HOMEBUYERS – If homebuyers want a new home, it’s worth checking out the builder’s financial status early on. If a builder declares bankruptcy before closing, the deal probably won’t go through on time; and owners who recently closed could get hit with liens and face other problems. But financial troubles may be easy to spot.  Personally, I have advised my clients not to consider the purchase of a new home to be constructed by small home builders in the Naples area.

STATE OF FLORIDA BUDGET – State economists forecast that Florida’s tax revenue will be down another $1 billion, mostly because of the prolonged housing slump. Combined with an earlier $1.1 billion shortfall that caused state spending to be slashed in a special session just weeks ago, the reduction represents 3 percent of Florida’s original $71 billion annual budget, which covers July 1 to June 30.

SUBPRIME LOANS – The White House released a statement yesterday announcing opposition to key parts of a bipartisan U.S. House bill aimed at curbing abusive mortgage-lending practices that have fueled a jump in foreclosures. A vote is scheduled for today.

Billions of dollars in mortgage losses reported during the third quarter could be a prelude to even bigger losses in the fourth quarter as two more financial institutions – Bear Stearns Cos. and HSBC Holdings PLC – warned of substantial writedowns on Wednesday. But on a hopeful note, some analysts say the market could actually be bottoming out.  The bottoming out referred to is the writing down of losses on poor performing mortgages, as financial institutions become more aggressive in their evaluations of the mortgages.  Unfortunately, the bottoming out can not be said of the volume of resales on the market.

REAL ESTATE TAXES – Now it’s the voters’ turn: Gov. Charlie Crist on Tuesday signed into law a bill that would implement real estate tax cuts, providing voters approve the proposed constitutional amendment in January.

PENDING HOME SALES – A modest recovery for existing-home sales is expected in 2008 as the impact of the credit crunch subsides, according to National Association of Realtor’s latest forecast. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in September, rose 0.2 percent. It will be interesting when I have the pending sales for October for the Naples, Bonita Springs, and Estero areas with comparative data for previous years.

COMMERCIAL REAL ESTATE – National Association of Realtors announced the results of a commercial real estate survey yesterday, noting that practitioners “make big money.” The findings revealed that 18 percent earned $250,000 or more; 33 percent earned between $100,000 and $250,000; and 24 percent earned between $50,000 and $100,000.

FORECLOSURES – U.S. homeowners increasingly have trouble making their mortgage payments on time, but borrowers in metro areas of Florida, California and other once-booming housing markets account for the biggest spikes in foreclosure filings, according to RealtyTrac Inc.

PROPERTY MANAGEMENT The Federal Communications Commission on Tuesday issued a final order that effectively ends deals that make only one cable television company the exclusive provider for private developments, including “gated communities, mobile home parks, garden apartments and other centrally managed residential real estate developments.” The rule affects 30 percent of Americans. If your Naples, Bonita Springs or Estero homeowners association has a bulk cable contract, this maybe good news for you.

PROPERTY MANAGEMENT – If you are a residential property owner and looking to rent your residential property here is something that might help you or assist you with covering the carrying costs of your second or seasonal property.  This could be an idea for real estate investors in vacational areas. The Internet is doing for vacation rentals what eBay did for merchandise sellers: For not much money, owners can now display their vacation properties to a worldwide audience of potential renters.

FORECLOSURES – One step forward; two steps back. Some Florida homeowners facing foreclosure are forced to use the only weapon they’ve got left to keep their home from being sold on the courthouse steps – they declare bankruptcy.

HOMEOWNERS INSURANCE – Florida’s persistent battle with insurers over rates and coverage is spreading to other states and could have an effect on insurance customers nationwide.  Previously, it was noted that Louisiana is reviewing if an elaborate price-fixing scheme involving several large homeowner insurance companies.

CONSTRUCTION – On Friday, Florida homebuilder Levitt and Sons announced that the company and 37 of its subsidiaries filed Chapter 11 bankruptcy, impacting homebuyers who have put down deposits and new homeowners with liens. Construction has stopped, and it’s not yet clear “if or when previously postponed closings on completed homes will occur,” according to the company’s Web site.

MORTGAGES – E-Trade Financial Corp. said Friday the value of its holdings of securities backed by home mortgages has fallen significantly, and it expects to take “significant write-downs” in the fourth quarter. E-Trade also disclosed that the Securities and Exchange Commission has opened an “informal inquiry” into issues related to the company’s loan and securities portfolios.

MORTGAGE INDUSTRY As more homeowners default on their mortgages, some private mortgage insurers worry about their survival in the face of billions of dollars in claims. In the short term, however, regulators and analysts say they aren’t concerned about the biggest insurers staying in business.

INTERNATIONAL – The weakening dollar may be fueling increased interest from foreign investors in the U.S. housing market. Real estate industry analysts say that foreign investors increasingly support markets like Miami and San Francisco, which are feeling pressure from the slowdown.

HOMEOWNERS INSURANCE – In the campaign to get federal disaster insurance, a major battle has been won though the outcome remains iffy. The U.S. House yesterday passed a bill that would allow disaster-prone states to ban together for coverage. The Senate has to consider the bill, however, and Pres. Bush’s advisers have suggested a veto if it reaches his desk.

FLORIDA ECONOMY – State economists estimate how much tax income the state should expect, and then the Florida Legislature creates a spending budget based on their figures. Yesterday, these economists released their 2008 prediction, and it includes an estimated 3 percent drop in residential and commercial property values statewide.  In my humble opinion, based upon figures here in Naples and Collier County, as well as, speaking with other REALTORS from around the state – the estimated drop of 3 percent in property values maybe optimistic.

MORTGAGE RATES – Rates on 30-year mortgages fell for the third straight week – to 6.24 percent – dropping to the lowest level in five months, according to Freddie Mac’s weekly nationwide survey. This is good news for those prospective buyers looking for 30 year fixed rate mortgages – the old stand-by.

MORTGAGES – Federal lawmakers have introduced a bill that would allow primary-residence mortgages to be modified in bankruptcy court. However, major lenders say it would lead to a flood of bankruptcy filings and force banks to charge higher mortgage interest rates to compensate for the added risk.