The Orlando Sentinel reports from Florida. "Today, the demand for 55-plus housing remains high, and units in the older complexes are relative bargains. It would seem to be a perfect sales environment. Except that the units aren't selling. The older complexes were hit hard by assessments to cover repairs after Hurricane Wilma. Add that to a glut of units and age restrictions that limit the buying pool, and the units can be a tough sell."

"The owner of a $300,000 condo would need to make at least $65,000 annually, and the owner of a $700,000 condo would need at least $150,000 in annual income. Realtors consider the older complexes bargains, because many were rebuilt after Hurricane Wilma."

"'The exact same condo in Delray, same size and location, in a nonrestricted community that sells for $200,000 would sell for $155,000 or $145,000 in a 55-and-over community,' says Ron Schulman, managing broker in Boca Raton."

"Beach-loving baby boomers are starting to take advantage of that. At the 40-year-old Coral Ridge Towers East in Fort Lauderdale, which is near the beach and Intracoastal Waterway, one-bedroom units range from $150,000 to $250,000, and two-bedrooms range from $250,000 to about $350,000, says Realtor Ed Poirier."

"That's much less than the average $600,000 cost of a newer two-bedroom beach condo, with some going for more than $1 million, he says."

"But despite their affordability, older units are not selling, and a big part is 'the cost of insurance and taxes' after Wilma, Schulman says."

"Sandy and Stanley Post aren't giving up. They have had their three-bedroom Indian Spring condo in Boynton Beach up for sale since April. They've lowered the price to $260,000."

"'It's not worth getting depressed about because it's the real estate market today,' says Sandy Post, who has lived in the condo six years."

"It took Joanne and Richard Weed about nine months to find a buyer for their small retirement home in the Mainlands of Tamarac. It sold in November after they lowered the asking price from $199,000 to $185,900."

"Despite the gloomy market, some condo boards are imposing new rules that make it harder for buyers to be approved. They want buyers to prove they can afford assessments or maintenance increases to cover emergencies."

"'We've had to because almost anybody can get a mortgage, and when people qualify, they never talk about the maintenance,' says Joel Leshinsky, president of the Inverrary Association in Lauderhill."

The St Petersburg Times. "The Florida housing boom was creating instant millionaires when St. Petersburg builder Jesse Battle III hit on a promising formula to feed the public's hunger for no-pain, all-gain real estate deals."

"Within 18 months, Battle's company, Construction Compliance Inc., had lined up customers for more than 500 investment homes he would build, mostly for no money down in southwest Florida."

"Around the CCI office, Battle buoyantly addressed co-workers as 'dawg' before hopping in his new Hummer. In the past three months, that go-go environment collapsed in a tangle of unpaid debts, unfinished homes, burned customers and furloughed employees."

"His partner in the deal, Coast Bank of Bradenton, financed at least 482 of the CCI loans and is on the hook for upwards of $77-million customers may never repay."

"'Coast Bank has become the poster child for many banks having problems in Florida,' said Miami banking expert Ken Thomas. 'This is a national story. Everyone around the world is talking about the housing crisis in America. There hasn't been a bank failure since June of '04. The question is: Is this going to be the first casualty?'"

"Michael Wood not only contracted for two houses, but tipped off 25 of his family members and friends. 'I paid zero out of pocket. There was $30,000 to $50,000 potential to make on it,' said Wood, who, like many investors, considers the CCI/Coast package legitimate but marred by poor execution."

"By 2006, they were feeling flush in the Bradenton headquarters of Coast Bank, founded in 2000. In the nine months ending Sept. 30, Coast's assets, mostly outstanding loans, grew a heady 23 percent from $550-million to $676-million. When Coast CEO Brian Peters left the company in July after two years on the job, the company showed its gratitude with a $743,000 severance payout."

"By the spring of last year the company was showing signs of sickness from a real estate market in free fall. Battle contends he completed 70 homes last year, but buyers were reluctant to close since many might have lost money as sales slumped in North Port."

"By the fall, CCI was buckling under the financial strain: Sales were slowing, interest payments on construction loans multiplied and subcontractors were getting stiffed."

"St. Petersburg investor Marilyn Schwegman, who ordered a $237,000 house from CCI, got the letter around Christmas. The concrete company that laid her slab and the concrete block dealer who has built her walls wanted her to pay nearly $30,000. 'CCI is supposed to be covering construction costs and I'm getting this certified notice from the concrete company,' Schwegman said."

"CCI has ceased paying subcontractors and abandoned work in North Port. The freeze affected 482 homes in Coast's loan portfolio. Frustrated contractors retaliated by filing liens against the property owners, bypassing Battle. Scores of customers were saddled with debts to Coast of $80,000 and up. They had nothing to show for it but empty lots."

"Most customers want their debt cleared or restructured downward. 'Will I repay Coast Bank? If they're telling me I owe $90,000 on a vacant piece of land with all these dirty hands involved, then no way, I'm going to walk,' said Wood, the Zephyrhills investor."

"For banking types, Coast is a perfect illustration of the danger of lending too heavily to one customer. Smitten with easy money from residential real estate, it piled a fifth of its loan portfolio into the CCI deal."

"At least four law firms are gathering clients from the discontented. Their opinions converge: Coast failed in its fiduciary responsibility to ensure CCI properly spent the bank's money."

"'There's definitely a bunker mentality at the bank,' said Sarasota attorney Alan Tannenbaum. 'The bank is taking a no-compromise position: 'It's not their problem. It's CCI that defaulted.'"

"Battle is struggling to avoid becoming a footnote. He's broken his lease on his new office and returned to his old downtown storefront, more or less a one-man shop after laying off most employees."

"Port Charlotte attorney Glenn Siegel represents mostly unpaid subcontractors. He's unimpressed by Battle's attempts to make amends. 'If my clients have to sue,' he said, 'I believe there are grounds to pierce the corporate veil and hold Jesse Battle personally responsible.'"