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Your home is likely your largest asset. As such, being a homeowner plays a significant role in your overall financial health and future financial goals. Homeowners can use their home as collateral to access different financing opportunities, such as taking out a second mortgage on their home. A second mortgage is an additional loan taken against a property that already has an existing primary mortgage. The second mortgage uses the equity in the home as collateral. The equity in a home is the difference between its value and the amount still owed on the property. Many homeowners use the equity in their homes to address financial issues or achieve goals they otherwise would not have the funding for, such as home expansion or remodeling. The decision to tap into your home’s equity is a big one. You need to have a thorough understanding of how second mortgages work and determine if it is truly the better choice over other financing options. How does a second mortgage work? A second mortgage gives you the ability to borrow against the equity you have built up in paying your regular primary mortgage payments every month. As you’ve owned your home, the value of your property has likely increased as well. As your home’s value increases and your debt on the property decreases, you build equity, a powerful asset that can be used for financing opportunities. A second mortgage, otherwise known as a junior lien, is secondary to your primary mortgage. This means if the home were to be foreclosed on, the primary mortgage holder would receive funds to satisfy the debt before the second mortgage lender. Payments for your second mortgage would be made separately from your primary mortgage and would carry their own interest rate and terms. What kinds of second mortgages are there? There are two kinds of second mortgages. Which one you qualify for depends on how much equity you have and your overall financial standing. 1. Home Equity Loan A home equity loan is a fixed-rate loan for a specific amount, paid out in a lump sum and then repaid over a set term. You would calculate how much you can take out as a loan by subtracting your mortgage balance from your home's market value. Most lenders will approve homeowners to borrow up to 80-85% of their home’s equity. They will also consider factors such as your income and credit report to determine how much they are willing to lend. This type of loan is ideal for big, one-time expenses such as debt consolidation, education, or home renovations. 2. Home Equity Line of Credit (HELOC)  A HELOC loan is a revolving loan, like a credit card, except your home’s equity is used as collateral for the loan. This allows you to borrow funds up to a set limit for expenses as needed. HELOC loans typically have variable interest rates. With a HELOC, there is a draw period and a repayment period. During the draw period (typically around 10 years), you can borrow, repay, and borrow again indefinitely as long as you stay below your limit. During this time, you only pay interest on what you’ve drawn. Once the draw period is over, you enter the repayment period. During this time, you cannot borrow more, and you begin paying back the principal and interest over a predetermined term (10-20 years). The variable rate can change your monthly payment significantly over the life of the HELOC. What are the benefits and drawbacks of taking out a second mortgage? Rates for a second mortgage are typically lower, and terms are more favorable than those of credit cards or personal loans. Because a second mortgage uses your home as collateral, lenders are more flexible on other terms of the loan. You can save a lot of money on interest by opting for a second mortgage instead of taking out a personal loan or maxing out a credit card. There are also potential tax benefits to taking out a second mortgage instead of an unsecured loan. In some cases, home equity or HELOC loans are tax-deductible if the money is used to improve, renovate, or purchase a home. This can also help offset the loan's costs. On the other hand, if you fail to make the payments for your second mortgage, you could end up losing your home. Defaulting on your second mortgage can lead to foreclosure and the loss of your home. Also, when you use your equity as collateral, you could end up with less equity if property values drop. You may also face qualification hurdles to get approved for a second mortgage if you do not have a strong financial profile and substantial home equity. The decision to take out a second mortgage is personal. Whether a second mortgage is a good idea for you depends on your specific situation. If you are considering a second mortgage or are having trouble making payments on one, Veitengruber Law can help.

It is common for parents to leave their home to their children in their estate plan. A home is likely to be the largest asset a person has at the end of their life, and it makes sense that parents want to share this asset with their children. Where things get complicated, however, is when a parent leaves property in equal parts to multiple siblings without specifying how it should be divided. This can frequently lead to disagreements. Some siblings may view the property more sentimentally, wishing to live in the home themselves or keep it in the family. Other siblings may view the property as a means of generating income, either by selling the home or setting it up as a rental. Disagreements can arise among siblings dealing with different life circumstances, financial needs, and aspirations. When these disagreements cannot be resolved with compromise, a legal solution may be required to allow all parties to move forward. This is called a partition action. What is a partition action? A partition action is a legal process through which co-owners of a property can divide and distribute the property. This legal recourse is normally taken when co-owners cannot agree on how to manage or utilize the property. A third party, such as a judge, will review the case details and determine how the property should be divided in accordance with legal precedent. The goal is to find a solution that is fair, equitable, and in the best interest of all parties involved. Types of Partition Actions 1. Partition By Sale In this partition, the co-owned property is sold, and the profits are divided among the co-owners. Everyone will receive an equitable share of the proceeds and can use their portion as they wish. There will be no more co-owned property, so the disagreement is resolved as well. The partition by sale can be an issue for siblings who have an emotional attachment to the property, intend to live in it, or are financially dependent on it as a source of income. 2. Partition In Kind This kind of partition physically divides the property among the co-owners. This is more likely to be an option for larger plots of land. Each co-owner receives an equitable share of the property and can use their portion however they want. However, physically dividing the property can decrease its value. It can also make it harder to find buyers if one owner is looking to sell the property. 3. Partition By Appraisal Partition by appraisal involves an appraiser determining the property's value so that one party can pay the other the amount they would receive if the property were sold. This way, one sibling can keep the property and own it outright, while the other sibling (or siblings) receive their fair share now. This can be a great option if the person who wants to keep the property has the means to buy out the other co-owners. Also, depending on the market and how the property is appraised, the sibling keeping the property may have to pay out far more than they want or can afford. On the flip side, if the property is appraised for less, the siblings getting bought out may feel they are getting the short end of the stick. Final Thoughts Taking a family member to court can be a life-altering event. Your relationship may never be the same again. Before you initiate a partition action, consider whether there are any other options to resolve your conflict without taking legal action. Consider if the outcome—even if it is the outcome you desire—is really worth it. Negotiation, mediation, and compromise are typically the best path forward for all. For parents planning to leave property to multiple children, having conversations with your children about your expectations for dividing property can help alleviate any conflicts when you are gone. Veitengruber Law is an experienced estate planning attorney. We work with folks in NJ to ensure their assets are protected during their lifetime and after. We can help you establish an estate plan that minimizes the risk of conflict among your heirs.

While there are more than 370,000 Homeowners Associations in the USA, joining an HOA is not for everyone. While some appreciate the benefits of HOA membership, others find the rules overly restrictive or have no interest in paying the associated fees. If you have found the house of your dreams in an HOA neighborhood, you may be wondering what your options are to avoid joining the HOA. Here, we look at a few scenarios: 1. Voluntary HOAs As the name suggests, purchasing a home or condo in a voluntary HOA community does not require you to join the HOA. Voluntary HOAs typically use their membership fees to maintain common-area facilities such as pools, clubs, tennis courts, and other amenities. If you opt out of the HOA in this instance, you simply would not have access to these amenities—or you would have to pay for every use. Unlike other HOAs, voluntary HOAs do not have the authority to dictate rules about how you keep your property. Similarly, they cannot enforce rules on nonmembers. Voluntary HOAs are typically low-commitment and primarily focus on access to community recreational areas. 2. Mandatory HOAs If you purchase a home in a neighborhood with a mandatory HOA, you must join the HOA. At closing, you will need to sign documents agreeing to abide by HOA rules and pay any fees or fines incurred if those rules are broken. While mandatory HOAs typically also maintain common facilities, they also have a lot of power to enforce rules about the maintenance of your personal property. Rules can range from fines for grass that has grown too high to restrictions on how many lawn ornaments you can have in your front garden bed. If you are considering putting an offer in on a home but do not want to join the mandatory HOA, you may need to find a different property. Work with a real estate agent to find homes not included in an HOA. Getting a home out of an HOA is very difficult because it is legally tied to the property's deed. While it is possible to de-annex a property from an HOA, this process is legally fraught. You would be required to prove the HOA failed its obligations, or get your neighbors to vote to dissolve the HOA altogether. 3. Newly Forming HOA If an HOA is forming in your area, you are not obligated to join. To form a mandatory HOA, the vast majority of your neighbors would have to agree to join the HOA and confirm the terms. You can absolutely opt out of this process if you purchased your home before the HOA was formed. Even if all of your neighbors join the newly formed HOA, you are not obligated to do so unless your deed makes specific mention of the HOA. If you are getting pressure to join a forming mandatory HOA, you have legal rights. Review your property deed and closing documents to determine if there is a mention of an HOA or an obligation to join any future association. Do not sign any new documents, such as a membership agreement, and do not pay any fees or fines if you are not part of the association. A real estate attorney can help you formalize your refusal to join the HOA and ensure your legal rights as a homeowner are upheld. Veitengruber Law is an experienced real estate attorney in New Jersey. We work with NJ homeowners to protect their rights and ensure they are not being taken advantage of. If you have questions about HOAs, reach out to us today.

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.

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.