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Uncategorized | Comments Off September 15th, 2009

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Santa Clarita Water Softener Grace Period Ending Soon

Salt-based water softeners became illegal in the Santa Clarita Valley as of January 1, 2009 and must be removed by June 30, 2009.

The salt-based water softener debate has been ongoing in the Santa Clarita Valley, with mandates that the Santa Clarita Sanitation District reduce the salt (chloride) level in its waste water to avoid hefty fines. The alternative to reducing salt at its source would be to build a new water treatment facility, which would send the local sewer rates through the roof for all residents in the area. As a result of this, the residents of the Santa Clarita Valley voted in Measure S, which allows the Sanitation District to fine homeowners up $1,000 if they continue to use salt-based water softeners. Banned water softeners include those that use either sodium chloride or potassium chloride.

Communities affected by this ordinance include Santa Clarita, Saugus, Valencia, Newhall, Castaic, Canyon Country, Stevenson Ranch, Fair Oaks Ranch, Bouquet Canyon, Mint Canyon, and Forrest Park. Communities served by septic tanks instead of the public sewer system are not affected by this ordinance.

To ease the transition into this new law, water softener owners still have a grace period of 180 days to remove salt-based water softeners from their homes. During this time, the program to remove these water softeners removed free of charge is still in place, as well as rebates between $206 and $2,000.

The “Take the Rebate and Run” program to assist homeowners in removing existing salt-based water softeners has been in place for a while now, with many homeowners taking advantage of the rebates and the free removal service. The “Take the Rebate and Run” program provides reimbursement for 75 percent of the reasonable value of the automatic water softener.

Now that the rebate program is ending and the new law is in place, the Sanitation District will begin focusing its efforts on enforcing the removal of water softeners from the Santa Clarita area. It is expected that they will gain access to sales information for water softeners in the area as part of this process, and they may also review plumbing permits that were issued for installing water softeners.

What can you do if you don’t want to suffer with the hard water we have in the Santa Clarita Valley? There are two choices available:

  • Use one of the exchange tank services, where they place a tank in your garage and exchange it out monthly for proper salt disposal. These services are offered by companies like Culligan and Rayne.
  • Install a non salt-based water conditioning system. A complete list of water conditioning products, including reviews, is available on the Sanitation District’s website.

The Sanitation District’s website also includes information on salt water pools (which are also banned) and instructions on how to remove your water softener.

Local News and Updates, Santa Clarita Real Estate | No Comments » January 3rd, 2009

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FHASecure Program to End December 31, 2008

Program to help homeowners delinquent on their mortgages to be terminated December 31, 2008.

HUD has announced that the FHASecure program, where they have been able to insure refinances (refi’s) for borrowers who are delinquent on their mortgages, will terminate at the end of 2008. In a memo issued by HUD, they state that maintaining the program past the initial termination date would have a negative impact on the MMI Fund.

HUD explains that the only way they could have maintained the FHASecure program would have been to offest the losses by substantial across-the-board premium increases for single family homes, or to suspend the FHA single family insurance programs altogether.

If you are looking to refinance via the FHASecure program, you MUST have a case number prior to December 31, 2008. They will continue to process files with case numbers and loan applications taken prior to that date, but will not issue any new case numbers or loans.

All standard FHA refinance programs will remain in place, including cash-out and streamlined refinance products. However, these will only be available to homeowners who are current on their existing mortgages. In addition, the HOPE for Homeowners program is still available for homeowners who are delinquent on their current mortgages.

It’s hard to say what the impact of this will be on the short sale and foreclosure market, but it’s likely that this change will make it harder for troubled homeowners to refinance, and thus it will mean that more homeowners will be forced to either sell their homes via the short sale process or lose their homes through foreclosure. Seems that we’ll likely start seeing an increase in the number of distressed properties for sale in the Santa Clarita area, which is a shame after seeing a few months of reduced activity.

Foreclosures and Short Sales, Santa Clarita Real Estate | 1 Comment » December 26th, 2008

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California Budget Crisis Suspends CalHFA Home Loan Programs

California homebuyers will face more challenges with getting loans approved until the state’s budget crisis is resolved.

Buying a home has become harder in California for low to middle income borrowers, those with low down payments, and first-time home buyers with the temporary suspension of the CalHFA loan programs. This suspension is expected to last at least until the January meeting of the Pooled Money Investment Board (PMIB), or until the state’s budget crisis is resolved.

The role of the PMIB is to loan money to state agencies to advance program funds which will later be repaid through bond issuances. PMIB loans are used by CalHFA to initially fund conventional 30-Year Fixed Mortgage and down payment assistance programs. Members of the PMIB are the State Treasurer, State Controller and State Director of Finance, with the State Treasurer chairing the panel.

CalHFA First Mortgage Fixed Rate Loan Programs and Down Payment Assistance Programs which have been suspended effective December 17 and continuing until at least early January include the following:

  • 30-Year Fixed Mortgage products, including:
    • Moderate Income
    • Low Income
    • Nonprofits & Affordable Housing Partnership Program (AHPP)
    • Extra Credit Teacher Program (ECTP)
  • California Homebuyer’s Down Payment Assistance Program (CHDAP)
  • Extra Credit Teacher Program (ECTP)
  • School Facility Fee Down Payment Assistance Program (SFF)

The 100%-financed Community Stabilization Home Loan Program (CSHLP) and SMART Program will still be accepting loan applications during this temporary suspension period.  Down payment assistance from non-CalHFA sources will also continue to be accepted.

Apparently this freeze affects only new loan applications, not those that were already in the CalHFA pipeline as of December 19. If you have a home purchase in process and are unsure of whether your loan is dependent on CalHFA funds or not, please contact your lender!

There may be other options available to you, including FHA products, local loan or grant programs and assistance programs not funded by the CalHFA. It seems that programs like the CalSTRS (California State Teacher Retirement System) 80/17 programs are still available, since they are funded by sources other than the PMIB. However, remember that the federal FHA programs will now require a 3.5% down payment, up from the prior requirement of 3%.

More information on CalHFA loan products and down payment assistance programs.

First Time Homebuyers, Santa Clarita Real Estate | 1 Comment » December 23rd, 2008

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Los Angeles County Foreclosure Report for October 2008

Los Angeles County Foreclosures for October decline 51% from September’s numbers.

The October foreclosure numbers for Los Angeles County show a steep decline in new foreclosures, or trustee sales, for the month, with 2,389 foreclosures for the entire region. This represents a decline of 51% from September’s foreclosures, which is the largest decline for the last two years according to PropertyShark.

Foreclosure Chart October 2008

October foreclosures follow the same pattern as in prior months, with the Palmdale / Lancaster area leading the region in the number of foreclosures for the month.  Palmdale’s zip code 93550 tops the list of new foreclosures with 98, with the other areas rounding out this month’s Top 15 zip codes significantly lower. To summarize the Top 15 for the month, the Palmdale / Lancaster area has 303 of the total 640 foreclosures in the Top 15, Norwalk comes in at number 4 with 49, Pacoima is at number 5 with 47, and the rest of the list is rounded out by Southgate, Sylmar, Long Beach, Los Angeles and Baldwin Park, with zips 91706 in Baldwin Park and 90002 in Los Angeles at the bottom of the Top 15 list with 30 foreclosures each.

The Palmdale / Lancaster area fortunately was able to share in the downward trend for foreclosures this month, with declines of 50% or more in many of their zip codes. Compared to the August 2008 foreclosures, Palmdale’s zip code 93550 had 196 foreclosures in August vs 98 in October, for a 50% decline. Lancaster’s zip code 93535 had 162 foreclosures in August vs 73 in October, for a 55% decline.

Los Angeles County Foreclosures October 2008

 For Santa Clarita, foreclosures remain relatively low with 100 foreclosures for the entire region. Valencia’s zip code 91355 leads the region in foreclosures with 15 for the month, followed by a tie at 14 for Valencia’s zip 91354 and Canyon Country’s zip 91387. Foreclosures continue to hit the low-to-middle priced homes the hardest, with an average loan of $445,424 for foreclosures in the Santa Clarita area.

Santa Clarita Foreclosures October 2008

If you are behind on your mortgage payments, remember that there are options available to you that may help you to either save your home or at least have less impact on your credit report than a foreclosure would. Ask your lender about the possibility of a loan modification, which would help you to stay in your home, or a short sale, which would allow you to sell your home for less than the current mortgage balance. A qualified Realtor® should be able to help you to work through either of these options. Need help? Call Santa Clarita Realtor® Linda Slocum at 661.670.0349.

Foreclosures and Short Sales, Santa Clarita Real Estate | 3 Comments » November 10th, 2008

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Builders Create Layaway Plans for Homes

Desperate for sales, builders are creating department store copies of layaway plans for prospective homebuyers.

Builder layaway plans will be rolling out shortly, encouraging buyers to commit to new home purchases before they have enough down payment funds to actually purchase the home. Plan names range from “PASSBOOK to the American Dream” from Hovnanian to “Buy & Save” plan from Beazer, but all work basically the same.

These plans are supposed to keep buyers on a ”steady savings track” and “act as a motivational time line” so potential homebuyers can accumulate their down payment funds by saving on a regular schedule. Should you save for a home with a department store Christmas club-like program run by a builder? “We kind of tagged on to that idea,” says Klinger of Hovnanian Mortgage. “We’re saving for a house the old-fashioned way, the way that it was always supposed to be.”

Hmmm… my B.S. detector is spiking out at this point…

First of all, you can save on your own by creating a Christmas club-type account at your bank. If you have automatic payroll deposits, you can have a portion of each paycheck automatically allocated to this account, and voila! you have a home purchase fund that’s fully under your control. Secondly, in California there are still down payment assistance programs through CalHFA. While not available to all buyers, these programs are available to many who will be financing under the various FHA programs. And lastly, why would you want to be committed to a builder for some future build date, unless they’re offering you some sort of additional incentives to do so?

Yeah, I’m a Realtor and I sell homes, but puleeeeze don’t insult my buyers’ intelligence!

If you’re working to save up that 3% FHA-required down payment, here are a few simple steps to help out:

  • Set up a separate bank account as your “House Fund”. You can open an account normally called a Christmas Fund account at your bank, and use it for your house instead. DON’T TOUCH this account, other than for the purchase of your new home!
  • Set up automatic deposits into your House Fund through your payroll department at work. They’ll let you allocate a specific dollar amount or a specific percentage of each check to this new House Fund bank account. If you’re an independent contractor, make a commitment to deposit a certain amount (or percentage) of each check into your House Fund.
  • Monitor ALL of your expenses, including Starbucks and doughnuts, and cut the fat (no pun intended) out of your budget. You’ll be amazed at how much the small things add up! Use a debit card instead of cash so all of your expenses are recorded and easily monitored. You can use Quicken or Money to track your expenses to make this process a lot easier.
  • Set a time line, and work backwards from there. If you want to purchase a home 6 months from now and need a $7,500 down payment for a $250,000 home, how much will you need to save from each paycheck to get there? If you’re starting with $1,000 in savings, you’ll need to save $6,500 in down payment funds, or $1,083 per month. If this is too much for your budget to handle, plan on extending that time line a bit so you won’t end up living off of Kraft Mac ‘n Cheese for the next several months.
  • Talk with a lender about the availability of down payment assistance programs through CalHFA. It could be that you won’t need to save up all those down payment funds after all… wouldn’t that be nice? Your Realtor can help you with the rest… closing costs can often be negotiated as part of the purchase contract, whether you’re buying from the builder or from a regular seller.

Need help figuring this all out? Call me! You can reach me at 661.670.0349 or email me at Linda@SantaClaritaRealEstateBlog.com.

First Time Homebuyers, Santa Clarita Real Estate | 4 Comments » November 5th, 2008

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RIP Jeremiah Finton Lasater: 14-Year-Old Bullied to Death at Vasquez High

Student commits suicide in high school restroom after being tormented and bullied on a daily basis because he was “different”.

Caution: This post may be considered to be controversial by some, as it includes some straight-talk about various types of intolerance. If you think you may be offended, you have five seconds to click away… one… two… three… four…

Students at Vasquez High School in Acton, which sits on the border between the Santa Clarita and Antelope Valleys, got to witness the consequences of bullying and intolerance first-hand this week, when Jeremiah Lasater committed suicide in a school restroom. Jeremiah had apparently reached his limits after being subjected to daily tormenting by his fellow students.

Jeremiah had reportedly been tormented by his classmates in middle school (High Desert School) as well, but it seems the administrators at both schools, the middle school and high school, didn’t see the need to intervene. Why was Jeremiah so “special” that he deserved this treatment? Apparently he was a special-needs student, standing 6 feet, 6 inches tall and weighing nearly 300 pounds. He didn’t fit into the so-called ”norm”, so his classmates went out of their way to make sure he knew that… day, after day, after day… until he finally broke down and took his own life to end his misery.

Says Stan Halperin, Acton-Agua Dulce Unified School District’s superintendent, “We have a zero-tolerance policy, and when we have an incident of bullying or taunting we address it immediately. We call in the parents and follow the policy, which included suspension and following the suspension with a learning pattern to teach the kids that bullying is wrong.” Uh, huh… Other parents have indicated that schools in the Acton area have long been known for not taking enough action regarding bullying on campus. I’ve had calls from parents living in Acton who didn’t want to give up their house and acreage there, but desperately wanted to find somewhere inexpensive in the Santa Clarita Valley to call “home”, at least on paper, so their kids didn’t have to go to their local schools.

So, now the school district is paying for grief counselors for these bullying kids, while Jeremiah’s parents plan for his funeral… What’s wrong with this picture?

This has been a week chock-full of intolerance, as election day is just around the corner and Proposition 8 supporters are gearing up by announcing their intolerance of the gay lifestyle. In my opinion, intolerance is intolerance, no matter how you attempt to justify it. It doesn’t matter what the target is, whether it’s calling a homosexual a “sinner”, referring to a person of color by the “N-word”, calling an overweight person “fatty”, or referring to the low-income Latino women in the Newhall area as “those stroller-pushing mamas”… all of these examples are derogatory and represent an intolerance of those who are different from yourself. And if you’re a parent, your children are likely picking up on this “vibe” and may be using it as a weapon against others in the schoolyard.

The question that many are asking is, “How do our children learn intolerance?” Well, it would seem that they learn it first at home, and then at school from their peers. Not all of us had the luxury of growing up in a household free of intolerance, but we do have the opportunity to make the choice as to whether we’re going to perpetuate that intolerance in our children and in our own lives. Can people change the way they act (and react) around people who are “different” than them? Of course they can! But will they, or will we continue to hear stories of kids either being murdered (as was the 14-year-old in Oxnard recently) or committing suicide as the result of bullying and intolerance?

See if you can catch yourself in the act of being intolerant, and then reflect on whether you really like that type of behavior or not, or if it’s just an old “reaction” that you’d like to change. It can start with something as simple as refraining from giving someone “the bird” when they cut you off in traffic. Think about it… how much do you do on a daily basis that is a result of your earlier “programming”, and how does that fit who you are today? Do you like the way you feel when you’re acting intolerant, or does it leave behind a feeling of anger or resentment that then follows you like a black cloud for the rest of the day? It takes effort to change years of patterning, but it’s definitely possible if you’re persistent.

Fortunately, it seems many of today’s children are choosing to make their own decisions to some extent, often going against their parents’ examples of intolerance, and instead are just accepting people for who they are. Let’s hope that Santa Clarita’s parents and school administrators will quickly learn how to end bullying and tormenting in our schools, instead of turning the other way and acting as if it didn’t happen. We are all aware that administrators and staff on certain campuses will watch bullying happen and do nothing to stop it… it’s time to either reassign or retrain those people so no more parents are burying children who were killed on our school campuses as a result of intolerance.

Editorial | 6 Comments » October 22nd, 2008

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SoCal Home Sales up 65% in September

Homes sales in Southern California area are up 65% for September 2008 as compared to the same period last year.

The good news for the Southern California economy is that homes are selling once again. September 2008 home sales in the Southern California region were higher than in any month since December 2006. and the year-over-year gain was the highest for any month since 1988 according to DataQuick.

Although this increase is astounding, everything must be looked at in context to get the true picture of the real estate market. September 2007 sales represented a record low, since changes in the lending industry had bumped up the rates for jumbo mortgages the month before. And 50% of the homes sold in September 2008 had been foreclosed on sometime within the prior year.

“More impressive was that this September’s sales volume bucked the seasonal norm and rose above August,” says DataQuick president John Walsh. Foreclosure resales by county continues to tell an interesting story, as Riverside County once again tops the list at 68.9%. Los Angeles County is near the bottom of the list this month, with foreclosure sales at 39.1%.

Foreclosure Resales By County for September 2008

County % of Sales Sales Volume for All Homes
Los Angeles 39.1%  6,274
Orange 36.8%  2,667
Riverside 68.9%  4,551
San Bernardino 63.1%  2,831
San Diego 47.3%  3,366
Ventura 44.0%  808
SoCal Region 64.6% 20,497

With the higher level of foreclosure resales comes a decline in prices. The median price for the SoCal region dropped to $308,500, which is the lowest since May 2003. However, the median price never tells the complete story, since it is affected by regional price depreciation, relatively slow high-end sales, and the rising market share of foreclosure resales, which tend to sell at a discount. Also, remember that the Palmdale-Lancaster area continues to dominate the foreclosures in the Los Angeles County region. For 3rd quarter foreclosure (trustee sale) stats, click here.

Foreclosures and Short Sales, Real Estate Market Activity, Santa Clarita Real Estate | 2 Comments » October 21st, 2008

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California Homebuyer Down Payment Assistance Programs are Still Available

California Housing Agency offers down payment assistance to qualified first time homebuyers.

One of the biggest challenges facing first time homebuyers is coming up with enough money for a down payment. Fortunately, first time homebuyers in California may be able to take advantage of the down payment assistance programs offered by CalHFA (California Housing Finance Agency). These programs provide either low-interest or no-interest loans for qualified first time homebuyers to cover their down payment or closing costs, and are considered to be “junior” loans (2nd mortgages). Payments are generally deferred on the 2nd mortgages created by these programs.

Homebuyer Qualifications

  • In order to qualify for the CalHFA down payment assistance program, you must be a first time homebuyer. For purposes of CalHFA, a first time homebuyer is someone who has not owned and occupied their own home during the last 3 years. However, this requirement may not be necessary if you are buying in a Federally-designated Targeted Area.
  • Certain income requirements must also be met for the CalHFA program. For Los Angeles County, the moderate income limits are $90,960 for 1-2 person households and and $106,120 for households with 3 or more occupants. The low income limits are $54,576 and $62,762, respectively.
  • The home purchased must be within certain purchase price limits for the county. For Los Angeles County, the maximum purchase price is $729,750 for most areas, and may be as high as $734,891 for new construction purchases in Targeted Areas.
  • CalHFA down payment assistance funds are only available for owner-occupied homes. You must live in the home for the entire term of the loan, or until the home is sold or refinanced.
  • The homebuyer must meet the lender’s credit, income and loan requirements.
  • The homebuyer must a citizen or other national of the United States or a qualified alien. 
  • The homebuyer must complete homebuyer education counseling and received a certificate of completion through an eligible homebuyer counseling organization. 

Available Down Payment Assistance Programs

Be sure to check with a qualified CalHFA lender for updates to any of the program requirements. As of the time of this writing, the available down payment assistance programs are as follows:

  • Affordable Housing Partnership Program (AHPP)
    • A joint effort by CalHFA and cities, counties, redevelopment agencies and housing authorities. A deferred payment subordinate loan from a locality assists first-time homebuyers with down payment and/or closing costs. 
  • California Homebuyer’s Downpayment Assistance Program (CHDAP)
    • Creates a deferred-payment junior loan of an amount up to the lesser of three percent (3%) of the purchase price or appraised value. 
  • Extra Credit Teacher Home Purchase Program (ECTP)
    • A low interest rate CalHFA first loan, together with a forgivable interest CalHFA junior loan to assist eligible teachers, administrators, staff members and classified employees to purchase their first home. 
    • Amounts range from $7,500 to $15,000, depending on the location of the property, or 3% of the purchase price, whichever is greater. This junior loan is only available when combined with a CalHFA first mortgage loan. Interest on the junior loan is deferred and may be reduced to zero if the borrower meets continued eligibility requirements. 
    • This program may be combined with other CalHFA-approved down payment assistance loans or grants (with the exception of CHDAP) to help in the purchase of the home.
    • In order to qualify for this program, the homebuyer must be employed by a High Priority K-12 public school. High Priority schools are those with API scores in the bottom 50%, have no API scores and 70% of the student are eligible for free or reduced cost lunches, or are county continuation schools. In the Santa Clarita Valley, Bowman High School is the only continuation school.
  • School Facility Fee Down Payment Assistance Program (SFF)
    • A conditional grant program that provides assistance to buyers of newly constructed homes throughout California. 

Finding a Lender

If you’re a first time homebuyer wanting to take advantage of the California down payment assistance programs, you must use a lender who is qualified by the CalHFA. You can search for lenders here for an updated list. Santa Clarita area lenders qualified for these programs include the following:

  • First Mortgage Corp (661) 964-0700
  • Universal American Mortgage (661) 702-0140
  • CTX Mortgage (661) 255-1854
  • Wells Fargo Mortgage (661) 284-6446 and (661) 799-4682
  • Washington Mutual Mortgage (661) 254-8700
  • National City Bank (661) 260-2751
  • Wescom Credit Union (888) 493-7266 x5900

Happy house hunting! If you need a qualified Realtor to help you find your home, please contact Linda Slocum at (661) 670-0349.

First Time Homebuyers, Money Saving Tips, Santa Clarita Real Estate | 2 Comments » October 14th, 2008

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Homesteading as Protection Against Creditors

Homestead protection may save your home and your home equity from unsecured creditors.

Homesteading in California can provide up to $150,000 in protection against creditors who may sue to force you to sell your home to pay the amounts that you owe them. The amounts owed can be as the result of lawsuits, or just from having overextended credit.

There are two types of homesteads available: an automatic homestead and a declared homestead. An automatic homestead protects some of your home equity until you sell your home, as long as you live in the home (you cannot homestead an investment property). A declared homestead can protect your home equity for up to 6 months after you sell your home, as long as you use the proceeds to buy a new home within 6 months and declare a homestead on that home.

Automatic Homestead

An automatic homestead is in place if you live in the home that you own. You do not have to complete any forms, and it protects your home equity until you sell your home. However, an automatic homestead does not provide the same level of protection as a declared homestead. 

A homeowner who is overextended financially and is being dunned by creditors or debt collection agencies should consult an attorney for advice on the need for filing a homestead declaration. If you are in financial trouble, or expect to be in financial trouble, you may want to consider filing a declared homestead.

Declared Homestead

A declared homestead is filed at the County Recorder’s Office on a properly signed and notarized form that you can either buy in an office supply store or download for free. According to the California Department of Consumer Affairs, “A properly prepared and recorded homestead declaration immunizes the home (and the land on which it is situated) from many (but not all) legal enforcement measures. For example, if a homeowner files a petition in bankruptcy, it may be possible, because of a homestead declaration, to retain the home, or at least a portion of the equity in the property, instead of losing it to creditors.”

In other words, if you sell your home voluntarily without a declared homestead in place, the protection of your home equity may be lost. This means that the proceeds of the sale of your home will go to the judgment creditor or creditors rather than to you, the owner, to use in purchasing another home. Remember that you must purchase a replacement home within 6 months and file a declared homestead on that new home in order for your homestead protection to remain in place.

A declared homestead will NOT protect you from foreclosure by your mortgage lender if you are behind in your payments. Nor will it protect you from a mechanic’s lien or if you are behind in child or spousal support. If you are unsure as to how to complete the Homestead Declaration form, you may wish to hire a homestead filing service. By law, these services cannot charge more than $25, including notary and filing services. You can also find various do-it-yourself guides that will provide examples as to how to complete the form.

At the County Recorder’s Office, the documents presented will be reviewed and recorded, with the original document being mailed back to you within 4-6 weeks. The base fee for recording documents is $7 for the first page, and $3 for each additional page. Certified copies can be requested for $6 for the first page and $3 for each subsequent page.

NOTE: The Van Nuys County Recorder’s Office will be closed until November 30, 2008. If you need to file a declared homestead before then, you’ll need to travel to the Lancaster office instead. Documents may also be mailed to: Document Analysis and Recording, P.O. Box 53115, Los Angeles, CA 90053-0115. Be sure to include the proper filing fees with each document to be recorded. For more information, call (562) 462-2125 in Los Angeles County.

How Much Equity Does a Homestead Protect?

A homestead can protect your home from unsecured creditors in the following amounts (there is no difference in amounts for automatic or declared homesteads):

  • $50,000 for an individual;
  • $75,000 if the homeowner lives with at least one family member who has no interest in the house;
  • $150,000 if the homeowner is 65 years of age or older, or is physically or mentally disabled;
  • $150,000 if the homeowner is 55 years of age or older and single with an annual income of $15,000 or less;
  • $150,000 for a married couple with a combined annual income of $20,000 or less.
  • Disclaimer: This information is not intended as a substitute for legal advice. Be sure to consult an attorney if you are having financial difficulties or if you are unsure of the homestead process. If you are considering filing bankruptcy or need assistance with foreclosure prevention, contact attorney Ray Bulaon at 818.243.7745.

    Money Saving Tips, Santa Clarita Real Estate | 5 Comments » October 12th, 2008

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    Homebuilders to Standardize Features and Build Smaller Homes to Increase Profits

    Builders cut home sizes and building costs in hopes of selling more homes and increasing their bottom line.

    KB Home has announced plans to introduce smaller homes with simplified designs in an effort to attract first-time homebuyers and to increase their sagging bottom line. Gone are the McMansions of a few years ago, to be replaced by homes with smaller square footage and less wasted space.

    KB will also be standardizing a lot of features, much as Lennar has already done in the Santa Clarita area. If you visit any of the Lennar homes in the West Hills, West Creek or RiverVillage developments in Valencia, you’ll notice similar cabinets, countertops and flooring in all price levels. The Lennar homes are virtually move-in ready, with designer paint on the walls and refrigerators included (earlier models included washer and dryer as well). KB has been known for the exact opposite… everything was NOT included, with items such as fireplaces and separate tub and shower in the master bath treated as extras, and no designer touches whatsoever without paying an extra fee to their design center.

    Builders can save a lot of money by bulk-ordering a lot of the components used in building a home, such as windows, cabinets, countertops and more. This process can be even more effective by ordering only standard-sized windows, for example, so all homes use the same windows and no extra fees are paid for custom sizes.  Buyers will still be able to visit the KB design center to customize their new homes… the design center will still provide thousands of options for carpet, floor tile and more, and will remain a large profit center for the builder.

    What the smaller homes will be lacking will primarily be the formal living spaces, to be replaced by “flex” space instead. With flex space, the main features of the house, such as kitchens, stairways and plumbing, remain the same, but certain areas can be either added or altered to be used as bedrooms, lofts or dens without adding significant cost to the home. As KB’s president and chief executive Jeffrey Mezger said, “You can’t sit and wait for the market to come back to you. You have to retool your product.”

    I don’t know why builders continue to include the formal living spaces in many homes anyways… these are areas that most homeowners don’t use very often, and many would prefer to have usable square footage instead of rooms that just collect dust. Could it be that the change in the real estate market has also brought about a builder’s reality check in the way that people really use their homes? While some families do use formal dining rooms once or twice a year, the use of formal living rooms have gone the way of the dinosaur for the most part, at least in the Southern California area.

    It’s funny that the home-buying public tends to be brainwashed into thinking that they must have a formal dining room that will accomodate their existing oversized dining room table, even though they haven’t used that table in the last 10 years. Quite an expensive room, and a waste of square footage in many cases, just to house a special table! It’s not uncommon to see single-guy homes where they’ve converted the formal living spaces into screening rooms and home gyms, or to see formal living or dining rooms converted into playrooms in homes with small children.

    The upside to this standardization is that in many cases new home buyers will start out with nicer flooring, countertops and other features than they would if they were required to pay extra in the builder’s design center for these upgrades. The downside is that while the homes are generally nicer overall, they all look pretty much the same. Generic homes will be replacing McMansions, and hopefully consumers will begin to have more control over their discretionary spending as well.

    New Construction, Santa Clarita Real Estate | 2 Comments » October 12th, 2008

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