The Housing Bubble

The San Francisco Chronicle reports from California. “Foreclosures across the state surged to a 20-year high during the last three months, as tens of thousands of additional Californians lost their homes and more than 100,000 neared the brink. Notices of default rose nearly 125 percent from a year ago during the second quarter and trustee deeds recorded, which reflect the actual homes taken back, soared more than 260 percent, according to DataQuick.”

“The number of defaults and foreclosures were the highest in DataQuick’s statistics, which go back to 1992 and 1988, respectively. Among homeowners who fall into default, an estimated 22 percent now emerge from the foreclosure process by catching up on their payments, refinancing or selling. That’s down from 52 percent a year ago.”

“In the Bay Area, mortgage servicers recorded 18,516 notices of default, up more than 140 percent from a year ago, DataQuick said. The largest increase was in Santa Clara County, where defaults rose 194.2 percent to 3,751. The smallest gain was in San Francisco, 62.6 percent to 418.”

The Ventura County Star. “In Ventura County, there were 2,303 notices of default filed for homes and condos from April to June, up 117.5 percent from 1,059 notices filed during the same period a year ago.”

“Default notices edged up 6.6 percent from 53,943 during the first quarter, and a more substantial 124.9 percent from 53,943 during the second quarter of 2007.”

“‘The small increase in defaults from the first to the second quarter may indicate that we’re nearing a plateau,’ said John Walsh, DataQuick president, in a statement. ‘We won’t know until the end of the year, but it may be that some lenders are starting to prioritize workouts with homeowners instead of grinding through the foreclosure process.’”

“Or, lenders simply might be swamped and can’t handle processing any more paperwork, he said.”

“”Most of the loans that went into default last quarter were originated from September 2005 through November 2006, according to DataQuick. On primary mortgages, California homeowners were a median five months behind on their payments when the lenders filed the notice of default.”

The Union Tribune. “Distressed mortgages continued to put a drag on the troubled economy in June as 1,838 homes in San Diego County went into foreclosure, an 18 percent increase over the previous month and a 180 percent increase over June 2007, DataQuick reported Tuesday.”

“June marked the 39th consecutive month of year-over-year increases for both foreclosures and notices of default.”

“Kelly Cunningham, economist with the San Diego Institute for Policy Research, said the market eventually will correct itself. There is a shortage of homes in San Diego County that should bring buyers back to the market sometime next year.”

“‘There is a lot of pent-up demand still and there are some bargains to be made as investors jump into the market. We won’t be seeing prices like this in the future,’ he said.”

The Modesto Bee. “First-time home buyers will be able to purchase foreclosed houses in Stanislaus, San Joaquin and Merced counties at discount prices and with reduced-rate loans, thanks to a state loan program launched Monday.”

“Gov. Schwarzenegger said the $200 million program will ‘pump up’ the region’s economy, which has been reeling from escalating foreclosures and declining home values.”

“Some of those homes have been deeply discounted. A four-bedroom house built three years ago at 424 Fusco Ave. in Modesto originally sold for about $490,000, and it’s been listed for $270,000 since being foreclosed. First-time home buyers now can purchase the 2,888-square-foot house for $237,600.”

“‘This actually is a really nice house,’ said Chad Costa, a broker who specializes in foreclosed property. Costa said he was surprised that Wells Fargo Bank, which owns the home, had reduced it so much.”

“A property Costa is trying to sell for CitiMortgage is at 243 Angora St. in Patterson. Its previous owners borrowed more than $493,000 on the home in the spring of 2005, then lost it to foreclosure. The 3,312-square-foot house had been priced at $229,900, but now it’s listed at $198,000 for participants.”

“Costa questioned the fairness of reducing home prices so drastically for first-time buyers rather than for everybody.”

The Recordnet. “The housing downturn, now permanently embossed with a ‘foreclosure’ icon, is offering many the chance to buy when only a few years ago soaring prices had put owning a home well out of reach. For many, buying a home still seems out of reach these days, although for different reasons.”

“The median selling price countywide has declined from a peak of $425,000 in July 2006 to $220,000 last month - a 48 percent drop over two years and the lowest monthly selling price level since April 2002, according to figures from the latest Coldwell Banker Grupe-TrendGraphix monthly sales report.”

“Mian Quddus, a Santa Clara man who took a foreclosure bus tour in Stockton this past spring, had been eyeing houses in hopes of finding a good deal as an investment and, later, a retirement home. He found a couple of properties he liked but decided not even to make offers, because he heard there were already a lot of people lined up wanting to buy.”

“‘So it didn’t feel right going for it,’ he said. ‘I really didn’t want to get into a bidding war.’”

“Jerry Abbott, president and co-owner of Coldwell Banker Grupe, Stockton, has been scouring the area for a good foreclosure house on behalf of his son and daughter-in-law. He’s looking in the $300,000 to $320,000 price range and offering $350,000 minus $9,000 closing costs.”

“‘I’m just writing offer after offer for them, and we can’t get anything,’ he said. ‘There are a lot of people looking to buy in that price range, because those homes sold for up to $700,000 only a few years ago.’”

The Sacramento Bee. “A signature Sacramento program that has helped almost 300,000 lower-income people nationally buy homes in the past decade - while stirring controversy for years - is likely to be shut down this week, Nehemiah Corp. of America officials acknowledged Monday.”

“The nonprofit giant believes Congress and President Bush will ban its decade-old down-payment assistance ‘gift’ program within days as part of a larger housing bill, Nehemiah CEO Scott Syphax said Monday.”

“‘Without programs such as this, it will put the American dream of homeownership in jeopardy for a lot of first-time lower-income homebuyers,’ said John Frith, spokesman for the California Building Industry Association.”

“Others say ending the program will harm prospects for a recovery in the housing market. ‘It takes a major player out of our market,’ said Jon Kaempfer, senior loan consultant at Sacramento-based Vitek Mortgage.”

“Critics say it unfairly inflates the values of homes for those who can least afford it. ‘Originally, they (gifts) went to builders, and builders would jack up their sales prices,’ Kaempfer said. ‘That’s what really ticked the FHA off.’”

The North County Times. “Wachovia closed its wholesale mortgage department Monday and announced Tuesday that it planned to reduce lending and securities products by $20 billion this year.”

“With the failure of subprime lenders about a year ago, borrowers going to local mortgage brokers are finding fewer options and even fewer loans they can qualify for as banks tighten lending requirements, mortgage brokers said.”

“‘We’re getting hit from all angles,’ said Yamila Ayad, president of Mission Home Loans in San Marcos. ‘Last August, when a lot of subprime lenders were closing, I was not shocked. But it becomes very concerning when your prime banks start closing.’”

“‘We’re overrun with people who want to buy. The challenge is getting them qualified,’ said Matt Battiata, a real estate broker based in Carlsbad. ‘The effect on the market is as if the Fed jacked up interest rates.’”

The Voice of San Diego. “City Heights is struggling under the continuing housing market collapse. The 92105 ZIP code recently ranked 14th among nearly 100 county ZIP codes for foreclosures per 1,000 homes.”

‘The price per square foot paid for detached homes in the ZIP has fallen by nearly 50 percent since summer 2006, according to DataQuick. In several months of boom years like 2006, buyers paid more than $400 per square foot for detached homes. In May, 17 houses sold for a median of $220 per square foot.”

“Repossessed homes have brought values down but currently comprise the lion’s share of what sells in this market, area real estate agent Marigold Hernly said.”

“Hernly’s tour from street to street, from block to block, revealed some of those issues community residents and nonprofits are worried about. Some foreclosed properties had chain-link fences, peeling paint. Overgrown and dead lawns were other signs of distress.”

“But then, Hernly turned the corner and pulled over in her minivan on a street edging one of the community’s canyons. ‘You have to have a vision. These are million-dollar views,’ she said.”

The San Gabriel Valley Tribune. “West Covina’s downtown continues to evolve as it grapples with security concerns and a slowing economy that has forced out several tenants. Several of the businesses at The Lakes Entertainment Center are now closed, including the flagship restaurant Macaroni Grill.”

“Councilman Roger Hernandez thinks the council has fallen short in its plans to deliver a revitalized downtown to West Covina residents. ‘When the businesses came, they all came with the promise that the whole area was going to be redeveloped,’ Hernandez said, ‘and that we were going to create a critical mass of housing and businesses.’”

The Glendale News Press. “The number of building permits issued by city officials has reached its lowest point in nearly 10 months, a byproduct of an economy hit by slumping housing prices, the high cost of gasoline and ongoing problems in the financial sector, officials said Monday.”

“So far in July, Glendale’s Permits & Inspections department issued 144 housing and business permits. A steep drop from May and June this year, when the city handed out 211 permits both months, and authorized 232 in April, said Juan Diaz, customer service representative.”

“A recent report by the Los Angeles County Economic Development Corp. found that the new home building in Southern California ‘will continue its current descent in 2008, reflecting oversupply of existing units and difficulty in financing for builders and home buyers,’ chief economist Jack Kyser said.”

“‘If you are a home builder, you have run the gauntlet of trying to get construction financing,’ Kyser said. ‘Lenders are very cautious and very risk-averse. People are studying the market very, very carefully. They don’t want to go out on a limb. All over Southern California, you are hearing a pullback.’”

“In 2007, officials issued more than 200 permits in every month except September. That month the city authorized 109 permits, during a period that Diaz called an anomaly.”

“‘Last year we were busy with the Americana,’ he said. ‘There were lots of permits issued and lots of money being spent.’”

“With its luxury apartments just 25% filled and some stores reporting stagnant sales, the Americana at Brand may be experiencing the same woes other businesses in the region are currently undergoing in a distressed economy.”

“Officials hoped the $435 million complex would bring hundreds of thousands of new shoppers and residents to Glendale as well as flood the city’s treasury with tax revenue.”

“It is still a dubious time to run a business, said Judee Kendall, executive VP of Glendale’s Chamber of Commerce. ‘Other than the Americana, I’m not seeing a lot of businesses open up right now, and I am seeing and hearing from existing business that it’s slow,’ she said. ‘Its not particularly one type of business. It’s just generally slow.’”

“Still, city and mall officials said the mixed-use development has been a boon for the city.”

“‘It’s hard to quantify especially with the economic downturn,’ said Assistant Director of Finance Ron Ahlers.”

“‘We have expectations that the Americana will be positive and generate a few hundred grand in sales tax revenue this year, but that’s awful hard to equate in an economic downturn. It’s still a positive for the city, it’s just that we have no data to back it up,’ Ahern said.”

The Columbus Dispatch reports from Ohio. “It’s an age-old question, one that probably dates back to the mud-brick homes of ancient Mesopotamia: buy or rent? Ken Gold, director of the Ohio State Fisher College of Business Center for Real Estate Education and Research, said there are still good rental deals to be had. ‘There were too many apartments built five to 10 years ago, and there is a lot of empty inventory sitting there,’ he said.”

“And empty inventory equals lower rental prices. ‘Drive around and you’ll see signs in front of apartment complexes that say one or two or even three months free,’ Gold said. ‘That sign says that everything is on the table and negotiable.’”

“‘If you do not have to sell a house to buy a house, this is the absolute best time to buy a house at a good price in a good neighborhood,’ Gold said. ‘They’re giving away condos in Downtown Columbus. They’re just sitting there, empty, and every day it sits there, it costs the developer money.’”

The Lansing State Journal from Michigan. “For-sale signs dot Moorwood Drive in the subdivision tucked between Washington Middle School and Chisolm Hills Golf Club. Few of these houses have been foreclosed on, but those that have are pushing down values in this neighborhood as banks drop prices to unburden themselves of houses.”

“One house here sold in April for $150,000, about $79,000 less than the sheriff’s deed sale in October that put it into the hands of a bank.”

“‘This market is horrendous,’ said Judy Walker, whose husband left Michigan recently for a job in Alabama. The couple’s 1,400-square-foot house is listed at $174,400. Two years ago, Walker said it was appraised for $250,000.”

The Morning Sun from Michigan. “The outlook remains bleak for the central Michigan real estate market as Realtors try to explain to their sellers just exactly what they can do to sell their homes.”

‘Randy Golden, owner of Re/Max of Mt. Pleasant Inc., has never seen a market this bad during his 31 years in the business. ‘We are in what I’m describing as a predatory market,’ Golden said. ‘Buyers are not happy to get a deal anymore, they are going for the jugular.’”

“‘We have a lot of brokers and agents who are telling clients that everythings fine, and that they are busier than they have ever been,’ Golden said. ‘Yeah, right.’ That’s probably the agent that’s working on foreclosures.’”

“‘I’ve got a property at Lake Isabella right now, it was on the market a year ago for $259,000, it’s beautiful. Now, foreclosed, I’ve got it at $161,000. It is move- in condition,and not selling,’ he said.”

“‘It’s been hard to encourage people to invest (in real estate),’ said Phil Kruska, owner of Summit Realty Group. ‘Can we take some lemons and make lemonade? I’d like to say it’s challenging, but am I in denial?’”

“Kruska said ‘homes are selling, just not everybody’s.’”

The Post Tribune from Indiana. “A slumping economy is forcing banks and other financial institutions to pull the reins on commercial lending, officials say, leaving many previously approved municipal housing projects in the dust.”

“‘It would be very difficult to approve a large residential development now,’ said Jack Esala, VP of business banking for Centier Bank. ‘There’s a large inventory of lots available now, and that’s pretty much across the county.’”

“Hobart City building official Caroll Lewis said new home construction in Hobart has dropped dramatically. ‘We’ve issued two new home building permits this year,’ Lewis said. ‘Last year we issued 57. Nobody’s opened a new subdivision.’”

“‘The lending institutions are holding back because of the crisis,’ Lewis said. ‘If we were still in the same position we were three years ago when you could buy a house with no money down, these homes would be selling like hotcakes. In the ’70s you had to come up with 20 percent down. We’re going to go back to that market.’”

From WNDU.com in Indiana. “Foreclosures in the Midwest are up. According to RealtyTrac, in June 2008, Michigan was the 5th highest state for home foreclosures. Ohio came in next at 6th highest. Indiana was ranked 10th, and Illinois 13th. Nevada and California topped the state list.”

“Compare the first half of 2007 to 2008: Indiana had a 26% in home foreclosures so far this year. Comparing Michigan’s numbers during the same time, you’ll see the state had a 151% increase in home foreclosures in 2008!”

“‘They were blindly optimistic that ‘my situation today which enables me to get this mortgage…that’s going to be me three years from now,’ says Realtor Rory Paquette. ‘But to the dismay of many, financial pictures aren’t the same as they were three years ago. And so you have the same person with that adjustable rate mortgage, three years later, who doesn’t qualify to refinance.’”

“Realtors like Paquette, say they’ve been getting a lot of questions from people looking to buy or sell. ‘Buyers are very concerned, how do I know how much a house is worth before I start putting an offer in on it?’ he said.”

The Chicago Tribune from Illinois. “Now that lenders are more stringent about the debt load a borrower can carry in relation to his total income, they may re-check a borrower’s credit before closing, says Ed Conarchy of Cherry Creek Mortgage, Vernon Hills. A significant change can cancel the loan.”

“Buffalo Grove real estate attorney Marc Blumenthal relates one recent transaction where, ‘the buyer had two jobs, and needed the second income to afford the home.’ She lost the second job-and the deal.”

“Mortgage firms have always required a certified appraiser to provide a property value before lending. But in this market, when homes linger as prices drop, the purchase amount a buyer contracts for may be higher than the appraised value.”

“‘You offer $300,000, and then a couple of weeks later, when the lender orders an appraisal, other very similar homes for sale in the neighborhood have reduced their selling price to $280,000,’ says Peru appraiser Jim Blaydes.”

“The appraisal report will note the $20,000 difference, and lenders will consider the home being purchased to be worth $280,000, he adds. When there’s such a discrepancy, the lender often will require more cash upfront. If the buyer doesn’t have it, the seller would have to lower the price.”

“A couple of years ago, when buyers asked for repairs or a price reduction based on what their inspector uncovered, the issues were generally serious, notes John Haas, a Mt. Prospect real estate attorney. Now, however, the list is getting longer and more nit-picky, Haas says.”

“As opposed to the boom times, today’s buyer ‘isn’t worried that there is someone else right behind them ready to bid for the home.’ Sellers, who’ve already agreed to a low price, then refuse to make the repairs, and the contract dies, adds Haas.”

The Des Moines Register from Iowa. “Nearly $96 million worth of residential and commercial property in five Iowa counties is under threat of foreclosure or forced sale as a result of the financial demise of Regency Homes, once the state’s largest home builder.”

“Banking and real estate experts say it could take at least a year to resolve the financial mess, and maybe even longer for lenders to resell property in a troubled real estate market.”

“‘Obviously, over the long term, there is going to be a lot of real estate - both developed and undeveloped - in the hands of lenders over the next six months to a year,’ said Thomas Burke, a Des Moines lawyer representing three lenders. ‘You are going to have all kinds of financial institutions that are the owners of these properties and will be trying to get rid of them as best they can.’”

“Almost 300 fewer homes were sold in the Des Moines area in May compared with the previous year. Meanwhile, foreclosures are on the rise in Iowa, as they are nationally. Polk County received more than 900 court orders to sell foreclosed property in the first sixth months of this year. In all of 2000, there were 364 forced sales.”

“‘This is going to be pretty ugly for a while,’ said Melanie Lumley, who coordinates and oversees sheriff’s foreclosure sales in Polk County.”

The Duluth News Tribune from Minnesota. “Jon Hansen is ready to sell his Superior home and buy a bigger, nicer one. ‘I’m not going to sell myself short for what I think it’s worth,’ Hansen said of his home, which he’ll happily live in indefinitely until he receives a decent offer, he said.”

“Home sales for the first half of this year in the Duluth area were down by 23.8 percent from the first half of 2007. They’re down 17.7 percent in the Superior area. The drop in sales ultimately means a whole lot of Realtors are feeling as if they’re working harder for less.”

“‘We’ve got lots and lots of tire kickers, and no one’s pulling the trigger,’ said Jeffrey L. Vollman, a Realtor with Edmunds Co. of Duluth.”

“Duluth Area Association of Realtors President Tod Vendberg, said one reason prices might not be dropping more is linked to some homeowners not being able to drop their prices if they want to merely break even.”

“And some are walking away from homes in foreclosure, instead of trying to work out a deal with the bank to keep the home or trying to sell it themselves. Edmunds’ agents estimated last month that 200 to 300 foreclosed homes are in the pipeline to be sold in the Twin Ports market, or about 12 percent to 18 percent of the total residential listings in the region.”

“‘A lot of people, they just give up hope once they get their foreclosure letter,’ Vendberg said.”

“Hansen is trying to sell a home in Superior for about $110,000, and buy a home in Duluth. His home has been on the market for 49 days. It’s only been looked at twice.
But he doesn’t intend to cut his price, and he’s not worried about an interest rate increase that would put a $200,000 house beyond his price range.”

“‘I’m not going to put in an offer on a house without knowing the future of our house,’ he said.”

From KETV 7 in Nebraska. “Omaha has not seen the kind of housing slump other areas of the country have endured, but at least one local real estate agent said there are a lot of houses on the market, and it’s taking more time to move them than in years past.”

“Warren and Linda Wilson will put their home that sits at 52nd and Dodge streets up for auction at 6 p.m. Thursday. There is no minimum bid, but the Wilsons will set a price on the day of the auction and if that price isn’t met, there will be no sale.”

“The Wilsons have lived in their home for more than 15 years. The Wilsons are retiring and ready to move on. They’ve already bought their next home in Pennsylvania, closer to family.”

“‘We have had some people who were really interested, but it’s still on the market, so I guess they figure…they can come back,’ Warren Wilson said.”

“Their home has been on the market since March 1. ‘I guess people just think there’s plenty of time and we don’t have to do anything,’ Linda Wilson said.”

“Richard Purchase is with CBS Home Real Estate and he’s working with the Wilsons. He said there are about 6,000 homes on the market in Omaha. ‘There is a lot of inventory around Omaha where people aren’t buying it because they know they have all the time in the world and a whole lot of houses to look at,’ Purchase said.”

Purchase, agent Dick Mikuls and the Wilsons came up with the auction scheme.

“We have so many people sitting on the fence,” Purchase said. “If someone likes this home, they’re not going to be able to sit on the fence. We’re going to be selling this house on July 24.”

“The Wilsons said that for them, it is not about the carrying costs. Their home is paid for. But they like the auction idea because it will give them the answer they’re looking for.”

“‘It gives us a certain amount of certainty, because we have our plans,’ said Linda Wilson ‘We’ll either have a house in Omaha or we won’t, depending on what happens July 24.’”

The Orlando Sentinel reports from Florida. “Sorrento Springs, an upscale development amid the lush, rolling pastureland of rural Lake County…has an 18-hole golf course, a resortlike clubhouse, tennis courts, walking trails and neat rows of two-story, earth-toned homes with architectural flourishes. Now it is rife with foreclosures.”

“‘When we bought, there was this rumor going around that there was going to be a highway through there that would connect to Interstate 4,’ says Raza Dhanji, a 38-year-old Lake Mary businessman who bought four homes in the subdivision as investments. In fact, the proposed $2 billion Wekiva Parkway is at least 10 years away even now.”

“Dhanji assumed he could flip the houses quickly and make a tidy profit, so he didn’t worry about the interest rate on the loans. But two weeks after he closed, Engle Homes, the builder, dropped the price on the same models he bought by as much as $60,000. Dhanji not only couldn’t sell; he couldn’t find renters for two of his homes either.”

“Now he’s paying $10,000 out of pocket each month just to cover the mortgages, even as the homes’ market value plummets.”

“‘I can’t say it’s not my fault,’ he says. ‘I should have known better. But at the same time, I was misled. Now that I look back, the fact that the builders all of a sudden started dropping the prices tells me that they knew something I didn’t.’”

“Ufuoma Omosebi was pregnant with her second child in 2004 when she and her husband had their Terragona Drive house built. They got to live there just over a year and a half. Then Omosebi’s husband had to move to North Carolina for a job. She stayed behind to sell the house, which had been appraised at $425,000.”

“Six months later, after slashing the price to $330,000, she gave up and moved anyway. The payments were $2,000 a month.

“The worst thing was that the developer started selling the exact same home for a cheaper price — and they were giving the real-estate agent $10,000 bonuses and 10 percent commission,’ she says. ‘How could we compete with that?’”

“They rented the house, but their tenants broke the lease, and soon the couple had used up their $20,000 life savings and taken out another loan. Finally, in October of last year, the Omosebis declared bankruptcy.”

“‘I still can’t look at a picture of it without crying,’ Omosebi says. ‘I wouldn’t wish this experience on my worst enemy.’”

The Palm Beach Post. “Ameribank, the troubled West Virginia bank that saw a lucrative future for itself in Palm Beach County, is closing the branch it opened in 2003, conceding it should never have moved to Florida in the first place.”

“‘There was no reason to ever open a branch in Palm Beach County,’ said David Hartman, the bank’s chief financial officer, who was hired in October as part of an attempt to save the financially challenged bank. ‘We’re not a Florida bank. You shouldn’t go to areas outside your market that you don’t know.’”

“The loans were actually made by Lending One, a Boca Raton mortgage broker. The no-money-down one-year home mortgage and renovation loans were designed for speculators who wanted to buy fixer-uppers and flip them for sale at a higher price.”

“‘I am sorry I got involved,’ said Kim Knaisch, a New Orleans-area homeowner who borrowed around $300,000 from Lending One to renovate three houses in an area ravaged by Hurricane Katrina in 2005. Two of the houses are now in default.”

From Highlands Today. “It was like a slice of heaven for Gary and Bonnie King. A couple of years ago, they found the home they loved in a quiet subdivision of a rural town. Then, last year, trouble in paradise. Their next-door neighbors moved out, abandoning their $259,000 house, leaving it to the bank.”

“Months went by, said Bonnie King. The lawn went unmowed. The swimming pool turned black. ‘It’s a breeding ground,’ she said.”

“The two-bedroom, two-bath house next door to the Kings, said broker Chip Boring, is selling for $139,900. ‘In November 2005, it sold for $259,000.’”

“‘It’s got a screened pool and hot tub in the back,’ said Bonnie King, hoping someone will read this and realize it’s an incredible bargain.”

“What caused the foreclosures? ‘A lot of people bought houses who couldn’t afford the payments,’ said Boring.”

“And then there were the speculators. ‘They bought houses or built houses and never lived in them, and never intended to,’ he said. They were simply flipping houses for the profit.”

The Tampa Tribune. “Hillsborough County property owners may pay a little more in school taxes while the district’s budget shrinks. At the same time, the district is reducing its total budget by more than $46 million.”

“‘Property taxes are down, foreclosures are up, the value of houses is down,’ said Gretchen Saunders, the district’s budget director. ‘We’ve got a lot of property out there where people aren’t paying their taxes.’”

The St Petersburg Times. “After a three-year struggle that left them bankrupt and nearly $40-million in debt, the developers of Trump Tower Tampa still aren’t ready to wave the white flag.”

“At a creditors’ hearing in downtown Tampa on Friday, Frank Dagostino, head of tower developer SimDag, proposed partnering with an undisclosed cash-rich investor to resurrect the tower as a condo-hotel project.”

“The deal remains a long shot. Despite a letter of intent from the joint venture partner, SimDag representatives said the purchase offer has been too low to take seriously.”

“If the joint venture falls through, SimDag raised the possibility of auctioning off the riverfront lot. ‘If we have to do a fire sale, we won’t be able to maximize the value,’ said Dagostino, who added that the hunt for financing has brought him into contact with all varieties of scams and con men.”

The Herald Tribune. “As the once-tight office market recedes in the rear-view mirror, building owners throughout the region are having to negotiate on price and terms to land elusive tenants.”

“‘A lot is related to the construction industry,’ said Tom Streck, a commercial agent in Lakewood Ranch. ‘I don’t think people realize how much of our economy is related to construction. The slowdown has not only impacted builders and architects, but all their suppliers and vendors. Then there are interior decorators, furniture retailers, attorneys and mortgage brokers. We’re so tied to the new home industry that when it collapsed, there were a lot of ripple effects.’”

“In addition to the downturn, there also was some overbuilding. ‘A lot of the problem is new construction. It’s not just people leaving,’ Streck said. ‘Once permits are approved, people have a certain time to build and they often go ahead with their plans.’”

“Joe Hembree, who owns a Sarasota-based commercial brokerage, said he stopped building office condos two years ago. ‘It was such a hot market that a lot of people jumped in,’ Hembree said.”

My Sun Coast. “Can you get a loan? Coldwell Banker’s senior loan officer, Joan Marie Bazo, says it’s a lot harder than it used to be. ‘The lenders got really lax over the last few years. They didn’t verify anything, they were doing loans for people who could not verify income or couldn’t provide asset verification. They won’t do them anymore.’”

“Ray Suplee, chairman of the Landmark Bank, says no more 100% financing. ‘You basically need to put down 30%, and upon reflection, 30 years ago you had to put down 30%, so it’s not anything new. It’s just a cycle.’”

Although with mortgage insurance you might be able to reduce your downpayment. “You can get a conventional loan with 5% down, but you have to have at least a 680 credit score or higher because the mortgage insurance companies won’t insure them. If you have below a 680, they are requiring 10% down for a primary residence,” says Bazo.

“Bazo says says FHA loan limits in the Sarasota-Bradenton market are now $442,500, ‘Anyone can get a loan if they qualify. If they do not qualify for the loan, then they shouldn’t be taking it out in the first place. That’s how we got where we are now.’”

“Suplee says he doesn’t believe the real estate market has hit bottom yet, and neither do a lot of buyers.”

The News Press. “Lee County landlords have begun slashing rents and using other incentives to boost sagging occupancy rates brought on by a limp economy. ‘It’s a smorgasbord of concessions,’ said David Malt, broker for Malt Realty, a Fort Myers-based manager of multi-and-single-family home developments and homeowners’ associations.”

“The ante has been upped at the Lakes at College Pointe, a collection of 424, one-to-three-bedroom apartments in south Fort Myers. New tenants there receive what amounts to three months free rent for a 13-month lease and security deposits are just $300 instead of a month’s rent.”

“Given the bloated rental market and the slow economy, property manager, Tom Goodspeed predicted it will be a long time before rents return to pre-2008 levels.”

“‘If things don’t look better, we may have to go back in the other direction,’ he said. ‘It (rent) may go down. I don’t see it going up. We’re just trying to compete with everybody else and hang on to our small share.’”

“In an ironic twist, the economic slump and housing market woes are also providing some salvation for landlords, who can point to the rising number of foreclosures as a source of new tenants.”

“Daniels View was the crown jewel in rising real estate star Samir Cabrera’s ambitious group of investments in 2006, a chance for investors to get in on a hot land deal in Lee County. Two years later, investors are settling for pennies on the dollar and level allegations of fraud in a civil suit against Cabrera involving the 80-acre project in south Fort Myers.”

“‘I’m not saying Samir should be put to death, but he should go to jail,’ said Robert Caione, of New Jersey, who has a $25,000 investment in Daniels View. ‘I told him, ‘This is my life’s savings. ‘He told me, ‘Worst case, Mr. Caione, you’re going to make four times your money in a year.’”

“Now Caione…has been out of work for 18 months, in part, he says, because of the stress from his investment losses. He said he also lost about $40,000 in another land deal in Port Charlotte unrelated to Cabrera or Daniels View.”

“Caione said the cases may be complicated but the lesson he learned is simple. ‘I will never invest outside of New Jersey again,’ he said.”

The Daily Business Review. “Nearly 16 years after Hurricane Andrew devastated the city of Homestead, the town in South Miami-Dade is in the path of another potential storm: A deluge of residential foreclosures and accompanying economic turbulence.”

“One Homestead ZIP code - 33033 - leads Miami-Dade County with 263 homes in different stages of foreclosure. And 109 homes in that ZIP code have already been taken back by lenders.”

“Foreclosures are pushing prices down more than 50 percent of what they sold at during the height of the housing boom, said real estate broker Hagen Hendrix. He markets repossessed homes in Homestead for lenders. One of his lender clients dropped the price of a two-bedroom town house from $189,000 to $60,000, he said.”

“The town house is in move-in condition on a man-made lake and still isn’t selling, he said.”

“Homeowner Antonio Sueiras’ lender recently began foreclosing on his three-bedroom house near the Homestead Air Reserve Base, one of the few neighborhoods he could afford when he purchased it in 2003.”

“Sueiras paid $140,000 for the 1,564-square-foot house and put down $42,000. He comfortably paid close to $1,000 a month in mortgage and property taxes. But as property values began to rise, he made ends meet by refinancing his home several times, more than doubling his monthly housing expenses.”

“Suddenly, his mortgage payments became too expensive. He said his monthly mortgage payment is $2,200, but he makes only about $600 every two weeks. He plans to abandon the house by September. Sueiras said he owes close to $285,000, and the house is worth less than $250,000 so he won’t even try to sell it.’

“‘I am done with it,’ he said. ‘I just want this nightmare to end. The bank can take the house at once. I work and I work, but it never gets better.’”

“Carmen Miranda said he can barely afford the two mortgages he has on his five-bedroom, 6,062-square-foot home he shares with his wife and their 2-year-old daughter in the new Portofino Lakes subdivision.”

“When Miranda bought the house for $272,844 in 2004, he could easily afford it. As the housing market boomed, so did home prices, and he easily refinanced the house. Now, however, he’s had to tap into his savings to cover the second mortgage, he said.”

“‘I will be able to hang on for six to eight months,’ said Miranda.”

“Despite his troubles, Miranda is still betting on Homestead’s real estate market. In May, he purchased a bank-owned house in Portofino Estates. Miranda paid $212,000 for the four-bedroom home, a deep discount from the $285,000 the prior owner paid for it in March 2005. Miranda financed the deal with a $169,000 loan from Sky Investments in Deerfield Beach, according to public records.”

“He plans to rent out his investment property. ‘If I end up losing my home, at least I’ll have the house I just bought,’ said Miranda.”

The Miami Herald. “Amid mounting criticism of his leadership, Florida’s top mortgage industry regulator…Don Saxon, vowed to work with state Chief Financial Officer Alex Sink to tighten mortgage broker licensing standards.”

“Sink, however, has included Saxon’s resignation on a list of reforms she’s demanding to overhaul the embattled agency.”

“The call for Saxon’s ouster was prompted by a Miami Herald investigation that showed more than 10,000 criminals have been allowed to peddle home loans in Florida since 2000. Among them are bank burglars, cocaine traffickers and identity thieves who have gone on to commit at least $85 million in mortgage fraud, the newspaper found.”

“A Miami Herald analysis of the OFR’s database of mortgage professionals showed tens of thousands were denied for technical reasons, such as failing to submit a complete application.”

“But the agency issued only 28 final orders between 2000 and 2007 denying applicants based on their criminal records, the newspaper found.”

“The issues are expected to surface next Tuesday, when Crist, Sink, Attorney General Bill McCollum and Agriculture Commissioner Charles Bronson gather for an already scheduled meeting of the Financial Services Commission. Sink said she’ll also push for Saxon’s resignation — a demand she issued in a press release on Sunday.”

“‘When you’re licensing a high number of brokers, sure, you might expect a few to slip through the cracks. But not thousands. Somebody was asleep at the switch,’ Sink said.”

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