Dave and Patricia Zumbrun

Only time will tell us whether the new Homeowner Affordability and Stability Plan (HASP) will help the housing market in Ventura County. It is well known that the housing market in most areas of California has been hard hit by the high number of foreclosed homes, which has impacted home values. The Homeowner Affordability and Stability Plan offers both refinancing and loan modification options for homeowners. However, the plan may not be helpful to Ventura County home owners who owe more than their house is worth in today's market.

Homeowners do not need to be delinquent on their home payments to take advantage of the plan's refinance option. However, the homeowner cannot owe more than 105% of the home's value. If you have both a first and second mortgage, the 105% cap applies to the first mortgage only. So, even though there is a second mortgage, you can still qualify. Here is an example of what the 105% cap looks like in numbers: a home that is valued at $300,000 and has a loan balance in excess of $315,000 will not qualify.

If you can meet the 105% cap restriction, the refinance program may be a great option for you. Loans are being offered with interest rates as low as 2% for five years. At the end of the five year term, the loan will adjust to a fixed interest rate of 5%.

Homeowners current on their mortgage or behind in payments may apply for a refinance loan. To qualify, the property must be the homeowner's principal residence. You must show proof that you will be able to afford the new payments. Your home must have been purchased before January 1, 2009. In addition, your loan must be owned by Fannie Mae or Freddie Mac. To determine whether you are able to take advantage of the refinance program, contact your lender. The refinance program expires June 2010.

We are still being asked about the new tax credit made available in the American Recovery and Reinvestment Act 2009. So, today, I am going to post some helpful information regarding the tax credit. The tax credit of 2009 differs from the tax credit of 2008 in three major ways. First, it is for a larger amount: $8,000 versus the previous credit of $7,500. Second, the tax credit is refundable. Third, a repayment of the tax credit is not required (restrictions apply).

Tax Credit:

* The tax credit is based on the sale price of the home purchased. Therefore, the maximum tax credit is $8,000. The median sales price for Ventura County was reported as $382,590 (January 2009). The tax credit for a home based on this price would be an approximate $3,820.
* The tax credit does not have to be repaid.
* The tax credit is refundable. If the amount you owe at tax time is less than the tax credit, the difference will be refunded to you.
* The tax credit is interest free.
* The tax credit is not a tax deduction. It is a dollar-for-dollar reduction in taxes.
* The tax credit only applies to homes which are the owner's principal residence.
* The tax credit is applied to any home purchased, new or resale, including foreclosed properties.
* The tax credit does not restrict the home purchase to single-family homes. Condos, townhouses, manufactured homes and houseboats also qualify.
* The tax credit applies to homes which you built in 2009 on land you already own or purchase for construction.
* The tax credit is available to first-time home-buyers who purchase a home in 2009. The home must close escrow no later than November 30,2009.
* The tax credit may be applied to your 2008 taxes. Please consult with your tax advisor.
* The tax credit must be paid back if the home is sold within the first three years of the date purchased.
* The tax credit must be paid back if the home is no longer your principal residence within the first three years.

Who qualifies:

* The home buyer must be a first-time buyer. A first-time home buyer is defined as anyone who has not owned a home in the last three years.
* Your income must be $150,000 or less if you are married or $75,000 or less if you are single.
* First-time home buyers whose income exceeds the $150,000/$75,000 income level may also qualify for a lesser tax credit. A couple making $160,000 would still qualify for a $4,000 tax credit. Please check with a qualified tax advisor if your income level exceeds $150,000/$75,000.
* First-time home buyers who are nonresident aliens (as defined by the IRS) are also eligible for the tax credit.

Note: If you are claiming the tax credit passed in 2008, the original terms still apply and the tax credit must be repaid. The $7,500 tax credit applies to homes purchased between April 1 and December 31,2008.

Ventura World War II hero Darrel Larsen was awarded the Legion of Honor Medal in a ceremony held in Montecito yesterday. The medal was presented by the French Consul General, David Martinon. The National Order of the Legion of Honor medal is the highest honor the country of France can bestow on a non-French citizen. Darrel Larsen is also the recipient of two Purple Hearts, five Air Medals and two Distinguished Flying Crosses.

Darrel Larsen was a technical sergeant in the U.S. Air Force during World War II. Larsen was shot down over Normandy's Falaise Gap in August of 1944. He was captured and imprisoned as a prisoner of war by the Germans. While being moved from a German prison camp in March 1945, Darrel Larsen escaped. Mr. Larsen walked for more than 70 days to freedom. He would sleep wherever he could during daylight hours and travel at night. During his flight, he was helped by German resistance fighters.

Darrel Larsen attended Ventura High School before joining the United States Army Air Corps. After the war, Mr. Larsen returned home to Ventura. He married Geraldine Orrell and had two daughters. He also attended Ventura College. In 1951, he graduated from California Polytechnic State University.

Mr. Larsen has owned several businesses in Ventura County, two of which you may be familiar with: the Wagon Wheel Restaurant (Oxnard) and Murphy's Tavern (Ventura). Mr. Larsen also served the Musician's Association of Ventura County Local 581 as president. Darrel Larsen is now 86 years old and is still a Ventura resident.

We thank Mr. Larsen for his contribution and bravery during the dark days of World War II and honor him as a national hero.

Dave and Patricia

The City of Santa Paula and Fillmore have established a banner program to honor local residents currently serving and protecting our country in the Armed Forces. The banners have been created to show the appreciation and support for the members of their communities who are sacrificing so much to keep Americans safe and free. The banners are emblazoned with the name of the active duty armed forces member and their branch of service. The banners are displayed on the light poles along 10th Street in Santa Paula and on Central Avenue in Fillmore.

The program was initially begun in the City of Walnut in Northern California. Mayor Bob Gonzales of Santa Paula proposed the program to the City Council after visiting Walnut and seeing similar banners displayed. The City of Fillmore was so impressed by the idea of the banner program proposed by Mayor Gonzales that they initiated one of their own.

Applications must be completed by family members (or friends) who would like to have a banner created to honor their loved one. Santa Paula is offering the banners free of charge through the donations received from other community members. Fillmore is offering the banners for a fee of $90: the total cost of creating a banner is $180 and the remaining $90 is paid for by donations received.

For more information or to donate please contact:
Santa Paula - 933-4200 or e-mail info@ci.santa-paula.ca.us
Fillmore - Virginia A. de la Piedra at (805) 524-1732 or e-mail militarybanners@yahoo.com

As always, please contact us for all your Ventura County real estate needs.

The offical season for whale watching begins December 26th and ends April 25th. Pacific Gray Whales were spotted just off the Ventura County coastline yesterday, so I thought I would share with you a little about whale watching in our area. Ventura County has two harbors which offer whale watching excursions. The Ventura Harbor is located in the city of Ventura and the Channel Islands Harbor is located in Oxnard.

Each year, over 20,000 Pacific Gray Whales are estimated to migrate to the warm waters of Baja California. The migration is led by pregnant females (early January), with the the non-pregnant females and mature males following. Juvenile whales are the last in the migration. Juvenile whales begin their migration south through the Santa Barbara Channel in February. Mature Pacific Gray Whales range in length from 36-50 feet and are one of the few whales that do not have a dorsal fin. The gray whale is a dark charcoal color at birth, which changes over time to a mottled gray.

Channel Islands Harbor will be hosting the 13th annual Celebration of the Whales Festival on Sunday, March 15th. Be sure to mark you calendar for this event. There will be special marine education exhibits, arts and crafts, games and activities, live entertainment and great food. The festival offers something for the entire family to enjoy.

By the way, last week, I told you that tall ships were visiting the Channel Islands Harbor. I just wanted to let you know that the tall ship Lynx is currently docked at the Ventura Harbor and will be there until March 1st. On March 2nd, the Lynx will be docking at the Channel Islands Harbor until March 18th. Dockside tours are being offered at both harbors.

For more information on Whale Watching Season in Ventura County, visit any of the websites listed below:

Oxnard Convention and Visitors Bureau: http://www.visitoxnard.com
Channel Islands Harbor: http://channelislandsharbor.org
Ventura Harbor - Island Packers: http://www.islandpackers.com