What is Partition Action in New Jersey?

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.

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.

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.