proves that point,” said RE/MAX Connection CEO Christopher J. Brown. “Our more than 100 agents are dedicated to providing unmatched customer service to our clients as we help them reach their real estate goals.

“An achievement such as this is a true team effort as our Realtors are backed by an experienced sales staff in our three offices along with the award-winning sales tools provided by RE/MAX International,” Brown continued. “I am proud of all the professionals in our organization who went above and beyond to help us gain this national recognition.”

“The achievements of these firms are remarkable,” said RIS Media President and CEO John Featherston in announcing the rankings. “Their leadership teams have successfully managed their respective firms through extremely difficult economic times.” More than 1,200 of the nation’s top real estate companies submitted information to the magazine to be considered for the list.

In 2012, in addition to its number-one statewide ranking in transactions, RE/MAX Connection ranked third in New Jersey in overall agent commissions paid at more than $7 million.

Among individual office locations, the RE/MAX Connection office in Turnersville was third in the state in units sold in 2012 with the Marlton office being ranked number seven in units sold for the past year. The Turnersville office also was ranked 10th in the state for commissions paid from a single office.

In 2011, RE/MAX Connection finished number one in New Jersey by closing 1,417 transactions worth more than $218 million.

RE/MAX Connection – Marlton is located at 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053. Phone: (856) 988-1800. Fax: (856) 988-8020. RE/MAX Connection – Mantua is located at 140 Bridgeton Pike, Mantua, NJ 08051. Phone: (856) 415-1210. Fax: (856) 415-1291. RE/MAX Connection – Turnersville is at 5701 Route 42, Turnersville, NJ 08012. Phone: 856-228-7990. Fax: 856-228-4433.

All three offices are on the web at www.goconnectionnj.com.

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The recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.

RE/MAX Connection Realtors, 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053 www.goconnectionnj.com.

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March Supply Managers’ Manufacturing Index

Posted on April 1, 2013 by Steve Royek

NAROFF ECONOMIC ADVISORS, Inc.

Joel L. Naroff
President and Chief Economist

INDICATOR: March Supply Managers’ Manufacturing Index

KEY DATA: ISM (Manufacturing): 51.3 (down 2.9 points); New Orders: down 6.4 points: Production: down 5.4 points: Employment: up

IN A NUTSHELL: “With the tax increases and sequestration-driven spending reductions starting to kick in, some of the projected negative impacts may be starting to show up.”

WHAT IT MEANS: The February data were better than expected but we are now into the March numbers when the sequestration government spending slowdown was starting and the cumulative impacts of tax increases eating to disposable income were expected to moderate spending. That just might be the happening. Manufacturing activity, while still growing, did so a lot less robustly in March that the previous month. Of concern was the sharp deceleration in order growth and output. In addition, backlogs grew more slowly, which is not good news for future production levels. Despite all that, firms actually hired more rapidly. That is an indication that maybe there is some technical issues going on here.

MARKETS AND FED POLICY IMPLICATIONS: Why would firms hire more people in the face of falling demand? There is an answer and while it is a bit technical, it makes sense. The January and February data may have been skewed by the uncertainties caused by the fiscal cliff. Orders and production rose solidly those two months but the reason may have been a temporary slowdown to the previous months to guard again potentially going off the cliff. Once we passed that crisis, firms had to make up for lost time and did so the first two months of the year and by March, they had reached more sustainable levels. That would mean the March numbers are more “real” but not necessarily a sign of weakness. We will not know if the March decline was just an adjustment issue or an evolving trend until we see the April report. My view is that it is a little of both. We are beginning to see where the government spending cuts will reduce demand and in those sectors and parts of the country that will feel the wrath of sequestration, adjustments are being made. But it is early in the process so we should not be seeing a whole lot yet from sequestration. Also, lower and middle-income households who are hurt the most by the tax increases can sustain spending levels only for so long. Ultimately, they will have to cut back but once again, that is a slow process. Thus, some of the slowdown may be due to moderating spending, but it should not have created such a large drop in the new orders index. The remainder of the fall off should be ascribed to the adjustment from the fiscal cliff crisis. Regardless, investors have to looking for signs that this great rally may finally face a correction. This report is a warning but with the employment report coming on Friday, I don’t think it will have a large impact on the markets.

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RE/MAX Connection Realtors, 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053 www.goconnectionnj.com

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February Income and Spending

Posted on March 30, 2013 by Steve Royek

NAROFF ECONOMIC ADVISORS, Inc.

Joel L. Naroff
President and Chief Economist

INDICATOR: February Income and Spending

KEY DATA: Consumption: +0.7%; Inflation Adjusted: +0.3%; Disposable Income: +1.1%

IN A NUTSHELL: “The improving job market is overcoming tax increases, allowing incomes and spending to rise.”

WHAT IT MEANS: Surprise, surprise, households are still spending money like crazy. Consumption rose sharply in February on top of a solid gain in January. Importantly, demand for services, which is two-thirds or all spending, is starting to show signs of life. This component had been moribund for a long time and it is hard to post large increases in consumer demand if the bulk of spending is weak. Households also spent money at retail stores but largely flat vehicle purchases kept down gains in the durable goods purchases. The rise in demand was powered by a strong increase in income. Businesses had loaded bonuses and dividends into the end of 2012 in order to beat the expected tax increases so it was not surprising the January’s income was down a lot. There was some negative impacts in February as well, which makes the large rise in disposable income so impressive. You can create rising wage and salary income from either higher wages or more people working and while the wage gains are slowly improving, it was the jump in jobs that powered the income increase in February. Also, improving corporate balance sheets are leading to increased dividend payouts and that helped dramatically as well. There was so much income added during the month that despite the rise in spending, savings and the savings rate rose. So, we had rising income, rising spending and rising savings. You can’t ask for much more.

MARKETS AND FED POLICY IMPLICATIONS: Do tax increases slow an economy down? Of course. But other factors are at work now and they are overcoming the negative impacts of the fiscal cliff deal. Whether the spending can be sustained is a wholly different issue. The effects of ending the payroll tax holiday will build, especially for lower and middle-income households. Indeed, the savings rate did increase but the level is still quite low, indicating some households may already be dipping into their rainy day funds. Second, sequestration is likely to mean furloughs for government workers. That will lower incomes and slow spending. Reduced federal spending will be felt by government suppliers who will have to cut back, lowering incomes and demand. While it may look right now as if there have been few negative effects of the government’s attack on the economic recovery, wait a while. It is coming. The point is, we could have had really strong growth if negative fiscal policy hadn’t gotten in the way. As it is, growth will continue, but be more moderate and if the sequestration lasts the whole year, it could be disappointing especially when compared to what it might have been. As for the markets, they are closed today but investors should be buoyed by the strong data.

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RE/MAX Connection Realtors, 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053 www.goconnectionnj.com

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March 2013 – Frequently Asked Title Questions

Posted on March 30, 2013 by Steve Royek

March 2013

Frequently Asked Title Questions

Question: The seller in our transaction is not represented by an attorney. They have asked us to prepare the deed for them. May we?

Answer: No.

In New Jersey, the preparation of legal documents such as a deed is considered the practice of law which may only be undertaken by an Attorney at Law of the State of New Jersey. The only exception to that rule is that an individual representing him/herself may prepare his/her own documents.

Nor may a title agent retain an attorney to prepare conveyance documents for the parties to a transaction unless that attorney actually consults with the party for whom the document(s) will be drafted and that party provides a written request that such documents be drafted for them by the attorney. Naturally, a title company/agent may refer a party to a transaction to an attorney or attorneys for the purpose of drafting legal documents, but the party seeking the drafting of the legal document must independently retain that attorney and pay his/her fee.

This prohibition is not limited to deeds – it includes all forms of legal documents including but not limited to mortgages, notes, easements, releases, etc.

These prohibitions arise out of NJSA 17:46B-13 and In re Opinion No. 26 of the Committee on Unauthorized Practice of Law, 139 NJ 323 (NJ 1995).

As always, feel free to address any questions to a member of our underwriting staff.

Nancy L. Koch, Esq. CTP
Vice President & NJ State Counsel
Old Republic National Title Insurance Company
119 Cherry Hill Road, Suite 100
Parsippany, NJ 07054
973-541-2400, ext. 12404
201-839-9019 (fax)
nkoch@oldrepublictitle.com

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The recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.

RE/MAX Connection Realtors, 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053 www.goconnectionnj.com.

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New Law – Foreclosure of Mortgages on Vacant and Abandoned Properties

Posted on March 25, 2013 by Steve Royek

DATE: March 22, 2013

TO: All Agents and Employees

FROM: Nancy L. Koch, Esq. CTP
Vice President & NJ State Counsel
Old Republic National Title Insurance Company

RE: New Law – Foreclosure of Mortgages on Vacant and Abandoned Properties

At the end of last year, Governor Christie signed into law an act which permits lenders to foreclose mortgages using an expedited summary action if the encumbered residential property is deemed to be abandoned and vacant. Enacted as Chapter 70 of the Public Laws of 2012, the new law will be found in the New Jersey Statutes at NJSA 2A:50-73. The law takes effect on April 1, 2013.

The new procedure applies only to residential real estate which is proven to be “vacant and abandoned”. In order to be found to be “vacant and abandoned”, a court must find:

A — That the mortgaged property is not occupied by a mortgagor or tenant (which tenancy was created before the service of the notice of intention to foreclose); and

B — At least 2 of the following conditions exist:
 Overgrown or neglected vegetation
 Accumulation of newspaper, circulars, flyers or mail on the property
 Disconnected gas, electric, or water utility services to the property
 Accumulation of hazardous, noxious or unhealthy substances or materials on the property
 Accumulation of junk, litter, trash or debris on the property
 Absence of window treatments such as blinds, curtains or shutters
 Absence of furnishings and personal items
 Statements of neighbors, delivery persons, or government employees indicating that the residence is vacant and abandoned
 Windows or entrances to the property that are boarded up or closed off or multiple window panes that are damaged, broken and unrepaired
 Doors to the property that are smashed through, broken off, unhinged, or continuously unlocked
 A risk to the health, safety or welfare of the public, or any adjoining or adjacent property owners, exists due to acts of vandalism, loitering, criminal conduct, or the physical destruction or deterioration of the property
 An uncorrected violation of a municipal building, housing, or similar code during the preceding year, or an order by municipal authorities declaring the property to be unfit for occupancy and to remain vacant and unoccupied
 The mortgagee or other authorized party has secured or winterized the property due to the property being deemed vacant and unprotected or in danger of freezing
 A written statement issued by any mortgagor expressing the clear intent of all mortgagors to abandon the property
 Any other reasonable indicia of abandonment.

A residential property shall not be considered “vacant and abandoned” if, on the property there is:
 An unoccupied building which is undergoing construction, renovation or rehabilitation that is proceeding diligently to completion and is in compliance with applicable ordinances, codes, regulations and statutes
 A building occupied on a seasonal basis, but otherwise secure
 A building that is secure, but is the subject of a probate action, action to quiet title, or other ownership dispute.

Under the new law, after a foreclosure has been commenced, the lender may file an application to proceed in a summary manner because the residential property that is the subject of the action is believed to be “vacant and abandoned.” In order to so proceed, the foreclosing party must establish that a process server has made two unsuccessful attempts to serve the mortgagor or occupant at the property, which attempts must be at least 72 hours apart and during different times of day, either before noon, between noon and 6 p.m., or between 6 p.m. and 10 p.m.

The court may enter a final foreclosure judgment in this type of matter upon a finding a) by clear and convincing evidence that the residential property is vacant and abandoned, and b) that a review of the pleadings and documents filed in the action supports the entry of a final foreclosure judgment. A final judgment may not be entered where any defendant has filed an answer or appearance which has not been withdrawn and the objection or defenses asserted provide cause to preclude entry of a final judgment.

Under the new law, the Sheriff is directed that the property shall be sold within 60 days of the sheriff’s receipt of the writ of execution. If it becomes apparent that the Sheriff cannot comply with the 60 day time frame, the foreclosing plaintiff may apply to the court for an order appointing a Special Master or Judicial Agent to hold the foreclosure sale.

The foregoing is a summary of the law. If you would like to review a full copy, it can be accessed at www.njleg.state.nj.us; choose “Chapter Laws” under “Laws and Constitution” from the menu on the left margin, choose “Chapter Laws 2012”, page down to P.L. 2012, c. 70.

Underwriting Guidelines: Any title deriving through this new procedure must be submitted to a member of our underwriting staff for approval.

As always, please address any questions you may have to a member of our underwriting staff.

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The recipient should check this email and any attachments for the presence of viruses. The company accepts no liability for any damage caused by any virus transmitted by this email.

RE/MAX Connection Realtors, 1000 Lincoln Drive East, Suite Two, Marlton, NJ 08053 www.goconnectionnj.com.

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