Happy President's Day from Elite Properties and Finance.

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Calif. median home price - December 06: $567,690 (Source: C.A.R.)

Calif. highest median home price by C.A.R. region December 06:Santa Barbara So. Coast $1,250,000 (Source: C.A.R.)

Calif. lowest median home price by C.A.R. region December 06:High Desert $324,560 (Source: C.A.R.)

Calif. First-time Buyer Affordability Index - Third Quarter 06:24 percent (Source: C.A.R.)

Mortgage rates - week ending 2/8:30-yr. fixed: 6.28%; Fees/points: 0.3%15-yr. fixed: 6.02%; Fees/points: 0.3%1-yr. adjustable: 5.49%; Fees/points: 0.7%(Source: Freddie Mac)

For more information about buying, selling or financing Corona Real Estate, Norco Real Estate or Riverside County Real Estate go to http://www.951info.com

The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending February 9. The Market Composite Index, a measure of mortgage loan application volume, was 639.8, an increase of 1.5 percent on a seasonally adjusted basis from 630.1 one week earlier. On an unadjusted basis, the Index increased 4.5 percent compared with the previous week and was up 10.9 percent compared with the same week one year earlier.
The Refinance Index increased 4.5 percent to 2031.7 from 1943.4 the previous week and the seasonally adjusted Purchase Index decreased 1 percent to 400.7 from 404.7 one week earlier. The seasonally adjusted Conventional Index increased 1.8 percent to 954.3 from 937.2 the previous week, and the seasonally adjusted Government Index decreased 2.2 percent to 115.4 from 118 the previous week.
The four week moving average for the seasonally adjusted Market Index is down 1.1 percent to 628.1 from 634.9. The four week moving average is down 2.4 percent to 404 from 413.8 for the Purchase Index, while this average is down 0.2 percent to 1941 from 1944.6 for the Refinance Index.
The refinance share of mortgage activity remained unchanged at 46.1 percent of total applications. The adjustable-rate mortgage (ARM) share of activity decreased to 21.2 from 22.3 percent of total applications from the previous week.
The average contract interest rate for 30-year fixed-rate mortgages increased to 6.24 percent from 6.23 percent, with points decreasing to 1.06 from 1.09 (including the origination fee) for 80 percent loan-to-value (LTV) ratio loans.
The average contract interest rate for 15-year fixed-rate mortgages decreased to 5.94 from 5.96 percent, with points increasing to 1.13 from 1.1 (including the origination fee) for 80 percent LTV loans.
The average contract interest rate for one-year ARMs decreased to 5.8 from 5.84 percent, with points increasing to 0.84 from 0.78 (including the origination fee) for 80 percent LTV loans.
**SPECIAL NOTES**
The survey covers approximately 50 percent of all U.S. retail residential mortgage originations, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.
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Inland office projects filling up
Inland tenants commit to moves before last nail is driven
Large Inland office buildings continue to look like a safe bet for developers. Three of the most ambitious projects in Inland Southern California are going up on schedule, developers say.
More important, perhaps, tenants are falling into place, say the people responsible for getting the projects occupied.
HavenPark, developed in Rancho Cucamonga by Beverly Hills-based The Hileman Co. LLC, is an indicator of how well Inland office projects are doing. The $60 million mixed-use development's office components, two 75,000-square-foot buildings, are six months from completion but fully leased.
Just Mortgage Inc. has agreed to move its headquarters from Pomona to 60,000 square feet at HavenPark, said Jack Hileman, president of The Hileman Co. Co-Op Financial leased the other building at HavenPark in December.
At the Silverhawk Corporate Center in Murrieta, in one of two 40,000-square-foot, two-story buildings, occupants are in talks to buy about 30 percent of the space, said Dan Yeilding, an associate office broker with CB Richard Ellis' Temecula office.
The other building, offered exclusively for lease, has seen plenty of interest, he said, but no tenants have finalized agreements yet. The first tenants should arrive in August, said Yeilding, who envisions businesses ranging from attorneys and financial offices to tech and real estate firms.
Work continues on one of HavenPark's two office buildings in Rancho Cucamonga. The Hileman Co. LLC project is still six months from completion, but tenants are lined up for both of the 75,000-square-foot buildings, said Jack Hileman, the company's president.
"Generally, lease tenants wait until we're a little bit further along," he said.
At the Crossroads Corporate Center, also in Murrieta, construction remains on schedule for the second of four buildings to open by June, said Mary Piper, of Lee & Associates Commercial Real Estate.
The view from one office building going up is of another new building. Office space is going up to serve a surging Inland-area population.
Commerce Bank of Temecula Valley and architects Riley, Garrison & Associates Inc. have signed on for nearly 18,000 of the building's 75,486 square feet, Piper said. Other tenants are close to finalizing lease agreements. Construction will begin on the third building after the second building is significantly leased, she said.
Some who study the Inland real estate industry say more office growth is needed to catch up with the population growth.
Empire Cos. spokesman Louis Desmond said his company is planning a 94,000-square-foot office project south of Corona.
The unnamed project, a spokeswoman said, doesn't yet have start or completion dates.
Corona's vacancy rate hovers between 1 percent and 1.5 percent, Desmond said, and the proximity of several new or planned high-end residential projects means the project has good prospects for success.
"A number of high-income professionals are moving into the region," he said. "They're going to need a place to work if they're going to get off the 91 freeway."
in the works
Office projects being built, their square footage and locations:
HavenPark, 150,000, Rancho Cucamonga
Silverhawk Corporate Center, 80,000, Murrieta
Crossroads Corporate Center, about 75,000, Murrieta
Unnamed project, 94,000, Corona
For more information about buying, selling or financing Corona Real Estate, Norco Real Estate or Riverside County Real Estate go to http://www.951info.com Elite Properties and Finance

MEASURE Z: Bond hasn't kept pace with land values
Measure Z funded much work, with one big exception
Thanks to funding provided by a school bond passed by voters in 2004, the Perris Union High School District has added new classrooms, renovated some buildings and will open a new high school this fall. But one provision of that $46 million bond has not happened: the acquisition of land to build another high school in Menifee.
It's been three years since voters approved Measure Z, a school bond that was intended to pay for repairs and renovations at the district's current high schools, Perris and Paloma Valley. The money also was to be used to build a portion of Heritage High School, which opens this fall in Romoland.
But escalating land prices and the search for a suitable location have stymied the land acquisition plan for a future high school.
"We're still looking," said Bill Hulstrom, Perris Union High School District board president. "At this stage, property right now is the big issue."
Fulfilling that obligation of the bond has been an ongoing priority among trustees and district officials. "The biggest problem with land acquisition is finding land that will work with us," said board vice president Eric Kroencke. "The value of land has escalated since we bought the land for Heritage."
Trustees asked to earmark about $2.5 million plus interest in bond money toward purchasing a 60-acre site in Menifee. They want to build the school somewhere east of Interstate 215.
Four years ago the district purchased 60 acres south of Briggs Road and Highway 74 in Romoland for $1.8 million for a site to build Heritage High School. That looks like a bargain compared with current prices.
"You can't buy a site for $2.5 million anymore," said Kroencke, referring to the amount set aside for a purchase. "Land is going for $100,000 to $200,000 an acre."
Growth in the area has left Menifee's Paloma Valley High School especially crowded with more than 3,300 students. The district currently serves more than 8,200 students on eight sites in the Perris, Menifee, Romoland and Nuevo areas.
Emmanuelle Reynolds, district facilities and planning director, said the district made an offer on a suitable property in the area about six months ago but it was rejected by the owner.
The size of the property involved and the number of landowners also are important in negotiating land deals.
"It's easier with huge developers. The problem is that there are a lot of small developments. Their developments are not big enough (to build a new high school)," said Reynolds.
Kroencke said the district will search for additional ways to secure more funding through grants or other sources.
The Bond
Although the land acquisition for another high school site was an important part of Measure Z, the district is not legally bound to complete all the provisions on the ballot.
"The list you do is a wish list. You put everything you can in. But nothing says you will do everything," said Reynolds.
With passage of Measure Z, residents of the Perris Union High School District -- which includes Perris, Menifee, Romoland and Nuevo -- now pay a property tax of $30 per year per $100,000 of assessed value.
The 2004 district-wide measure narrowly passed with 57.9 percent of the votes cast. State law requires at least 55 percent passage of all the votes cast. Earlier that year a $36 million bond failed by 1.5 percent.
With passage of the bond, the district was required to establish a citizens' oversight committee from different segments of the community to ensure that the money was used for the scheduled projects.
Perris resident Cynthia Clark was a vocal opponent of Measure Z and its wording. Clark worried the money would be used to pay for salaries or other expenses instead of capital improvements.
"We want to make sure they would adhere to the list," said Clark. The ballot stated the money would repair or replace old, inadequate roofs and reduce crowding by building a new high school and purchasing a Menifee area school site.
The detailed voters pamphlet, published and distributed before the election, more clearly stated that the bond funds would be used on those projects, as long as the money lasts.
For more information about buying, selling or financing Corona Real Estate, Norco Real Estate or Riverside County Real Estate go to http://www.951info.com Elite Properties and Finance

Rates on 30-year mortgages fell for the first time since early December as lower-than-expected job growth eased worries in financial markets about inflation.
Mortgage giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.28 percent this week, down from 6.34 percent last week. Last week's level had been the highest for mortgages since October.
The small decline was the first drop in rates since Dec. 7 when 30-year mortgages had fallen to 6.11 percent, the lowest level since early 2006.
The decline this week came after a government report showed that the unemployment rated edged up to 4.6 percent in January when a fewer-than-expected 111,000 jobs were created.
"News of moderate employment gains in January led to a halt in the recent upward trend of interest rate movements," said Frank Nothaft, chief economist at Freddie Mac.
Analysts said the jobs report, coming after a string of stronger-than-expected economic data, eased concerns that the economy was now growing so strongly that it might prompt the Federal Reserve to start raising interest rates again.
Nothaft predicted that 30-year mortgages would likely remain in a narrow band between 6.3 percent and 6.5 percent for the rest of this year.
The Freddie Mac survey showed that other types of mortgage rates also moved lower this week.
Rates on 15-year, fixed-rate mortgages, a popular choice for refinancing, fell to 6.02 percent, down from 6.06 percent last week.
Five-year adjustable rate mortgages fell to 6.02 percent, down from 6.04 percent last week. One-year ARMs dipped to 5.49 percent, down from 5.54 percent last week.
The mortgage rates do not include add-on fees known as points. Thirty-year and 15-year mortgages each carried a nationwide average fee of 0.3 point. Five-year mortgages carried an average fee of 0.4 point while one-year mortgages carried a fee of 0.7 point.
A year ago, rates on 30-year mortgages stood at 6.24 percent while 15-year mortgages were at 5.83 percent, five-year adjustable rate mortgages averaged 5.89 percent and one-year ARMs were at 5.34 percent.
For more information about buying, selling or financing Corona Real Estate, Norco Real Estate or Riverside County Real Estate go to http://www.951info.com Elite Properties and Finance

Real Estate Taxes, Refunds and Rip-Offs
A big part of every real estate transaction involves taxes: You pay transfer taxes when you buy, property taxes when you own and more transfer taxes when you sell. There are also taxes on income earned from investment real estate and even capital gains taxes, though infrequently for the sale of residential property.
Not surprisingly, real estate taxes are a big part of local budgets. New York City, as one example, finds that it now has a $3.9 billion surplus. Why? In big part because times have been good on Wall Street, big bonuses have been paid out, lots of people bought condos and co-ops, and the city taxed every property transaction it could find.
The good news is that while real estate is taxed, there are also big real estate write offs -- mortgage interest is usually deductible, property taxes are deductible, depreciation is deductible for investors, when property have been owned for at least a year long-term and lower capital gains rates apply and if you you've sold a property that you used for two of the past five years you may be able to deduct up to $500,000 in profits if married and up to $250,000 if single.
So far, not a bad deal.
But there is a part of the taxation process which is a bad deal. Let me explain:
It's an amazing thing that huge amounts of time are spent keeping books, trying to figure out what the tax rules say and preparing returns. And then -- having gone through this lengthy, complex process in an effort to get the accounting right -- millions of taxpayers proceed to give away a huge part of their refunds.
How is this done? Some tax preparers helpfully assist taxpayers -- especially low- and moderate-income taxpayers -- by preparing returns. When a refund is due the commercial service then offers a cash advance or what is cleverly known as a "refund anticipation loan" or RAL. Since most of us would like to get our money today rather than waiting for an IRS check, a RAL sure seems enticing.
Such advances, of course, are merely short-term loans. And what is the cost for such convenience? According to a study by the National Consumer Law Center and the Consumer Federation of America, "12.38 million American taxpayers spent an unnecessary $1.6 billion in 2004."
But wait a minute. The government is not known for being especially fast, especially when it comes to returning money. Don't taxpayers save months by using a RAL?
Well, actually, no. According to NCLC and CFA, taxpayers using RALs were able to "obtain their refund monies faster by two weeks or less than if they used electronic filing and direct deposit."
Let's be fair. Two whole weeks, as many as entire 14 days and just as many nights, can be important when the rent is due or someone really needs money for an important purpose. Recognizing this, surely our friends in the tax preparation business go easy on RAL rates and charges. Right?
"The effective annual interest rate (APR) for a RAL can range from about 40 percent (for a loan of $9,999) to over 700 percent (for a loan of $200). If administrative fees are charged and included in the calculation, RALs cost about 70 percent to over 1,800 percent APR," say NCLC and CFA.
Who uses RAL loans? A CFA survey found that "the national survey found that RAL users are vulnerable to quick cash loan offers. RAL users are more likely than non-RAL users to be less well educated, work in service or semi-skilled/unskilled jobs, rent instead of own their homes, be female and African American. RAL users are also heavier users than non-RAL users of other high cost fringe financial services, such as rent-to-own, payday loans and pawnshop loans. These consumers are more likely to be unbanked than non-RAL users and those who do have bank accounts are more likely to have overdrawn in the past year."
This is a case where the government -- and particularly the IRS -- have the right idea.
Don't be a sucker. Check out the benefits of the earned income tax credit (EITC). See if you can file electronically. See if local community groups can provide tax preparation assistance. If your adjusted gross income is less than $52,000 look at the Free File program from the IRS for a speedy refund. And plan ahead so you need not rely on RAL loans and the obscene costs they represent.
"We don't like these RALs, the loans that are given out and are being advertised this time of year," IRS Commissioner Mark W. Everson said last week.
As Everson explains, if you use the "Free File" system set up by the IRS instead of a paper return you'll likely get a refund in half the time.
For more information on buying, selling or financing Corona Real Estate, Norco Real Estate or Riverside County Real Estate go to http://www.951info.com Elite Properties and Finance

Housing Counsel: A Primer on Real Estate Taxation
"Unquestionably, there is progress. The average American now pays out twice as much in taxes as he formerly got in wages." -- (H.L. Mencken)
It’s tax time again. In just 101 days from today, our income tax returns will be due. April 15th this year falls on a Sunday, so we get an extra day to procrastinate. Actually, if you live in the District of Columbia, Maryland, Maine, Massachusetts, New Hampshire, New York, or Vermont, you get one additional day until April 17th.
According to Mark Everson, the Commissioner of the Internal Revenue Service, "Paying taxes is a unifying experience fundamental to democracy and the rule of law."
In other words, to avoid penalties, interest -- and possibly jail time -- all American homeowners must either file their income tax return or get an extension. The law allows taxpayers to get an automatic six month extension (until October 15, 2007) but only if you file form 4868 no later than the April 16th (or 17th) due date.
In the last weeks of December, Congress enacted the Tax Relief and Health Care Act of 2006. Many of the forms which the IRS had already published have to be changed as a result of some of the provisions of this new law. To get a good read on these changes, go to irs.gov, and click on "What’s Hot." So be careful to get the most recent information and the most current forms.
The IRS estimates that the average time it will take non-business taxpayers to file the 1040 form is approximately 24.2 hours. However, according to that tax agency, "the largest component of time burden for all taxpayers is record keeping, as opposed to form completion and submission. So of the 24.2 hours referenced above, to complete the form will only take 3.3 hours, but 14.6 hours of record keeping. (IRS Publication entitled "2006 1040 Instructions.)
Good luck! You should start this afternoon, and hope that you will be ready by the due date.
Two significant homebuyer tax amendments were enacted last month. The first-time homebuyer exemption of up to $5000 was reinstated for District of Columbia residents, and homeowners who obtain a mortgage loan this year and are required to pay a mortgage insurance premium will be able to deduct those payments as "mortgage interest" when they file their 2007 tax return. These issues will be discussed later in this series of tax articles.
If you need assistance with your tax returns, you have several options. First choice: retain a professional tax accountant. While this will cost you some money, since tax issues are complex, the cost will be well worth it -- and besides, if you itemize you can deduct the cost for this CPA.
If you are a low-income tax filer, there are independent Low Income Tax Clinics (LITCs) which will provide representation for free or for a nominal charge. IRS Publication 4134, entitled "Low Income Taxpayer Clinic List" will give you information on clinics in your area. (Irs.gov and click on Publications.)
Additionally, within the IRS is an independent organization called the Taxpayer Advocate Service. According to the IRS, these employees "assist taxpayers who are experiencing economic harm, who are seeking help in resolving tax problems that have not been resolved through normal channels, or who believe than an IRS system or procedure is not working as it should." (IRS Publication "2006 - 1040 Instructions, at p. 6).
You can contact the Taxpayer Advocate Service by calling them toll-free at 1-877-777-4778 or filing form 911, entitled "Application for Taxpayer Assistance Order with the IRS. To obtain a copy of this form, and to obtain more information about the service, go to irs.gov/advocate.
This series of articles should assist the homeowner in understanding the real estate tax laws -- both residential and investment -- so that you can take advantage of every tax benefit that is available. Keep in mind that if you are in the 25 percent Federal tax bracket, for example, for every additional dollar you can legally deduct, you will be saving approximately 25 cents that does not have to go to Uncle Sam. This bracket is for married taxpayers, who file jointly and earn between $61,300 and $123,700 per year.
Our tax laws are complex, and there are a number of definitions and concepts which must be understood:
"basis" -- the initial cost of the property, plus any improvements you have made over the years.
"gross profit" -- the difference between what you originally paid for your house and the sales price.
"net profit" -- you have to subtract any improvements you have made to the property, and also any real estate commissions paid when you sold the property. The bottom line net profit is also called "capital gain."
Homeownership is still the Great American dream, and continues to be encouraged by our Federal Tax Code. Consider this typical scenario: in 1975, you bought your first home for $35,000. You and your spouse had three children, and your first home was just too small. You sold your home for $80,000, and bought another for $95,000.
Your profit -- not taking into consideration expenses, improvements, or real estate commissions -- was $45,000. But since you were then able to take advantage of a tax benefit known as the "rollover," you did not have to pay tax on these capital gains. The rollover was completely eliminated when President Clinton signed into law the Taxpayer Relief Act of 1997.
As will be seen in subsequent columns, homeowners are now permitted to exclude up to $250,000 of profits made on their principal residence ($500,000 for married taxpayers filing joint returns). And this exclusion is not limited to any one sale, but can be taken every two years – so long as you meet certain eligibility criteria.
Congress also repealed the "once in a lifetime" exemption, whereby homeowners over the age of 55 were given a one-time absolute exclusion of up to $125,000 of the overall profit made on the sale of their principal residence.
Thus, the "rollover" and the "once in a lifetime" exclusion are history, having been replaced by a more simplistic – and more financially rewarding -- concept: up to $500,000 of profit can be excluded every two years.
For those of us who own homes, and are preparing to file our 2006 tax returns, here is a list of the itemized tax deductions available to most homeowners:
Mortgage Interest. Interest on mortgage loans on a first or second home is fully deductible, subject to the following limitations: acquisition loans up to $1 million, and home equity loans up to $100,000. If you are married, but file separately, the limits are split in half.
Taxes. Property taxes, both state and local, can be deducted. However, it should be noted that real estate taxes are only deductible in the year they are actually paid to the government. Thus, if last year you escrowed monies with your lender for taxes to be paid in 2007, you cannot take a deduction for these taxes when you file your 2006 return.
However, if you bought a house last year, you may have reimbursed your seller for a portion of the prepaid taxes through the end of 2001. Review your settlement sheet carefully. Line 106 on page 1 of that statement should reflect this tax adjustment. Since this was a current payment by you for real estate taxes, it is a deductible item. Indeed, when you receive your annual statement from your lender showing the amount of taxes paid last year, this information will not be included in that statement. Lenders are required to send these annual statements to borrowers by the end of January of each year, reflecting interest and taxes paid for the previous year. But in this case, you paid the real estate taxes to your seller directly, without the involvement of your mortgage lender.
Points. Most mortgage loans in recent years did not include points. But if you paid points, you may be able to deduct them on your tax return. Some lenders call these "loan origination fees,"others call them "premium charges," or "discounts." Call them what you want, they are still points. Each point is one percent of the amount borrowed; if you obtain a loan of $275,000, each point will cost you $2,750..00. (A column later in this series will discuss the tax treatment of points).
No one likes to pay taxes. But you should follow the advice of a former Supreme Court Justice Oliver Wendell Holmes who once wrote (and I paraphrase):
"When it comes to taxes, which is a creature of Congress, anything you can legally do to avoid taxes is legal.
For more information about buying selling or financing Corona Real Estate, Norco Real Estate or Riverside County Real Estate go to http://www.951info.com Elite Properties and Finance

Avoid Foreclosure: Know Your Options
If you're running late on your mortgage payments, or you think you're about to because of some unforeseen devastating circumstances, don't panic – there are many options for those who need such help. While you may be tempted to jot down the phone number on the "Avoid Foreclosure" placard in the highway median, there are more effective ways of getting your mortgage house in order.
The latest news from California shows that notices of defaults (NOD's) are at an eight-year high in the state. Why is that important? In real estate, as goes California, so goes the Union (usually). Buyer brokerage started in California, as did property disclosure, runaway home prices and real estate slumps -- they all started in California.
A piece in the San Francisco Mercury News last week, cited figures from DataQuick Information Services, an online group that gathers real estate data from public records. Some jurisdictions reported increases of NOD's of nearly 80 percent over the same period a year ago. San Francisco's rate was up 63 percent.
Fortunately, for these homeowners (borrowers) lenders have put procedures into place to help their default customers who wind up in a temporary financial situation where they have missed several payments. The lender knows the homeowner is good for the money once they get back on their feet.
Both Fannie Mae and Freddie Mac are the two government-chartered mortgage funding companies who provide money to lenders across the country. The two mortgage behemoths have procedures (referred to as loss mitigation) established for their mortgage company affiliates to process default loans. Fannie Mae has two sets of Loss Mitigation procedures: one is for the homeowner who can keep the property and the other is for those who end up having to let the house go through either a short sale or foreclosure.
The first set of procedures involves three options: repayment plan, forbearance and loan modification.
Under the repayment plan, reviewed on Fannie Mae's consumer site, the lender "may be able to arrange an increase in monthly payments until the loan is brought current. This means that each month your clients would add an additional amount of money (determined by the servicer) to their regular monthly payment until the amount that was overdue has been repaid."
Forbearance is a little more formal, involving a "written agreement between your clients and the mortgage servicer to reduce or suspend monthly payments for a specific period of time."
This option was designed to provide the borrower some time to resolve the hardship, whether it's loss of job, illness, etc., until they can begin to resume their scheduled mortgage payments. After the time period passes, the borrower must "resume regular monthly payments as well as pay additional funds to make up for the past due amount."
Finally, there's the actual loan modification where the lender actually changes the terms of the mortgage to bring the borrower back in line with the original agreement and to avoid foreclosure. "This option generally is considered for homeowners whose financial problems are expected to be more long term," according to the site.
The second set of options to avoid foreclosure do not necessarily mean the borrower will come out unscathed, just without as many financial bruises as if the house went into foreclosure.
These alternatives include selling the house or turning the home over to the lender.
One way to sell the house is to find a buyer who will assume the loan. Even though the mortgage may be a "non-assumable," when facing a foreclosure, the lender may reconsider this clause if they can find another borrower who can take on the responsibility of the defaulting buyer.
A second way to sell the house involves a preforeclosure sale. In this process, the lender would "agree to accept the proceeds of the sale, even though it may be less than the amount owed on the mortgage. To avoid going through a foreclosure proceeding, Fannie Mae and the servicer can agree to accept the proceeds of the sale in satisfaction of the mortgage loan."
It's expensive to foreclose a home, thus a lender would rather get something for the mortgage than nothing at all and then have to pay out cash to sell the house at a discount.
Finally, there's the deed-in-lieu of foreclosure. This is where the borrower voluntarily gives over the deed to the lender. It's about the same situation as the preforeclosure and is considered a last resort since the lender is now going to have to sell the house themselves.
The above procedures may differ from Fannie Mae, Freddie Mac and government insured mortgages. Here are the web sites where you can research the requirements:
Fannie Mae
Freddie Mac
Veterans Affairs
Department of Housing and Urban Development (FHA mortgages)
At any of these sites search "foreclosure alternatives" or "loss mitigation" for more information on avoiding foreclosure.
For more information about buying, selling or financing Corona Real Estate, Norco Real Estate or Riverside County Real Estate go to http://www.951info.com Elite Properties and Finance.

Mortgage deals target high-tech workers
The city offers technology workers discounts on mortgages through two lenders.
Employees of local technology firms who buy a home in Riverside could qualify for lower mortgage rates under a city program designed to foster a high-tech sector.
They can also take advantage of lower home-equity loan rates, reduced fees and other benefits offered by Altura Credit Union and Provident Savings Bank, Riverside business development coordinator Greg Lee said Tuesday.
"It's a creative incentive," he said. "We are not giving out money. But we are still providing a benefit for a company coming here."
Similar programs exist for teachers, police and other public-sector employees, but Lee said he hasn't heard of anything similar for high-tech workers.
"It's a lot of work and it's less profitable for us, but we want to make sure we are adding more value to the community. We need these people in Riverside," said Craig Blunden, president of Provident, a Riverside bank specializing in home loans.
"It's a good deal," he said, adding that someone who uses the incentive package "would save $1,000 to $2,000 over someone who just walked in the door."
Two years ago, Altura participated in an offer by Riverside Community Hospital, which was recruiting nurses, said Altura Senior Vice President Ricki McManuis.
So far, Provident and Altura haven't had any takers for the high-tech offer, but Lee said that might change now that the city is mailing out informational fliers.
High-tech workers are often attracted to companies in the Silicon Valley or Southern California's beach cities, so anything the city can offer is a plus, said Sundip Doshi, chief executive of Riverside software company Surado Solutions.
Although the financial benefits of the mortgage incentive may not matter as much to someone making a large salary, it could encourage them to buy a home and become rooted here, which might convince them to stay longer, he added.
SmartRiverside is a city initiative created to help attract high-tech companies and their employees to Riverside and to keep employers from leaving.
Other aspects include low-interest loans for technology companies that want to improve their office or lab space, computer loans, and digital-literacy training.
To be eligible for the mortgage incentive, an employee must work for a high-tech company located in Riverside and buy a home inside the 86-square-mile city limits.
The benefits are slightly different at the two lending companies, but both offer flat fees, a slightly lower interest rate and no points.
Altura and Provident are both based in Riverside, but Lee said financial institutions headquartered in other cities could join the program as long as the home is purchased in Riverside.
Earlier this month, the city council criticized Riverside's Raincross Credit Union for choosing to merge with another credit union not based in the city.
The council also discontinued its relationship with Raincross and encouraged city employees and residents to do business with local financial institutions.
For more information about buying, selling or financing Corona Real Estate, Norco Real Estate or Riverside County Real Estate go to http://www.951info.com Elite Properties and Finance

Heating up buyers in a chilly real estate market
Tips for selling your house in the slow winter season
Selling your home is no easy task, and it’s even more difficult when you’re trying to do it in the dead of winter. Shorter days, a lack of greenery, and ice and snow are all conspiring against you. With the barrage of recent storms across the country, even traditional snowbird climates don’t look so bright.
The good news: It is still possible to sell your house right now. Most home sellers typically wait until spring to place their house on the market but if you get out there before March 1, there is less inventory and therefore fewer sellers to compete against. Also, people who’ve made life changes for the New Year — marriage, retirement, a new job in another state — and can’t afford to wait too long are motivated buyers.
Still, you need to put your house’s best face forward, which can be harder to do under gray skies and leafless trees. Staging is key, even if you’re still living in your house. Here’s how to make your home shine brighter in the cold light of winter.
Let in the light
Show your house during daylight hours as much as possible — open houses after 5 p.m. will leave potential buyers literally in the dark. Make the most of natural light while you have it by pulling up blinds, opening shutters and pushing back drapes on every window.
Turn on every light in the house, including appliance lights and closet lights. Brighten up dark rooms by placing spotlights on the floor behind furniture. Use timers to turn indoor and outdoor lamps on when dusk hits and buyers are present.
Create a mood
Even if you don’t hire a professional stager, set the scene for a cozy, warm house buyers will want to cuddle up in. “Hang a wreath on the door to make it festive, just make sure it’s not a Christmas-themed one left over from the holidays,” said Nash.
Toss afghans or throws across the sofa and armchair. Place winter flowers around the house and at the front door. Turn your bathroom into a spa by hanging up plush robes, tying washcloths with a ribbon in a basket, and grouping soaps, lotion and shampoo. Set up the dinner table with the good china and silver.
Give your home a nice scent. Many Realtors say the smells of freshly baked chocolate-chip cookies and spiced cider are winter winners, but make sure you actually have munchies there for guests so they’re not disappointed.
But don’t overdo the scents — many people are allergic to certain scents and deodorizers, so avoid air sprays, perfumes and plug-in air fresheners. Nash recommends changing your furnace filter if you’re frequently heating and cooking in the house. Air out odors and mustiness by cracking windows and turning on exhaust fans in the bathroom and kitchen a few hours before show time to draw in fresh air.
Emphasize the outdoors
Draw attention to your yard and garden even if they’re lacking greenery. Hang bird feeders to give buyers a focal point as well and draw colorful birds in. If your summer garden is worth boasting about, we suggest pulling out color photos from last season and placing them on a cardboard poster or photo album to help buyers visualize what the barren tundra looks like in warmer weather.
Turn up the heat
Pump up the thermostat before buyers arrive. It’s better to heat the house a degree or two warmer than usual and then set the temperature at normal just before people enter to give them more of a reason to linger on a cold day.
Take advantage of gas and wood fireplaces to create ambience, but for wood-burning fireplaces, open the damper, put a grate in front and don’t leave it unattended for very long. You don’t want your hopes of a big offer on your house to literally go up in smoke.
For more information about buying, selling or financing Corona Real Estate, Norco Real Estate or Riverside County Real Estate go to http://www.951info.com Elite Properties and Finance.

Economy perks up in fourth quarter
Consumer spending pushed growth to 3.5 percent for the final part of 2006.

The economy grew at a faster-than-expected 3.5 percent pace in the final quarter of last year as consumers ratcheted up spending despite a painful housing slump.

The snapshot of business activity was released by the Commerce Department on Wednesday.
It underscored the resilience of an economy that has managed to keep on moving despite the ill effects of the residential real-estate bust and an ailing automotive sector. The economy's performance in the October-to-December quarter, which followed two quarters of listless activity, exceeded analysts' forecasts for a 3 percent growth rate.
The economy opened 2006 on a strong note, growing at a 5.6 percent pace, the fastest pace in 2 ½ years.
But it lost steam during the spring and late summer. It grew at a 2.6 percent pace in the second quarter and then a weaker 2 percent pace in the third quarter. The fourth-quarter's rebound ended the year on a positive note.
On Wall Street, the Dow Jones industrials gained 98.38 points to close at 12,621.69.
For all of 2006, the gross domestic product increased by 3.4 percent. That was an improvement from a 3.2 percent showing in 2005, and it was the best performance in two years.
That's even more impressive considering the economy was hit by a housing slump. Investment in home building for all of last year was slashed by 4.2 percent, the most in 15 years.
GDP measures the value of all goods and services produced within the United States and is considered the best barometer of the country's economic standing.
"Housing and autos hit the economy with their best punch, and the economy is still standing. It is dancing," said Stuart Hoffman, chief economist at PNC Financial Services Group.
In other economic news, employers' costs to hire and retain workers moderated, which could ease concerns about the development of inflation pressures. Wages and benefits rose 0.8 percent in the fourth quarter, down from a 1 percent rise in the third quarter, the Labor Department reported.
Spending on construction projects around the country dropped 0.4 percent in December, after edging up in November, mostly reflecting fallout from the housing slump, the Commerce Department said in another report.
In the GDP report, consumers spent more freely in the fourth quarter, a major factor behind the rebound in overall economic activity. Consumer spending grew at a 4.4 percent annual rate, up from a 2.8 percent pace in the third quarter and the strongest since the opening quarter of 2006.
An improvement in the nation's trade picture helped by stronger U.S. export growth also was a factor in the overall GDP boost.
For more information about buying, selling or financing Corona Real Estate, Norco Real Estate and Riverside County Real Estate visit http://www.951info.com Elite Properties and Finance and 951info.com.