New Jersey Real Estate 2026 Outlook
January 29, 2026
Home sales were down in 2025—and not because of a lack of aspiring homeowners. Many renters continue to say they would prefer to own if they could afford it. The problem is, most have not been able to over the last few years. A report from CBRE found that only 12.7% of renter households could afford a median-priced home. This is down from 17% in 2019. The NJ housing market has been chaotic since the staggering high-home prices of 2022.
The outlook for the 2026 New Jersey housing market is generally optimistic. While most real estate experts are not expecting major shifts in the market this year, those in the know expect better affordability, stabilized prices, growing inventory, and increased sales. 2026 is looking to be a year of rebalance in the real estate market.
2026 Housing Market Trends
1. Increased Affordability
Many average folks have been priced out of buying a home over the last few years. The NJ market has been chaotic, with high interest rates, high housing prices, and low inventory, making it a highly competitive market in which many people could not afford to compete. In 2026, real estate experts expect a modest dip in mortgage rates, making financing more affordable. We also expect to see an increase in inventory, giving buyers more options to shop around for a property that is desirable and affordable.
2. More Activity
One big expectation for the 2026 housing market is more home sales. As inventory increases and financing costs decline, more buyers will enter the market. Someone who could not afford the 2023 market may see a dip in mortgage rates as a sign that 2026 is the year to buy. Given how unbalanced the market has been, even small improvements in affordability will open the door to more home sales. Zillow reports that it expects home sales to increase by 4.3% in 2025.
Increased activity is expected across buyer types, from first-time homebuyers to growing families looking to upgrade or retirees ready to downsize. As more homes hit the market and buyer demand increases, previously reluctant sellers may feel more confident about selling.
3. Slowed Price Growth
The home price appreciation rate has dropped significantly from pandemic-era rates. In 2022, the home appreciation rate was 15-20% nationally. For 2026, a home appreciation rate of 1-4% is expected. This slower, steadier growth allows for real estate prices to stabilize. This isn’t the red-hot sellers market of a few years ago. Instead, we are working with a more balanced market.
Advice for Buyers and Sellers
So, what does this mean for buyers and sellers?
In 2026, buyers have a lot to be optimistic about. Increased affordability gives buyers the opportunity to explore more real estate options. Instead of just focusing on affordability, buyers have a little more wiggle room to focus on value, condition, location, and aesthetics. Still, buyers need to remember this is still a competitive seller’s market. Prospective buyers need to remain strategic in accomplishing their real estate goals. Getting pre-qualified can help buyers move quickly and decisively to secure a good deal when they see one.
While sellers have lost a bit of their power over the last few years, 2026 is still a seller’s market. Increased activity means more buyers on the market to purchase your home—and hopefully results in less time your property sits on the market. To be successful in 2026, sellers need to focus on strategic home pricing. Price growth is slowing. Sellers need to work with experienced local realtors to determine a price that attracts buyers while still netting the seller a good return on their investment.
While price growth has slowed, sellers are still profiting from high sales prices. One way to ensure you get top dollar for your property is to present it in the best possible light. Spend some time investing in the aesthetic appeal of your property.
What about renters?
Rent affordability is expected to get better in 2026. Median-income households spent, on average, 27.2% of their household income on rent in October 2025. This is the lowest figure since August 2021. Multifamily rents are only expected to rise 0.3% in 2026. This gives households a chance for their income to catch up to the cost of renting.
Veitengruber Law is an experienced NJ real estate attorney. We work with NJ homeowners to achieve their real estate goals while protecting their assets and getting the best deal. From contract negotiation to title research to closing, we are with you every step of the way.
Gambling is a serious addiction. The surge in popularity of online casinos, betting apps, and digital gambling platforms means the average person can gamble in their living room. Like other addictions, problematic gambling can result in dire problems in other areas of life, including financial health. With a gambling addiction, finding money to place the next bet can cause individuals to accumulate monumental levels of debt. Gamblers may turn to credit cards, personal loans, cash advances, savings, and other funds to maintain their habit, all while stopping payments on other debts. This can quickly snowball into a massive financial problem and bankruptcy. The point of bankruptcy is to provide individuals with protection from creditors and a financial fresh start. One of the biggest benefits of declaring bankruptcy is the ability to discharge some or all of your existing debts. But how does discharge work with gambling debts? Veitengruber Law is an experienced bankruptcy attorney in New Jersey. Here is everything you need to know about gambling debts in bankruptcy. Can gambling debts be discharged in bankruptcy? Generally, debts accrued due to gambling can be discharged through bankruptcy. There are no legal stipulations against discharging gambling debts in bankruptcy. However, in practice, it may be more complicated to discharge gambling debts. In bankruptcy, gambling debts are considered unsecured creditors and will be treated just like credit card debt or personal loans. This means the debt is dischargeable under Chapter 7 bankruptcy. Under Chapter 13 bankruptcy, gambling debts are included in the 3- or 5-year repayment plan, with any remaining debt discharged at the end of the repayment term. In practice, however, gambling debts can raise red flags for the bankruptcy trustee, and judges may be more critical of cases involving bankruptcy debts. Especially in the case of recent or excessive bankruptcy, additional scrutiny is likely to be applied to the bankruptcy petition. It can also lead to additional objections from creditors, potentially resulting in further legal issues. A judge, the trustee, and your creditors could come to the conclusion that you accumulated these debts without any intention of repaying them. The courts have a dim view of those who accumulate massive debt just before declaring bankruptcy. They may even refuse to discharge the debt if they conclude you gambled away borrowed money immediately before declaring bankruptcy. What are some red flags courts look for with gambling debts? In the majority of bankruptcy cases, there is a natural increase in debt or a clear loss of income that has led to financial difficulties. This debt is accumulated over months or even years before the bankruptcy is filed. One of the biggest issues courts have with discharging gambling debt is that it is typically accumulated in a short time just before filing for bankruptcy. It gives the impression that the person filing for bankruptcy had no intention of repaying the debt. Essentially, if the court suspects you of attempting to defraud your creditors, they may deny your request for discharge. Some other reasons for denial include: False Representation: Signing credit markers when you know you do not have funds to cover them or providing false financial information to obtain additional lines of credit is fraud. Evidence of this can result in a denial of discharge. Illegal Gambling: Debts incurred from prohibited gambling activities are generally not dischargeable. Bad Faith Filing: Debts incurred right before filing (60-90 days) without the intention or ability to repay the debt—specifically through credit cards or personal loans—can be seen as abusing the bankruptcy process. If the court determines that you are attempting to use the system to avoid responsibility for your gambling debts, they will deny your discharge. What happens if my bankruptcy discharge is denied due to gambling? If the court denies your bankruptcy discharge, you will remain legally responsible for all debts. It is crucial to note that there are serious, in some cases permanent consequences of receiving a discharge denial during bankruptcy. This includes: Permanent Liability: You will still be responsible for all debts owed at the time of filing. Any debts listed in the denied case are permanently barred from being discharged in future bankruptcy filings. Creditor Actions May Resume: With the denial of your bankruptcy case, the automatic stay period ends. This means creditors can continue their collection attempts, including lawsuits, wage garnishment, and foreclosure. Loss of Assets: If you filed Chapter 7 bankruptcy, the trustee can still liquidate any non-exempt assets to pay back creditors. What are my options after discharge denial? After your bankruptcy discharge is denied, there are still options. You can appeal your case if you believe the denial was based on a legal error or some other issue. You can work with a bankruptcy attorney to file an appeal. If you filed Chapter 7 bankruptcy, it may be possible to convert to a Chapter 13 repayment plan instead. You would need to prove you have the ability to repay your debts under a repayment plan, meaning you need to have enough income to realistically repay debts. That being said, once your bankruptcy discharge is denied, there is not much an attorney will be able to do to help you get a discharge. It is critical to work with a bankruptcy attorney from the beginning, especially if your case includes gambling debts. An experienced bankruptcy lawyer can help you put your best case forward, making it more likely you receive a favorable outcome. How can I avoid these issues? At Veitengruber Law, we understand that not everyone who gets in deep with gambling issues is a bad person looking to defraud the court. Folks trying to turn their life around after a gambling addiction deserve a second chance. If you are filing for bankruptcy after coming to terms with problematic gambling, there is still hope. A show of good faith can go a long way with the courts. The first step is to recognize the problem for what it is and seek professional help if necessary. Stop all gambling activity right away. Depending on the severity of your gambling, you may want to work with a therapist or a reputable program to help give you the resources to avoid gambling in the future. Taking these steps can demonstrate for the court both the severity of the issue and your earnest desire to turn your life around. Gambling can complicate your bankruptcy case, but it doesn’t mean your case is hopeless. Most bankruptcy debts are dischargeable. Showing the court your genuine interest in developing better financial habits and taking accountability for your past errors can go a long way in securing a discharge. Veitengruber Law can help you get your fresh start.
Chapter 13 bankruptcy, otherwise known as a “wage earner’s plan” or “reorganization” bankruptcy, allows you to reorganize your debt into a more realistic repayment plan. You can file for Chapter 13 bankruptcy if you have a regular income and can develop a plan to repay all or part of your debt over a period of three to five years. Unlike Chapter 7 bankruptcy, Chapter 13 bankruptcy allows you to maintain ownership of your assets. Chapter 13 can be a beneficial way to stop collection efforts, including foreclosure or repossession. Once you and the court agree on a repayment plan, you will be expected to make a monthly payment that is manageable with your income. If you can make all your monthly payments on time and in full for the duration of your repayment plan, any remaining debt will be discharged at the end of your repayment term. Chapter 13 repayment plans typically offer smaller monthly payments and better interest rates than the original terms of the debts. This way, you can pay less money overall on your debt. One powerful tool of Chapter 13 bankruptcy is the “cramdown.” The cramdown allows a debtor to reduce the secured balance of specific loans to the fair market value of the collateral. The remaining debt amount above the fair market value is often discharged at the end of your Chapter 13 repayment plan. Veitengruber Law works with NJ residents to get out from under unmanageable debt through bankruptcy. We have helped many folks utilize the cramdown to keep their car, secondary house, and other property. Here, we explore how the Chapter 13 bankruptcy can help you. How does the cramdown work? The basic idea behind the cramdown is to ensure you pay a fair market price for your property. The cramdown adjusts the amount of debt owed to align with the actual value of the secured asset. For example, suppose you owe more on a car than it is actually worth. In that case, the cramdown can allow you to reduce the amount owed on your auto loan to the vehicle’s market value. This amount will be rolled into your Chapter 13 repayment plan. The remaining balance then becomes unsecured debt. Once you have completed all the payments in your repayment plan over three or five years, the remaining unsecured debt can be discharged. The cramdown not only reduces your monthly payments, but it also reduces the amount you will pay overall. Many folks use the cramdown to pay back car loans. For example, let’s say your car loan balance is $20,000. In a fair-market-value analysis, your car is only worth $12,000. Chapter 13 bankruptcy will allow you to cram down your loan to the car’s actual value of $12,000. The remaining balance of $8,000 will be included in the unsecured debt balance, such as credit cards and personal loans. Once you have completed your repayment plan, these unsecured debts are often discharged. This means you will only pay a fraction of the unsecured debt you owe. Meanwhile, because you paid back the actual value of your car, you will own it free and clear at the end of your Chapter 13 bankruptcy. What debts are eligible? Not all debts qualify for a Chapter 13 cramdown. The cramdown applies to specific types of secured debts, but not all secured debts are eligible. Car loans are the most common debts that can be subject to cramdown. However, your vehicle must have been purchased at least 910 days (two and a half years) before filing for bankruptcy. Other personal property purchased with financing, such as furniture or appliances, may be eligible if purchased more than 365 days before filing for bankruptcy. The 910-day rule for car loans and the 1-year rule for other personal property are federally mandated restrictions designed to prevent folks from cramming down recent, expensive purchases. Unsecured debts cannot be crammed down. Can I cram down my mortgage? Investment properties or secondary properties can also qualify for cramdown, but primary residences do not. Many NJ courts will expect debtors to pay off the full debt owed on secured property. While this expectation may be realistic for personal property like appliances or furniture, it can be incredibly challenging to repay the fair market value of an investment property in three or five years. Even a crammed-down mortgage can total tens of thousands of dollars. Attempting to pay back this amount of debt in three or five years typically results in one of two scenarios: At the end of your Chapter 13 repayment plan, you will be left with a balloon payment for the balance of your mortgage. For the average person, this balloon payment would be an unmanageable financial burden, especially coming out of bankruptcy. Bankruptcy courts understand the impracticality of this result. They will not allow you to end up in this situation unless you can prove that you would be able to pay off the balloon payment. Including the mortgage on your investment property would make your monthly bankruptcy payments so high that you would be unlikely to be able to make them. If you are going through bankruptcy, you are likely doing so to lower your monthly payments. Because of these potential issues, most people opt not to cram down their mortgage for investment properties. However, for folks who have the means, a mortgage cramdown has a couple of benefits, including: A lower interest rate: The bankruptcy court will determine your cramdown interest rate once you file for Chapter 13. Typically, the interest rate set by the court will be the prime rate plus a few points. This is usually much lower than the interest rate from the original loan. You can use this to your advantage and avoid paying high-interest rates. This helps lower the total amount you pay for your property. No deficiency: Bankruptcy is the single most powerful tool you have to avoid foreclosure on your property. During foreclosure, your lender will try to sell your property for the amount still owed on your loan. However, if you owe way more than the fair market value of your property, your lender may end up selling the property for less than you owe. In some cases, you may have to pay your lender the difference between what you owe and what the property has sold for. This amount is called the deficiency. If you can cram down your mortgage, you will not be liable for the amount of debt that is no longer secured if the property is foreclosed and sold. The unsecured amount of the loan is typically about equal to the deficiency. This means you will not be responsible for repaying your lender for this debt. You will, however, lose the property in this situation. Veitengruber Law is an experienced NJ debt relief legal team. Our bankruptcy attorney helps people utilize all the tools available through bankruptcy to avoid foreclosure, halt collection efforts, and minimize further financial issues. If you are considering Chapter 13 bankruptcy, we can help.
Home prices have hit record highs in 2025, making it extremely difficult for the average adult to purchase their own home. While home prices have surged, income increases have stagnated, leading to a high price-to-income ratio. Combined with a long-term housing undersupply and high mortgage rates, homeownership is incredibly unaffordable in 2025. Individuals entering the housing market are looking at creative ways to afford homeownership. Many are purchasing a home with their friends to pool their financial resources. Splitting the cost of buying a home amongst two or even several individuals can drastically reduce the financial contribution required for homeownership. Splitting the down payment, monthly rent, and any incidental expenses can be an affordable way to maintain a home. It can also help you avoid the exorbitant cost of renting and instead put your money towards an investment. But there are many considerations you need to think about before teaming up with your friend to buy a home. Purchasing a home is, after all, a complex legal and financial transaction. Here are six steps to ensure a smooth transaction. 1. Pick a Good Investment Partner Maybe you are considering purchasing a home with a friend to rent out and generate additional income. Perhaps you are looking to buy a house to flip. Or you may intend to live in your shared home together. Regardless of your intentions, you need to view this for what it is: a legally binding transaction. This purchase will legally and financially bind you to this person for as long as you co-own the property. It is critical that you consider the qualities in your friend that may make them a good investment partner—or a bad one. This decision goes beyond who you personally enjoy spending time with or whom you trust with your secrets. Your high school BFF may be a perfectly wonderful person, but that doesn’t mean they make sound financial decisions. Do your due diligence before you consider making this kind of investment together. Transparency about each other’s finances is essential to establishing the trust needed to purchase a home together. You can have a local title company do a judgment and liens search, a litigation search, and a bankruptcy search on a prospective partner, so you aren’t surprised down the road. You can each share your credit report as an additional measure of good financial standing. Much of this information will come out anyway when lenders review your legal and financial history if you are financing a property. 2. Determine Your Goals Why are you purchasing this property? Before you even begin your property search, sit down with your friend and establish your goals. For example, if you are purchasing a house to rent out for extra income, you need as many details hammered out as possible before making an offer. Will you be renovating? How much do you expect to invest in home improvements? What do you expect to charge for rent? Who will be responsible for paying for or doing property maintenance? All of these details and more should be carefully thought through to avoid conflict and ensure you maintain your friendship throughout this process. 3. Work With Professionals Once you understand your goals, it is a good idea to sit down with a real estate attorney and a real estate agent to determine the best way to move toward them. While a real estate agent can help you find the property you are looking for, a real estate attorney can help you and your friend protect yourself, your partner, and your investment. Working with experienced professionals can help you feel supported and more confident in your decisions throughout this complex process. For example, if you do not plan to live in the house but instead intend to flip or rent it, it may be legally advisable to form an LLC. An LLC can protect you and your co-owner from certain liability. While an LLC will often pay a higher interest rate than an individual, the legal peace of mind is worth the extra cost. It will also help you if your partner decides to stop providing their share of the monthly mortgage payments. Regardless of your goals, a real estate attorney can ensure you are protecting your interests. 4. Apply for a Mortgage Most lenders will approve mortgages for friends buying a home together. When applying for a mortgage with a friend or friends, you will apply for a joint mortgage, but each individual will fill out their own separate application. The lender will gather all the personal and financial details on each applicant. Then, they will look at the group as a whole to determine if you qualify for the loan. If every individual checks out AND the lender determines you have the financial ability to achieve your purchasing goals, you and your friend(s) will be approved for the loan. 5. Determine Type of Ownership When two individuals who are not married purchase a home together, they need to determine the parameters of their co-ownership. Specifically, you need to determine whether your ownership agreement is a tenancy-in-common (TIC) or a joint tenancy. This differentiation is arguably the most crucial decision you will make throughout the entire process. The differences between these ownership agreements basically come down to what happens to the property after your death. With tenants in common, your share of the property would pass to your beneficiaries. With a joint tenancy, your co-owner would automatically inherit your portion of the property. Unless your co-owner is a beneficiary, you would most likely want to enter into a tenants-in-common agreement. However, not all legal advice is one-size-fits-all. Your specific circumstances may make other legal agreements or protections more beneficial. Working with an expert real estate attorney can help you fully understand your legal options and do everything you can to protect the interests of you and your friend. 6. Create a Side Operating Agreement We know what you’re thinking: another contract? You will sign a ton of legal paperwork throughout the home-buying process. But none of these documents may adequately address the complexities of owning a home with a friend. Hammering out the details while the purchase is fresh can help alleviate stress and disagreements down the road. You need to consider every aspect of home ownership, including what it looks like when you co-own a property. Who gets the house at what times? Who pays utilities? Who maintains and repairs the property? What happens if one person wants out of the deal? A side operating agreement can help you and your friend define these responsibilities. __ Veitengruber Law has worked with NJ homeowners for over a decade to protect their investments and achieve their real estate goals. When friends purchase property together, it can make an already complicated situation more complex. Working with an experienced real estate lawyer can help you avoid legal hassles and friendship fallouts.
United States military servicemen and women go above and beyond for our country. They work hard to keep us safe and to protect the American dream—a considerable part of which is homeownership. About 80% of veterans are homeowners—a significantly higher rate than the 60% of non-veterans who are homeowners. This is primarily due to access to VA loans. Because of their dedicated service and sacrifice, service members and veterans are eligible for U.S. Department of Veterans Affairs (VA) home loan benefits. Backed by the VA, these home loans offer competitive rates and help lenders offer more flexible financing terms. Veitengruber Law has worked with many veterans who have purchased homes in NJ. We know what you can expect when you apply for a VA loan. Here is everything you need to know. What is a VA home loan? A VA loan is a home loan through a participating private lender that is guaranteed by the Department of Veterans Affairs (VA). Service members, including National Guard and reserve members, veterans, and surviving spouses, are all eligible to receive a VA loan. Because the VA backs a portion of, or all of, the home loan, lenders are more willing to offer favorable terms, such as no down payment, lenient credit requirements, and flexible income requirements. VA loans are part of the 1944 GI Bill that grants service members access to many benefits intended to help them transition from military service to civilian life. VA loans make homeownership more accessible for military members and their spouses. Since 1944, the program has been expanded to include veterans of other wars and their spouses, as well as additional benefits. What are the benefits of a VA loan? Some key features of most VA loans include: No down payment: Many eligible individuals can purchase a home with no down payment as long as the final sales price does not exceed the VA’s appraised value. No PMI: Private mortgage insurance is often required for conventional loans if the buyer makes a down payment of less than 20% of the home’s value. With VA loans, PMI is not required. This can result in a lower monthly payment. Capped Closing Costs: The VA limits the closing costs the buyer can be charged to 4% of the home’s reasonable value. The maximum origination fee for lenders is 1%. Waived prepayment fee: Unlike conventional loans, which may charge a prepayment penalty for prepaying your mortgage, VA loans allow you to prepay without penalty. VA Funding Fee: Most veterans and servicemembers must pay a one-time VA funding fee. This fee can be paid at closing or rolled into the loan. Some veterans are exempt from this fee, such as those who receive disability compensation. Who is eligible for a VA home loan? Those who are eligible for a VA loan include: Active Duty: Current service members who have served for a minimum of 90 continuous days of active duty. Veterans: Wartime and peacetime veterans are eligible for VA loans, but with different requirements. Wartime veterans must have served for 90 consecutive days of active duty and obtained an honorable discharge. Peacetime veterans must have served for 181 continuous days of active duty and acquired an honorable discharge. Those who enlisted after September 7, 1980, must have 181 days of continuous active duty to qualify. National Guard and Reserve: These individuals must have completed at least six years of service, or 90 days of active duty (at least 30 days consecutive) under Title 32 orders. Surviving spouses: Surviving spouses are only eligible if they are the unremarried spouse of a service member who died in the line of duty or due to a service-related disability. How do VA home loans work? The process for obtaining a VA home loan has a few more steps than a regular conventional loan, but it is relatively simple. 1. Get Your COE Once you know you are eligible for a VA loan, you can work with your local VA to acquire your Certificate of Eligibility (COE). A COE is a document confirming your eligibility for the VA loan benefit. Your lender can also help you get your COE. 2. Get Pre-Approved Just like with a conventional loan, you will need to get pre-approved. You can compare different VA lenders to find the best financing option for your area and financial situation. You will likely need your driver’s license, Social Security card, DD-214, pay stubs, W-2s, and bank statements. While the credit and income requirements for VA loans are much less stringent, you will still undergo a credit check. 3. VA Appraisal Once you find a home and your offer is accepted, your lender will order an appraisal to determine the home’s value. The home must meet VA minimum property requirements to qualify. 4. Closing Once the home is appraised and is found to meet VA requirements, you have basically met all the criteria to go through with your VA loan. While there will be other requirements and documentation needed that are part of the typical homebuying process, enlisting the support of an experienced real estate agent can help you get through closing and into your new home. Veitengeruber Law and George Veitengruber, Esq. is an experienced NJ real estate attorney. We work with veterans to help them protect their investment and ensure that all parties comply with VA loan guidelines.
Today, ageing comfortably involves a lot of planning. Most experts agree that individuals should have 10 to 12 times their annual income saved for retirement, which averages $1.25 million. But holistic estate plans go beyond a healthy retirement account. Those looking to create a comprehensive estate plan should integrate long-term care planning into their targets. Many adults eventually need long-term care in their later years. For some, this may mean living in a nursing home or assisted living facility. For others, it may require more extensive in-home care from nursing professionals. Long-term care costs can exceed thousands of dollars a month, depending on the level of service. Planning for this kind of expense in advance can bring a sense of relief, alleviating the stress of making decisions in the moment during medical emergencies. It can also provide a safety net for your loved ones, sparing them the financial burden of paying for expensive long-term care out of pocket. So, how do you successfully create a long-term care plan? First, you need to protect your assets. Often, the high costs of long-term care cannot be managed without assistance from services such as Medicare and Medicaid. However, to gain access to Medicaid, you will need to meet specific requirements. This often involves keeping assets and income below strict pre-set limits. Applications for long-term care under Medicaid include a review of your assets in the five years before filing your application. This consists of a review of asset transfers. If it appears that you have been transferring assets or property in an attempt to qualify for Medicaid, you could face penalties. On the other hand, many aging adults find themselves sacrificing their hard-earned assets in their later years to be eligible for benefits. Even if you can keep your assets now, Medicaid estate recovery efforts could make your assets vulnerable after your death. Your estate plan should address these concerns well in advance of your need for services like Medicare or Medicaid. Creating a trust or naming co-owners of important property can help you protect your assets now and in the future while also allowing you to qualify for Medicaid to cover long-term care costs. You can also explore long-term care insurance to cover expenses not met by Medicaid. It is also critical to define your care preferences in your estate plan. Name a power of attorney, medical care proxy, and list what kind of care, medical interventions, and services you will desire for the future. Proper planning can maximize your options for the future while avoiding financial strain and minimizing family disputes. Estate planning goes beyond a will. It is also about planning for whatever the future holds for you and your loved ones. Veitengruber Law has been helping clients plan for the future for over fifteen years. We can provide the professional guidance and support you need to prepare for retirement and your golden years. Estate planning gives you the power to shape your future to ensure you can retire in comfort.
It’s no secret: times are tough. Since 2020, the US dollar has experienced an average annual inflation rate increase of 4.5%. Grocery prices are increasing. Since last year, we have seen a 12% increase in ground beef, a 5% increase in chicken, and an 18% increase in orange juice, among other items. The growing cost of our food is just one factor in how inflation is raising the cost of living. As a bankruptcy attorney in Monmouth County, Veitengruber Law has seen an increase in NJ bankruptcies over the last year. Let’s look at how inflation is driving New Jersey bankruptcies: 1. Reduced Purchasing Power As inflation increases, the cost of essentials like groceries, housing, and utilities rises. Wage increases cannot keep up with the rapid acceleration of inflation we have seen since 2020. Folks have less discretionary income, and many households are left with little to no money for savings or debt repayment after their monthly bills are paid. The budget that worked for you five years ago may no longer keep up with the cost of living your typical lifestyle. 2. Higher Interest Rates To combat inflation, lenders and banks raise their interest rates on loans. High interest rates make borrowing money more expensive. At a time of financial uncertainty, banks want to protect their own interest by making it more difficult for the average person to borrow money. This causes interest rates on existing variable-rate debt, such as credit cards and adjustable-rate mortgages, to rise. A sudden increase in your interest rate could make it difficult or impossible to afford your monthly payment. 3. Increased Borrowing Despite the high rates, inflation pushes people to borrow to cover the increased costs of everyday expenses. By depending on credit cards and personal loans to afford groceries, gas, and other essentials, it is easy to find yourself struggling with unmanageable debt. High rates contribute to rapid debt growth. 4. Less Savings If you have savings, inflation can cause you to gradually withdraw funds to cover your essential expenses. Even if you manage not to touch your savings for emergencies, you may find it more difficult to continue putting money aside for savings. If you do not already have a savings account, it may seem impossible to start now. This also means that any emergencies requiring funds beyond your monthly income will likely be paid for by accumulating more debt. 5. Fixed Income Struggles Folks on a fixed income, like retirees, do not see their income increase with the cost of living. They are specifically vulnerable to a sharp decrease in purchasing power. It can become impossible for these folks to afford essentials on their fixed income. While inflation can contribute to the need for bankruptcy, it is typically not the sole cause. Common causes, in addition to inflation, include income reduction or job loss, medical debt, divorce, disability or health issues, among others. If you are struggling to maintain a budget with the rising cost of inflation, you’re not alone. New Jersey’s Veitengruber Law can help you explore bankruptcy and other debt management solutions.
In New Jersey, the attorney review period is often the first time homebuyers consider whether they need a NJ real estate lawyer. Although there is a mandatory three-day attorney review period, New Jersey homebuyers are not required to retain an attorney to purchase a home. IMPORTANT: That doesn’t mean you should ignore the benefits of working with a real estate attorney. Veitengruber Law is an experienced NJ real estate law firm with over a decade and a half of experience helping homebuyers purchase their dream home. Here are five reasons you should hire a real estate lawyer when purchasing a home in New Jersey: 1. Contract Negotiation Once you sign a real estate purchasing agreement, you are bound to the terms of that contract. If your circumstances change or something goes wrong, you are still beholden to the signed agreement you made with the seller. It is critical that the contract you sign is purpose-built to protect your best interests. Standard purchase agreements do not offer the protection of an attorney-reviewed, customized contract that addresses the specific details of your transaction. When an attorney reviews, modifies, or creates your contract, they can tailor the terms to your needs and ensure all legal and financial responsibilities are clearly defined. An attorney can help you add contingencies to safeguard your investment and allow you to get out of a contract if issues arise later in the purchasing process. Attorneys are trained in contract negotiation and can help you work with the other party to reach an agreement. 2. Title Search and Issues A title search is critical to the outcome of any real estate transaction. Ensuring the title of a property is free and clear of any legal or financial entanglements can prevent homebuyers from encountering expensive issues down the line. A title search can identify existing liens or legal disputes that could put your newfound homeownership at risk. A real estate attorney is not only trained to conduct a title search but can also help resolve any issues uncovered during the search. If the problems are complex enough, they can even represent you in court. Their intervention can prevent costly delays and save your real estate transaction from falling apart. 3. Compliance with NJ Real Estate Law Every state has specific real estate laws that buyers need to be aware of. If you are purchasing a home in NJ, a real estate attorney knowledgeable about NJ real estate law can help protect your rights while ensuring compliance with legal requirements. The average homebuyer is not going to know the specifics of real estate law, but your attorney will. Working with a real estate attorney can prevent you from accidentally putting yourself on the wrong side of a lawsuit. Especially if you are facing specific legal issues, such as zoning disputes, historic sites, or easements, a lawyer can help you protect your rights and safeguard your investment from the outset. 4. Closing Management Closing is the last step in any real estate transaction. This is the meeting at which property officially changes hands, and you go from homebuyer to homeowner. At closing, all legal and financial aspects of the sale are finalized. This involves reviewing and signing a lot of paperwork and presenting important documents such as the deed, mortgage contract, title insurance, and settlement statements. A real estate attorney will explain documents and paperwork to you to ensure you understand precisely what you are signing. Your attorney will also coordinate with other parties involved in the closing, like your lender, the title company, and real estate agents. They will also be available to tackle any last-minute legal issues so you can close on time. 5. Managing and Preventing Legal Issues When you work with an attorney from the beginning of your homebuying journey, you are giving yourself the best legal protection available during a complex financial and legal process. Buying a house is one of the most momentous investments you will ever make in your lifetime. An attorney can help you protect that investment and protect yourself from costly consequences. NJ real estate law is complex, and there are plenty of opportunities for things to go awry. When you work with a real estate attorney from the beginning, you shield yourself from potential legal risks. Attorneys can use their experience to identify and resolve issues before they jeopardize your deal. Veitengruber Law can help you navigate the legal complexities of buying a home while protecting your interests and avoiding financial risk. We can help you make informed purchase decisions with confidence. If you are buying a home in New Jersey, reach out to us to discuss the next steps.
As of October 1st, the US federal government has entered a shutdown. Our elected representatives must vote to approve a budget that outlines how government funds and taxpayer dollars will be spent. If these representatives cannot agree on a budget by the deadline, our government will go into a shutdown. Any federal government operations not deemed "essential" will cease for the duration of the shutdown. Services like Social Security, defense, and veterans' benefits will continue to function, but federal museums and zoos, as well as national parks and monuments, will cease operations. While the impact of this shutdown will hit everyone differently, it could affect those with a mortgage or seeking one. If you are looking to finance a new home, refinance your current mortgage, or make payments on an existing mortgage, here is what you should know about the impact of the government shutdown. New Mortgages Those trying to originate a new mortgage during the government shutdown may experience slight delays, but should ultimately still be able to secure a mortgage. But even a delay can be frustrating during real estate transactions. The longer the shutdown drags out, the longer the delays may be. Still, the Department of Housing and Urban Development (HUD) will continue to process FHA loans, and the Department of Veterans Affairs (VA) will also continue in its capacity as a loan originator. Fannie Mae and Freddie Mac are government-sponsored enterprises, but they operate independently of the government. Operations for both are expected to continue as usual, with some slight delays. However, there are specific instances in which folks seeking a mortgage could face challenges getting approved during the federal government shutdown. Those issues include: 1. Getting Required Documentation Getting documentation from the government that is required for your mortgage loan application could be more difficult during the shutdown. While the IRS operated normally for the first five days of the shutdown, that time has passed, and the IRS is now operating under a contingency plan. This plan prioritizes "essential" work. So, if you need documentation from the IRS for your mortgage application, it may take longer than usual to complete the paperwork, delaying your financing and possibly resulting in a lengthy closing process. The IRS and other government entities have many automated systems that allow you to get some documents, such as tax transcripts. Other documents, like payoff letters, federal tax liens, or documents that require human processing, will typically be delayed. 2. Flood Insurance Depending on where you live, you may be required to obtain flood insurance in order to qualify for a mortgage. NJ is surrounded by water, with about 90% of NJ's border touching water. This means that NJ residents are more likely to live in a flood zone than residents in other landlocked states. Those in NJ who live within Special Flood Hazard Areas—those beginning with the letter A or V as identified by the Federal Emergency Management Agency (FEMA)—will be required to carry flood insurance to have a mortgage. For many, the National Flood Insurance Program (NFIP) is the most affordable and accessible source for flood insurance. During the shutdown, the NFIP will continue to service existing policies, but no new policies will be issued. If you have an existing flood insurance plan through NFIP and you are expecting to close on a refinance, some lenders may accept a copy of your flood insurance declarations page to certify that you have flood insurance. 3. Government Employee Challenges If you or your partner are employed by the federal government and you are currently experiencing a loss of income or have been furloughed, obtaining a mortgage can be tricky. Not only can it be challenging to verify employment and income during the shutdown, but your finances may also be changing as you navigate this difficult financial time. If you are a government employee unprepared to face the loss of income with the shutdown, you may find you need to rely on savings intended for a down payment. If you do not have savings, you may even find yourself taking on debt to make ends meet during the shutdown. As your financial circumstances change, so does your ability to qualify for a mortgage. Some mortgage lenders may not even recognize your employment during the shutdown, even if you are continuing to work without pay. Other lenders will count those affected by the shutdown as maintaining employment for qualification purposes. Government Delays Can Push NJ Closing Timelines Most NJ real estate transactions will close within 30 to 45 days. While delays can occur even in typical circumstances, a government shutdown can create even greater delays for those looking to close on a new property. You could face delays of 2 to 4 weeks, depending on the specific government agencies you need to work with and how far into the shutdown we are when you try to purchase your home. There are, however, things you can do to reduce your risk of delay throughout the government shutdown. NJ home buyers and sellers should take the following steps for a smoother closing process. Add buffer time to your contract: Working with a real estate attorney, you can include an extension clause that specifically cites expected federal delays. This can give you and other parties extra time to meet timeline requirements if you hit roadblocks due to the government shutdown. Determine your loan path early: If you know you are likely to use an FHA, VA, or USDA loan to finance your home purchase, be proactive about working with your lender. Reach out to the entity to see what their contingency plan is for dealing with the shutdown. Ask for their advice on the best path forward and determine whether alternative processes are available. Get flood insurance early: If the property you are buying is in a flood zone, initiate the flood insurance process early to avoid delays in coverage. Submit all documentation early: Do not wait until right before a deadline to reach out to federal entities for documentation. Since delays are expected, gathering your documentation early in the buying or selling process can help you avoid delays due to the shutdown. Communication: Keep in touch with your lender, title company, real estate agent, attorney, and other stakeholders. If you know there will be a delay, inform everyone as soon as possible. Keeping all parties informed and on the same page can help prevent further delays in your closing. Working With an NJ Real Estate Attorney When you work with an NJ real estate attorney like Veitengruber Law, you can avoid hitting roadblocks on the path to closing on your real estate transaction. An attorney can guide you through issues and help you find alternative verification paths during the mortgage approval process. An attorney can help you stay on schedule for closing, so if you encounter any snags due to the shutdown, your closing is more likely to proceed as planned. Real estate transactions are complex financial and legal processes on a typical day. When you add a government shutdown to the mix, it can turn into a stressful and frustrating experience. If you have been experiencing closing delays due to the federal shutdown, Veitengruber Law can help. Reach out to us today to get back on track to closing on your New Jersey home.
The lives of the ultra-wealthy have always piqued the public's curiosity. We are fascinated by their homes, their wardrobes, their careers, and, of course, their life events. And when two big names decide to join their empires? That’s a real headline maker! Taylor Swift and Travis Kelce are two such names that have been hitting headlines with their long-awaited engagement at the end of August. Swift is one of the most successful—and wealthiest—musicians of all time. Recent estimates put her net worth above $2 billion. Travis Kelce is one of the NFL's most recognizable faces and has played with the Kansas City Chiefs through three Super Bowl wins. Alongside his NFL alum brother, Kelce has been building the Kelce brand and growing an entertainment career. So, what happens when two big names decide to join forces? We hope a prenup. As an estate planning lawyer in New Jersey, Veitengruber Law works with individuals and couples at all stages of life to protect their interests within the legal and financial entanglements of marriage. After engagement and before marriage, it is incredibly common and legally advisable for the wealthy to have a prenuptial agreement in place before getting legally married. Marriage is, after all, a legally binding contract that typically entitles each spouse to the other's assets and property. Once the contract is signed, there is no going back. While prenuptial agreements have gotten a bad reputation as indicative of ulterior motives or greed, they are the standard, not the exception, for celebrities and the wealthy. Each individual is bringing a sizeable estate into the marriage and wants to protect their assets, brand, and legacy. So, what does a prenuptial agreement do? A prenuptial agreement, colloquially known as a prenup, establishes a legal distinction between marital and separate property. Marital property becomes subject to distribution in divorce. In contrast, separate property is not vulnerable to distribution after the termination of marriage. Common marital property includes shared bank accounts, jointly purchased property, and much more. Separate property typically includes assets acquired before the marriage. For the super-rich, a prenuptial agreement protects them personally, but it also protects their brand and their business. When significant assets include a multi-million-dollar business, a personal divorce can affect the lives and finances of employees. Beyond the material and the now, a prenup can also help protect the legacies of two individuals, both within and outside their marriage. What makes a good prenuptial agreement? To be legally enforceable, a prenuptial agreement must have three elements: 1. Signed and in Writing A prenuptial agreement is legally binding only if it is put in writing and signed by both parties. As far as prenups go, verbal contracts are not valid. The laws governing marriage and asset sharing are well established. To override these legal defaults, a prenuptial agreement must be in writing and mutually agreed upon. Many attorneys will have each individual sign every page of the prenuptial agreement to ensure each party has read the entire agreement and fully understands what they are agreeing to. 2. Total Financial Disclosure Both parties will need to provide a complete reckoning of their financial situation. This will include all income, assets, earnings, debt, or any other financial liabilities leading up to the signing of the prenuptial agreement. This is meant to offer each individual a clear picture of the other person's financial situation, allowing each party to make an informed decision before entering into marriage and entangling their finances. This can also allow both parties to negotiate the terms of the prenup to better favor their own position. For example, if one party discovers the other party is carrying a large amount of debt, they may seek to include a clause in the prenup stating that they will not be responsible for any premarital debt. Withholding this information during the creation and signing of the prenup can result in the prenup's dissolution. 3. Voluntary Entry Voluntary entry is a legal term that means all parties to a contract or legal agreement enter into the agreement knowingly and willingly without coercion, force, or duress. Someone who is mentally incapacitated is not capable of entering into a prenuptial agreement. The use of bribery or other illegal means of coercion can also invalidate a prenup. It is crucial for all parties involved to decide to sign a prenuptial agreement of their own accord. What can a prenup protect? A prenuptial agreement can be tailored to encompass a wide range of protections for different assets and situations. If you and your spouse-to-be want to retain control over how your assets are divided, a prenup is the best way to ensure you keep those rights—no matter what happens down the road. Here are some of the ways prenups can offer future protection: Protect Children from a Previous Relationship: When you enter into a new marriage with children from a previous relationship, you may want to protect particular property and assets for your children. Couples may consider setting aside specific property for their children to ensure they are cared for and provided for. Otherwise, one spouse could take a significant share of the other's assets in divorce or upon the other's death, leaving less for the children. Predetermine Your Financial Responsibilities: A prenup can detail exactly how you and your future spouse will manage joint accounts, credit cards, household bills, and savings accounts. For the wealthy, this may mean a predetermined spousal allowance. For the everyday person, this may just be a detailed plan for how you will handle debt incurred during marriage. Limit Spousal Support: Many prenups outline what spousal support would look like in the event of divorce. Predetermining spousal support can help a couple make a logical decision now so they can avoid costly legal disputes about details later. While prenups can protect a lot, they cannot make legal provisions for everything. With Nicole Kidman's and Keith Urban's separation and impending divorce, rumors are flying about the conditions of their prenuptial agreement, including an alleged "cocaine clause" precluding both from partaking in drug use. A prenup cannot cover child custody, custody schedules, and child support. "Lifestyle" clauses cannot be enforced either. Many couples try to include a no-cheating clause. However, most courts do not uphold these clauses, as they are considered to conflict with no-fault divorce principles. Similarly, most courts will not enforce requirements relating to appearance, sex, social activities, religious practice, or substance use. -- The truth is that while the ultra-wealthy may have more assets to protect, everyone can benefit from a well-designed estate plan. You don't need to be Taylor Swift and Travis Kelce to work with an estate planning attorney to protect your assets. Marriage, divorce, death, the birth of a child—all these milestones can change your estate planning needs. If you are planning on acquiring a prenuptial agreement or solidifying an estate plan with your new spouse, Veitengruber Law can help. From the ultra-wealthy and famous to your average Joe, an estate plan can help you protect your assets, look after your loved ones, and solidify your legacy.
As a trusted law firm and bankruptcy attorney in Monmouth County for over a decade, Veitengruber Law works with many folks who are unsure if bankruptcy is the right choice. The reluctance to file for bankruptcy is often two-fold. There is a taboo surrounding bankruptcy that frequently leads individuals to avoid filing until their financial situation is dire beyond repair. Even when bankruptcy is considered, people can hold off on filing because they believe they will lose all their property and assets through the bankruptcy process. This is simply untrue; in fact, both state and federal laws are in place, outlining specific exemptions that allow bankruptcy filers to exempt particular property from the bankruptcy estate. Exemptions in bankruptcy allow you to keep the essential personal property you need to work and live. The decisions you make about which property to exempt are individual and will vary from person to person, depending on your goals and financial situation. Here is what you need to know about bankruptcy exemptions in New Jersey. Choosing Federal or State Exemptions In New Jersey, you have the choice to use one of two different sets of exemptions: State or Federal. Each offers a unique path to protect your personal property and assets. To make an informed choice, you must understand the differences between these exemption statutes. NJ Bankruptcy Exemptions: New Jersey’s exemptions generally do not protect as much property as federal exemptions. Still, depending on your specific goals, it may be the right option for you. NJ bankruptcy exemptions include: Personal Property Exemptions: this includes clothing, burial plot, stocks and interest in corporations, $1,000.00 for furniture and household goods Public Benefits: workers’ compensation, unemployment compensation, Social Security, veterans’ benefits, disability assistance, and crime victims’ compensation Pensions for Public Employees Federal Bankruptcy Exemptions: Federal exemptions offer much more protection for NJ residents who file for bankruptcy. These include: Homestead Exemption: $27,900 for individuals, $55,800 for spouses who co-own property Motor Vehicle Exemption: up to $4,450 Tools of the Trade Exemption: up to $2,800 in tools and equipment required for work Wildcard Exemption: $1,475 to be used however the filer desires OR up to $13,950 if the homestead exemption is unused Personal Property: $700 per item, $14,875 total for animals, crops, clothing, appliances, furnishings, books, household goods, and musical instruments; jewelry up to $1,875 Public Benefits and Retirement Accounts: personal injury recoveries up to $27,900, wrongful death recoveries, alimony or child support, tax-exempt retirement accounts, IRA/Roth IRA accounts up to $1,512,350 Because federal exemptions typically allow individuals to protect more of their property, most opt to utilize them. However, you should not automatically opt for either state or federal exemptions without first discussing your options with an attorney. Bankruptcy is never a one-size-fits-all solution for everyone. Different individuals will benefit from different options within the bankruptcy process. Working with an experienced NJ bankruptcy attorney will help you to make informed choices and protect your assets. Who is Eligible for State Bankruptcy Exemptions? There are specific rules in place regarding who is eligible for specific state exemptions. Some states offer better opportunities for exemptions than others. Because of this, it may be tempting to relocate to a state with more favorable bankruptcy exemptions; however, some rules prevent this kind of strategic moving. To determine if you are eligible for certain exemptions from a specific state, the rules are: IF you have lived in your current state for at least two years, you are allowed to use that state’s exemptions. IF you have moved within the last two years, you are eligible for the exemptions from the state in which you lived the longest during the 180 days immediately before the two years before filing. You might be thinking: WHAT? It can be a bit confusing, so we will look at this through an example. Let’s say you plan to file for bankruptcy in New Jersey on January 1, 2026 . The two-and-a-half-year period you are considering would begin on July 1, 2023. Whatever state you resided in for the majority of the days between July 1, 2023, and December 31, 2023, is the state’s exemptions you are allowed to use. While you will not have to file your case in that state, you can use that state’s exemptions. Property That Cannot Be Exempted in NJ Bankruptcy Depending on the type of bankruptcy you file, you may lose property not covered by an exemption. The bankruptcy trustee can sell any non-exempt property to pay back your creditors. Here are the exemption differences between Chapter 7 and Chapter 13 bankruptcies: Chapter 7: When you file for Chapter 7 bankruptcy, your assets enter into a bankruptcy estate. Assets from this bankruptcy estate can be sold to pay off debts to your creditors. If the property or asset falls under one of the state or federal exemptions, you can protect it from being sold. Chapter 13: If you file for Chapter 13 bankruptcy, you can keep all your property. The bankruptcy court will not take your property to pay back your creditors. Instead, you must pay your creditors back the value of any property not covered by an exemption. This payment will be included in your Chapter 13 repayment plan and will be paid over a period of three or five years. For example: Let’s say you own a car outright. This car is worth $3,000. You decide to use the federal motor vehicle exemption of $4,450. If you decide to file for Chapter 7 bankruptcy, you will be able to keep your car because the exemption protects the equity of the vehicle. If you file for Chapter 13 bankruptcy, you will not have to pay your creditors through your repayment plan, as the full equity of your vehicle is protected. But let’s change the example and say your vehicle is owned outright and worth $15,000. When filing Chapter 7 bankruptcy, the bankruptcy trustee would sell your vehicle, give you $4,450 for the exemption, and distribute the remaining funds from the sale to your creditors. However, if you file Chapter 13, you would need to pay your creditors at least $10,550 through your plan. How Do I Protect Financed Property in NJ? You cannot use bankruptcy to discharge a home mortgage loan or a car loan and keep the property without paying for it. If you still owe a balance on your loan, you must pay as initially agreed upon to prevent foreclosure or repossession of the property. How secured debt is managed under bankruptcy again depends on which chapter you file under: Chapter 7: While Chapter 7 bankruptcy can allow you the time to sort out your payments and get caught up on your mortgage, no mechanism within Chapter 7 allows you to catch up on or cure your past-due payments for secured debts. Your mortgage or car payment must be up to date to maintain the property. Otherwise, you risk losing it. Chapter 13: You will not lose property under Chapter 13 bankruptcy. However, the judge will only approve your repayment plan if you can prove you make enough money to continue making monthly payments AND repay any late payments by the end of your three- or five-year plan. Bankruptcy exemptions can be complex and confusing. Exemption laws are also constantly changing, so it is crucial to the success of your bankruptcy that you work with an experienced attorney. Veitengruber Law has been assisting individuals in filing for bankruptcy in Monmouth County for over a decade. We can help you make informed choices to get your finances back on track.