For your convenience, I’ve compiled a summary of recent legislation affecting homeowners in Santa Cruz County and California. 

I’ve discovered many people aren’t aware that, if their home mortgage was a Fannie Mae or Freddie Mac, they may be able to refinance into today’s ultra low interest rates, even if their home is underwater!  

HARP – the federal government’s “Home Affordable Refinance Plan” – was criticized for not helping enough people, so they’ve improved it.   The guidelines were scheduled to be delivered to mortgage servicers and lenders by November 15th.   There are some conditions—for example, you have to be current on your mortgage payments, and the mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009.       Check the links below to see if your loan is eligible:

http://www.FannieMae.com/loanlookup/

 or call 800-7FANNIE (8 am to 8 pm ET)

https://ww3.FreddieMac.com/corporate/

or call 800-FREDDIE (8 am to 8 pm ET)

Are you aware that the state of Californiahas funds for homeowners at risk of losing their homes?    The federal government gave the state $2 Billion for the “Keep your Home California” program to help people make their payments, but only $150 million has been granted.   Here’s an article about it, and the phone number: 888-954-KEEP (5337). 

New Loan limits affect buyers and those seeking to refinance:    We’d hoped that Congress would continue to support our Bay Area and Central Coast housing market by approving the extension of the temporary increase in conforming loan limits to $729,000.     But, despite active lobbying by our National Association of REALTORS, congress returned the maximum conforming loan limit to $625,500 *.   “Conforming loans” are those that Fannie, Freddie, and FHA will buy or guarantee, so they tend to carry better terms.   Now, anything above $625,500 is a jumbo loan, often effectively raising the interest rates and required down payment.    This could affect middle to higher end home sales.   Note the maximum loan size varies by locality, so for example inMontereyCounty, it is just under $250,000.

Short Sale Deficiency Judgements ended inCalifornia this July, when Governor Brown signed into law SB 458 (Corbett).     Initially, under SB 931, only senior lien holders (first deed of trust or first mortgage) could no longer pursue a seller for the deficiency between the proceeds of an approved short sale and the amount they had originally loaned; SB 458 extended that to junior lien holders as well.    The law applies to owners of dwellings of 4 units or less.

About 850,000 homes located in High or Very High Fire Hazard Zones may be subjected to an emergency fee imposed by Cal Fire.   Many of the rural homes here in Santa Cruz County could be affected.   The “SRA Fire Prevention Fee” may be as high as $90 to $150 per structure.   Assembly bill X1 29 was signed in August by Governor Brown.

You might be able to get around the fees in several ways: 1- if you already pay a local fire protection fee as part of your property taxes, 2-if you comply with certified fire-safe landscaping and building practices, or 3- if your parcel is in a county jurisdiction having a General Plan Safety Element and regulations that support fire safety.

And finally, as of July 1st, all homes and rental homes that have an attached garage or use a fossil fuel source, are required to have a CO detector under Lowenthal’s SB 183 – the Carbon Monoxide Poisoning Prevention Act.    Carbon Monoxide is an invisible, odorless killer that can result from the burning of certain fuels - including gas, propane, charcoal, kerosene, oil, and wood.     Fortunately, there are affordable monitor/alarms that can be purchased at your local hardware store, Costco, or home improvement stores.    Owners of multi-family units have until January 1, 2013 to comply.     Just call, send me a text or e/mail for a helpful fact sheet from Cal Fire.

**On 11/18/2011, The President signed the Consolidated and Further Continuing Appropriations Act of 2012, allowing FHA conforming loan limits to remain at a maximum of $729,500, depending on the market conditions of the are.