Here is great news for qualified Santa Clarita First Time Home Buyers! Yesterday March 25, 2010 Gov. Schwarzenegger signed Assembly Bill 183, the Home buyer Tax Credit legislation, into law. AB 183 will provide $200 million for home buyer tax credits, allocating $100 million for qualified first-time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes. The eligible taxpayer who purchases a qualified personal residence on and after May 1, 2010, and on or before Dec. 31, 2010, or who purchases a qualified principal residence on and after Dec. 31, 2010, and before Aug. 1, 2011, pursuant to an enforceable contract executed on or before Dec. 31, 2010, will be able to take the allowed tax credit. The credit is equal to the lesser of 5 percent of the purchase price or $10,000, in equal installments over three consecutive years. Under AB 183, purchasers will be required to live in the home for at least two years or forfeit the credit (i.e., repay it to the state).
The positive impact of the federal home buyer tax credit is clear. Nearly 40 percent of first-time home buyers said they would not have purchased a home if the federal tax credit for first-time home buyers was not offered, according to C.A.R. research conducted last year.
The state's previous home buyer tax credit program was so successful that it ran out of tax credits by the end of June 2009, eight months before it was set to expire and just as housing markets appeared to be turning a corner. Unlike last year's legislation, AB 183 adds a tax credit for the purchase of an existing home by a first-time home buyer.
Here is more money saving information for Santa Clarita First Time Home Buyers. I have posted this information in the past and feel it is very important to keep passing it on.
For Santa Clarita First Time Home buyers this 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 how does it work?
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.
Homestead content derived from Los Angeles County Department of Consumer Affairs website, as a homeowner verify all information.
License numbers 01461940, 01803395
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