The Herald Tribune reports from Florida. "Hundreds turned out to a Long Island Marriott Hotel to hear one of several presentations that led many northeastern investors into perhaps the biggest financial catastrophe of their lives. As the historic 2003-05 Florida real estate boom peaked, Seashore Resorts LLC and its agents regaled investors with stories about...the potential for 30 percent annual returns on residential real estate."

"Seashore pitched '100 percent spec investor pre-construction loans' requiring little or no money down so long as the investor had good credit: a score of 680 or higher. By the time most investors were brought aboard, the music had all but stopped, along with the work on their homes."

"Scores of investors are now preparing to go to court, saying they were swindled and sucked into a deal where they lost control of their credit lines. They say that Bradenton's Coast Bank, now wrestling for its own survival, did not adequately supervise the loans, allowing large draws by Construction Compliance Inc, with no proof that work had been done."

"At first, many deals worked out in the booming Florida housing market of the last several years. Investors watched as friends made killings, and those tales of success drew more friends, family and club members into the fold."

"George Tannous, a New Jersey resident, and several friends and family put down sums ranging from $2,500 to $7,500. 'Each investor very quickly had a credit line established at Coast Bank amounting to as much as $300,000 each,' Tannous said."

"Joanne Inglese, another New Jersey investor, was told to expect a 10 percent slice of the gross sales price of her home, or about $30,000, for the use of her credit. She has since seen $70,000 drawn from her Coast Bank loan for an uncompleted home, liens from subcontractors who have not been paid by CCI and the prospect of a badly damaged credit rating."

"Paul Matera and Bob Prisco were big movers of Seashore deals. Prisco and Matera were paid fees of up to $3,000 by each of the 70 investors they brought into the deal, for a total of about $210,000. Matera said he personally invested in two uncompleted CCI homes and some of his family members invested in another two. 'I invested right alongside everybody else,' he said."

"Matera said he 'feels terrible' about the problems that have arisen around the deals he sold to investors. But he said he warned everyone whom he brought into the Seashore circle that they should 'not do this deal, if you can't carry the house.'"

The Palm Beach Post. "In St. Lucie County, whose phenomenal boom-time growth once prompted a front-page story in The New York Times, new foreclosure filings in January more than quadrupled, RealtyTrac said Tuesday. And some analysts say the worst may not be over."

"In St. Lucie County, speculators fueled a run-up in home prices, as they did throughout South Florida, analysts say. Consultant Jack McCabe estimates that as many as 50 percent of St. Lucie County buyers were 'investors buying to flip homes like a share of stock.'"

The Orlando Sentinel. "The quick sale of homes for a fast buck is fading rapidly in Florida and even faster in Central Florida. Sales of homes owned less than six months fell again in the fourth quarter, as flat home values continued to cool the practice of speculative, quick sales known as 'flipping,' according to a company that tracks sales and home values."

"Speculators' ability to make money on a quick sale has plummeted, Ela said. The company's analysis of Florida sales found that the number of flippers who lost money on their gambles more than doubled last year, from 10.4 percent in 2005 to 24.4 percent. 'That's a big jump,' said HomeSmartReports President Mike Ela."

"Of those speculators who lost money on a Florida home sale, the median loss was $23,250 in the most recent quarter, up from about $15,000 a year earlier. 'They were losing more money every quarter,' Ela said."

The Sun Sentinel. "Almost three years ago, Al Vazquez bought a historic fixer-upper next door to him in the Parker Ridge neighborhood of West Palm Beach. He transferred his homestead exemption to the new house, then watched in disbelief as the property taxes on the first home ballooned to $3,500 from $650."

"Carrying two mortgages, Vazquez recently tried to unload the tiny home off Forest Hill Boulevard to a friend for about $200,000, or about 20 percent below market value. 'It would have been a steal,' Vazquez said, 'but his property taxes would have doubled.'"

"After almost three years of frustration, Vazquez said he can't wait for the day his home sells. 'We just want to get rid of it and go on vacation.'"

The St Petersburg Times. "Homeowners aren't the only ones vulnerable to foreclosure these days."

"Sun Vista Snell LLC, which paid $41-million last year for a Snell Isle apartment complex and planned to spend another $20-million converting it into condominiums, has been sued by its chief lender for allegedly defaulting on a $34-million loan."

"Wachovia Investment Holdings LLC claims Sun Vista stopped paying its mortgage in October, just months after obtaining a loan to acquire the 272-unit Snell Isle Club complex on Eden Isle."

"In a court filing, St. Petersburg-based Sun Vista acknowledged that it stopped making payments but denied defaulting on the loan."

"The suit could spell financial trouble for principal John Loder, who caught the real estate bug after his family sold the Crabby Bill's restaurant chain and is involved in several other high-profile real estate projects locally."

"Wachovia says Loder and architect Stephen Spencer both guaranteed the loan personally; each claimed he was worth at least $20-million."

"Wachovia's not the only Sun Vista creditor feeling crabby. Gannaway Builders of Clearwater claims the developer stiffed it for more than $500,000 worth of work, while Gulf Coast Painting and Waterproofing says it's owed about $38,000."

The Tampa Tribune. "A Tampa title agency under investigation by state and federal authorities for its role in questionable property transactions has closed. Ocean Title's sole underwriter, Houston-based Stewart Title Guaranty Co., terminated its relationship with the company in November, two weeks after The Tampa Tribune published a story detailing how the agency handled some of the sales."

"Stewart 'has continued to cooperate with the various investigative agencies,' Susanne Hawkins, regional claims counsel, said in a statement Wednesday."

"The Tribune's story in October detailed 36 area homes sold over seven months by Tampa real estate agent Dawn L. Molen. Her buyers, most from Indiana and in an investment club, consistently paid $50,000 to $70,000 more than the sellers were asking."

"All the deals were closed by Ocean Title, and the money beyond the seller's price, an average of $60,000, was paid as an 'assignment fee' to third parties associated with Molen."

"The story prompted investigations by the state attorney general's office and three other state agencies. Stewart representatives have said the FBI also is investigating. Nina Banister, spokeswoman for the Florida Department of Financial Services, which oversees title agents and agencies, said its investigation is ongoing. 'It is very active,' Banister said."

"Amity Bernhard, an officer of Ocean Title, said the company closed because it could not do business without an underwriter. 'We haven't been indicted, but because of the bad publicity … the business I worked so hard to build is now defunct and all my employees have been laid off.'"