The Journal Sentinel reports from Wisconsin. "Milwaukeeans' love of discounts is on full display in this year's housing market. 'With flooding inventory out there, it's not uncommon to see offers at 10 percent below asking price,' said Greater Milwaukee Association of Realtors President Dave Schmidt Jr."

"Double that price cut if the property is in danger of foreclosure, said Robert A. Jansen, of (a foreclosure) listing service."

"'We're seeing many people writing offers at 10 percent to 20 percent below asking price. Buyers are less afraid to insult sellers,' said Roy Scholtka, broker in West Allis."

"Buyers are picky. And with 10,246 new listings hitting the market so far this year, they can afford to be, said (broker) Dave Schmidt. 'Listings are up 13 percent over last year and 50 percent over 2005,' Schmidt said."

"'Everybody I talk to is wondering, 'Why isn't my house selling?' It's because they're still thinking they should be getting 5 percent price appreciation a year,' said Donald J. Moore, president of Houses .com in Elm Grove. 'You should be happy if you can get '04 prices.'"

The Detroit News from Michigan. "The national meltdown of the subprime mortgage market is causing its share of Michigan casualties, as major lenders have closed and smaller ones are struggling with a lower volume of loans."

"Industry experts say the businesses most affected locally are the small loan writers and brokers who sprang up during the refinancing boom earlier this decade and are now closing in scores."

"'This is a major credit event caused by lax standards, unusually aggressive mortgage lenders and apparently some fraud,' said Dennis Capozza, a professor of finance at University of Michigan."

"When the housing market is strong like it was five years ago and home prices are rising, people don't often default on loans because they are able to sell their houses to get out from under a mortgage, Capozza said."

"But now, he said, 'we're moving in the other direction. If you can't sell your house, you may have to give it back to the lender.'"

The Journal Gazette from Indiana. "Sales of existing homes in Allen County last month dropped nearly 33 percent from March 2006, according to the Fort Wayne Area Association of Realtors."

"The declining sales partly reflect the fact that this is a buyer’s market, said broker Jerry Morrow. A large number of homes remain on the market, and foreclosures added to the abundant inventory."

"'The market’s just saturated with listings,' he said."

The Terre Haute News from Indiana. "The Indiana Secretary of State’s office is leveling allegations against a Terre Haute mortgage loan company, a Sullivan title company and several individuals."

"The Secretary of State’s office alleges that Affordable Lending knowingly processed false loan application documents on behalf of two property buyers. The two buyers bought 23 different properties around Terre Haute in 2005 and 2006, according the complaint."

"'Our point is that [borrowers] lied … and we believe that the brokers helped them lie,' Secretary of State Todd Rokita said."

"The complaint alleges that the borrowers claimed several different properties as 'primary' residences on loan application documents. Primary residences usually receive loans on more favorable terms than investment properties."

"The alleged fraud was discovered, Rokita said, when the mortgages were sold on the secondary loan market and, 'by coincidence,' some of them ended up at the same secondary loan buyer. These buyers noticed some of the mortgages had the same buyers listed as owning more than one 'primary residence,' Rokita said."

"'That’s what tipped us off,' he said, adding investigators then 'dove into the broker’s office and looked through all his files to put all the pieces of the puzzle together.'"

The Kansas City Star. "Chandler McCray, the president of McCray Lumber & Millwork Co. of Overland Park, has had to lay off 50 employees since new-home construction began to drop last year."

"'We started feeling the slowdown as far back as last summer,' McCray said. 'When it really slowed down or stopped was since the beginning of the year. Our sales are off 40 percent.'"

"With roughly one of every 10 jobs somehow connected to the housing industry, experts warn that the current market slowdown could affect people you ordinarily would not consider."

"L. Randall Wray, a professor of economics at the University of Missouri-Kansas City, said Americans have weathered ups and downs in the real estate market before, but never at a time when so many were overextended on their credit."

"Wray said a recent report by The Wall Street Journal online, citing statistics prepared by First American LoanPerformance, indicated that 14.1 percent of all mortgages in Kansas City were subprime loans. Of those subprime borrowers, 14.2 percent were delinquent."

"'I don’t think Kansas City will be left alone,' Wray said. 'When homes foreclose, this depresses prices in a market where they already are going down. It’s true real estate goes up and down, but we’ve never had a decline in values when the housing market is so indebted.'"