The Frederick News Post reports from Maryland. "The number of foreclosures in March in Frederick County may show a decrease, but the figures...'are not reflective of the actual delinquency rate of mortgage customers,' said Patrick McLister, an attorney with Salisbury and McLister. Mortage companies halted thousands of foreclosures to scrutinize documents that had been authorized with little or no review -- a practice that has come to be known as 'robosigning.' 'Mortgage companies have not acted on these delinquencies to start the foreclosure process because they are busy reviewing files which were caught robosigning,' McLister said."

"McLister and Carlton Boujai, secretary of the Maryland Association of Realtors, said there will be another wave of foreclosures caused by the moratorium placed on lenders. Bob Sawchuck, an agent with Mackintosh Inc. Realtors, said 202 homes were sold in March in Frederick County, up 30 percent from February, but down 81 percent from March 2010. Sawchuck said the high figure for March 2010 can be attributed to a federal tax credit program in place at the time that gave incentives, especially to first-time buyers."

"'Since the Homebuyer Tax Credit was drawing to a close at this time last year, sales were artificially inflated by those who wanted to take advantage of the tax credit,' Sawchuck said."

"The double-edged sword of distressed homes creates a field of lower-priced homes for potential buyers, but at the same time means current homeowners are faced with lower prices for their houses or lower appraisals when values are based on foreclosed homes in the same neighborhood. That can be a factor in new home sales, according to Steve Seawright, president of the Frederick County Builders Association. Unless a homeowner can get what they consider a good price, they are unlikely to sell and move up to a new house, Seawright said."

The Virginia Pilot. "Since 2000, two financial institutions from the Old Dominion – a tiny savings and loan in Danville and a savings bank in Reston – have ended up in the FDIC’s hands. The paucity of failures, however, masks the growing pressure on several of Virginia’s community banks. During the past year, at least eight of the 80 state-chartered banks in Virginia have been ordered by regulators to improve their operations and strengthen their capital."

"One of the eight, Norfolk-based Commonwealth Bankshares Inc., reported earlier this month that its Bank of the Commonwealth subsidiary needed $27.6 million of additional funds to comply with federally mandated capital ratios. 'Even if we succeed in raising the capital, we may need to raise additional capital in the future due to additional losses or regulatory mandates,' Commonwealth said in an April 15 filing with the U.S. Securities and Exchange Commission."

"Investors have been skittish about buying shares of community banks, partly because of fears that the quality of the banks’ loan portfolios will continue to deteriorate. 'They want to know why they’re injecting the capital, and they don’t want to throw their money into a black hole,' said Allan Bach, a bank analyst with the Richmond-based brokerage firm Davenport & Co."

"Among community banks with shortages of capital, there’s one common denominator: the damage inflicted by heavy losses on their real estate lending. Commonwealth, for instance, reported having $162.6 million of nonperforming assets at yearend. The bulk of that consisted of $126 million of real estate and construction loans and $32 million of property taken back through foreclosure."

The Free Lance Star in Virginia. "The slumping real estate market has taken a heavy toll on the Celebrate Virginia developments, leading to millions in overdue payments and dwindling reserves to pay the bonds that financed roads and utilities."

"Project developer the Silver Cos. and its more than 100 investment partners owe about $5 million in back taxes and special assessment payments in Fredericksburg and Stafford County. In addition, reserve funds to pay the project's bondholders have dropped below half their required levels. The situation, which involves perhaps the area's most prominent developer and one of its largest projects, shows the extent to which the recession has hit home."

"Thus far, all bond payments have been made on time, and it would likely be more than two years before the developers would risk losing land in any tax sale. Silver has potential deals that could generate the revenue to get back on track. But if the deals don't pan out, and the real estate market doesn't improve, the Celebrate Virginia CDAs could be at risk of missing bond payments, and the delinquent landowners could lose their property unless they raise money by putting up more cash, selling land or some other means."

The Richmond Times-Dispatch in Virginia. "Signs of economic recovery continue to prove elusive to homebuilders in Chesterfield County, but conditions aren't as dire as they were two years ago. For the first quarter of this year, county building inspectors issued 143 residential certificates of occupancy. That marks the fourth straight year the first-quarter number has declined and represents a decrease by nearly two-thirds of the number issued in the first quarter of 2007."

"'That's a good indicator of how bad the market is,' said developer Casey Sowers, whose family's 1,300-acre mixed-use Roseland project, once planned to have as many as 5,500 homes, has yet to be built. 'There's no credit out there for builders,' he said. 'This is a speculative business, so no credit means no building.'"

"The market isn't ready for widespread construction, said William P. Brown, the Dale District representative on the Chesterfield County Planning Commission. 'I believe we've seen the worst,' he said. 'But there's a glut of foreclosures. And until that glut is cleared,' there won't be big movement from builders."

The Cary News in North Carolina. "The developer behind Amberly, the 1,100-acre community in northwest Cary, has handed over the remaining sections of the project to a California firm that works with federal regulators to sell troubled assets. Amberly is just the latest high-profile Triangle real estate development to run into trouble. Several condominium projects in Chapel Hill and Raleigh have had foreclosure proceedings started in recent weeks."

"Amberly, which was conceived at a time when credit flowed freely to ambitious real estate developments, has been beset by financial problems since the housing bubble burst. About 40 percent of Amberly is undeveloped, and nearly all the land has been caught up in the project's funding problems. Plans for the project originally called for as many as 5,000 houses."

The News & Record in North Carolina. "An 18-hole golf course in Rockingham County is on the auction block after its owners defaulted on $2 million in loans. Greensboro National Golf Club, created in 1994 by Eden orthopedic surgeon Titus Plomaritis Jr., went into foreclosure on March 25, according to court documents. The 342-acre golf course and club — valued at $5 million — along with unsold residential lots, are scheduled for auction."

"Greensboro National resident Rebecca Cipriani said rumors have circulated in the neighborhood about the foreclosure. But she was not worried about its effect on residents since homeowners are not responsible for the course’s maintenance. 'People are talking about (the foreclosure) but nobody really knows if anyone is going to do anything with it,' said Cipriani, who serves as register of deeds for Rockingham County. 'It’s such a beautiful property. I can’t envision that they would do anything with it other than continue it as a golf course.'"

The News & Observer in North Carolina. "The developer of 140 West Franklin says the luxury condominium and retail project now under way in downtown Chapel Hill will succeed because of its location, financing and luck. Ram Realty Services rebid the eight-story project after the recession hit and contractors were hungry for work, chairman Peter Cummings said. That reduced costs from $76 million to 55 million, including the town-financed parking structure."

"'We're lucky,' Cummings said. 'If the town approval process was 12 months faster, we might have started building at the wrong time.'"

"Ram has contracts on about half its 140 planned condominiums, Cummings said. It needs a dozen more before it can draw on its loan, he said. Ram has contracts on about half its 140 planned condominiums, Cummings said. It needs a dozen more before it can draw on its loan, he said. The condos in 140 West are now priced from one-bedroom units in the $290,000s to two-story, 3,000 square-foot terrace homes for $1.3 million."

"The possible foreclosure of the nearby Greenbridge project has raised questions about 140 West Franklin, which along with the redevelopment of University Square, will transform downtown Chapel Hill. Greenbridge has sold only 36 of its 97 units, and Bank of America has begun foreclosure proceedings."

"Cummings said he's not worried that Greenbridge's troubles will lead to a price war if that project lowers prices to sell more units. 'You don't want to see a project fail in the middle of town,' he said, then added: 'I shouldn't say fail. You don't want to see a project in stormy seas. The one thing I'm saying categorically is we have a better location.'"

"They've lost $8.65 million of their own money, but the developers of Greenbridge say they have five investors willing to help save the $56 million condominium project from foreclosure. Unable to sell units since liens were put on the property last fall, developer Tim Toben says, they now hope to find a buyer committed to sustainable, energy-efficient housing."

"'We recognize, because of this death spiral we're in, that our equity is lost,' he said."

"If the bank had been more flexible, Toben thinks the developers would have been able to continue selling units and keep the property out of foreclosure. 'I think it's a really sad story for green building; we are being treated like we are Vegas condo project,' he said. 'Five years from now, I have no doubt that this will be a home run," he said. "We still believe in this thing. Believe it or not, we'd probably do it again.'"