The St Petersburg Times reports from Florida. "One in five U.S. homes entering the foreclosure process last month were located in Florida. It's not the sort of ranking that makes you want to shout, 'We're No. 1!' Mark Vitner, senior economist at Wachovia Corp., cites two key reasons why the state stands out today: An abundance of properties owned by speculators. The relative ease and speed with which mortgage lenders can obtain a court-ordered foreclosure here."

"The onetime Jacksonville resident says he was surprised to learn, after the fact, just how much speculation took place in Florida during the recent boom. Many buyers told their lenders they planned to live in the homes they were buying. 'The truth is, people lie,' Vitner says."

The Miami Herald. "A South Florida real estate broker Carlos Justo, flamboyant founder of Sol Sotheby's International Realty, is in deep money trouble. Justo, who catered to millionaires and became one himself, says: 'I am considering filing personal bankruptcy. I'm fighting for my financial life.'"

"He, along with some investors, lost $2.35 million in a deal at 3 Indian Creek Island, he says. He is in foreclosure on another property, where he now lives. He bought it in '05 for $6.85 million. The debt is around $11 million with interest. He's trying to sell the house, for $14.9 million."

"His timing was off, he admits. 'The market is slowing down. Everybody knows what's happening in the Miami market because of the condo oversupply. It's going to be a bloodbath out there. You know what the buyers are saying? 'Let me wait, why should I pay $10 million for a house when it might be down to $8 million in a year.'"

The Orlando Sentinel. "In April, the Orlando area's median sales price for existing homes and condominiums sold through Realtors, had dipped year-over year by 2.77 percent, a relatively rare decline for home-sale prices in the area."

"Sales by Realtors of homes and condos in the group's core market, mainly Orange and Seminole counties, were down 45.46 percent to May 2006, the report stated."

"The inventory of single-family homes and condos listed through Realtors, up 1,028 to 25,463 properties, (was) another record. That's 40 percent more than a year ago and a 16.43 month supply at the recent, sluggish sales pace."

"Property-tax relief can't come soon enough for the lethargic home-resale market in the Orlando area. Realtors said they fear uncertainty over what state lawmakers may do to Florida's property-tax system is contributing to the ongoing softness."

"'Everybody's waiting to see what Tallahassee will do,' said Randy Martin, president of the Orlando Regional Realtor Association."

"Martin, an agent in Winter Park, said he has seen cases in the past year where people took a look at what their taxes would be if they sold and bought another home, and backed out when they realized their tax bill would double or triple when they lost their Save Our Homes tax-cap advantage."

"'That's what's trapping people, especially those who want to downsize,' Martin said."

"Martin warned that it now appears more likely the Federal Reserve will resume boosting short-term interest rates, adding upward pressure to the longer-term bond rates that are linked to home mortgage rates."

"'If those go up, it's going to take more people out of the [home-buying] market,' he said."

From Time Magazine. "People have often said that Florida is the new California, but this week the Sunshine State hopes to really drive the point home, all the way into homeowners' pockets."

"On Tuesday the legislature started a special session to reform Florida's dysfunctional property tax system, aiming to save residents the tens of billions of dollars that Californians reaped a generation ago."

"In expensive markets like South Florida, for example, homeowners who have yet to qualify for a state property-tax cap say they've seen better than 100% increases over the past few years. It's a large reason why, according to a new Zogby International poll, half of South Floridians and 37% of all Floridians say they're considering moving out of the state."

"When Sergio Martinez bought his 5-bedroom Miami house three years ago for $405,000, the taxes were only $2,800. But before he became eligible for the homestead cap last year, they'd jumped to $7,400."

"His house is now valued at more than $900,000, and if he were to sell it, the new owner would be staring at an annual tax bill of almost $20,000."

"'That's a big reason I'd have trouble finding a buyer for this house, and why I'd have trouble buying a new one here myself,' says Martinez, who now works two jobs in order to pay his tax and insurance bills. Unless Martinez wants to leave South Florida, 'I'm essentially in jail in my own house.'"

From Tampa Bay Newspapers. "Broker Karen Selby said residential real estate sales in Pinellas County are about 40 percent of what they were a year ago. 'Taxes and insurance combined are putting (potential buyers) out of the ratio for getting approved,' Selby said."

"She hopes state leaders can come up with a solution as quickly as possible. 'It’s anybody’s guess when it comes to our legislators,' Selby said. 'I hope they do something positive but I have my doubts. We need relief immediately.'"

"The area has lost 5,000 motel rooms in the past couple of years, not all mom-and-pop units. Such losses have a trickle-down effect on the economy, such as on sales tax collections, said Tony Satterfield, chairman of the Tampa Bay Beaches Chamber of Commerce."

"The big culprit, Satterfield and others said, is that the Pinellas County Property Appraiser assesses property based on highest and best use, the use that will generate the highest net return to the property over a reasonable period of time."

"'Nobody should have to pay taxes on profits that haven’t been realized,' Satterfied said."

"Lizard Real Estate owner Liz Barrett had similar views. 'It’s a complete disaster,' Barrett said."

"Mom-and-pop motels, which were the backbone of tourism in Florida, Barrett said, are all being run out of business. They are being taxed 'as if there was already a six-story multimillion-dollar condo in their place.'"

"Property tax and insurance issues have affected the housing market seriously, Barrett said. 'People who want to move and downsize can’t afford to because their property taxes will be too high because we don’t have the portability for homestead,' she said."

"An estimated 250 people, mostly Realtors, turned out for the three-hour forum May 28 hosted by the Pinellas Realtors Association. The real estate agents complained that 'more people are leaving the state than moving here' because of the state’s new reputation for high property taxes and scarcity of home insurance."

"'I see a $250,000 speed boat on the Intracoastal being used to catch people without their life jackets on,' Kevin Hussey (said). 'Something has to be done now. We read that the real estate market has slowed down. It’s worse. It’s on its knees.'"

"A billboard on interstates at Florida borders, facing south, should bear the message, 'Will the last person out of Florida turn off the lights' said Zapita Bukowsky of Seminole."