The Daily Mail reports on Florida. "Hundreds of British investors who pumped their money into Florida's soaring housing market have been caught out in its spectacular collapse. They have been left with property they can't sell, even for less than the original price, because of rising interest rates and a glut of condominiums for sale."

"Miami lawyer James Ryan said he had 40 clients, including British investors, trying to get out of contracts even if it meant losing substantial deposits. One client abandoned a £170,000 deposit rather than complete on a £800,000 condominium now worth only £600,000."

"Estate agents estimate at least 800 Britons have been caught out by the slump but the real figure could be four times that."

"Florida property consultant Jack McCabe said: 'Out of staters and foreigners, especially the British, flocked here and pushed the market to the point where about 70 per cent of all sales were to investors who never intended to live in what they were buying.'"

The Miami Herald. "Fearing that a spike in foreclosures will lower property values, Miramar is exploring ways for the city to help homeowners in distress."

"In the first three months of 2006, the city had nine foreclosure filings. During the same period this year, there were 43."

"Roughly half of owners of new homes in Miramar hold adjustable-rate mortgages, many of which will reset soon with higher interest rates, increasing monthly payments, said City Manager Bob Payton. 'It's alarming,' Payton said. 'They just got locked up in a mortgage that's not best suited for them.'"

"Joann Soufisiavash bought a sprawling Miramar home for $459,900 almost two years ago using 100 percent financing and two mortgages. Now she can't afford the $2,800 payment (not including taxes and insurance), and her home in a gated community is in the process of foreclosure."

"She owes $502,000 on it. It has been appraised at $439,000. 'My American dream turned into a nightmare,' said Soufisiavash. 'I don't know how this is going to end up.'"

The Herald Tribune. "Rob Allegra is division president for Lennar Sarasota/Manatee. Staff writer Stephen Frater corresponded with Allegra recently."

"Q: Prices have dropped in the existing homes market by as much as a third from the peak in late 2005. I know Lennar has been a leader in discounting new home prices in certain developments but could you describe your pricing strategy and history during the current downturn. Has the average sale price decreased and if so by how much?"

"A: I believe this is one of the most misrepresented measurements on the market. You see all sorts of reports on average home sale prices, but there are so many factors to a home purchase. Sizes of the homes being sold, amenities of the communities, upgrades in the homes."

"With all that being said, prices have dropped since the peak. As painful as that's been for everyone, especially for people trying to sell homes, in the long-term, this has been a healthy thing for the market, which has always been cyclical."

"Q: Since many contractors are much less busy now than they were, has the labor component cost of a new home decreased? The raw materials? How many fewer subcontractor employees does Lennar utilize in this market now as compared to the market peak?"

"A: Lennar in particular has seen a significant decrease in the cost of building a home. It is our strategy to pass along our costs savings to homebuyers."

"Q: What do you see as the trend for 2007 and 2008 in this new home market? A: We believe this is the bottom of the real estate downturn. This is why we are rolling out a whole new series of floor plans and picking up our permitting and start schedule. We are optimistic about moving back into a growth mode in late 2007 or into 2008."

The St Petersburg Times. "The housing market has tanked. Banks threaten thousands of homes with repossession. Homes linger so long on the listings that some sellers dump properties for a song."

"It's a great time to be Shaun Carcary. The South Africa native has built a business on paying 50 cents on the dollar for stressed houses. He gets plenty of takers. 'Yeah, you can call us bottom feeders,' he says."

"Sean and Mary Dean live in Wesley Chapel's Lexington Oaks golf course community. Their 2,550-square-foot stucco house isn't ugly. But their financial situation is."

"Mary Dean complains they're two months behind on their $1,750 monthly payment. By early June the bank has threatened to get tough. Sean Dean was laid off from his job. They have a For Sale sign out front, but no one's biting in the tepid market."

"The HomeVestors team gives the house a once-over. Right-hand-man Ryan Rickard conferences with the Deans at the dining table. He tells the couple he'll get them the best price he can, reminds them he's a no-hassle cash buyer."

"After the 10-minute pitch, the team is back in the Expedition rocking down the highway to Tampa. 'What's the deal?' Carcary asks. 'If it was up to her, she'd sign the contract right now,' Rickard says. 'When I told them about the 80 other houses for sale in the neighborhood, they about spazzed.'"

"A model nearly identical to the Dean's sold on their street in November for $302, 000. Rickard does a quick calculation and comes up with his best price: $165,000. The couple owes $140,000 on the house, so HomeVestors' offer would leave them about $15,000 to $20,000 after closing costs."

"If the bank forecloses, they could lose every scrap of equity and ruin their credit for seven years. 'It just depends on how logical someone wants to be,' Carcary says."

"Competition for buyers is fierce. The Greater Tampa Association of Realtors said its membership doubled during the real estate boom. 'Houses are on the market for more days, and the inventory is growing,' said the group's president, Carlos Fuentes. 'I imagine many of our members who have other careers will go back to them and sell real estate part time.'"

"Agents popped up almost as quickly as homes were selling. Now, they're dying under the collapse of the real estate bubble."

"Jack Soifer, a real estate agent from Seminole, used to own an RV dealership in Pinellas County. He became a real estate agent in 2004. 'Investors have left the marketplace, and real estate agents aren't getting any new business' he said. 'People think we're making all this money, and we're not.'"

"Participation in the local MLS board, an online real estate portal, has taken a dive, Soifer said. 'It's much more difficult than one thinks,' said Soifer, who puts in about 55 hours a week. 'But I have no regrets.'"

The News Press. "With the ebb in real estate cash flow, players are turning to lawsuits, builders, subcontractors and buyers are suing each other to get out of contracts or simply to get paid. Builders are suing potential homebuyers for backing out of deals. Subcontractors are suing builders for not paying them. Former partners are even suing each other."

"'A lot of people are tremendously upside down right now,' said real estate attorney Kevin Jursinski. 'Everybody's saying, 'Help me, I want to get out of it.'"

"The median price of an existing single-family home in Lee County has fallen from an all-time high of $322,300 in December 2005 to $283,200 in April, according to the Florida Association of Realtors."

"Meanwhile, the number of homes on the market has quadrupled to about 15,000 as single-family home sales have spiraled down, from 1,084 in December 2005 to only 573 in April."

"'When the economy slows down, people's income slows down,' said Lee County Clerk Charlie Green. 'The $1,000 that didn't seem important then suddenly is important.'"

"The lawsuits are piling up on the second floor of the Lee County Justice Center and many companies are feeling pressure from attorneys. 'We're in an environment now that I've never seen,' said Fort Myers attorney Richard Johnston Jr., who represents Cape Coral-based Caribbean Custom Homes."

"Richard Friday, CFO for Youngquist Brothers, a well-drilling company, has filed 293 liens, according to the Lee County Clerk's Web site. In 2005, he said, builders were spending tomorrow's money, so when jobs stopped coming in, there were shortfalls. And when owners decided not to close on homes because values were down, builders were stuck with the shortfall. That's when the lawsuits began."

"'Now, there's a tremendous amount of litigation,' Jursinski said. 'I don't think we've seen the worst of it yet.'"

"Friday said builders getting into trouble today are those that didn't plan well two years ago. 'One of the things about success is you don't pay attention to details,' Friday said."

"Steve Magner, president of Advantage Builders of America, said in many of the 14 lawsuits in which Advantage is a defendant, owners are suing for breach of contract because the house's value might have fallen with the market."

"'A lot of people don't realize it's a risk; it's not a guarantee,' Magner said of investing in real estate. 'They want to blame everybody but themselves.'"