Tampa Rated Hotspot for Buyers In Fortune Magazine

Fortune magazine mentions Tampa Florida in recent article for being 1 of the 6 real estate bargain markets. Also mentioned was Tampa's median price which is now at $222,000 down from $275,000 from a year ago . Considering rates are expected to begin to rise soon this may very well me the most opportune time to make your move if you have been waiting for the Tampa market to hit rock bottom. Economist believe Tampa may have already past bottom and soon may begin to recover with predictions that the area could see a rebound over the next 3-5 years. Read the article in full at:
http://money.cnn.com/galleries/2008/fortune/0806/gallery.Fortune40_real_estate.fortune/5.html

Buy and Bail Desperate Measures

Some homeowners opt to ‘buy and bail’NEW YORK – June 17, 2008 – Some borrowers struggling to pay their mortgage and dealing with big drops in property values are avoiding their problems by committing what some call fraud – and others call smart.These owners are using their good credit rating to buy a second home at a lower price, assuring the lender they’ll rent out their first home. But what they really end up doing is walking away from the first home, leaving the lender holding the bag.Lenders call the phenomena “buy and bail.”In some cases, real-estate practitioners and brokers who see nothing wrong with it coach homeowners through the buy-and-bail process. Some blame the phenomenon in part on lenders’ unwillingness to cut deals or restructure loans made when home prices were inflated.“It’s just a business decision,” says Linda Caoili, a Sacramento real-estate practitioner. “If you’re upside-down $250,000, why would you keep it? It just doesn’t make sense.”The trend may be short-lived. Under revised Fannie Mae guidelines, which could take effect next week, loan applicants who claim they will rent out their first home will have to produce supporting evidence, including an executed lease agreement. Borrowers also will have to prove that they can pay the mortgage, property taxes and insurance for both residences. The guidelines will make an exception only for borrowers who have at least 30 percent equity in their current home.Of course, some individuals still can qualify for that second loan because of a strong credit and cash position.Source: The Wall Street Journal, Nick Timiraos (06/11/08)

Fannie mae to offer program to refinance underwater borrowers

With the recent explosion of purchase and refinance business going back to FHA loans since the demise of sub prime lending and the mortgage market meltdown. Fannie Mae is introducing a program for borrowers who have found that their equity from 2005-2006 has gone south.

Fannie Mae has been designing program initiatives that will assist in stabilizing the explosive foreclosure market of the past 18-24 months and sustain those borrowers who may fall behind without assistance.
The new loans will allow borrowers who have negative equity (the value of the home is worth less than the amount of the mortgage note) to refinance up to 120% of the current properties value. Borrowers must be current on their mortgage to qualify. For more info visit http://www.fanniemae.com