Shadow
Podcast

mortgage financing

Performance Property Real Estate Question

Risk Shadow Banking Poses To Housing

Q: Do you think the bank failures that happened earlier this year will affect housing? Rajiv, Edison, NJ A: The largely non-regulated non-bank financial system now controls almost half of the world’s financial assets fueled by years of very low interest rates. Shadow banking was at the center of the global financial crisis when questionable mortgages were transformed and weaponized as complex securities that were resold and ultimately helped bring the global financial system to its knees. Non-bank financial institutions are big and highly leveraged right now. We now live in an interdependent world, so a liquidity crisis in one part of the financial system will always have repercussions in other parts as was the case during the global financial […]

continue reading

Performance Property Real Estate Question

The 3 Demons Of Tax Lien Foreclosure

Q: We received a foreclosure notice this month. I was surprised because our grandmother’s home is paid off. I know we owe taxes but I didn’t think they could foreclose for that. Earl, Orange, NJ A: Yes, Earl, theoretically any unpaid lien holder can file a foreclosure lawsuit on a property to recoup what is owed. Unfortunately, tax lien foreclosure is a faster, more expedited process than mortgage foreclosure so it’s important to act quickly to pay off the past due property taxes to force the plaintiff to cancel the lawsuit. There are 3 individuals that you have to worry about when facing a tax lien foreclosure: Tax Lienholder Foreclosure Attorney Bankruptcy Attorney The tax lienholder is normally an investor […]

continue reading

Performance Property Real Estate Question

How Attorneys Can Undermine Home Buyers & Sellers

Q: My wife and I are buying a new home.  Our attorney is holding up the closing because he said he thinks we can get a better mortgage.  Do you think he’s right?  Earl, Mendham, NJ A: Attorneys play an important role in real estate transactions as legal advisors.  I use real estate attorneys to review contracts and leases.  An attorney’s job is to interpret the law–that’s it, nothing else.  Mortgage financing should be left to mortgage brokers. The key to effectively managing an attorney is to make them stay in their narrow lane which is to give legal advice not financing advice, which is not their area of expertise.   Thanks for your question, Earl. For more real estate […]

continue reading