The Herald Tribune reports from Florida. "When Matt Kihnke paid $15.5 million for a Bradenton apartment complex in March 2005, the Chicago investor looked primed to become the architect of another condo conversion success story. That was before the real estate market went soft and became saturated with converted apartments. Kihnke's property is still about a third unsold."

"As a result, Sanctuary of Bradenton may be one of the most affordable options for first-time home buyers between Tampa and Fort Myers. Studios at Sanctuary of Bradenton sell for $89,900. The most expensive units, 1,055-square-foot lake-view 2-and-2's, sell for $139,900. Some of the units were listed for at $160,000 or more 18 months ago."

"'We used to have a lot of investors who would sit on our product for six to eight months,' Kihnke said. 'We're starting to see those investors again. Buyers understand there is a deal to be had right now.'"

"In the opinion of one analyst, Bradenton's Coast Bank of Florida is the weakest bank in the state. Coast received the lowest rating among the 376 banks doing business in Florida last year as measured by BauerFinancial Inc."

"Coast wasn't the only bank in Southwest Florida that failed to make money last year. Others posted losses from their own loan woes, from costly expansion or because they are young and still struggling to turn a profit."

"Most of Coast's problem loans were to borrowers, many of them speculators, who were building homes with Construction Compliance Inc., a defunct St. Petersburg builder."

"Coast's capital level. the financial cushion to absorb problem loans and other losses. is at 4.33 percent. That's barely above the 4.0 percent minimum required by federal regulators to be considered adequately capitalized."

"In Manatee County, First Priority Bank lost $546,000 and Freedom Bank dropped $1 million in 2006. Both reported sharp increases in their allowances for loan losses. So did Peninsula Bank of Englewood, which posted a $737,000 loss for the year. Both of Sarasota's newest banks, which opened in October, were in the red with growing pains."

"Analyst Richard Bove says banks are tightening their loan standards. 'Some of this is due to pressure from regulators. Much is due to the fear of defaults,' he said."

"Troubled mortgage loans, those 90 days or more past due, jumped by $3.1 billion, or 15.6 percent, during the fourth quarter nationwide. Charge-offs of mortgage loans hit a three-year high of $888 million in the quarter."

The Times News from North Carolina. "In 1998, 196 notices of foreclosure were filed in Alamance County. In 2006, 737 notices were filed. That’s a 276-percent increase. In nine years."

"The trend is continuing in 2007. Foreclosure filings are up more than 20 percent through the end of March of this year compared with the same period last year, says county Register of Deeds David Barber. 'It is a national trend.'"

"Laziness or a desire to shirk financial responsibilities isn’t the problem; homeowners who find new or second jobs still can’t surmount their debt, said Graham bankruptcy attorney David Huffman. That’s because the jobs they find tend to pay lower wages and come without benefits."

"'Foreclosures, in and of themselves, are just a symptom of what’s wrong with the economy,' Huffman says."

"A soft local housing market that encourages inflated appraisal values fuels the problem locally, Huffman says. 'You got appraisers that are not putting realistic appraisals on property,' he said. 'The (real estate agent) comes in and tells them what they want.''

"'At some point in time, the lending institutions have to become more responsible. It’s not an issue of just sales. You’re really doing nobody any favors by putting them into a house where they can’t afford it,' he said."

"Nothing is wrong with foreclosure procedures, Huffman says. The real problem, he thinks, is in the American economy’s reliance on debt. Congress doesn’t weigh in on the problem because tighter lending requirements would 'send our economy into a tailspin,' he says."

The News Daily from Georgia. "Last week, a sign high over Interstate 75 reported for the first time there were more than 100,000 homes for sale in metro Atlanta. Sunday, it read 100,233."

"'I’ve been selling real estate in Henry County 20 years and this is the largest inventory I’ve ever seen,' said associate broker Dottie Wise. 'You’ve got a lot of new homes being constructed, and it’s a mobile society we live in — people are moving in and out,' she said."

"Indeed, a construction boom has been partly to blame for the inventory, experts say. According to statistics compiled by the University of Georgia, after several years of uptick in housing starts, building permit issues show signs of slowing."

"In 2002, for example, Henry County reportedly issued more than 4,000 permits for single family housing. In 2005, however, it issued 3,697."

"'Supply kind of got ahead of demand,' said Jeff Humphreys, director of economic forecasting at UGA. 'Builders are pulling back,' he said. 'I think, actually, this is quite an opportunity, the last chance to pick up quite a bit of value.'"

"'I would be a little more cautious in buying a condo,' he said. 'The value proposition there may not be quite as strong.'"

"The building boom has meant 'older homes are really have trouble moving,' said Nikki Finlay, an associate professor of economics at Clayton State University in Morrow."

"The cooling has led some builders to offer considerable buying incentives, particularly in high-priced homes in areas where inventories are at a peak. One Henry builder, for example, is offering a $20,000 incentive on a $390,000 home."

"In Clayton and Henry, inventories of moderately-priced homes, those in the $200,000 range, are well above the metro average, according to Tisha Gay, director of public relations for Metro Brokers/GMAC."

"In Henry, there’s nearly a 10-month supply of homes in the $201,000-225,000 range. In Clayton, it’s nearly 18 months."

"'What it means for the buyer is that there are a lot more choices out there,' Gay said."