The Orlando realtors have their August numbers out. "The number of homes sold in August of 2006 dropped by 33.7 percent when compared to August of 2005. The inventory of available homes continued its upward trend in August with the addition of 7,039 new listings contributing to a total inventory tally of 21,077. A total of 2,077 existing homes changed hands in August through the MLS, for a year-to-date total of 19,404."

The Naples News. "Luxury community developer WCI has pulled out of a deal to build the high-profile Sabal Bay project east of Naples. Steve Zenker wouldn’t comment on the reasons for the company’s decision, but the Bonita Springs-based developer has been buffeted by a declining Florida real estate market."

"The company announced an unspecified number of layoffs in July and, in August, announced that its net income fell from $75.3 million in the second quarter of 2005 to $22.7 million in the second quarter of this year, a 70 percent drop."

The Sun Sentinel. "The Boynton Beach Community Redevelopment Agency unanimously voted Tuesday to reconsider next month shelling out millions of dollars in cash incentives offered to developers of the Promenade and 500 Ocean, two defining projects for the city's eastern front."

"Neither developer has begun construction. Frustrated board members said they recognized the slumping real estate market but said it was no excuse for developers' lack of response in updating the CRA on the status of their projects. 'They just don't respond,' said board member Marie Horenburger. 'I don't care what the [real estate market is]. Tell us what you're doing.'"

The Palm Beach Post. "In Palm Beach County, 2,241 homes entered some state of foreclosure in August, a 226 percent increase over the same month a year ago, when 688 homes entered foreclosure. Statewide, 16,533 homes entered some stage of foreclosure in August, more than any other state in the country and a jump of more than 50 percent over the previous month, RealtyTrac said."

"Today's foreclosure report comes on the heels of a Business Week investigation published in the current issue that shows 24 percent of all purchase and refinance mortgages in Palm Beach County are 'option ARMs,' or option adjustable-rate mortgages."

"Only pricey Naples has a higher percentage of such mortgages, which Business Week calls the riskiest loan product ever created."

The Bradenton Herald. "Homebuyers have been relying on a type of mortgage that gets them more house than they might typically be able to afford by offering them lower payments. But like all deals that seem too good to be true, the bill eventually comes due. A surge in foreclosures in Florida over the last two years suggests that time has come, experts say."

"'Since they're paying less than interest only, they're deferring interest which is tacked on to the bottom of their loan,' said Catrina Foster, with SunTrust Mortgage in Bradenton. 'So they typically can owe more than what they borrowed, particularly in a correcting market.'"

"'We in Florida were able to experience a wonderful appreciation of our property values over the last several years,' Foster said. 'Well now, values are coming down and the market is correcting itself. A lot of people select the very first option (less than interest) to keep their payments way down. Not advisable. If you know you're going to be in this house for six, seven or eight years and you continue to pay that option one payment, it could sting a bit at the end.'"

"Patrice Yamato, president of the Florida Association of Mortgage Brokers, insists the dangers of option ARMs are overplayed in the media. She said borrowers are informed twice in detail during the home-buying process about the specifics of the loan. 'What else do we need to do to make those borrowers understand? We go over it and they sign a disclosure and then it's disclosed again at closing,' Yamato said."

"'I agree that option ARMs are not for everyone but there are so many safety measures in place that that type of scenario that's being described in (articles) can't happen,' she said."