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From NJAR Newsletter           June 23, 2009

NJAR^® Protects Property Tax Deduction for Most

Yesterday, the Senate Budget and Appropriations Committee and Assembly Budget Committee voted to approve the $29 billion fiscal year (FY) 2010 New Jersey budget. The latest spending plan, which is set for a final vote by the Legislature on June 25, 2009, includes the unexpected revenue received from the tax amnesty program. New Jersey is on course to collect $600 million in back taxes. This represents more than $400 million that had already been accounted for in earlier versions of the budget. The windfall will be used to partially restore property tax relief programs.

Due to NJAR^®’s successful advocacy efforts and our membership’s participation in the Call to Action, we were able to protect the ability for households earning up to $250,000 to deduct their property taxes from their state income tax filings. The budget proposal allows households who make less than $150,000 to deduct as much as $10,000. Additionally, property owners who earn $150,000 to $250,000 annually will now be able to deduct their property taxes, up to $5,000. That represents about 200,000 additional homeowners who will be able to take advantage of the deduction.

The windfall will also be used to provide property tax rebates to households earning up to $75,000. Homeowners earning up to $50,000 will receive a rebate equal to last year’s check, for an average of $890, while those earning $50,000 to $75,000 a year will receive two-thirds of the rebate they received last year, for an average of $670. Senior or disabled citizens earning less than $150,000 are also set to receive a rebate. Renters who aren’t senior or disabled citizens did not have their rebates restored. These rebate levels match what Governor Jon Corzine laid out in his original budget proposal in March, before he called for the additional cutbacks.

In today's turbulent economic market the hybrid Real Estate transaction called a "Short Sale" has emerged.

A short sale is when the proceeds of a real estate transaction do not cover the outstanding balance owed on the property to the lender .

An example would be:

Mr. and Mrs. Homeowner purchased a home in X town in 2000 for $500,000. They procured a loan from Main St bank for the full amount. The homes value has dropped 10% over the last 3 years and is now worth $450,000. The Homeowners are having trouble with money and need to sell the home or face foreclosure. If they sell the home for market value they will not cover the debt that they owe. They would enter into an agreement with the bank to sell the home for less than they owe and turn all of the proceeds over to the bank.

Most short sales end with a deficiency balance where the homeowners would still owe the Bank the balance of the loan minus the proceeds of the house.

Short sales are usually used to prevent foreclosure. The credit ramifications of a short sale as compared to a foreclosure are much less. A short sale is considered a settlement not a default. It will remain on the persons credit report for 7 years but it will be possible to obtain a mortgage much sooner 1-3 years.

As with everything prior to deciding to enter into a short sale you should consult an Accountant or a Lawyer to completely understand the Consequences

New York, September 4th 2008 - Global Finance magazine has released it's annual ranking of the World's Safest Banks.

The World's Safest Banks were selected through a comparison of the long-term credit ratings and total assets of the 300 largest banks around the world. Ratings from Moody's, Standard & Poor's and fitch were used.

World's Safest Banks:

Groupe Caisse des Depots, France

Bank Nederlandse Gemeenten, Netherlands

Landwirtschaftlice Rentenbank, Germany

Rabobank, Netherlands

Landeskreditbank Baden - Wuerttemberg - Forderbank, Germany

Lloyds TSB, UK

BNP Paribas, France

Dexia, Belgium

Wells Fargo, United States

NRW Bank, Germany