A report from the Washington Post. "At Glen Waye Gardens Condominiums in Silver Spring, 21 owners are more than 30 days behind on their monthly condo fees. Two other owners have not paid since they bought their units, one in April 2005 and the other in September 2006. Both properties went into foreclosure."

"The lost fees, which make up 5 percent of the association's annual budget of $1.3 million, have pushed the condo board to dip into its reserve funds to fix the roof and replace a water heater."

"In a sign that the turmoil in the subprime mortgage industry is affecting entire communities, condominium association officers, property managers and real estate lawyers throughout the region say they are noticing more delinquencies in monthly fees."

"'If someone is not paying their mortgage, they're not paying their condo fee, and the condos need money to pay bills,' said Jeffrey van Grack, a community association lawyer in Bethesda."

"When mortgages become too burdensome, the bill from the condo association becomes easier to ignore."

"Phil Ochs, a lawyer who represents about 40 condo and homeowners associations in Montgomery and Prince George's counties, said he has seen 10 foreclosures since January. In the past 45 days, 15 people living in communities he represents have declared bankruptcy to stave off foreclosure. Most of them bought their condos in the past two years, he said."

"Normally, Ochs said, he may see one or two foreclosures and one or two bankruptcies a month. But now, that's changed. 'Something's going on,' Ochs said. 'This is historically out of line.'"

"'We're starting to see delinquencies where they're not owner-occupied. It's not just a matter of a subprime borrower,' said Thomas Schild of Thomas Schild Law Group in Rockville, which represents many community associations. 'They were counting on increased equity. That equity is not happening.'"

"Clara Perlingiero said there are two units that are close to being foreclosed on in her Silver Spring condo community. In her 30 years living there, she said, there has been only one foreclosure."

"Her building is old, and the elevators need fixing. The condo fees, which range from $275 to $400 per month, are crucial, she said. 'We have to maintain the building because everyone loses if you don't,' she said."

"Advocates for condo boards in Maryland pushed unsuccessfully this year for a state law that would have given associations priority liens over properties. That means that the association would collect unpaid dues on a foreclosed property before the lender got what was owed on the mortgage."

"The District has such a law, so associations can collect up to six months in unpaid dues before the bank steps in. Virginia, like Maryland, gives the lender priority."

"The bill's backers argued that in a down market, there usually is no money left after a foreclosure sale to pay both the lender and the association. The mortgage industry opposed the bill."

"Craig Wilson, president of a property management company in Germantown, said, '99.9 percent of the time, when a mortgage is foreclosed upon, the homeowners association or condominium gets nothing.'"

"At Glen Waye Gardens, monthly fees range from $396.50 to $588.75 and cover utilities, groundskeeping, snow removal, and maintenance of the furnace and air conditioning system. 'We're not running a resort out here,' said Vicki Vergagni, president of the 214-unit community's board. 'These are living expenses.'"

"Vergagni, who has lived in the community for 32 years, said some of the most delinquent people had low incomes and weak credit or got 100 percent financing. In one case, New Century Financial, the troubled subprime mortgage company that this week filed for bankruptcy protection, financed the sale, she said."

"Those owners 'really had no business in terms of their creditworthiness to buy into our community,' she said."

"A foreclosure usually costs the association about $3,000 in legal fees. Suing the owners would just cost more money. In the past year, the association has chosen to write off $12,000 in unpaid dues instead."

"'The best thing you can do is get them out of there and get a paying owner,' she said."

The News & Observer from North Carolina. "Each spring, thousands of Triangle homes sprout "For Sale" signs as the housing industry's most important selling season gets under way. But this year, in one of the worst housing markets in a generation, brokers are scrambling to prevent a financial frost."

"'We're being a little more competitive,' said broker Ed Willer. 'We have to, because there are more homes on the market.'"

"In the Triangle, spring is typically when brokers can tack a 5 percent premium onto asking prices for homes, and get it. Not this spring."

"Willer is visiting more competing houses to make sure his listings are priced right. 'We're taking a closer look at prices, sharpening our pencils a little bit,' he said."

"Sales in the area could be 10 percent lower than in 2006, said Mark Vitner, a Wachovia economist in Charlotte. 'This spring won't see as big a pickup as we did in spring last year,' Vitner said, 'but it's better than what we're seeing nationwide, like in Florida, where sales are down 40 percent.'"

"Last year, Coldwell Banker Howard Perry and Walston's 800 brokers and agents held about 50 open houses per weekend. This spring, they have ramped up to 150 and aim to hold 300 open houses every weekend by mid-spring."

"Kathy Eaton warned the 90 agents at her Stonehenge office that sales have dipped a couple of percentage points. 'I'm telling my brokers, 'I want our properties to sell first,' Eaton said. 'It may mean more open houses, hiring professional interior decorators and stagers, doing work up front so homes truly stand head and shoulders above the competition.'"

"Any sales decline could accelerate if potential buyers delay purchases, hoping that selling prices decline, and sellers put off listing their homes to get a higher price later. 'We're definitely seeing lower offers than a year ago,' said broker Linda Kolarov. 'They think it's a buyers' market.'"