Here is a very good explanation of the new aid program to homeowner that will not be able to make their payments if they are in an adjustable mortgage that is due to reset.

The Bush administration plans to aid as many as 1.2 million homeowners facing the prospect of foreclosure, questions arose quickly. Here are the answers to some of the key ones.

· Which adjustable-rate mortgages are affected? To qualify to have their interest rate frozen for five years, homeowners must have received a loan sometime between Jan. 1, 2005, and July 31, 2007, and be facing a reset of their interest rate sometime between Jan. 1, 2008, and July 31, 2010.

· Why didn’t the plan go further? If homeowners are going to pay less on their mortgages than investors expected, then people are going to lose money. Not all of those people are fat cats. Potential losers include pension funds for teachers, firemen, police and an array of mutual funds whose clients are individual investors.

Source: BusinessWeek Online

Unit 2105 is now available for sale in the North Tower at the Point of Aventura for $664,900. The North Tower was completed in 1997 and was the second building completed at the Point of Aventura. All of the residents at the North Tower enjoy the resident’s only spa and health club which is the center piece of the complex. Residents of the Point can also enjoy three different pools and a lushly landscaped deck that connects all of the buildings on the fourth floor.

Unit 2105 is a 3 bedroom 2 bathroom flow-through model with an extra room that is perfect for an office or maid’s room. With a unique flow through design, this unit offers both East and West views. This unit offers marble floors in the living areas and wood floors in the bedrooms. Every window is covered by hurricane shutters which can be closed in just minutes. For more information please call Paul Hansen 786-586-4778.

Features:

1870 square feet
3 bed 2 bathroom
Extra room for office
Marble and wood floors
East and West Views ( Ocean, Intracoastal and Marina)
Hurricane Shutters on every window
Residents only spa

In the wake of the credit crisis, lenders have become much pickier about whom they lend to. Here are some basic facts that will help potential borrowers understand what they face.

The measurement that most lenders use to assess applicants' credit risk is the FICO score developed by Fair Isaac Corp. The score ranges from 300 to 850.

There's not one FICO score. Buyers have three: one for each of the three credit bureaus, Experian, TransUnion, and Equifax.

Each credit score is based on information the credit bureau keeps on file. Since credit bureaus don't share their data with one another, the three FICO scores may differ, sometimes by as much as 100 points.

The components of a FICO score are:

· Payment history: 35 percent
· Amounts owed: 30 percent
· Length of credit history: 15 percent
· New credit: 10 percent
· Types of credit used: 10 percent

A consumer with a 580 credit score might qualify under FHA requirements, but, generally, in order to qualify for a prime loan, a borrower must have a credit score above 620 for a conventional loan at all and above 720 for a loan at terms and rates most borrowers would consider desirable.

Source: Dallas Morning News

Since November 1, the following banks have written-down at least $1 billion in their respective loan portfolios:

· Bank of America
· Barclays
· Bear Stearns
· Citigroup
· HSBC
· Morgan Stanley
· Wachovia
· Wells Fargo

This is a big deal to people in the market for a home loan because when banks repeatedly take mortgage-related losses, it can lead to major risk aversion -- even for "good" borrowers.
It's one reason why mortgages are more difficult for which to qualify than in months past. Banks would rather pass on an "avergage" mortgage application rather than be stuck with a potentially "bad" loan.
If banks continue down this path throughout 2008, it means that buyers eligible for home loan financing today may actually be ineligible tomorrow. It could also mean that a home under contract may never close because the buyer's approval could be disqualified before the closing date is reached.
If you're a home buyer and your profile is not "ideal" to a bank, now may be a good time to write a contract because your mortgage options may get more thin very, very soon.

Florida tourism rebounded in a big way during the heart of hurricane season, helping to stimulate a sluggish economy. More than 21 million people visited the state of Florida from July 1 to September 30, a 4.8 percent increase from the previous year. What a difference it makes in the tourism industry not having a hurricane for more than two years. Indicators of increased tourism are up across the board from hotel bookings, flights and restaurants. The outlook for the next year in Miami are quite good even though the housing market continues to ride out turbulent times. Tourism should be at all time highs this season, which should help to stimulate real estate market in Miami and Fort Lauderdale.