Open House by Jim Woodard

An increasing number of U.S. citizens are buying homes in Mexico despite all the recent bad news coming from south of the border.

More than 1 million U.S. citizens have established their homes in Mexico, making it the largest American expatriate community in the world, writes Louis Nevaer in an article carried by New America Media. There are more U.S. citizens living in Mexico than in the United Kingdom or Canada, he writes.

The exodus to Mexico is accelerating as the recession deepens and job losses mount in the United States. "We've seen an increase of almost 40 percent in the number of American citizens making inquiries about the requirements for moving to Mexico. There are definitely more Americans immigrating to Mexico than at this time last year," Nevaer writes.

Many are choosing to retire in Mexico because it offers a higher-level lifestyle for their limited income. Others have been relocated in Mexico by their employers. And there are those making a clean break from the past — escaping payment of alimony, child support, business failures, etc.

Recently, there have been two other kinds of U.S. citizens moving to Mexico, Nevaer writes. There are young families who want to raise their children in that country, and entrepreneurs seeking greater business opportunities.

Often, people believe that Mexican law prohibits foreigners from buying property. They often lease until they learn that buying is not so difficult after all.

U.S. citizens can purchase a home in Mexico using a process similar to that in the United States or Canada. However, the escrow and title process is different. And there is no multiple-listing service in Mexico.

When shopping for a home in Mexico, it is critical to deal with a competent real estate professional familiar with Mexican laws. Many members of the National Realtors Association in the United States are actively involved with these international transactions.

There are no practicing Realtors in Mexico, but there is a comparable group of real estate professionals called the Associan Mexicano Professional Imobiliarios. It's best to deal with members of one of these groups that have mandatory educational and ethical standard requirements.

Some U.S.

real estate firms have established AMPI-affilated satellite firms in Mexico, or have developed strong partnership agreements with Mexican companies.

Q: What's being done to hold down the number of mortgage-related scams?

A: Federal agencies are cracking down on mortgage and foreclosure scams — a move that is strongly supported by ethical mortgage professionals and organizations.

The U.S. Treasury, Department of Justice, Federal Trade Commission and the Department of Housing and Urban Development are leading an effort to clean up and more tightly control mortgage-related activities. One preliminary step is to send financial institutions a checklist to help them spot suspicious loan activities and foreclosure rescue scams.

In another action, the FTC is reviewing online and print advertising for mortgage foreclosure companies nationwide. The FTC reports finding 71 distinct companies running suspicious ads. The FTC has filed five civil cases against companies offering loan modification or foreclosure services. That includes one company that spent $9 million on television and radio advertisement in less than a year.

Q: What's the current prognosis for the real estate market?

A: There are encouraging signs pointing toward recovery. Apartments and other rental properties will probably be the first and fastest to recover, says David Crowe, senior economist for the National Association of Home Builders.

The housing market appears to be on the verge of emerging from the worst real estate market in decades, said a report accompanying a survey taken by HouseHunt.com. Sales activity increased significantly in several regions over the past three months. First-time buyers continue to be a driving force in the marketplace at points nationwide.

Homebuyers with good credit records are able to obtain mortgage financing, inventories of unsold homes are flat or declining in many areas, and listed properties are being offered at the lowest prices seen in the past 10 years.

Another key incentive in today's market is the government's $8,000 tax credit for first-time buyers. The credit does not need to be repaid. And the definition of a first-time buyer is one who has not owned a home for the past three years.

To find out more about Jim Woodard and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.

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