Real estate updates for Naples, Bonita Springs and Estero are beneficial for both existing home owners and potential buyers of homes in the southwest Florida – to keep them abreast of what is happening both nationally and locally.

MORTGAGES – Letters are being sent by interested parties to the federal regulators urging them to make the change quickly to the higher loan limits. While approved, the higher loan limits are not yet available and it will take some time to make the needed procedural changes.

DOWNPAYMENTS – Rising claims on policies that mortgage insurers sold during the housing market boom are forcing them to adopt stricter underwriting standards. For example, at least one company – Mortgage Guarantee Insurance Corporation – won’t insure borrowers who don’t put down at least 5 percent in Florida. The result: It’s harder for many people to buy a home.

FLOOD INSURANCE – As federal officials rework flood maps in Florida, thousands of people who thought they were high and dry are finding out they aren’t, according to Federal Emergency Management Administration – and many of their mortgage lenders now require a flood insurance policy. In Central Florida, Seminole County homeowners are among the first to get hit by the map revisions, which some residents say don’t make sense. A couple of years ago the flood maps for Naples were changed and homes previously in a type flood zone were reclassified into less risky flood zones, while the reverse was also true.

HOMEOWNERS INSURANCE – When it comes to trampolines, most insurance companies see liability where kids and parents see fun. Insurers cite risk of injuries to trampoline users and many won’t cover the devices.

FORECLOSURES – Foreclosures climbed again last month for Countrywide. As a percentage of unpaid principal balance, it increased to 7.47 percent last month from 7.2 percent in December. Still, the lender’s average daily mortgage applications rose in January to $2.6 billion from December’s $1.5 billion.

MORTGAGE RATES – The average rate on 30-year mortgages remained below 6 percent this week, but rose to its highest level in five weeks: 5.72 percent.

HOME SALES – Roughly half of the nation’s metropolitan areas continued to show rising home prices in the fourth quarter of 2007, according to the latest quarterly survey by National Association of Realtors.

PROPERTY INSURANCE – When the Florida Legislature enacted rules to lower property insurance rates last year, was Allstate trying to figure out how to comply with them or how to ignore them? A Florida Senate committee wants to know, and yesterday requested copies of all Allstate internal correspondence related to the insurance bill.

PROPERTY TAXES – Before voters passed Amendment 1 in January, Govenor Charlie Crist, top lawmakers and other backers promised it would be just the first step. Now Crist says he’s unsure what the next step should be, but other tax-cutting advocates have laid out a wide range of options.

HOME AND CONDO SALES – In fourth quarter 2007, Florida’s housing sector continued to report high inventory levels of homes for sale in many markets, median prices edging down and sales activity levels that reflect the impact of tighter lending standards and uncommitted buyers.

The fourth quarter 2007 market conditions for Naples homes, Naples condos, Bonita Springs homes, Bonita Springs condos, Estero homes, and Estero condos were previously posted on this blog. Closed sales were similar to the fourth quarter of 2006, when eliminated an estimated 16% of the volume related to sub-prime borrowers. The number of new listings coming on the market has showed less properties coming on the market and should have a positive impact to lower the inventory levels in future months.

REAL ESTATE TAXES – As expected, property tax portability is being challenged in the courts. However, there’s a positive side: The case puts pressure on the 2008 Florida Legislature to consider additional property tax cuts for first-time home buyers, non-homestead owners and businesses.

DOWNPAYMENTS – Private mortgage insurance allows home buyers to get a mortgage with a low down payment. But huge insurer losses have caused companies to tighten their rules, and this week, the nation’s second largest mortgage insurer announced that Florida buyers would need a 10 percent down payment to get coverage.

REAL ESTATE INVESTORS – Investors usually ride out real estate downturns by renting out properties, raising the rent as demand tightens. But not this time. Rent growth in 2007 actually went flat in some metro areas hardest hit by the housing meltdown.