Checking crime reports and other important data on your own can help you in selecting a neighborhood to move to.

Many homebuyers are concerned about crime and other safety issues when planning on moving to a new area. While the Santa Clarita area has been listed as one of the FBI’s safest cities for multiple years, you may want to check the specific area that you’re thinking of moving to just to be sure you’re not missing any important information. Shopping for a home is also shopping for a neighborhood, so it’s always a good idea to drive around the neighborhood you’re considering to make sure that it suits your needs and your style.

CrimeReports offers a mapping service that shows all crimes within given timeframes (3, 7, 14 and 30 days are standard) around a specified address. The map above shows crime around my office at 27720 Dickason Drive in Valencia for a 30-day period.

Interesting to note is that many of the crimes reported for this sample area are thefts from unlocked vehicles. Also reported are shoplifting and domestic violence, so you’ll want to look at the details provided to see what types of crimes are present in an area. Incidents are reported by block, not by location, and multiple incidents in an area are indicated by a computer icon. Items marked with a T on the map above are thefts (including shoplifting), TV are thefts from autos (including unlocked autos), A’s are assault (including domestic violence), B is breaking and entering (whether forcible or not), V is the theft of a vehicle. Note that there are no homicides or sexual offenses reported in this sample report.

If you’re looking for homes with a Realtor, there are limitations as to what she (or he) can tell you about an area without getting into potential legal hot water. Realtors cannot tell you the demographics of an area (race, religion, ethnicity) without being in violation of the Federal Fair Housing Act, so if that is a concern to you, it’s best to check the US Census Data on your own. For crime statistics, checking CrimeReports or similar resources would be your best option, since Realtors are not likely to be watching and tracking the police blotters for a given area as well as these reporting services can. For school ratings, you can check out GreatSchools or similar sites, but do watch the results on these because if a name is used more than once in a state in city names or in school names, you’ll often get multiple areas combined (a search for Valencia CA includes the Santa Clarita area plus schools in Fullerton, Laguna Hills, San Francisco, Covina, Pico Rivera, Placentia and more).

Santa Clarita Realtor Linda Slocum is a Certified Distressed Property Expert (CDPE) and Certified Residential Specialist (CRS) specializing in Santa Clarita residential real estate, REOs and short sales. You can reach her at 661.670.0349 or at Linda@SantaClaritaRealEstateBlog.com. To search for Santa Clarita homes, use our neighborhood search tools or visit HoneyStartPacking.com.

Toxic mold has become a controversial issue recently, with many families finding that they have unexplained illnesses that refuse to go away. To make this worse, many property insurance companies have amended their policies to exclude any mold-related claims, so it’s up to the homeowner to both find and fix mold issues on their own dime.

Mold is one of the organisms that makes biotoxins which can create a whole host of neurotoxic illnesses commonly accepted as fibromyalgia, chronic fatigue syndrome, irritable bowel syndrome, multiple chemical sensitivity and other ‘mystery’ illnesses. Other oganisms that may create biotoxins include some algae, Lyme disease spirochetes, recluse spiders and some seafood contaminants. Not all toxic molds are ‘black molds’, it’s just that the black molds have received more media hype than other types of molds.

Not all molds are potentially hazardous either - typically molds that grow on food or naturally outdoors are harmless unless you have specific allergies. The molds growing inside homes and buildings are of concern though, since as they break down the structure of your home they also create a host environment for a lot of other nasties to grow in.

A gourmet lunch for a mold organism is the cellulose found in the paper and wood products to build most homes. Happily feasting mold spores will reproduce and send their offspring out into your home, creating even more of a toxic environment. Mold colony counts of 250,000 per square inch aren’t unusual, and each of these can make 1,000 spores and each spore can create 1,000 molecules of toxin. Whew! That’s a lot of toxicity in an little tiny mold colony!

What do you do if you suspect there may be mold in your home? You could start with one of the handy (and inexpensive) test kits above, and then you can either hire a professional to test your home if it appears that you have mold issues, or you can use clear Scotch tape to take samples and mail them off for testing on your own. This will at least let you know whether mold in your home could be a contributing factor in your family’s health. However, remember mold exposure can occur at work and at school as well!

Remediation is not easy, since if it finds moisture in your home, mold has everything it needs to happily reproduce without predators to keep it in check. Apparently even if you kill the ‘parent’ fungi, the ‘children’ (or spores) can live on for years! And mold spores can hide literally anywhere, from the papers in your filing cabinets to your favorite TV chair.

Experts say that splashing some bleach on the mold or painting over contaminated drywall or plywood will do virtually nothing to eliminate the mold problem in your home. Expert remediation is generally needed, which of course doesn’t come cheap.

Clearly the best way to ‘treat’ mold is to avoid it in the first place. Fix water leaks right away, and air out your home on a regular basis so it doesn’t get too stale and damp inside. The book Mold Warriors is also worth reading if you think that you have mold problems.

Home buyers must meet deadlines, income limits and purchase price limits to qualify for tax credits.

Now that the Feds have approved the extension and expansion of the first-time homebuyers tax credit, many homebuyers are wondering how this will affect their next home purchase. For first-time homebuyers, this is basically an extension of the prior credit. For move-up buyers, this credit is available for homes purchased starting November 7, 2009.

How much can a homebuyer expect as a refund from the tax credit?

• First-time homebuyers may qualify for up to an $8,000 tax credit.
• Move-up (existing) homebuyers may qualify for up to a $6,500 tax credit.
• The maximum purchase price allowed is $800,000 under the new provision. There was no maximum purchase under the prior provision, which expired November 6, 2009. Those who purchased homes on or before November 6 will fall under the rules of the old provision.
• The tax credit is calculated as 10% of the home’s purchase price, subject to the above provisions.

Who qualifies for the tax credit?

• First-time homebuyers include those who have never owned a home as their principal residence as well as those who haven’t owned a home as their principal residence for the last 3 years.
• Move-up homebuyers must have owned and occupied their homes as their principal residence for at least 5 consecutive years of the last 8 years in order to qualify for the credit. They do not need to be currently occupying the home as long as this requirement is met.
• For move-up homebuyers, there is no requirement for them to purchase a higher-priced home in order to qualify for the credit.

Are there income limits that must be met to qualify for the tax credits?

• Single homebuyers with incomes up to $125,000 and married couples with incomes up to $225,000 may receive the maximum tax credit, depending on the purchase price of their home.
• For homebuyers with incomes in excess of these limits, the credit decreases for homebuyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for homebuyers filing jointly.
• For single homebuyers with income in excess of $145,00 and married homebuyers with income in excess of $245,000, the homebuyer credit is phased out completely.
• First-time homebuyers who purchased prior to November 7 will need to meet the income restrictions as stated in the original 2009 first-time homebuyer tax credit. Prior limits were $75,000 for singles and $150,000 for married homebuyers.

How long do homebuyers have to take advantage of the credit?

• First-time homebuyers and move-up homebuyers will have until April 30, 2010 to have a purchase agreement accepted and until June 30, 2010 to complete their purchase and close escrow.
• For purchase agreements entered into prior to November 7, 2009 the new credit provisions will apply as long as escrow closes on or after November 7. There is no provision mentioning the contract date of the purchase agreement.

Does the homebuyer tax credit need to be repaid?

• Homebuyers who retain their homes as their principal residences for 3 years or more will not have to repay the tax credit.
• Homebuyers sell their homes within 3 years of their purchase will need to repay the tax credit upon the sale of the home.

If you’re thinking of buying a home in the Santa Clarita Valley in time to meet the tax credit deadlines, don’t let the ’slow season’ pass you by! Typically there are fewer buyers as we head into the holiday season, which means less competition for homes and quite likely lower prices than we’ll see once the buying season heats up again after the New Year.

Santa Clarita Realtor Linda Slocum is a Certified Distressed Property Expert (CDPE) and Certified Residential Specialist (CRS) specializing in Santa Clarita residential real estate and short sales. You can reach her at 661.670.0349 or at Linda@SantaClaritaRealEstateBlog.com. To search for Santa Clarita homes, use our neighborhood search tools or visit HoneyStartPacking.com.

Borrowers who don’t qualify for other loan workout programs to be offered new Deed for Lease option.

Fannie Mae has announced a new Deed for Lease Program (D4L) where distressed homeowners who cannot qualify for other loan workout solutions will be able to trade their deed for a market-rate lease. While this seems just peachy on the surface, in many areas this may mean HIGHER payments for many borrowers, where lease rates are higher than what their modified mortgage would be.

In order to qualify for the program, homeowners must be able to show that they can make the lease payments by documenting that the monthly rental is no more than 31 percent of their gross income. Huh… seems if they could do that, then they probably wouldn’t be in trouble with their mortgages in the first place, especially in high-rent areas like the Santa Clarita Valley!

The property itself must also qualify for the D4L program, with the following limitations:

• If there are expensive repairs to be done, the property may not qualify for the program.
• If the HOA or zoning in an area prohibits rentals, then Fannie Mae will not be able to rent the home back to the current homeowner. Seems if there is already a tenant in the property in violation of the HOA or zoning rules, then the tenant would automatically be evicted.
• Fannie Mae may opt to forego the rental option if the market rent is not enough to cover ongoing maintenance and management costs.

For the homeowner or current tenant to qualify for the D4L program:

• Homeowner or tenant must be able to document that the proposed rent is no more than 31 percent of their gross income.
• Property inspections must show that the homeowner or tenant are maintaining the home in good condition. [Many distressed homeowners allow homes to fall into disrepair, allowing children to do things like using Magic Markers on the walls.]
• The occupants signing the lease must agree to a credit review and all occupants over the age of 18 must have an acceptable background check, including receiving clearance from the Office of Foreign Assets Control (OFAC)
• There must be no signs of criminal activity in the house. [I'm assuming this means drugs?]
• The home must be used as the homeowner’s or tenant’s primary residence.

It appears that this program is more geared towards keeping tenants in investment properties than it is to keep homeowners in their homes, since tenants are often displaced without much notice when the bank forecloses on a rental property. The new Fannie Mae leases will be for 12 months, with possible extensions on a month-to-month basis after that.

Fannie Mae’s VP Jay Ryan says of the Deed for Lease program, “This new program helps eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period, and helps to stabilize neighborhoods and communities.”

The initial concept of this program was released in January 2009, and at that time it appeared that the properties would be foreclosed upon and that the maintenance of the rental properties would fall on the Realtors® assigned by the bank to handle those REOs. The new wording appears to indicate that Fannie Mae would be responsible for hiring management companies to handle the T&T’s (tenants and toilets) instead.

So who benefits from this new program? Likely the existing tenants will to some extent, at least if they are already paying rent at near-market rates and they’re keeping the properties in good condition. Seems the biggest winners in the D4L program will be the management companies selected to maintain this new crop of rental properties.

Measure extending first time homebuyer credit expected to be signed by the President this Friday.

The House passed the measure to extend and expand the first time homebuyer tax credit today by a vote 403 to 12, following the Senate’s unanimous approval yesterday. The measure now heads to President Obama’s desk, who is expected to sign it tomorrow (Friday).

This new measure extends the existing $8,000 credit for first time homebuyers and adds an additional credit of $6,500 for move-up buyers who have owned their current homes for 5 years or more.  The deadline for these credits is now June 20, 2010 for homes that have purchase agreements in place by April 30, 2010. Taxpayers may claim their credit for 2010 purchases on their 2009 tax returns, and they don’t need to repay any portion of this credit if the home remains as their primary residence for at least 3 years.

For more details on the first-time and move-up homebuyers tax credits, go here.

First time homebuyer tax credit has been extended, and now includes a credit for move-up homeowners.

The Senate has unanimously voted to extend the first time homebuyers tax credit, and expand it to include many current homeowners as well. The House is expected to vote on this measure as early as this morning, and if passed, it will go to the President for his signature.

The updated tax credit will remain at a maximum of $8,000, with an added incentive of  $6,500 for move-up homeowners who have been in their current residences for five years or more. The qualifying income limits have been set at $125,000 for single taxpayers and $250,000 for joint taxpayers, and the maximum home price allowed for the credit is $800,000.

To qualify for this updated credit, a homebuyer must have an accepted purchase agreement by April 30, 2010 and complete the purchase by June 30. For military personnel deployed overseas for 90 days or more in 2008 or 209, the credit has been extended to April 30, 2011.

The measure was attached to a bill that would provide 20 weeks of unemployment benefits in states with jobless rates above 8.5 percent and up to 14 weeks elsewhere. This bill would also allow businesses with operating losses in 2008 and 2009 to request refunds for federal income taxes paid for the last five years.

Santa Clarita Realtor Linda Slocum is a Certified Distressed Property Expert (CDPE) and Certified Residential Specialist (CRS) specializing in Santa Clarita residential real estate and short sales. You can reach her at 661.670.0349 or at Linda@SantaClaritaRealEstateBlog.com. To search for Santa Clarita homes, use our neighborhood search tools or visit HoneyStartPacking.com.

Santa Clarita’s Six Flags Magic Mountain will add its 17th roller coaster in 2010.

Six Flags Magic Mountain in Valencia has announced that it will add a new family-oriented roller coaster to its offerings in 2010, bringing the total number of roller coasters at Magic Mountain to 17. This will keep them tied for the title of “roller coaster capital of the world” according to Roller Coaster Database.

The newly announced roller coaster has not been named yet, but is expected to open in early summer 2010 at the northwest corner of the park, adjacent to Terminator® Salvation™:  The Ride. Six Flags Magic Mountain has also announced lower Play Pass (season pass) rates for 2010, priced at $54.99 with no blackout dates. 

The logo and name for the new family coaster are expected to be announced in November 2009. This coaster will join rides like Canyon Blaster that are designed for parents and young children to enjoy together.

Why is this important to Santa Clarita residents? Well, first off, the Magic Mountain theme park is one of Santa Clarita Valley’s biggest employers. In addition, the threat of a sell-off of the park to residential developers seems to be completely laid to rest, with the addition of this new roller coaster as well as the recently opened Terminator® Salvation™:  The Ride.

Santa Clarita Realtor Linda Slocum is a Certified Distressed Property Expert (CDPE) and Certified Residential Specialist (CRS) specializing in Santa Clarita residential real estate and short sales. You can reach her at 661.670.0349 or at Linda@SantaClaritaRealEstateBlog.com. To search for Santa Clarita homes, use our neighborhood search tools or visit HoneyStartPacking.com.

How short sales and foreclosures affect your credit report and FICO scores.

Both short sales and foreclosures have negative impacts on borrower’s credit reports, but a foreclosure is much more difficult to recover from. After a foreclosure, it will also take considerably longer to restore your credit rating once your financial difficulties are resolved than it would with a short sale.

Foreclosures, Including Deed-In-Lieu Foreclosures

Expect a loss of between 200-280 points on your FICO scores. A pre-foreclosure FICO of 675 could drop to as low as 395, essentially eliminating you from future credit approvals. It may be as long as three years before you can qualify for another home loan.

Short Sales

Expect some credit score damage, but nowhere near as much as with a foreclosure. FICO score reductions will be around 75-125 points and your credit report will show it as a ‘pre-foreclosure in redemption’ which is far less negative than a foreclosure. You will most probably be able to secure a new home loan in about a year and a half.

If you are considering a short sale, be sure to discuss your options with both your lender and a qualified Realtor. Choosing a Realtor who is a Certified Distressed Property Expert (CDPE) to handle your short sale will help to streamline the process for you. The short sale process can be quite convoluted, and selecting the right Realtor to represent you can be critical in both getting your short sale approved and in reducing your stress levels during the short sale process.

Santa Clarita Realtor Linda Slocum is a Certified Distressed Property Expert (CDPE) and Certified Residential Specialist (CRS) specializing in Santa Clarita residential real estate and short sales. You can reach her at 661.670.0349 or at Linda@SantaClaritaRealEstateBlog.com. To search for Santa Clarita homes, use our neighborhood search tools or visit HoneyStartPacking.com.

House and Senate agree to extend Fannie Mae, Freddie Mac and FHA loan limits through 2010.

Federally-funded home loan limits were temporarily increased in 2008, with limits up to $729,750 for high-cost areas. That increase was set to expire at the end of this year, which would have dropped the size of loans eligible for GSE and FHA funding to $625,500, so both the House and the Senate have agreed to extend the higher limits through December 31, 2010.

In California, more than 80 percent of all loans are financed by Fannie Mae, Freddie Mac, or Federal Housing Administration (FHA) loans and many California regions have the higher $729,750 loan limit in place. The extension of the higher loan limits for these federally-funded loan products is expected to help maintain the positive signs we are now seeing in California’s mortgage market.

According to Robert E. Story, Jr., chairman of the Mortgage Bankers Association (MBA), ”Given the lack of a private secondary mortgage market, FHA, Fannie Mae, and Freddie Mac are pretty much the only game in town. Extending the current loan limits through 2010 will allow more loans to qualify for these important programs and will help keep mortgage credit more accessible and affordable for qualified borrowers.”

Tax credit to be expanded to include all buyers, with close dates as late as June 30, 2010.

Senate leaders have apparently reached a tentative agreement to both extend and expand the federal first time homebuyers tax credit, which as written will extend the credit to include current homeowners as well.

The Senate agreement provides for an extension of the credit to home purchase contracts signed by April 30, 2010 and closed by June 30, 2010. The credit amount would be a maximum of $8,000 for first time homebuyers (as it is currently) and up to $6,500 for current homeowners who trade up to a larger primary residence. It would be phased out for home purchases over $800,000 and for single buyers who earn over $125,00o per year or marrieds earning over $225,000 per year. For current homeowners, the credit would only be available to those who have owned their current homes for at least 5 years.

Santa Clarita homebuyers have been holding their breath hoping for this extension, since the likelihood that they could close on time for the current deadline is close to zero unless they’ve already found a home and are in escrow with regular sellers or with approved short sales. This new proposal isn’t finalized yet though, and chances for it getting rapid approval are increased if it is attached to another existing bill up for approval, such as the bill to extend unemployment benefits. So, if you haven’t contacted your Senator yet regarding this issue, be sure to call or email to express your viewpoint.

Santa Clarita Realtor Linda Slocum is a Certified Distressed Property Expert (CDPE) and Certified Residential Specialist (CRS) specializing in Santa Clarita residential real estate and short sales. You can reach her at 661.670.0349 or at Linda@SantaClaritaRealEstateBlog.com. To search for Santa Clarita homes, use our neighborhood search tools or visit HoneyStartPacking.com.