The Gazette Mail reports from West Virginia. "West Virginia appears to be sheltered from the eye of the storm buffeting the nation’s mortgage markets, but that doesn’t mean it won’t get rained on. About 30,400 homes were sold in the state in the April-to-June period, down 13.6 percent from a year earlier, according to the Realtors."

"'The underwriting criteria is tightening across the board,' says Larry O’Dell, a Charleston mortgage broker. 'They’re asking for more documentation, looking at debt ratings — it’s more difficult to get [loan requests] out of underwriting than it was two weeks ago.'"

The Rock Town Weekly from Virginia. "As the mortgage industry struggles with its subprime lending meltdown, the market is making adjustments. While those changes will leave some potential homebuyers out of the market, others will be presented new opportunities, mortgage professionals say."

"'We’re going to see a massive revamp of the industry,' said said Don Earman, president of CTX Mortgage Co. 'It’s getting more expensive to buy a home if you’re putting less than 20 percent down.'"

"The mortgage industry’s problems are an echo of the Internet bubble of 1999, according to William Wood, professor of economics at James Madison University. 'People thought Internet stocks could only got up and they were wrong,' Wood said. 'And people who thought housing prices could only go up were wrong.'"

"Larry Martin, co-owner of Re/Max Performance Realty, has seen loans denied that would have been approved two years ago. 'The last two sales I made, the sellers came off the price 9 to 11 percent to make the sale,' Martin said. 'We have purchased more 'price reduced' signs this year than anytime in our 15-year history.'"

The Baltimore Sun from Maryland. "About three years ago, back when the housing boom was still booming, David Fleming and his wife pooled their skills - hers in real estate and his in developing - and launched a building business."

"Then the housing market slowed. Then the subprime mortgage market for those with shaky credit collapsed. Then interest rates on 'jumbo' mortgages - those above $417,000 - rose. And now, well, times have gotten a little tough for Fleming."

"He's no longer working on spec, 'due to the tightening of the credit,' he said. After deciding not to build on a half-acre lot he bought in Essex, he's been trying for a year to unload the land, knocking his price down by about $30,000 to $209,000."

"Developers...like Fleming are stuck with homes and land they can't sell. 'Builders are cutting costs in any way they can,' said John Kortecamp, executive director of the Home Builders Association of Maryland. 'It's been difficult.'"

"Mueller Homes Inc., a builder of custom homes in the Baltimore metro area, has come close to losing two sales because of loan troubles in the past week, said VP Tony Letke."

"One buyer had a pre-commitment from a lender for 95 percent of the purchase price on a $1.3 million custom-built house in Sykesville. But the lender recently backed off from that, saying it could finance just 80 percent, leaving the buyer with a $260,000 down payment."

"'I don't know whether [the buyer] has 15 percent [more] to put down,' Letke said."

"'This is going to dampen the motivation of buyers. In years past, people buying million-[dollar-]plus houses were not putting a whole lot of money down and could leave money in investments,' Letke said."

"'We deal with a lot of buyers who are self-employed, and it's hard for them to show proof of income,' said Wendy Oliver, VP at a Severna Park builder. 'The majority of the investor banks are putting a halt to those loans, and it's frightening. Our buyers are going to be funneled out, and it's going to be survival of the fittest with the buyers who can prove their earnings.'"

"Susquehanna Bank foreclosed yesterday on a small developer, putting a home and several lots on the auction block, said Christopher D. Holt, regional president at the bank."

"'The smaller builder, that's who is getting caught. That's who [has] overextended themselves,' Holt said. 'They bet on the market, that it was going to continue strong, and it's working against them.'"

From ABC 11 TV in North Carolina. "So far the Triangle has survived the nation's deflating housing bubble, but the mortgage meltdown is affecting home loans everywhere. 'Jumbo loans' are suddenly much harder to land, and it's rapidly shrinking the number of potential buyers."

"Eric and Emily Brinker put $200,000 into a Boylan Heights home just above downtown Raleigh. The Brinkers hoped to flip the home for almost $500,000, but now they are also looking for someone who is willing to rent it."

"'I don't want to sacrifice really dropping the price too much just to get out from under something that's in a good spot,' Eric said."

"'If it's hard to get a loan, that's definitely a problem,' realtor Melanie Osborne said. 'A lot of people don't have cash to buy a home. I know I don't. Not a house this big.'"

From News 14 in North Carolina. "North Carolina’s new rules for mortgage lending companies means getting a home loan is getting more difficult."

"Sherri Hodge’s Huntersville home has been on the market since March, but so far, no one has made an offer. 'I’ve checked with some agents, and I said, 'Am I doing something wrong?' and they said, 'Truthfully, it is maybe just about the price,' said Hodge. 'So we reduced down, we just reduced it down again. I had some other incentives going on, and I don’t exactly know why it hasn’t sold.'"

"Abigal Jennings, president of Lake Norman Realty, said the rules involving foreclosures and mortgages will be beneficial in the long run."

"'The rules that are coming into play are stronger,' said Jennings, 'but they are probably for those individuals the best thing.'"

"As conditions in the market improve, Hodge said she hopes buyers will trickle their way into purchasing her home. 'We’re just going to see what happens,' said Hodge. 'And just bring offers and see what happens. You never know what I’ll take for it.'"