The Homestead Law is technical in nature and complex in its application. A Declaration of Homestead, which is not

properly prepared, may be invalid. The following is for general informational purposes only and should not be considered legal advice. We therefore suggest that you contact an attorney for any legal advice on your specific situation.

What is the purpose of the homestead exemption?

The homestead exemption gives you rights against many debts you might incur through accident, illness or misfortune. However, there are limitations and exceptions. The policy underlying homestead laws is to provide a place for the family where they may live free from the anxiety that it may be taken from them.

How does the homestead exemption work?

Example: If the market value of your home is $120,000 and you have a first mortgage or deed of trust of $65,000 and a second mortgage of $25,000, you have an equity of $30,000 in your home. The homestead exemption protects this equity against creditors.

What is a judgment lien?

When you owe someone money he is considered your creditor. If a creditor sues and wins a judgment against you, he can file a lien against your home. The homestead exemption is protection against such liens.

What kind of property is covered?

A house, a condominium, a duplex, a mobile home, a community apartment project, or a planned development.  Who is eligible for this homestead exemption? Every homeowner who resides in his or her home is entitled to this protection. A person can only have one valid homestead at a time.

Who may file a Declaration of Homestead?

Every homeowner may file. A homestead will remain in effect until the house is sold, or the homestead is abandoned by recording an Abandonment of Homestead.  Are their limits to the amount of equity protected?  Yes, for married couples, or single parents with dependents living at home the homestead exemption is $75, 000; unmarried individuals, $50,000. For persons 65 years or older, or for persons physically or mentally disabled, the exemption limit is $100,000.

What situations are not covered by the homestead exemption?

Judgment liens recorded before you have recorded your Declaration of Homestead will attach to the house. Loans or debts secured by the property (mortgages, deeds of trust, etc.) are not covered by the homestead exemption. When you voluntarily put up your home as security against a debt, a homestead will not protect it. When a contractor or laborer puts labor or materials into repairs or improvement on your property, and you do not pay him, the homestead exemption will not protect against the mechanic’s lien. Tax liens by federal, state and local governments.

Can I remove the homestead exemption if I want to?

Yes. You can remove the homestead exemption at any time by filing a form called Abandonment of Homestead. Also, if you were to record a homestead on another property, it would remove the homestead on the first property. When you sell your home, the homestead on it is automatically removed.

info@WeSpeakRealEstate.com   for more questions?

Be prepared, by being buyer ready in these times of multiple offers we suggest the following:

Consult a loan officer to give you a “good faith estimate” (make sure you get a copy of your credit report)

A good faith estimate will show an itemized estimate of all fees involved in closing the mortgage loan

Receive a qualification letter from the loan officer.

Do not disregard an “as is” purchase. Most purchase agreements allow an inspection time frame.

Bank owned properties in many occasions just need paint, carpet, and minor maintenance.

The U.S. Department of Housing and Urban Development (HUD) has chosen Pemco Ltd. to administrate property management and sale of all HUD Homes in the states of Georgia, California, Hawaii, Guam and the

This site will help with the search of HUD homes for sale. Big Blue House Real Estate Sales in Downey California www.bbhrealestate.com is an authorized agent to represent buyers of HUD homes in California. Using a real estate broker is a very good idea. All the details involved in home buying, particularly the financial ones, can be an abundance of choices.  A good real estate professional can guide you through the entire process and make the experience a simple one. A real estate broker will be well-acquainted with all the important things you’ll want to know.

You will also find information on special programs offered by HUD, such as the Good Neighbor Next Door (GNND), Disaster Evacuee, and Non-Profit programs Marianas Islands.

HUD homes and is good buy. When a HUD insured mortgage becomes a lender foreclosed home; HUD pays the lender what is owed; and HUD is now the owner of the home. Then it is priced at value to move as quickly as possible. Read all about buying a HUD home on Pemco’s website. Check out listings of HUD homes and homes being sold by other federal agencies office or your county executive’s office.

To search for HUD properties available go to www.hudpemco.com .

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Here are some key interest rate change indicators for your information. 

For current listing or current solds in your area - we invite to visit our website at

www.WeSpeakRealEstate.com. 

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Things that may raise interest rates.

Consumer Price Index Rises

Indicates rising inflation.

Durable Goods Orders Rise

Pickup in business activity usually leads to increased credit demand.

Housing Starts Rise

Shows growth in economy and increased credit demand. Fed tightens money supply by

raising rates.

Leading Indicators Up

Signals strength in the economy leading to greater credit demand.

Personal Income Rises

The higher one’s income, the more consumed, prompting higher prices of debt securities.

Producer Price Index Rises

Indicates rising inflation. Demand for, and prices of, goods rises.

Retail Sales Fall

Indicates stronger economic growth. Fed may tighten money supply.

What will lower interest rates?

hat May Raise Interest Rates

Gross National Product Falls

Reflect a slowing national economy. Fed loosens money supply by lowering rates.

Industrial Production Falls

Indicates slowing economic growth. Fed loosens money supply by lowering rates.

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Inventories Up

Indicates a slowing economy since sales are not keeping up with production.

Oil Prices Fall

Reduces upward pressure on interest rates, thereby enhancing prices of debt securities.

Precious Metal Prices Fall

Reflects decreased inflation. Demand for inflation hedges falls.

Unemployment Rises

Indicates stronger economic growth. Fed may tighten money supply.

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These are customary charges and in the case of FHA

(search for FHA info in our blog) loans “sellers” will have to pay

non-allowable buyer cost.  Many buyers request concessions

for closing cost.  A seller can credit a buyer with up to 3% of

purchase price for closing cost.  For FHA loan it can go up

to 6% closing cost.   In the case of seller’s competing with

bank own properties, these can be a plus for you.  Most

lender own properties and short sales will not allow for

such concessions.  

The Seller Generally Pays:

• Real estate commission

• Document preparation fee for deed

• Documentary transfer tax

• Any city transfer/conveyance tax (according to contract)

• Payoff of all loans in seller’s name (or existing loan balance-

  if being assumed by buyer)

• Interest accrued to lender being paid off, statement fees, -

  reconveyance fees and any preparation penalties

• Termite inspection (according to contract)

• Termite work (according to contract)

• Any judgments, tax liens, etc., against the seller

• Tax proration for any taxes unpaid at time of transfer of title

• Any unpaid homeowner’s insurance

• Recording charges to clear all documents of record against seller

• Any bonds or assessments (according to contract) Any and-

  all delinquent taxes

• Notary fees

• Escrow Fees

• Title insurance premium

The Buyer Generally Pays:

• Title insurance premium

• Escrow fee

• Document preparation (if applicable)

• Notary fees

• Recording charges for all documents in buyer’s name

• Termite inspection (according to contract)

• Tax proration (from date of acquisition)

• Homeowner’s transfer fee

• All new loan charges (except those required by lender for-

  seller to pay if applicable)

• Interest on new loan from date of funding to 30 days prior to first    payment date

• Assumption charge of records fees for takeover of existing lon

• Inspection fees (roofing, property inspection, geological, etc.)

• Home warranty (according to contract)

• City transfer/conveyance tax (according to contract)

• File insurance premium for first year

The distinction between personal and real property can be the source of difficulties in a real estate transaction. A purchase contract is normally written to include all real property; that is, all aspects of the property that are fastened down or an integral part of the structure. For example, this would not include potted plants, free-standing refrigerators, washer/dryers, microwaves, bookcases, swag lamps,

etc. If there is any uncertainty whether an item is included in the sale or not, it is best to be sure that the particular item is mentioned in the purchase agreement as being included or excluded.

We invite you to our www.infobankrepo.com 

Want a good deal?  Let us help you.

It is one of the best times to

buy a home.  Interest rates

are at their lowest and

properties are at their lowest

Give it a try!  You won’t know

until you try.

info@WeSpeakRealEstate.com

1. Select a REALTOR® & establish a relationship

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Find a full time, professional REALTOR® with extensive market knowledge. They will work closely together with you to find the right home.

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2. Initial consultation with your REALTOR® to evaluate your needs

and resources.

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Once your needs are established, your Realtor® will provide guidance to financial institutions where you can obtain information in order to get the best financing available. You will discuss your needs and analyze your resources.

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3. Identify property to buy

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You will be shown homes based upon the criteria that you establish. The more precise and direct you are with your Realtor®, the more successful your search will be.

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4. Determine Seller’s motivation

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Once you have found the home that you wish to purchase, your Realtor® will do the necessary research to help you structure an effective offer.

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5. Write offer to purchase

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Your Realtor® will draft the Purchase Agreement for you, advising you on protectivecontingencies, customary practices, and local regulations. At this time you will need to provide an “earnest money” deposit, usually from 1 to 3% of the purchase price (the deposit is not cashed until your offer has been accepted by the Seller).

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6. Presentation of offer

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Your Realtor® will present your offer to the Seller and the Seller’s agent. The Seller has three options: they can accept your offer, counter your offer, or reject your offer.  Your Realtor’s® personal knowledge of your needs and qualifications will enable them to represent you in the best way possible.

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7. Seller’s response

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Your Realtor® will review the Seller’s response with you. Their negotiating skills and knowledge will benefit you in reaching a final agreement.

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8. Open escrow

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When the Purchase Agreement is accepted and signed by all parties, your Realtor® will open escrow for you. At this time your earnest money will be deposited. The escrow or title company will receive, hold and disburse all funds associated with your transaction.

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9. Contingency period

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This is the time allowed per your purchase Agreement to obtain financing, perform inspections, and satisfy any other contingencies to which your purchase is subject. 

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-Typical contingencies include:

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* Approval of the Seller’s Transfer

* Approval of the Preliminary Report from the Title Company

* Loan approval, including an appraisal of the property

* Physical inspections of the property

* Pest inspection and certification

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10. Homeowner’s Insurance

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Your Realtor® will coordinate between your Insurance Agent and the Escrow Officer to make sure your policy is in effect at close of escrow.

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11. Down payment funds

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You will need a Cashier’s Check or money transfer several days prior to the closing date of escrow.

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12. Close escrow

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When all of the conditions of the Purchase Agreement have been met, you will sign your loan documents and closing papers. You will deposit the balance of your down payment and closing costs to escrow and your lender will deposit the balance of the purchase price.  The Deed will then be recorded at the County Recorder’s office and you will take ownership of your home.

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Congratulations!

Free admission and seminars at the Los Angeles convention center April 12-13 2008 hours of 9 a.m. to 6 p.m. topics of interest include how to buy a home, how to monitor and fix your credit, how to avoid mortgage fraud, how to buy a home in foreclosure, how to invest in real estate, understanding the home inspection process, first- time home buyer assistance programs. This is a great forum for any one with concerns about the buying process. A first time buyer or first time investor may avoid future pitfalls by obtaining some helpful information.

Zero Down Program

If you qualify for a mortgage but are still lacking the funds to meet the minimum down payment the HART program may interest you. First the seller must participate in the program for buyer to receive the Hart funds and help support future homebuyers. The seller makes a contribution to the HART program after closing. The Amount of the funds from seller is equal to the amount gifted plus the HART processing fee. The contribution made to the HART Program is not a charitable income tax deduction. The HART funds will be gifted to the buyers down payment of an owner occupied property.

Chain of events

The buyers agent retains seller participation and prepares the purchase agreement.

The agreement shall be written to include the clause “ Buyer and seller agree to participate in the HART Program. The seller agrees to give $ (XXX) to the Hart program.”

The Sellers amount will equal to what the buyer’s HART Gift will be plus a processing fee.

The purchase agreement is fully executed and a loan originator will complete the process.

A loan originator will crunch the numbers and determine loan costs.

 Loan originator then request letter of gift funds from HART.

The HART processing department reviews the request and sends the gift letter to the loan originator.

Upon receiving the letter the loan originator contacts the settlement agent.

The settlement agent then sends the estimated closing statement to HART funding department.

Sellers non-income tax deductible contribution is sent to HART after the final closing of the transactions.

Looking to improve your credit score or maintain a high fico score. Understand how Equifax, TransUnion, Experian.  Rate your credit and generate a fico score.

35%Payment History- Do you pay on time?

30%Amount owed-Balances close to the credit limit.

15%Length of credit- How long have you had credit?

10%New credit-Do you have to much new credit?

10%Type of credit-Mortgage, credit, installment loans.

Three percent down (3%), Private Mortgage Insurance (PMI), seller can provide you  with up to 6% closing cost credit.