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Fannie Mae and Freddie Mac stated that a new federal program, aimed to provide support to local and state financing agencies, will allocate over $29 billion in government funding to helping housing finance organizations.

The Treasury Department announced the program last month. They hope to start repairing the funding shortage that many housing agencies are currently struggling with. Since the credit crunch, many agencies have not been able to aid home buyers in the same fashion as previous years.

Fannie and Freddie plan to package the mortgages made by the housing organizations and then turn around and sell them as bonds to the Treasury Department. The companies have calculated that they could lose $9.2 billion each if every single borrower defaults on their loan - this is obviously a worst case scenario. However, the Treasury Department states that any losses associated with loan defaults will be covered by the fees state agencies will pay.

Each year, the housing finance companies help up to 200,000 first-time home buyers, making additional/available funding for these agencies critical.

In September 2008, Fannie and Freddie were seized by federal government and placed in conservatorship due to the subprime mortgage crisis. But they continue to guarantee over 30 million home loans combined, equaling over $5 trillion, or half of all the mortgages in the country.

To learn about the best neighborhood and communities please visit our Communities page and learn about what Central Florida has to offer or visit our Foreclosure page and get the best deals on a Central Florida property.

The Mortgage Bankers Association is predicting the current foreclosure crisis to continue well into 2010, as unemployment persists to move more and more people out of their homes. The overall effect is the downgrade in housing prices and a prolonging of the market's recovery. The startling new revelation is that the percentage of people with good credit and fixed-rate home loans is rising. This is in contrast to last year, when the subprime crisis was fueled by those with a more risky credit history.

The Mortgage Bankers Association report states that 14 percent of home owners are behind on their mortgage payments or in foreclosure. Unfortunately, this statistic continues reaching new highs, and been breaking past percentage records for nine straight quarters.

The date forecasts that if unemployment continues to be an issue, loan defaults will inevitably remain a hindrance in the housing market's recovery. It seems that the main cause for home loan defaults leading to foreclosure is unemployment.

On a brighter note, many are predicting that the housing market will spring back in the summer of next year. However, Mark Zandi, chief economist with Moody's Economy.com says that with the surplus in inventory, the housing prices will still dip up to 10 percent before coming back up.

Florida remains one the hardest hit states in the nation. Following closely behind are Nevada, California, Nevada and Arizona. Combined, these 5 states along account for 43 percent of new foreclosures!

A whopping 25 percent of Florida mortgages are either past due or in foreclosure, with Nevada trailing behind with 23 percent. Zandi has a more gloomy take on the housing market's recovery saying, "There's no indication in this data that foreclosures are going to abate anytime soon."

Are you looking for some of the best Home deals around Central Florida then visit our Foreclosure page or visit our Communities page ad learn about the best neighborhoods around Central Florida.

Have you ever wondered what type of do-it-yourself (DIY) projects you can do around the house that may increase the value of your home? Well, HomeGain, a company that matches consumers to real estate agents, conducted a survey showing the top 12 DIY tasks and what the impact could be on your home value.

1.CLEAN AND DE-CLUTTER: Just doing a little spring cleaning can increase your home value by $1,500 to $2,000 with an investment of between $100 and $200. The return on investment is 872%

2.HOME STAGING: Making small adjustments and buying staging effects, like curtains or place settings for the dinner table, can increase the value by $1,500 to $2,000. With an investment of only $300 to $400, your return on investment will be 586%

3.LIGHTEN AND BRIGHTEN: Brightening your home can cost you only $200 to $300, but the return on investment is 572%, increasing the home value between $1,000 and $1,500.

4.LANDSCAPING: Landscaping is one the easiest ways to make your home more attractive. Make sure you pay as much attention to the back as you do the front of your home. This project can cost anywhere from $300 to $400, increasing home value by $1,500 to $2,000, with a return on investment of 473%

5.REPAIR PLUMBING: Fixing and/or replacing old pipes can cost you $300 to $400, but you will increase your home value by $1,500 to $2,000, and the return on investment is 327%

6.UPDATE ELECTRICAL: Updating your home's electrical can increase the value by $1,500 to $2,000. With a cost of only $300 to $400, your return on investment will be 309%

7.REPLACE OR SHAMPOO CARPETS: Carpets get stained easily, and sometimes you don't even realize they are dirty. This project is a little pricier at $400 or $500 and a return on investment of 295%. It can increase the value of your home's value by $1,500 to $2,000

8.PAINT INTERIOR WALLS: Painting your walls is one the most dramatic way to change the appearance of your home. With a cost of $500 to $750, you can increase your home value by $1,500 to $2,000. The return on investment is 250%

9.REPAIR DAMAGED FLOORS: The appearance of damaged floors can be a complete turn-off for a potential buyer. Investing $500 to $750, you can increase the value of your home by $1,500 to $2,000. The return on investment is 250%

10.UPDATE KITCHEN: Some think that updating a kitchen is a huge task, but small improvements can be made, like changing cabinet knobs or replacing an old appliance. The cost for this can run between $1,000 and $1,500 with a return on investment of 237%, as the home value will increase by $2,000 to $3,000

11.PAINT OUTSIDE OF HOME: While this task is time-consuming, it can really make s huge difference. With a home value increase of $1,500 to $2,000, spending $750 to $1,000 will give you a return on investment of 201%

12.UPDATE BATHOOM: Bathroom updates are not as difficult as you think. Simply buying new hardware (think toilet roll and towel holders, medicine cabinet, etc.) or installing a new sink, will cost you between $750 and $1,000. Your home value can increase between $1,000 and $1,500. The return on investment is 172%

Are you looking for some of the best Home deals around Central Florida then visit our Foreclosure page or visit our Communities page ad learn about the best neighborhoods around Central Florida.

In an earlier article we wrote about "What Could Happen If You Don't Pay Your Mortgage," but it seems as if home owners are walking away from their mortgages on purpose. These incidents, called strategic defaults, are happening all over the country.

Voluntary foreclosures are becoming a huge dilemma for the government as they are spending upwards of $75 billion to try and keep home owners in their distressed homes. Not only this, people's credit scores can be dramatically damaged knocking off 100 points or more.

Despite these facts, 588,000 borrowers walked out on their homes and mortgages last year, according to Experian and Oliver Wyman, management consultants. In 2007, it amounted to only half that number. Even though home prices are on the rise, the total loss of home value since 2005 is enough to thrust millions of home owners to do the same, as what they owe far outweighs their home value.

This will cause a large chasm between the current housing market status and its impending recovery. As a result, the credit agencies will become stricter, and this always affects economic recovery negatively.

"It's increasingly a more important factor driving the foreclosure crisis," says Mark Zandi, of Moody's Economy.com. "As we move forward, the job market will stabilize, and the big thing will be strategic defaults. People are going to determine it doesn't make financial sense to hold on to their homes. That's going to be a significant problem. Strategic defaults mean foreclosures could be high for a long time."

The mortgage department at Citigroup reports that one out of five borrowers that go into default does it voluntarily, sometimes even if they are able to make mortgage payments.

Sanjiv Das, CEO of CitiMortgage says, "It's a very large number, and it's a very, very significant risk to the housing recovery." He thinks that the government can help somehow by adding programs that prevent strategic defaults.

Please visit our Foreclosure Page and get the best deal on your next dream home or visit our Communities page and learn about the best areas to live around Central Florida.

Citizens Property Insurance Corp. finally gained approval to increase their rates by approximately 5.4 percent. The raise affects coverage that includes hurricane damage for homeowners. Premiums for higher risk coastal areas are yet to be set in stone and are still being revised. Kevin McCarty, Florida Insurance Commissioner, announced the new rated on Friday. The increase affecting 719,000 policies, including 350,000 home owners, will be in effect starting January 1, 2010.

A state-wide increase of 8.8 percent, affecting residential renters was also approved by McCarty. In addition, a 1.7 percent increase for mobile homeowners and a 10.2 percent increase for condo associations were also approved.

Although Citizens, Florida's largest property insurance company, is already implementing a rate hike, they are also looking to raise rates 7.7 percent for 330,000 policies on higher risk coastal areas. The hearing for this particular proposal will take place on November 10. Both of Citizens' rate increases will amount to an additional $140 million in revenue.

Not everyone will realize a higher insurance premium though. Those in lower risk areas, like homes situated inland, will see their rates decrease. Collier County, located in southwest Florida, will be one area to see the largest increase in the state, 10.6 percent.

Citizens' rate increases were approved under one circumstance: that the condo association rate was also increased. McCarty raised those rates 0.1 percent more than requested. "We're satisfied," said Citizens spokesman John Kuczwanski. "We look forward to getting the system updated."

Are you looking for some of the best Home deals around Central Florida then visit our Foreclosure page or visit our Communities page ad learn about the best neighborhoods around Central Florida.