The New York Times reports on Florida. "In a sign that the real estate slowdown has hit even the most desirable locations, the developer converting the Savoy Hotel in the South Beach section of Miami into multimillion dollar Fendi-designed condominiums and condo hotels may be facing foreclosure. 'You have a situation where you have one of the most beautiful locations in Miami right on the beach. You have an amazing architect. You have an amazing designer,' said Seth Semilof, a former broker. 'This is the first of many that’s going to go down.'"

"The vice chairman at Prudential Douglas Elliman, Dolly Lenz, was hired to market the apartments. Ms. Lenz said that the project fell apart because the developers could not get enough money from banks to finance the construction. 'The banks just felt that the whole Miami market was an issue to start,' she said. 'I introduced them to every bank on the planet. They couldn’t get financing.'"

The Wall Street Journal. "Problems are emerging as some buyers who signed contracts to buy new condos two to three years ago, when construction was just starting, seek ways to back out as they encounter trouble getting financing in the suddenly dicey mortgage market."

"Falling prices are forcing appraisals down, so banks aren't willing to lend the full amounts that people committed to in the sales contract."

"'Closings that are scheduled to take place are not taking place,' says Marvin Moss, a North Miami Beach real-estate attorney. He is suing several developers to help clients get out of contracts."

"Miami added 4,549 condo units in 2006 and 3,276 so far this year. Another 7,985 will be delivered by the end of the year, with another 8,260 slated for 2008 to 2011, for a grand total of 24,070 news units between 2006 and 2011."

"Buyer's remorse is causing problems for some developers. Cindy Cicala plunked down a 10% deposit on a $370,000 two-bedroom condo in a new project in Tampa, Fla., in August 2004, a time when investors were elbowing each other aside to sign contracts. Her unit was to be finished by August 2006, making it one of the first high-rise residences to be built in the city's reviving downtown."

"But in April, 2005, the developer asked for an extension. 'It was just one delay after another,' says Ms. Cicala, a residential-mortgage broker. She decided she didn't want to close on the condo, claiming the developer hadn't held up its end of the contract."

"Ms. Cicala says she asked for her deposit back but hasn't received it, so she sued under a federal law that guarantees condos must be delivered within two years unless the developer can prove certain extenuating circumstances."

"Her attorney, Harry Lee Coe IV, says Ms. Cicala and other clients 'are seeing their investing potential has dwindled, and they are now no longer at the front of the pack -- and you don't want to be in the middle of the pack in a bad or down market.'"

"In a sign of how widespread the condo frenzy was among lenders, developer Farbod Zohouri's financing sources ranged from tiny local banks to Lehman Brothers, which lent him $180 million for two Orlando condo-conversion projects that flopped."

"Several commercial banks lent him money for five projects, despite his relatively small operation and spotty track record, which included a settlement with the federal government on mortgage-kickback allegations."

"Zohouri says he is 'an honest person' who is working hard to get his investors' money back. He says because of possible legal actions, he can't explain exactly what went wrong."

The Street.com. "The developers of Jade Ocean, a luxury high-rise condo near Miami Beach set to be completed in 2009, claim they've already sold 98% of the building's units."

"Of course, the reality is that this 'pre-construction sales' number at Jade Ocean carries little meaning. It's a phrase that previously impressed people but carries little meaning in present-day Miami, which is increasingly looking like the Netherlands in the aftermath of the Tulip Craze more than 300 years ago."

"Buyers will walk away from their 20%-down deposits because of rapidly falling prices and a huge inventory overhang that will only get worse in the market, several industry experts say."

"South Florida real estate agent Mike Morgan estimates that condo flippers have made up 90% of the buyers at the projects Corus has lent to in Miami. 'These flippers are now under water in most Corus buildings based on what they paid and where the market is today,' he says. 'But the market is getting worse.'"

"'I don't know anyone that is loaning on these condos to investors,' Morgan says. 'If it is not your primary [residence] , you have a problem. I am predicting condos in less-desirable areas will sell for 25 cents on the dollar.'"

The Herald Tribune. "Some Southwest Florida builders are seeing a better year than 2006. 'We're actually seeing good increase over last year,' said Lee Wetherington. 'The only caveat is that last year was probably the slowest year we've ever had.'"

"'Prices are 20 to 25 percent less than they were a year ago,' Wetherington said. 'We're also getting a lot of help from our suppliers and subcontractors. Their prices are also coming down.'"

"The price of new homes is now substantially less than the price of existing homes -- at least 20 percent lower, Wetherington said."

"'I had one client who saw a house for $1.75 million. But when he came to us, he realized we could build the same model for $1.25 million,' Wetherington said. 'Guess what? He signed a contract.'"

"'Some national builders will leave the area; other builders will shut down,' Wetherington said. 'I don't expect any real upturn until 2009, and we won't return to normalcy until 2010. I haven't seen anything like this since the oil embargo in the 1970s.'"

"Sun-soaked Southwest Florida is largely considered an enclave of wealth. But the last year of suffering in the real estate market has slowly percolated to nearly every industry in the region."

"Tina Stebner is a college-educated former British Petroleum account executive who came to Sarasota from Chicago three years ago. She bought a home two years ago, at the height of the real estate boom."

"When she lost her job at BP, she began temping. But even those sporadic jobs 'ran out' in the past year. In July, after looking for work unsuccessfully for months, she landed a sales job in Venice. But two weeks ago, she was let go because of 'economic uncertainty.'"

"'I was brought up to believe that you go to school, get a college degree and that you buy a house, it's the smartest investment you will ever make,' Stebner said."

"Meanwhile, the back rooms of area pawnshops are filling up with saws, drills and other tools and equipment pawned by displaced workers in the construction trades. 'We're being swamped, to the point that we've pretty much stopped taking it,' said James Sewell, co-owner of Goldcoast Pawn & Jewelry in Sarasota. 'It's gotten really bad in the last four to five months.'"

"Sewell said many of the former construction workers tell him they are leaving the Sunshine State. The unemployment situation combined with rising taxes and property insurance premiums has made Southwest Florida unlivable for many, Sewell said. 'It's gotten to be like California, but without the wages.'"

From Florida Today. "A national economist told representatives of the housing industry Thursday not to count on a sales turnaround in the Sunshine State for at least 18 months."

"'Are things going to turn around next year? No,' said Ted Jones, chief economist with one of the nation's largest title companies. 'We're going to have another 18 months of ugly coming out of this subprime mess'"

The St Petersburg Times. "Jones, a prognosticator often cited by Realtors' groups, told agents that rashly approved mortgages, the worst of which he dubbed 'time-bomb loans,' would help keep the Florida housing market hobbled until 2009."

"'If you think it's bad now, you haven't heard the end of this,' Jones said to audible groans from Realtors who'd enjoyed earlier pep talks from the likes of Gov. Charlie Crist."

"Jones blamed a get-rich-quick ethos that drew gamblers into the housing market and encouraged bankers to make risky loans on the assumption the good times would roll forever. 'What is the difference between flipping real estate in Florida and playing craps in Vegas?' Jones said. 'You get free drinks in Vegas.'"

"Jones described prospective home buyers as buzzards circling fresh highway roadkill, waiting for prices to fall further. He urged Realtors to speed up the process by confronting sellers with the reality of a glut that's left 41,000 homes on the market in the Tampa Bay area alone."

"'We've got to sober up sellers,' Jones said. 'I don't care what you paid for it.'"

The Sun Sentinel. "For those with a mortgage who want to refinance...it can be done, but not if your property's value has fallen off a cliff."

"'Banks haven't stopped lending money to people, they've just made it more practical on both sides,' said Casey Casperson, a senior loan officer in Palm Beach Gardens. 'Now they're making borrowers prove they can pay it back.'"

"During the housing boom, lenders didn't require that of borrowers. As unbelievable as that sounds, let's give money to people without checking to see if they have a job or looking at their pay stub, it was the way the subprime market worked."

"What happened a few weeks ago was investors who bought those mortgages from lenders simply stopped buying. Now that no one is willing to take on the riskiest mortgages, lenders say they've raised their standards."

"At Wachovia, those 5 percent down payment mortgages with no verification are gone. If you want a loan that does not require proof of income, you must put 20 percent down. And you'll need a higher credit score than in the past for any high loan-to-value mortgage, a spokesman for SunTrust said."

"It's similar for borrowers with credit that's not good — 20 percent down payments are being required."

"Jonathan Klein, general manager of Associates Home Mortgage in Boca Raton, was recently working on a $480,000 mortgage for a home near Loxahatchee, in western Palm Beach County, a few weeks ago. The buyer was making a 25 percent down payment and the interest rate was to be 7 percent."

"The day the loan was scheduled to close 'was the day when the market completely collapsed,' he said."

"In a matter of two hours, the interest rate rose to 8 percent and the borrower had to pay 5 points, for an extra cost of $17,000 on the loan, to prevent the deal from falling through."