The Journal Constitution reports from Georgia. "Subprime loans helped fuel the housing boom in Atlanta, and now they are feeding fears of a foreclosure epidemic. In the past quarter, 13.5 percent of the nation's subprime mortgage loans were in default. The rate was higher in Georgia —17.4 percent, according to a report last week by the Mortgage Bankers Association."

"Filings for mortgage foreclosures rose 67 percent in Georgia in 2006, and the state had the nation's second-highest rate of foreclosure filings, according to RealtyTrac."

"David Worley, a metro Atlanta wholesale lending manager, said he has seen similar cycles in his 30 years in the mortgage business, but 'none quite as severe as this.' 'Someone's going to go in there and offer it,' he said of the higher-risk loans. 'If they didn't offer it, somebody else would be out there selling it.'"

"Borrowers with better credit could benefit from the fallout in the subprime market, said Tyler Wood, president of the Mortgage Bankers Association of Georgia. 'If you're a prime mortgage candidate, you will be highly sought after,' Wood said."

The Sun Sentinel from Florida. "Speaking at a Futures Industry Association annual conference here, Retired Federal Reserve Chairman Alan Greenspan took questions from an audience of 200-plus members on topics from mortgage troubles to the price of gold."

"Greenspan was greeted like a rock star, with a video introduction that included the song Money by Pink Floyd. On every table were medallions and money clips bearing his image."

"A spokeswoman said she could not, by contractual agreement, say how much Greenspan was paid for his appearance, but Fortune magazine recently estimated his speaking fee at $100,000."

"Greenspan said the problems of the subprime mortgage market had more to do with home prices than easy credit. 'If we could wave a wand and housing prices go up 10 percent, the subprime mortgage problem would disappear,' he said."

"On housing, he said 'if prices go down from here, I think we're going to have problems that could spill over to other areas.' Specifically, he was referring to the subprime mortgage market further affecting other segments of the market and economy."

The St Petersburg Times. "The bill is coming due on subprime loans. Florida, which accounts for one-tenth of the country's subprime loans, could face more pain than most. 'There's clearly some elements of a crisis,' said Mark Vitner, Wachovia Corp.'s senior economist."

The Herald Tribune. "Everybody knows that the region's residential real estate market lurched, staggered and stumbled through 2006 while attempting to find an elusive balance. But just how bad was it?"

"The quartet of Southwest Florida's largest and best-financed realty brokerages dropped an average of 43 percent in sales and an average of 47 percent in unit sales. In raw dollars, it was a drop of about $3.5 billion."

"For all four of the large brokerages, 2006 fell short not only of 2005 but also of 2004."

"'The correction in 2006 was very different than previous corrections' said Joe Hembree, the president of the Sarasota Association of Realtors. The drop-off did not occur, as most do, in a general economic downturn. In fact, it was quite the opposite, he said."

"It was speculation that fueled the historic sales and price increases and it was 'at levels that simply are not sustainable in a healthy economy,' Hembree said."

"'Inventory levels remain high, which has continued to create a buyer's market,' (broker) Scott Sosso said."

"Sue Louis, senior VP for Coldwell's Sarasota Bay division, said her company is seeing an increase of rental properties. 'Many homeowners are electing to rent their homes, which indicates a trend toward reduced inventory,' she said."

From Florida Today. "Struggling to recoup expenses in a weak housing market, real estate speculators are flooding Brevard County with inexpensive rental homes, causing heartache for apartment operators and bargains galore for apartment dwellers looking to upgrade their digs."

"There were 1,127 homes available for rent this week in the county, according to the MLS. Realtors say that's more than twice as many as they recall seeing."

"Sheryl Jones of Century 21 had 60 single-family homes to rent last year. This year? She has 130. 'It's a buyer's and a renter's market now,' she said."

"Although he wishes he didn't, Ken Myers owns 15 rental homes along the central coast of Florida, including five in Brevard County."

"Like many home flippers, people who build or buy homes, improve them if need be and then sell them for a profit, Myers made money for three or four years until the new home market softened about a year ago. 'I was trapped into renting,' he said."

"To compete in this market, Myers has to keep rents low, negotiate for less than his monthly costs and even offer the first month free. 'I've got mortgages for $2,700 a month, and I'm renting a 3,000-square-foot (house) for $1,200. I'm upside down,' Myers said."

"But he's determined to stick it out until the new-home market levels out. 'Your money is still stronger in real estate -- if you can outlive the chest pain.'"

"Margie Kemmler in Indialantic hasn't seen anything like it. 'I've been handling rental properties for 10 years, and I've never seen so many new homes available at these prices. I have three-bedroom, two-bath homes on the market for $950, and they're not renting,' she said."

"The situation had Bob Taylor, manager of Pentagon Garden Apartments in Melbourne, rooting around in a closet recently for 'Now Leasing' and 'For Rent' signs. He said three residents left at the end of January to rent new homes, and he has six notices to vacate, the most he recalls having at once."

"'Why rent a two-bedroom apartment for $725 when you can have a whole house with three bedrooms for a little more? It's kind of rough,' he said."

"'I came here a year ago to a full house and waiting list and now I need a life preserver,' said Alan Guthrie, manager of the 236-apartment Riviera Terrace Apartments in Palm Bay. He said in January, two tenants moved into homes 'with rents within $150 of what they pay here.'"

"Cindy Riggin, president of the Space Coast Apartment Association, estimates occupancy rates at apartments in the county average 88 percent now, when last summer they hovered near 100 percent. 'The market for apartment rentals has taken a nosedive,' agreed Patricia Davis."

"Several factors are contributing to the soft housing market. New lending policies, for example. Sue Bergamo with Matrix Lending of Melbourne Beach said until January, even those with poor credit could buy a new home with no money down."

"'Now, we're more particular and a home must be owned for at least three months before it can be put on the market again,' she said. Some lending agencies require a year."

"And flippers often compete with home construction firms for buyers. Myers said he had a home for sale in a development where the builder offered the same home for $100,000 less."

"Franck Kaiser of the Home Builders and Contractors Association of Brevard County blames flippers for artificially increasing the price of homes, causing overpricing and oversupply. 'Homes are still not selling because people think home costs are going lower still,' he said."

"(Broker) Michael Pruitt in Melbourne considers the sluggish new home market temporary. 'By mid-year, I think, it'll balance out. It's simple economics of supply and demand. We have oversupply. But it's much better here than in South Florida.'"