Baby boomers, the generation born between 1946 and 1964, and who count more than 76 million, are getting near to retirement but are most definitely not ready for a retirement home!  Whether they are selling their homes and heading to Florida or remodeling to accommodate their retired lifestyle, boomers are making an impact on new housing trends.  Some features that Jacksonville builders are seeing as they begin to cater to the boomer generation include the following:

Home Offices- As life spans continue to increase; many are choosing to work past the age of 65.  However, they want home offices for flexibility. This can also eliminate the hassle of commuting while keeping them active and adding supplemental income.

Tech/Media Centers- The tech-savvy boomer generation wants amenities for their homes such as wireless home network, remote control lighting and security systems and media rooms with surround sound for the latest in home entertainment. 

Master on the Main- More than 40% of new homes have master suites on the main floor, a 15% increase over a decade ago.  Boomers with bad knees and aching backs are fueling this trend.  The bedrooms are also bigger, with larger closets and larger bathrooms with separate tub and shower and dual sinks. 

Better Lighting/Bigger Windows- The need for more lighting increases as we grow older.  To allow for this, builders are adding more windows for more natural light and better light fixtures in areas under cabinets and in stairwells.  

Low Maintenance Exteriors/Landscaping- Aging homeowners may opt for homes in maintenance free communities.  Great examples of such communities are Riverwood at Nocatee in the Ponte Vedra area and The Cascades at World Golf Village in the St. Augustine area. Those that stay in homes without this convenience might make improvements to exterior surfaces such as installing brick or stucco.  Landscaping can be made easier to maintain with ground covers or planting beds that can serve as a hobby for gardening enthusiasts.

Flex Space- Flex spaces are rooms that take on the purpose of the present homeowner's needs but can adjust with changes in lifestyle.  What once was a guest room may become a hobby room or library. 

For more information on communities such as Riverwood at Nocatee and The Cascades at World Golf Village please call Debbie for more information. 904-868-2278 or visit www.livefla.com

Jacksonville can give itself a collective pat on the back today. The mayor's office called our attention to AOL Money and Finance rankings for best places to retire. Jacksonville weighs in at #11. I took a look at the website rankings, and while I'm happy to see my city at the top, I'd like to add a bit of information. For starters, Jax as we like to call it, is the largest land mass city in the contiguous US. There are several areas retirees might like to call home.

Among those areas are Mandarin and Orange Park. Mandarin has, despite ongoing challenges from certain developers, managed to hang onto its village-like feel and sense of community. Homes are available in a wide range of prices. This community is about 25 minutes from public access points at Mickler's Landing, a lovely unspoiled stretch of coastline despite the McMansions that hover and in some cases sit precariously close to the encroaching ocean. Orange Park is an area where you get a lot of house for your bucks, and many neighborhoods have also maintained their character.

Homes can be purchased in this city at prices for most any budget. Traffic can be annoying, but compared to other cities close in size, there's no comparison. Boston ranked ahead of Jax. You couldn't pay me to (1) drive there or (2) move there, the winters are so much better in Jax!

But we're happy our city is being noticed. For more information on relocating to Jacksonville, Florida, please contact Debbie Chaky at (904) 868-2278 or visit www.livefla.com … we would love to call you neighbor!!!

If you’ve been paying attention to recent national headlines, words such as recession, foreclosure, and gloom and doom appear on a regular basis. But what you probably haven’t heard is that the current market presents one of the best opportunities for buyers to get what they want, where they want, and for the right price. Today’s “miracle market” is poised to offer investment opportunities unseen in recent years.

There is a common perception among the public that buying a house today is risky. If you read between the headlines there are a number of promising details about today’s housing market that have remained under the national news radar. Investors, first-time homebuyers and veteran homebuyers alike who have all the facts know that the time is now for the best deals and the greatest options. Here’s why:

Below-market prices – Media coverage of the real estate market has encouraged price declines in the last year. Buyers have new opportunities to find homes with great incentives and price cuts, leaving them in the best position in years to get the most bang for their buck. Speaking of which…

Sellers are motivated – Happy to oblige, sellers are now more inclined than ever to make great deals with buyers in mind by offering the right price and the right concessions to suit buyer expectations. At no time in recent history have buyers and sellers been more likely to meet in the middle, making deals that both parties can be happy with.

Luxury of choice – With more housing inventory, buyers are afforded the luxury of choice when it comes to a new home. In years past, it was a game of timing and quick decision making. Buyers were snapping up homes in days and they had little time to mull over whether to put in an offer or forever hold their peace. Today’s increased inventory means the market is much more buyer-friendly with time finally on the buyer’s side.

Low interest rates – If history is any indication, home prices may stay steady for another few months but interest rates will not. The perks of today’s market coupled with low interest rates offer incredible incentives to buy. Once interest rates begin to increase, buyers may end up paying more in the long run for homes that they could have purchased at the right time, at the right rate – right now.

The old saying is true: timing is everything. And, if you wait, today’s “miracle market” will be long gone while you are still waiting for reassurance in the headlines.

For more information about current Jacksonville, Orange Park or St. Augustine, Florida real estate market conditions, contact Debbie Chaky at (904) 868-2278 or visit www.livefla.com

According to a survey from AOL Real Estate and Zogby International, more than 50 percent of Americans believe the dream to own a home is still attainable for most citizens, while 43 percent said they spend more than 30 percent of their household budget on housing. According to the U.S. Department of Housing and Urban Development (HUD), owners paying over 30 percent are “cost burdened.” These are just some of the many findings from a new interactive survey of Americans age 18 or older that investigates how Americans view a wide range of real estate issues – from homeownership to housing costs, financial concerns and shopping for a home.

“The real estate market is constantly evolving and it is more important than ever for homeowners and buyers to research and understand their local market dynamics before making decisions,” said Alan Steel, GM of AOL Real Estate. “As our survey results show, the Internet is an essential resource and the first choice for buyers, sellers and renters who are seeking information.”

Other top-line survey findings include:

Are Americans house poor?

With so many Americans using a large percentage of their budget for housing, the survey found that 22 percent of participants would lose their house or apartment with an unexpected short-term job loss and 30 percent are working paycheck to paycheck to cover housing costs. Additionally, 30 percent of Americans know someone who has gone through, or is being forced to sell their home, due to a foreclosure.

American views on home values

If forced to sell their home today, half of the respondents would buy another home rather than rent; roughly half of Americans would seriously consider purchasing a home through a foreclosure listing.

How Americans search for homes

When looking for a home, 67 percent of Americans surveyed turn to the Internet first. In addition, communities with low crime, high-quality schools, recreational facilities and an easy driving commute to work all are key factors that influence a home purchase, with some Americans willing to pay a premium on top of their housing to reduce their commute time by half. Additionally, 83 percent of participants value the local media’s coverage of crime in specific communities and cite the coverage as a major influence into where they would purchase a home.

The value of home improvement

For those not interested in selling or purchasing a home this year, 16 percent say they are planning a major home remodeling project, such as putting on a new addition. They believe that making any type of home improvement can increase the value of their home in today’s market.

Survey methodology

The AOL Real Estate-Zogby International survey was conducted among a national sample of 6,678 adults ages 18 and older. Interviews were conducted Feb. 15, 2008 through Feb. 18, 2008. Zogby recruited members of the online Internet panel. The margin of error is plus or minus 1.2 percentage points. The full survey results can be found at AOL Real Estate (http://realestate.aol.com).

Florida Realtors® statewide reported slight gains in existing home and condominium sales from February to March 2008, according to the latest housing statistics released by the Florida Association of Realtors (FAR). A total of 9,142 existing single-family homes changed hands in March, a 10 percent increase over the previous month when 8,310 homes sold. Existing condo sales statewide rose 13.7 percent, with 3,145 units sold in March compared with 2,765 condos in February.

The median price for both housing types increased slightly as well during the one-month period. The median price of an existing single-family home reached $205,600 in March, compared with $198,900 the previous month. The median price of an existing condo rose to $176,600 in March from $175,600 in February.

In the latest National Association of Realtors (NAR) housing outlook, Chief Economist Lawrence Yun says, “Existing home sales could start to show a sustained increase within a few months, unless there are some additional economic problems or excessive inflationary pressure. We’re looking for essentially stable sales in the near term, before higher mortgage loan limits translate into more sales in high-cost markets.

In the year-to-year comparison, a total of 9,142 existing homes sold statewide last month while 12,356 homes sold in March 2007 for a decrease of 26 percent, according to FAR. Florida’s median sales price for existing homes last month was $205,600; a year ago, it was $242,800 for a 15 percent decrease. But, looking back to March 2003, the statewide median sales price for single-family homes has increased about 35.5 percent, according to FAR records – at that time, the statewide existing-home median price was $151,700. The median is the midpoint; half the homes sold for more, half for less.

In a year-to-year comparison for condos, 3,145 units sold statewide compared to 4,153 in March 2007 for a 24 percent decline. The statewide existing-condo median sales price last month was $176,600; in March 2007 it was $221,200 for a 20 percent decrease. NAR reported the national median existing condo price was $211,700 in February 2008.

The national median sales price for existing single-family homes in February 2008 was $193,900, down 8.7 percent from a year earlier, according to NAR. In California, the statewide median resales price was $409,240 in February; in Massachusetts, it was $310,000; in Maryland, it was $284,822; and in New York, it was $230,000.

Last month, interest rates for a 30-year fixed-rate mortgage averaged 5.97 percent, down from the average rate of 6.16 percent in March 2007, according to Freddie Mac. FAR’s sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Several of Florida’s smaller metropolitan statistical areas (MSAs) showed slight gains in existing home sales for the month. Realtors around the state reported more buyer interest as demonstrated by increased phone calls, showings and other positive movement in their local housing markets.

Among the state’s smaller markets, the Fort Pierce-Port St. Lucie MSA reported a total of 387 homes sold in March compared to 338 homes a year ago for a 14 percent increase. The existing home median sales price was $169,700; a year ago, it was $239,700 for a 29 percent decrease. A total of 69 existing condos sold in the MSA last month compared to 87 condos the previous March for a 21 percent decrease. The market’s existing condo median price was $182,500; a year ago, it was $202,300 for a decrease of 10 percent.

Dave Derrenbacker, president of the Realtor Association of Martin County and a broker with Water Pointe Realty Group, agrees that buyers are recognizing the long-term value of homeownership. “There are some encouraging signs,” he says. “It looks like home prices are starting to stabilize and buyer activity is picking up. In many cases, Realtors are able to show that homes in our area are back to a valuation of pre-real estate boom figures. I tell people, ‘If you missed your chance the first time around, then now is a great time to buy.’”

Allstate’s companies doing business in Florida will have to stop writing new policies after April 14 if the insurance giant fails to apply for a rehearing by then, state officials said Tuesday.

Allstate spokesman Adam Shores said the company would evaluate its legal options regarding a rehearing by the new deadline. Its 1,100 agents will continue writing business in Florida until the court rules on the pending stay, granted in January.

Current Allstate policyholders would not be affected by sanctions.

The 1st District Court of Appeals ruled last week that Florida insurance regulators have the authority to suspend Allstate’s companies because the insurer failed to comply with state subpoenas seeking information on the company’s pricing strategies.

But the Office of Insurance Regulation sought clarification on Friday’s ruling about when it could actually enforce the suspension.

“There was ambiguity in the order as to whether the stay had been lifted immediately or was subject to a motion for a rehearing,” OIR spokesman Ed Domansky said Tuesday.

Allstate carries roughly 300,000 homeowners policies in the state, many in central Florida away from the riskier coastal areas.

The court also said Friday the suspension would end if Allstate produced the documents sought by regulators.

Allstate almost immediately put 150,000 pages of documents on its Web site after the earlier ruling.

The state wanted documents to determine why Allstate seeks higher property insurance rates despite a new Florida law passed in 2007 that obligated the state to billions of dollars in increased risk to provide lower reinsurance to private insurers to keep premiums down.

Shores noted that Allstate reduced its rates by 14.2 percent statewide last year, but the company drew the ire of state regulators with a rate filing seeking increases of more than 40 percent.

The suspension applies to Allstate Floridian Insurance Co., Allstate Indemnity Co., Allstate Property & Casualty Insurance Co., Allstate Insurance Co., Allstate Floridian Indemnity Co., Allstate Fire and Casualty Insurance Co., Encompass Insurance Co. of America Encompass Indemnity Co., Encompass Floridian Insurance Co., and Encompass Floridian Indemnity Co.

A federal appeals court has upheld a 2 1/2-year injunction blocking new construction in the Florida Keys from receiving federal flood insurance in places where rare creatures such as the Key deer roam.

The decision, issued Tuesday by the 11th Circuit Court of Appeals in Atlanta, covers at least several hundred acres of privately owned land in the Keys, but the legal implications could affect property and federally protected species in other states.

A three-judge panel affirmed an injunction issued in September 2005 by U.S. District Court Judge K. Michael Moore in Miami, who echoed environmental groups in calling the national flood insurance program a threat to endangered species.

The ruling doesn’t amount to a blanket ban on flood insurance in the Keys. But it orders the Federal Emergency Management Agency (FEMA) to stop issuing flood policies in “suitable habitat” for threatened or endangered plants or wildlife until it consults with the U.S. Fish and Wildlife Service and develops criteria for assessing development impacts on eight such species in Monroe County.

John Kostyack, who represented three environmental groups that brought the lawsuit – the National Wildlife Federation, Florida Wildlife Federation and Defenders of Wildlife – said the court rejected arguments by the Bush administration that FEMA was legally bound to provide flood coverage and had no authority to exclude selected areas of Monroe County.

“FEMA was saying we don’t even have to talk to Fish and Wildlife about our program, to even think about endangered species,” said Kostyack, executive director of the National Wildlife Federation. “If the appellate court had bought that line of argument, it would have excused not only FEMA from complying with the Endangered Species Act but many other federal agencies.”

The Washington, D.C.-based National Association of Home Builders, which had filed a friend-of-the-court brief, blasted the ruling as overly broad, saying it could drive up building costs and, in the worst cases, leave property owners unable to obtain local building permits and mortgages, or to sell or develop land.

“There is so much wrong with this I don’t even know where to start,” said Duane Desiderio, the association’s vice president of legal affairs.

Desiderio said the decision conflicted with lower court rulings elsewhere but agreed it could have ripple effects, starting in the 11th Circuit, comprised of Alabama, Georgia and Florida.

“What world are we living in where the court is saying that endangered species concerns trump all other kinds of legislation,” he said. “Congress never intended development to stop because of endangered species.”

Kostyack said the intention wasn’t to stop development but to end what environmentalists call a federal subsidy that encourages construction in areas critical to the survival of federally protected species.

Previous reports produced by the Fish & Wildlife Service showed that “any habitat loss” would permanently reduce populations of Key deer, Lower Keys marsh rabbit, Key Largo wood rat and cotton mouse, the Stock island tree snail, the silver rice rat, Key tree-cactus and Schaus’ swallowtail butterfly.

Butch Kinerney, a spokesman for FEMA in Washington, said in an e-mail that the agency had not yet reviewed the ruling. The agency previously said the injunction would not affect existing flood policies in Monroe, which numbered more than 33,700 in 2005.

The Keys lawsuit, filed in 1990, is one of the oldest and longest-running of a number of legal challenges to the flood insurance program filed around the country.

Reports of suspected mortgage fraud rose 42 percent last year as U.S. banks became more leery of lies on loan applications.

The Treasury Department’s Financial Crimes Enforcement Network (FinCen) said Thursday that there were 52,868 reports for mortgage fraud in 2007, up from 37,313 a year earlier. Mortgage fraud reports were the third-most common type of suspicious activity.

Banks and other financial institutions are required to alert the government of fishy financial transactions such as money laundering or check fraud.

The most common type of mortgage fraud was misrepresentation of income or assets, followed by forged documents, misrepresentation of a borrowers’ intent to occupy a property as a primary residence, occupancy fraud and inflated appraisals, the government said in an analysis of the report.

“The financial community is becoming increasingly adept at spotting and reporting suspicious activities that may indicate mortgage fraud,” James Freis, FinCen’s director, said in a statement.

The Treasury Department’s enforcement unit singled out mortgage brokers for criticism, noting a growing number of them listed as initiators of the suspected fraud. Brokers were “intermediaries that did not verify information submitted on the loan application,” the report said.

It also cited growth in fraud reports tied to “cash-out” refinancing, in which borrowers are able to pull out equity from their homes.

The report comes a month after the industry-funded Mortgage Asset Research Institute said Florida led the led the nation in mortgage fraud in 2007 for the second-straight year, followed by Nevada, Michigan, California, Utah and Georgia.

The Mortgage Bankers Association has called for more than $31 million over the next five years in new funding for the FBI and Justice Department to fight mortgage fraud, money that would go to new investigators and prosecutors.

A bipartisan Senate bill designed to ease the slumping housing market won tepid reviews Wednesday, and even its top sponsor acknowledged that much more is needed to help millions of families threatened with foreclosure.

The scaled-back proposal unveiled by Senate Banking Committee Chairman Christopher Dodd, D-Conn., contains an amalgam of ideas aimed at boosting demand for housing and helping homeowners saddled with subprime mortgages avoid foreclosure.

The plan contains $4 billion in grants to local governments to buy and refurbish foreclosed homes, new authority for states to issue bonds to be used to refinance subprime mortgages, and a temporary $7,000 tax credit for people buying new homes or properties in foreclosure.

Those provisions, and others, were the product of a bipartisan negotiation that produced a narrow, common-denominator approach to the crisis.

“There’s a lot more that needs to be done,” Dodd said. “But it’s a step in the right direction.”

The White House weighed in with serious doubts about the plan, and economists across the spectrum were skeptical that it would do much to ease the wrenching crisis in the housing market and the wave of foreclosures spreading across the country.

White House spokesman Tony Fratto said the administration likes some provisions, such as issuing mortgage bonds and modernizing the Federal Housing Administration to boost access to FHA-insured loans. But he added that the administration has “serious concerns” about other provisions such as the homebuyers’ tax credit and aid to local governments to purchase foreclosed homes.

“Some of these provisions that are purportedly to help homeowners actually would not help them and in some cases could hurt them,” Fratto said. For example, he said, the tax credit for buyers of foreclosed and newly constructed homes could force down prices for many other sellers.

While supporters said the measure would boost demand for housing, help people refinance adjustable-rate mortgages and help communities beset with abandoned homes, many economists cautioned that the measure’s benefits would be modest – and would help banks and homebuilders while doing hardly anything for people facing foreclosure.

“They’re good steps, but they’re small steps and certainly not big enough steps to solve the problem,” said Mark Zandi, chief economist for Moody’s Economy.com. “I don’t think it’s going to be enough to solve the housing problem, at least not in 2008.”

The measure also contains a provision dropped from February’s stimulus measure that would permit homebuilders and other money-losing businesses to reclaim previously paid taxes, new disclosure requirements aimed at preventing unsophisticated borrowers from being duped by mortgage brokers, and additional money to provide counseling to people threatened with foreclosure and help them in negotiating with their lenders.

Republicans forced Democrats to drop efforts that Zandi and other economists said might have proven more effective in alleviating the crisis, including a controversial plan opposed by banks and their GOP allies to change bankruptcy laws to help borrowers trapped in subprime mortgages keep their homes.

Banking Committee Chairman Christopher Dodd, D-Conn., was also forced to leave out of the bill a plan to have the Federal Housing Administration guarantee perhaps $400 billion worth of refinanced loans if lenders reduce loan amounts to reflect reduced home values. Dodd told reporters he would continue to work on the idea in hopes of advancing it later in the year.

Republicans won a scaled-back version of a plan by Johnny Isakson, R-Ga., to provide a temporary tax credit to people buying foreclosed or newly built homes. Isakson sought $15,000 in tax credits spread over three years – aimed at boosting demand in the slumping housing market – but GOP negotiators settled for a $7,000 credit awarded over two years.

Liberals and conservative economists alike questioned the merits of the idea, however, saying it would have relatively little effect on demand and that to the extent it would lift demand it would boost foreclosure sales for banks who made bad loans and homebuilders who built homes despite signs that the market was slowing.

“Basically, you’re giving money to builders that overbuilt and banks that issued bad loans,” said Dean Baker, co-director of the Center for Economic and Policy Research. “It’s giving money to the villains in this story.”

Economists also questioned how effective it would be to have local governments buy and refurbish foreclosed homes. Advocates of the idea say it would stabilize neighborhoods and protect home values, but the White House said it would benefit lenders most.

“The funding to purchase homes does nothing to help homeowners struggling to make their mortgage payments,” Fratto said

The measure contains a broader rewrite of the FHA that permanently raises the dollar limit on mortgages that FHA can insure to $550,000 in the most costly real estate markets. The economic stimulus bill approved by Congress in February temporarily raised the limit from $362,790 to $729,750.

But Republicans rebuffed efforts by Democrats and the White House to reduce down payments on FHA-insured loans.

The most costly element of the bill would allow home builders and other companies that are presently losing money to reclaim taxes paid up to four years ago instead of the two-year period currently permitted.

Altogether, the tax provisions in the measure would cost $10.8 billion over the next decade, though the short-term costs are considerably higher.

The momentum behind the measure reflects voters’ concerns about the economy in a pivotal election year. And there’s even more pressure on lawmakers to help ordinary Americans after the Federal Reserve and the Treasury Department weighed in to prevent the collapse of Bear Stearns, the Wall Street investment house.

The Senate late Wednesday night announced that it had reached a bipartisan compromise on a plan to aid families facing foreclosure.

The lawmakers have been at a stalemate, unable to reach agreement on key provisions that have already been approved by the House.

The Senate didn’t approve a provision that would allow bankruptcy judges to reduce mortgage debt.

The compromise includes:

Foreclosure aid. A $4 billion package to aid communities hard hit by foreclosures and mortgage delinquencies. Local governments could use the funds to buy and rehabilitate foreclosed homes at a discount.

Government-backed mortgages. Increased loan limits for FHA- guaranteed mortgages.

Financial counseling. About $100 million in new funding for housing counseling for troubled families.

Tax credit. A $7,000 tax credit, over two years, for buyers of foreclosed homes or properties on which foreclosure action has been filed.

Business tax relief. Authority for home builders and other firms that are losing money to reclaim taxes paid up to four years ago vs. two years now.

The Mortgage Bankers Association applauded the plan, saying it would "keep at-risk borrowers in their homes."

Think Florida's housing market is lousy? Not so, say Joey and Shannon Schmedes of St. Augustine, who see their new home as a sign of the bright side of an otherwise dim housing market.

"This is truly a dream come true for us," Shannon Schmedes said, sitting in her spacious kitchen watching her husband play with their daughter Abby, 2, in the back yard of their West Augustine home.

"We didn't realize we could afford to buy a house like this for just a little more than we were paying for rent on our apartment," she said. "I can't explain how good this feels."

Their joy, and the joy of others like them, is also making some real estate agents and mortgage brokers feel good at a time when bad news ricochets around the real estate industry.

The one segment of the housing market in northeast Florida that is moving at a healthy pace is for first-time homebuyers like the Schmedes. People like them don't have another home to sell, and they have plenty of financial assistance available, especially for those people with lower incomes.

"While it's hard to say whether it's a trend that will continue, it does seem plausible," said Wayne Archer, a University of Florida professor of real estate and finance who serves as executive director of the university's Bergstrom Center for Real Estate Studies.

"These buyers are in the unique position of not having to sell a current home in the rather hostile resale market we have right now."

Market's hot spot

The Schemedes fit the profile of people who are ideal candidates to move from renters to owners: they have good credit, steady jobs, no house to sell and earn enough to make mortgage payments while having a low enough income to get financial help making their downpayment.

Shannon Schmedes works as a server at Schooner's Seafood House in St. Augustine, not far from their new home, and her husband is a manager at Oasis Restaurant on St. Augustine Beach.

Their situation is not unique, said Ron Gelinas, the loan officer who secured their mortgage for them.

"The first-time home buyers represent the biggest movement on the market right now," Gelinas said. "These are everyday people, many of them working blue-collar jobs and making as little as $10 per hour."

Gelinas, of BB&T Bank, has tapped into this market by offering quarterly workshops specifically targeting first-time home buyers, offering them advice on everything from financing programs, bond programs, down payment assistance and credit counseling.

He said he has written several similar loans over the past year for people who thought they didn't make enough money to buy a house, such as food servers, cashiers, deckhands and others in lines of work that pay modestly.

"The houses that are moving right now are in the $130,000 to $200,000 range," Gelinas said. "Fortunately, we live in a county where there are a lot of available homes in that bracket, both new and existing."

Happy beginning

For Joey and Shannon Schmedes, who are still setting up their new home, the biggest benefit is security and being able to establish a homestead where they can raise a family in a good neighborhood.

"This is where we want our daughter to grow up," Joey Schmedes said. "She's everything in the world to us, and we want a nice place for her. Shannon actually grew up a few streets over, and I was raised in this area, too."

His wife agreed.

The U.S. Department of Housing and Urban Development has a plan to enable homeowners who are underwater on their mortgages to qualify for a partial loan through the Federal Housing Administration.

HUD Secretary Alphonso Jackson "is examining the potential for FHA to be a solution for these borrowers," Treasury Secretary Henry Paulson said Wednesday.

Lenders, real-estate professionals, and other housing-industry officials have complained to HUD that FHA's current framework makes it too difficult for home owners to qualify, partly because FHA won't accept home owners who have missed a payment in the previous six months.

Jackson told the Washington Times that the proposed plan would insure 80 percent to 85 percent of a loan in areas where home prices are falling.