A report from the Washington Post. "Two years ago, during the giddy real estate frenzy, some investors bought 300-plus garden-style apartment units in Fairfax County to convert to condominiums. Yesterday, a California bank foreclosed on the group's loan and bought the property, minus about 45 units that had been sold. The bank, Fremont Investment and Loan, said it hoped to resell the property."

"'It's part of the slowing housing market,' said Scott MacIntosh, senior economist for the National Association of Realtors. 'Fewer first-time buyers are willing to take that risk and go out and buy.'"

"In the first quarter of the year, 3,472 condo units that were either in the planning stage or about to come on line in the Washington area were changed to apartments and another 790 were simply canceled, according to a report by Delta Associates."

"In 2005, there were about 13,000 condos sold in the Washington area, compared with 6,600 last year, according to Delta. The market has a bloated, 3.4-year supply of condos."

"William Rich, a VP of Delta, said some condo projects are moving forward. 'Some developers are just going to plug ahead and wait it out because they think their project is better than what's out there,' he said."

"Yesterday, at 1 p.m., the foreclosure was announced, and one of two substitute trustees, read a dry description of the property in front of the steps of the Fairfax County Judicial Center. The first bid, $50 million, came from Eron Sodie, the lending bank's vice president and regional manager in Bethesda."

"Portfolio manager Chris Beaulieu of Ritchie Capital. He bid $51 million. The bank went to $55 million. The Illinois man bid $55.5 million. The bank came back with $60 million. The Illinois man backed off. The bidding ended."

"Afterward, Beaulieu was asked whether his firm would have stuck with the condo plan. Citing the uncertain market, he said: 'We were going to take a fresh look. We were looking at different options given the deteriorating market.'"

The Baltimore Messenger from Maryland. "Lagging condominium sales and uncertain prospects for public financing have stalled The Olmsted, a planned condo and retail building on the west side of St. Paul Street in Charles Village."

"Struever Bros. Eccles & Rouse has sold only about 25 percent of the 68 condos that it built in the Village Lofts building. Now, the developer is seeking the city's approval to redesign The Olmsted, by increasing the number of stores and condos and making the condos smaller than originally planned."

"Right now, the project doesn't look like anything. It's a bulldozed lot where University Minimart used to be." "Another problem is that investors so far are unwilling to buy Tax Increment Financing bonds that the city agreed to sell to finance 400 public parking spaces and streetscape improvements, such as crosswalks that are half built."

"Investors are reluctant to buy TIF bonds because the condo market is soft and Struever Bros. is having difficulty selling Village Lofts condos, said Councilwoman Mary Pat Clarke."

"'We're not getting the speed of sales we're looking for,' said Joshua Neiman, senior development director for Struever Bros."

"Original plans for The Olmsted called for 119 condos up to 1,200 square feet and starting at more than $400,000. The need for smaller, less-expensive condos became evident because of slow sales in the Lofts, Neiman said."

"Rough plans now call for The Olmsted to have as many as 252 condos that could be as small as 700 feet and would be priced as low as $250,000, Neiman said."

"No one blames Struever for the downturn in the housing market. 'They missed the bubble,' Clarke said. 'We're all in the same boat. We didn't create the economy.'"

From Your4State.com in Maryland. "Washington County has more than 1,300 homes with for sale signs, but with a buyer's market how difficult is it to sell a home and get the price you want?"

"A year ago, homes in Washington County stayed on the market for an average of 86 days. Today, that number's changed. Realtors say a home can take up to 176 days to sell. "

"'If you're a buyer it's a big advantage right now because you can be kind of picky. There's a lot to look at and the prices have come down since last year,' says Dan Plombon of MackIntosh Realtors."

"Plombon says that sellers need to be realistic in setting the price for their home, be flexible, consider all offers and be sure to make all the necessary upgrades."

The News & Advance from Virginia. "Changes in the mortgage market are starting to affect the Lynchburg real estate market. Financing homes recently became more difficult for people with less than perfect credit, said Wayne Ramsey, Lynchburg Association of Realtors president. Especially since lenders stopped approving subprime loans. Ramsey said lenders were approving these loans one day, and stopped the next."

"Local mortgage brokers in Lynchburg say the lenders they work with are becoming pickier everyday. Jay Brown, a mortgage officer for American National Bank and Trust Company, said one lender the bank deals with accepted a 600 credit score for a 100 percent mortgage just a few months ago. Now, the company will only accept a score of 660."

"'Four months ago, it was hard not to get a loan,' Brown said. 'You could have bad credit and no documental income.'"

"Brown said now he gets a rate sheet from lenders, who purchase the mortgages from the bank, detailing what the acceptable credit scores are for that day. 'The people we work with have changed their lending practices,' he said."

"Both Brian Cash, VP of the Bank of the James mortgage division, and Brown said the market started to slump because people weren’t paying back their loans. 'It is all driven by the foreclosure rate,' Brown said. 'There is nothing we can do about it. It is what it is.'"

"Brown said the decline of the subprime market hasn’t hit Lynchburg the same way it will Northern Virginia. 'Over the past couple of years when you put people in a house they couldn’t afford, chances are they aren’t going to pay it back,' he said. 'The companies have been forced to cut back.'"

"Lenders are now requiring high down payments from people with low credit scores, Brown said. 'People are less likely to walk away from something they’ve put their own money into,' he said."