The Citizen Times reports from North Carolina. "The bursting of the real estate bubble took a big toll on the region’s homebuilding industry in the first quarter of 2008 as the number of building permits issued for homes and condominiums in Buncombe County fell by almost half. 'In most markets, the level of production (of homes) far exceeded the capacity of the market to absorb it,' said Dale Akins, CEO of The Market Edge."

"The number of existing homes sold in the area has been on the decline since fall 2006. A major factor behind that decline is poor home sales in other markets like Florida that make it harder for people to sell there and move here."

"'We’re still getting people moving in. They just don’t seem to be coming from those areas that are hurting,' said Cindy Hipps, VP at Asheville-based builder HomeSource Real Estate and Construction."

"'We’ve got some (unsold) specs on the market, as just about every builder does,' Hipps said. The housing market 'dropped after (the homes) were finished. It was bad timing, but who can predict the future?' she said."

"Builders 'that are heavy on specs are having some problems,' said Sean Sullivan, head of Living Stone Construction in Black Mountain."

The Charlotte Observer from North Carolina. "Charlotte-area prices slipped slightly during the past three months, compared with the first quarter of 2007, according to Market Opportunity Research Enterprises."

"The Rocky Mount firm's president, Bernard Helm, says weak pricing will continue as foreclosures add to the stock of housing for sale well into next year."

"'Only when someone turns off the faucet, and we can reduce that inventory, will we see improvement in the market,' he said."

The Gazette from Maryland. "Frederick County had the third highest rate of foreclosure filings in the state in the first quarter of 2008. A total of 505 foreclosure filings were recorded from January through March, according to RealtyTrac. That was up 531 percent from the same quarter in 2007 and roughly 50 percent from the fourth quarter of last year."

"Prince George’s County, with 3,334 foreclosures in the first quarter, had the highest rate in Maryland."

"RealtyTrac reported 4,125 foreclosures statewide in the first quarter, up 504 percent from the same quarter last year and up 27 percent from the previous quarter."

"Meanwhile, house sales are down from last year. The MLS directory Monday reported 2,200 active residential listings in Frederick County, said said Stephen Mackintosh, co-owner of Mackintosh Realtors of Frederick."

"Across the county, home sales were down 35 percent in March from March 2007, according to the Frederick County Association of Realtors housing report. The county saw 197 home sales in March, compared with 268 in March 2007."

"Grant Montgomery, VP of Delta Associates, said he has noted apartment vacancies 'creeping up.' The vacancy rate for upscale apartments in the Washington, D.C., region was up to 4.5 percent in the first quarter, compared with 3.4 percent the same quarter last year, Montgomery said."

"'We have a lot of new [apartment] supply in the Washington area,' Montgomery said. 'We have a lot of new projects in the market. When the condo market slowed, [developers] decided to try to rent them out. Because of that, we have an extra supply.'"

"The housing slump spurred owners who could not sell to rent their homes, adding further competition to the rental market, Montgomery said. On the other hand, the original housing boom, from which prices are just beginning to fall, pushed many would-be buyers into renting."

"'We’ve seen these record levels of homeownership and I don’t think we’ll be back there for a while,' Montgomery said."

"For 14 years, Tiny Teran and her husband, Salomon, owned a masonry business in Frederick. In September 2007, the couple shut down their business, American Made Masonry, after some clients didn’t pay or filed for bankruptcy."

"As they continue to pay back debts and taxes, the family’s financial situation has put them four mortgage payments behind on their home on Beall Drive. The threat of foreclosure looms. Tiny hopes that by selling the home soon, the family can get out of debt before they are left homeless."

"'We’re living day by day,' Tiny Teran said recently. 'There seems there’s nothing we can do. The only thing I am worried about is where we will go when they take our house ... and they will take it. That won’t be a pretty sight, I’m telling you.'"

From The Hook in Virginia. "A small crowd gathered in front of the Albemarle County Courthouse April 17 to watch two houses go on the auction block. With the number of foreclosures rising all over the country, such scenes are daily occurrences in many cities. What was unusual about these?"

"For starters, the owners of the houses were into lenders for at least half a million each, and one of them belongs-- uh, belonged-- to a mortgage broker."

"'The first six years I was doing this, it was rare to have one over $200,000,' recalls auctioneer Phyllis White. 'I had one in Farmington, one in Glenmore. Then the money became easier.'"

"White has been handling foreclosure auctions for eight years. She says business 'mushroomed' after the firm took on a few foreclosures. 'Now it's our main business,' she says. 'Now it's a firm of over 200 people.'"

"Statewide, White has seen a rise in the number of foreclosures. 'I think last year we had double the previous year,' she says."

"As for the Charlottesville area, 'I've seen a couple more here, but generally it's very minimal,' White says, especially compared to places like Culpeper or Prince William County." "The April 17 auction was pretty typical for White. 'Often, no one shows up,' she says."

"First up was a house in Earlysville. It's been on the market for two years, and in fact was the subject of a Hook feature in 2006 when it was listed for $739,500. By last summer, the price had dropped to $685,900. Today the 4,100-square-foot house on nearly four acres is assessed at $595,400."

"As the clock struck 11:30, White quietly called the small crowd to attention and asked for an opening bid of $574,281. The foreclosure notice had indicated the borrower owed $547,500."

"Phyllis White asks again, 'Is there anyone going to bid?' No response. The bank takes the house."

"Next up is 5015 Meadowlark Court in northern Albemarle County. Lenders have allowed the owner to pile more than $725,000 in debt on a property assessed by the county at only $691,200. But the real shocker is the owner's vocation: he's Chris Prang, a mortgage broker."

"'It was really bad timing for us,' says Prang. 'We had bought a house a Wintergreen and dumped a lot money in it. Then there was the news about mortgages--' news that affected Prang's own business."

"Their original loan was with American Home Mortgage, the once high-flying firm that flamed out last August with a sudden bankruptcy and put about 7,000 Americans out of work. Then things went bad for the Prangs after they used their equity-- or what they thought was their equity-- to finance another business venture: buying houses and fixing them up."

"'I had another foreclosure,' Prang admits. 'I had perfect credit until recently.'"

"He advises homeowners in over their heads to avoid late payments, but he admits that's easier said than done. He suggests that people unable to keep up with their payments try something called a 'deed in lieu of foreclosure,' in which, with approval, they simply give the house back to the bank."

"'It's not as harmful to your credit as a foreclosure,' he says, but concedes, 'I'm in the business, and I didn't know about it.'"

"Another option is a listing forbearance, what Prang describes as asking the bank, 'Can you give me a break while I try to sell it?'"

"Prang is mortgage savvy, and yet he says, 'There was nothing else I could have done.'"

"He and his wife bought their house for $650,000 in 2005 and converted the garage to boost it to 5,000 square feet, the biggest house in the neighborhood. They listed it a year ago for $800,000, then $775,000, and finally, $699,000 a few weeks ago, less than what they owe on the three mortgages."

"'I could have come current,' confesses Prang. 'I have the money. But that meant dumping a lot of money in a house losing value.'"

"And he says if he had sufficient funds, he wouldn't pour them into buying a house now. 'Why take the chance to buy something that a year from now could be worth a lot less?'"

"Prang isn't in favor of current plans for the government to bail people out of bad investments. He personally didn't want government help in avoiding foreclosure. 'In the long run, I'm going to be okay,' he says. 'I know my credit has been dinged, but I know how to repair it.'"

"In front of the Courthouse, White tells the small crowd that the reserve on the Prangs' first mortgage is $516,135. That higher number can include missed payments and the auctioneer's fee, she explains."

"As with the day's first auction, there are no bids. Mortgage broker Chris Prang and his wife have just lost their home. The holder of the first mortgage gets the house, while the two other note-holders get nothing."

"'This is not fun for anyone to go through,' says Prang. 'We're Christians, and we feel God has a plan, and it's all going to work out.'"

"He promises they'll leave the house in good condition. And next for the family? 'When I get off the phone with you,' he tells a reporter, 'I'm going to the packing store and get some boxes.'"