The St Petersburg Times reports from Florida. "Bulldozers and cranes are again making noise along Clearwater Beach, as builders work to complete major condominium projects they started years ago when the market was booming. They're discounting prices for early bird buyers, offering upgrades at cheaper rates and throwing in other incentives."

"From his newly remodeled sales center, businessman-turned-developer Uday Lele says he's cutting 20 percent off the price for the first 50 buyers in his massive Enchantment beach development. That's a hefty discount, he says, for a condo that can cost up to $2-million." "Also, Lele says, he'll throw in an extra parking space, another $50,000 to $70,000 savings."

"Steve McAuliffe, with JMC Communities, says his company is offering pre-construction costs for condos at the Marquesas Ovation in St. Petersburg. The VP of sales and marketing says the first 74 units at Marquesas will cost buyers $70,000 to $200,000 less if they buy now."

"JMC is also offering pre-construction rates and 'decorator allowances upwards of $100,000' for condos at Ovation."

"This is a far cry from two years ago, when sales were so hot that buyers were flipping units, sometimes a day after buying them. 'At this point, it's a function of the market,' said (developer) Kirit Shah. 'When the market is soft, some developers discount it further.'"

The Bradenton Herald. "The stories are from homebuyers and investors caught in the failure of Coast Bank and Construction Compliance Inc. home loans in southern Sarasota and northern Charlotte counties. Like the story of a Bradenton man and his partner who were approached by American Mortgage Link to buy investor packages that included the house, lot and mortgage through Coast Bank."

"Last summer, he received a letter in the mail from one of the subcontractors about nonpayment. He called Coast Bank and told them not to give the developer any more draws on the project. Bank officials assured him that he didn't need to worry."

"The next thing the investor realizes is that more money has been handed out by the bank to CCI, despite his warnings. Today, he has a home that is 95 percent complete but has at least four liens filed against it by subcontractors who haven't been paid by CCI. This month he made a $1,600 interest payment on his unfinished house."

"'At the time I thought it was going to be a good deal,' he said. Today, his three-bedroom, two-bath home sits empty, awaiting completion and a buyer."

The Herald Tribune. "Just a week before Bradenton-based Coast Financial Holdings revealed $110 million in problem loans involving Construction Compliance Inc., the bank handed the St. Petersburg home builder's founder $413,100. The loan to Jesse B. Battle III was a second mortgage on an undeveloped residential lot in St. Petersburg."

"Battle's $413,100 second mortgage was made against a 6,400-square-foot parcel in St. Petersburg that the home builder bought in April 2005 for $199,500, Pinellas County property records show. Battle originally financed the purchase of the land with a $199,500 loan from Coast. He paid that loan off in early 2006, and replaced it with a $499,950 loan from Coast."

"On Jan. 12, Coast handed Battle another $413,100, raising his total debt on the property to $913,050, records show. The Pinellas County property appraiser values the property at $185,200."

"Port Charlotte attorney Glenn Siegel and others representing customers of Coast and Construction Compliance Inc. say that Coast 'had a fiduciary duty to ensure that work was done before they distributed payments' to CCI."

"Coast also could have problems if it chooses to foreclose on properties, said Siegel, who besides homeowners represents subcontractors with $1 million owed to them by CCI."

"Foreclosure, the bank's ultimate tool if a borrower stops paying a loan, must be an 'equitable proceeding.' If the bank failed to monitor its loan disbursements, foreclosure could be barred, Siegel said."

"Basically, the borrower could say to the bank: Why should you get my property since your lack of internal controls contributed to the creation of this debt?"

"Meanwhile, other lawyers said it would be difficult for their clients to accept the plan outlined by Coast last week to transform some of the borrower's construction loans into longer-term mortgages."

"Port Charlotte attorney Thomas Carrero is representing about 25 investors, many of whom are elderly or retired and not in a position to assume long-term obligations. 'Some have no choice; they can't accept a hit like that,' Carrero said."

The Sun Sentinel. "Given how slow South Florida's housing market is, sellers should prepare to make huge concessions on price and commission, lest they want the properties to sit unsold for months, said (realtor) Stephen Bartlett. 'I think this is going to be the norm from now on,' Bartlett said."

"Many sellers have tried to attract the attention of agents in this soft market by offering large commissions, bonuses, cruises and other perks. Some agents share those perks with their clients. But Debbie Anderson in Coral Springs and other agents say they doubt 10 percent commissions will become more common. 'Sellers need to be giving incentives to buyers, not their agents,' Anderson said."