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?

I cannot stress enough the importance of reviewing your current credit history before thinking of purchasing a home and finding derogatory information which may disqualify your purchase or be placed in a higher interest rate. Request your free annual credit report from Experian,  Equifax and Trans Union.

https://www.annualcreditreport.com

Fight identity theft by monitoring and reviewing your credit report. You may request your free credit report online, Free credit reports requested online are viewable immediately upon authentication of identity

What Is Proposition 90?

Under Proposition 90, California property owners who are 55 and over may qualify to transfer the assessed value of their principal residence sold in participating counties.

Qualifications for Proposition 90 are as follows:

1.  The purchaser or spouse must be 55 years of age.

2.  The replacement residence must be equal to or less than the value of the residence sold.

(3) The replacement residence must be located in the same county as the property

being sold OR must be located in one of the counties which have voted to

pass Proposition 90 in order for the real property tax base to be transferred

from the former residence to the replacement residence. Before making plans to move, call the County Assessor’s Office in the county you are moving to and request the most recent information concerning Proposition 90.

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 .

.

.

.

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. 

-

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.

.

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.

.

.

.

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.

Many buyers are taking advantage of the low rates and lower home prices.  The Lowest priced homes are usually Lender Own properties which need some repairs.  Most buyers deplete all their investment funds leaving them with no funds for repairs .  This is where home seller can take advantage in doing the following suggestions to get the most for the sale of their property.  

• Clean it. Home buyers, it turns out, hate dirt more than just about anything else. So, give your home a thorough cleaning from top to bottom. Wash the walls, floors and windows. Rugs should be thoroughly cleaned unless you plan to replace them. Curtains should be washed by hand or taken to a dry cleaner. If you’re not up to the task, spend  a few bucks for a professional cleaning company to do the job right.

• Organize it. If your home looks too small for you, prospective home buyers are going to think it’s too small for them. So, take everything off of your kitchen and bathroom countertops, half the books off your bookshelves and the past season’s clothes out of your closet and pack them away. Not only will your home seem larger, but you’ll have made a good start on packing

for your future move.

• Repaint it.  You will get the biggest bang for your buck by repainting the interior of your home in bright white paint. White walls help home buyers imagine how their own stuff is going to look. If you have wallpaper that’s in good shape, choose a neutral shade of white or off-white to complement it. If your wallpaper is peeling or is dated, strip it off and

start over with paint.

• Mow it and plant it. Most home buyers today will spend about 10 seconds looking at a digital photo of your home on the Internet. If they like what they see, they’ll do a “drive-by” showing. You have approximately 6 seconds to impress them as they drive from lot line to lot line. Make the most of what you have by giving your landscape a power-lift. Trim hedges and trees, plant

colorful flowers, mow the grass and edge your beds. If you’re not up to it, hire a professional landscaper to get the exterior of your home into shape. Then, power wash, touch-up, or repaint the exterior of your home for an irresistible package.

• Fix it. If it isn’t working properly, you could pay dearly when it comes time to negotiate the price of your home. Today’s home buyer just wants to move in and get on with his or her life. So oil the squeaky doors, screw in the knobs, replace the rotting wood lintels, and repair the holes in the porch screen door. The better shape your home is in, the more a home buyer will pay for it

When you sell a stock, you owe taxes on your gain — the difference between what you paid for the stock and what you sold it for. The same holds true when selling a home (or a second home), but there are some special considerations.

How to Calculate Gain
In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate, follow these steps:

1. Purchase price: _______________________ The purchase price of the home is the sale price, not the amount of money you actually contributed at closing.

2. Total adjustments: _______________________

To calculate this, add the following:

• Cost of sale — including inspections, attorney fees, real estate commission, and money you spent to fix up your home just prior to sale.
• Cost of improvements — including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.

.3. Your home’s adjusted cost basis: _______________________

The total of your purchase price and adjustments is the adjusted cost basis of your home.

4. Your capital gain: _______________________Subtract the adjusted cost basis from the amount your home sells for to get your capital gain.
.
A Special Real Estate Exemption for Capital Gains
Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:

• You have lived in the home as your principal residence for two out of the last five years.

• You have not sold or exchanged another home during the two years preceding the sale.

• You meet what the IRS calls “unforeseen circumstances,” such as job loss, divorce, or family medical emergency.

We advise you to consultant a Certified Public Account for more

accurate information on your specific situation.

Going into  

Effective July 1^st 2008

            DRIVER 18 AND OVER

• Drivers 18 and over will be allowed to use a hands- free device to talk on their wireless telephone while driving.
• The new law does not prohibit dialing, but drivers are strongly urged not to dial while driving.
• It is legal to use a Blue Tooth or other earpiece so long as only one ear is uncovered.
• Speaker phone is acceptable to use while driving. The law does not specifically prohibit it its use, but an officer can pull over and issue a citation to drivers of any age if, in the officer’s opinion, the driver was distracted and not operating the vehicle safely. Text paging while driving is unsafe at any speed and strongly discouraged.

      DRIVERS UNDER 18

• No drivers under the age of 18 may use a wireless telephone, pager, laptop, or any other electronic communication or mobile services device to speak or to text while driving in any manner, even hands free.
• The exception is in emergency situation to call police, fire or medical authorities.
• Statistics show that teen drivers are more likely than older drivers to be involved in crashes because they lack driving experience and tend to take greater risks. Teen drivers are vulnerable to driving distractions such as talking with passengers, eating, or drinking and talking or texting on wireless phones, which increase the change of getting involved in serious vehicle crashes.
• Parents cannot grant permission to allow the use wireless telephones while driving.
• For drivers under the age or 18, this considered a SECOND violation meaning that a law enforcement officer may cite you for using a hands- free wireless phone if you were pulled over for another violation. However, the prohibition against using a handheld telephone while driving is a PRIMARY violation for which a law enforcement officer can pull you over.

            Fines

• First offence- $20
• Second Offence - $50

DRIVE SAFELY