Real Estate News for Sunday, April 23rd, 2006

Inland Empire Is No.1 in Growth. The Inland Empire, fed by migrants from coastal California, is the fastest-growing urban area in the United States, according to a survey released Thursday by the U.S. Census Bureau. "It's a move to the interior of California," said William Frey, a demographer with the Brookings Institution. "It's a flight from the coast." He said the move inland was not just by the white middle class. "It's a rainbow movement," he said. "This is equal opportunity, middle-class flight." Frey said factors for luring people to the Inland Empire included more affordable housing, better school systems and a rapidly expanding economy. Click here to read more.

Buyers irked by late notice on closing fees. It's the No. 1 complaint that realty agents make about the home mortgage lending process. And it bugs their clients as well: the failure of settlement or escrow officials to provide copies of the final settlement sheet in advance of closing. In a new nationwide survey of real estate agents, 50% cited the absence of HUD-1 closing documents for review a day ahead of the settlement as their biggest gripe. Agents told pollsters that although required by government regulations, settlement sheets rarely arrive in advance — thereby denying home buyers an opportunity to see an itemized list of all their charges and fees. Click here to read more.

They had a plan, then reality intruded. Four friends thought they could 'flip' a house, but cost overruns, bad timing got in the way. Among other things, they learned:
• Not everyone enjoys remodeling by committee.
• The real estate market is fickle and can shift in just a few months.
• High-end upgrades don't necessarily reap big profits.
• Timing is everything, and it's harder to sell during the holidays.
• The surest way to make a profit in speculative remodeling is by getting spectacular bargains on fixer-uppers. Click here to read more.

Bargains forecast. After a dry spell, foreclosures are on the rise. But landing a deal requires know-how. The foreclosure process — initiated by a lender when a homeowner falls anywhere from 30 to 90 days behind on payments — offers several stages at which buyers can make such a bargain purchase: directly from a homeowner whose loan is in default because of missed payments; at a public auction after an owner has defaulted; or through a real estate agent, for property that has reverted to the lender because no minimum bid was made at the auction. Foreclosures have been at historically low levels during the last few years. Steep appreciation gave homeowners plenty of equity to tap if they got into financial trouble and buyer demand made it easy to sell homes quickly and at a profit. "Over half the loans on the books today are less than 3 years old," said Douglas Duncan, chief economist of the Mortgage Bankers Assn. "Loans tend to peak in terms of going into delinquency in years three to five." Adjustable-rate loans have become more popular in the last couple of years, he added. These loans tend to have a higher rate of delinquencies than fixed-rate mortgages. Plus, in the last five years more high-risk buyers have qualified for mortgages. "Borrowers who have not always paid car loans or credit card bills on time," Duncan said, "and are at greater risk of missing mortgage payments." "A lot of people make the mistake of thinking the right place to start is at the auction sale," said Sharga of RealtyTrac.com. But "that's the highest risk point of the foreclosure buying process," he said, because the buyer is limited to a drive-by inspection of the house and doesn't know the condition inside. "Unless you've done your homework, you could be liable for other liens," such as a second mortgage, he added. "You probably want to work with a professional to get through the first purchase." That's why home buyers frequently turn to agents. Click here to read more.

~Tina Jan~
Coldwell Banker Kivett-Teeters
1655 E. Sixth St.
Beaumont, CA 92223
Work: 951-845-5520 Ext. 105
Fax: 951-845-4916
Cell: 909-446-2666
Toll-Free: 1-877-TINAJAN
tina.jan@coldwellbanker.com
www.tinajan.com