Important information for Santa Clarita First Time Home Buyers the will save you Money

For Santa Clarita first time home buyers it is a very exciting time, you have just finished escrow and are all moved in. Now the mail starts coming and you notice letters that appear to be from government agencies telling you that you need someone to help you to file a Declaration of Homestead. Your asking yourself 1. what is a Declaration of Homestead? and 2. there are more fees? I thought I was done with all the fees associated with buying a house in escrow! I believe in education, the more you know the better you can make an informed decision. So what is a Homestead and what does it Do?

A Homestead helps to protect you from losing your house to people you owe money. If you are sued for money in court and lose, the person who sued you will receive a judgment from the court. If you do not pay the judgment, they can try to collect the money you owe by garnishing
your wages or bank accounts, or by having your automobile or home sold to pay the debt. The Homestead law protects a certain amount of the value of your home from being taken to pay the judgment. There are 2 kinds of Homestead Exemptions: one is automatic and the other is declared.

Automatic Homesteads

Every homeowner has an automatic Homestead Exemption of at least $50,000 for his or her residence. This protection does not require the signing or filing of any papers or documents. The amount of the Exemption increases to $75,000 if at least one member of the family unit living in the house owns no interest in the house, as, for example, when a homeowner lives with his or her minor children. If a homeowner is 65 years or older, or is physically or mentally disabled, the amount of the Exemption is $125,000. The $125,000 Exemption also applies to persons 55 years of age and older if the person is (1) single and has a gross annual income of not more than $15,000, or (2) married and the individual and his/her spouse have a combined annual income of less than $20,000, and the sale is involuntary.

Declared Homestead Exemption

The homeowner can have a Declared Homestead Exemption as well as filing a Homestead Declaration form with the County Recorder in the county where the house is located. It is important to note that the amount of the Exemption does not change or increase when a Homestead Declaration is filed. A Declared Homestead offers extra protection in that it is not automatically lost when a homeowner moves. It will also protect proceeds of the sale exempted by the Homestead from creditors for six months after the house is sold, even if the homeowner voluntarily sold the house.

How Do I File A Declared Homestead?

It is easy to file a Declared Homestead by yourself. You do not need to pay someone to do it for you. Simply buy a Homestead Declaration form from an office supply store that carries legal forms. To fill out the form all you need is your name, the name of the co-owner, if any, and the legal description of the property, which can be found on your deed. Sign the form and have it notarized. Take or mail the form to the County Recorder’s office along with the required recording fees. What A Homestead Does Not Do A Homestead does not protect against the forced sale of a house by a bank, savings and loan or other lender holding a mortgage Deed of Trust on the home, or against the enforcement of a valid mechanic’s lien, or a judgment for child support or spousal support. Warning!

Homestead Filing Services

Many homeowners, especially those who have just purchased a home, receive mail from Homestead filing services. The letters often look like they are a government office and lead you to believe that you must file a Declared Homestead. Don’t be fooled. The law prohibits Homestead- filing agencies from making false or misleading statements or presenting themselves as a government agency. The law also prohibits them from charging more than $25 to file a Homestead Declaration or from collecting any fees until after they have recorded a Homestead Declaration.

Content derived from Los Angeles County Department of Consumer Affairs website, as a homeowner verify all information.

President Obama's Admistration announces new details about FAP, Foreclosure Alternatives Prevention

Good news comming from Washington , D.C. , today. President Obama's administration announced new details under its Foreclosure Alternatives Program (FAP) enabling servicers and borrowers to pursue short sales and deeds-in-lieu (DIL) of foreclosure in cases where the borrower is generally eligible for a Making Home Affordable modification but does not qualify or is unable to successfully complete the three month trial period. The program, effective through 2012, requires that prior to proceeding with a foreclosure, servicers must determine if a short sale is appropriate.

The administration has recognized the need to streamline the short sale and deeds-in-lieu processes, and has provided viable options to homeowners who have fallen behind on their mortgages but owe more than their homes would sell for in today's challenging market. We also appreciate the efforts of our colleagues at NAR for keeping this issue front and center in our nation's capital. Incentives in the FAP program include $1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure; $1,500 for borrowers/homeowners to help with relocation expenses; and up to $1,000 toward the cost of paying junior lien holders to release their liens ($1 from the government for every $2 paid by the investors to the second lien holders). Hopefully these incentives will convince the servicers to work with Realtors on short sales.

The FAP includes streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter to minimize complexity and increase use of the short sale option. Servicers will independently establish both property value and minimum acceptable net return, in accordance with investor requirements, based on an appraisal or one or more broker price opinions, issued no more than 120 days before the date of the short sale agreement.
In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to market and sell the property, or up to one year, depending on market conditions. The property also must be listed with a licensed real estate professional with experience in the neighborhood, and no foreclosure may take place during the marketing period, of at least 90 days, as specified in the Short Sale Agreement.

The Short Sale Agreement also must specify the reasonable and customary real estate commissions and costs that may be deducted from the sales price. The servicer must agree not to negotiate a lower commission after an offer has been received. Servicers may not charge fees to borrowers/homeowners for participating in the program. Servicers have the option to require the borrower/homeowner to agree to deed the property to the servicer in exchange for a release from the debt if the property does not sell within the time allowed in the Short Sale Agreement, plus any extensions.

Additional details will be forthcoming. Please check C.A.R.'s Market Response Center for updated information as it becomes available.

If your dealing with a financial hardship in the Santa Clarita Valley or San Fernando Valley that has you considering a short sale, please contact Jennifer & Gary Ricco at Keller Williams VIP Properties for a free educational consultation. Our Consultations are to the point, no smoke and mirrors here. We provide verifiable facts & solutions. Go to our about page on our website for Short Sale facts. www.SantaClaritaCertifiedDistressedPropertyExpert.com

Buying a condo with a conventional or FHA loan in Santa Clarita no problem right? You need to read this before you even get into your Realtors car.

Condo owners not only share common walls and roofs, they also share one anothers financial burdens. Lending practices are constantly changing which is forcing lenders to look more closely at the makeup of entire complexes before they fund loans to prospective buyers or to people who have equity and want to refinance.

With the ever changing real estate market it's making it tougher to buy and sell condos, which are widely considered the housing market's shakiest segment because they are popular with entry-level buyers. The lending practices are also charging higher fees and requiring larger down payments from condo buyers while limiting where they can live. A lot of foreclosure-related losses have come from condo lending, pushing prices lower and wrecking condo association budgets.

In the recent past, FHA policies barely affected the condo market. Home buyers had abandoned FHA mortgages being lured by subprime loans and easy credit. Developers did not bother to get their buildings approved by HUD, Housing and Urban Development when they were first built. But after the subprime market crashed, borrowers flocked back to the FHA, and suddenly, its policies matter.

Here is an example of what is happening: A buyer wants to purchase a condo with a conventional loan because they can get a lower interest rates and pay no PMI, private mortgage insurance. But days before they close on their condo purchase the lender learns that to many residents in a complex were overdue on condo association dues. The only other option to purchase the condo is to go with FHA financing. Now here's the tricky part is the condo on the FHA approved list? If the condo complex is not FHA approved the borrowers only option is to try and get a the spot-approval to obtain FHA financing, which may take time and not be granted.


The stakes are even higher for buyers interested in newly built condos. In those buildings, 70% of the units must be presold before Fannie Mae or Freddie Mac will buy related loans, though exceptions are made. Previously, only 50% had to be presold.

You as a buyer need an experienced agent that understands 1. which complexes are FHA approved 2. which ones could get a spot approval. Buying a condo is an important financial decision. You want to make the right choice - an informed decision.

As a buyer you need an agent who truely understands the in's and out's of this market and can help you get your desired condo whether it be a bank owned, short sale, or a traditional listing. With so much information and misinformation you need an agent that is not an average agent to guide you through these investment opportunities.

My husband and I are Santa Clarita's Certified Distressed Property Experts, CDPE. By dealing with an agent who has earned the CDPE designation, buyers ensure that they are working with experienced real estate professionals that are equipped to handle their specific needs.

If you would like to search for a condo in Santa Clarita, or any other areas of Southern California go to: Search the MLS like a Realtor.

If your interested in selling your Santa Clarita condo and would like a free over the phone market evaluation call 1.800.805.2409 extension 3011. This service is available 24 hours a day, 7 days a week with no obligation. With this call you can receive a copy of our special report "How to Sell Your Home Quickly and for the Most Money". The reason were are making this information available to you is we want you to know what your home is worth before you talk to an agent.

Great News From HUD Today for Santa Clarita First Time Home Buyers There is a New Way To use Your Tax Credit

Many qualified new home buyers today are struggling to come up with a down payment to purchase in today's market today. There is great news fresh off the presses that helps FHA buyers. Shaun Donovan, Secretary of the U.S. Department of Housing and Urban Development, said that the Federal Housing Administration is going to permit its lenders to allow homeowners to use the $8,000 tax credit as a down payment.

Donovan’s remarks came in an address to several thousand Realtors^® gathered this morning at The Real Estate Summit: Advancing the U.S. Economy. Secretary Donovan said that important changes, which the National Association of Realtors^® has been calling for, will help consumers purchase a home. “We all want to enable FHA consumers to access the home buyer tax credit funds when they close on their home loans so that the cash can be used as a down payment,” Donovan said. According to Donovan, the FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table. Again, this only applies to new home buyers, make sure to consult your tax adviser about this new change before you proceed with your purchase. If you would like to search for properties for sale in Santa Clarita go to your Santa Clarita First Time Home Buyers search. Just click on the buyers link to get your free no obligation Santa Clarita home search started.