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Money flowed freely for construction, with much of the debt ending up with two small, out-of-state credit unions loaning to people who were nominally qualified to be members. Meanwhile, a deal Logue.

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Foreclosures may depress home prices – Mounting mortgage defaults across South Florida threaten. their wood-frame homes built in the early 1980s could have a hard time getting their asking prices, said Deanne Lee, 43, a real estate.

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Outlook is still grim for housing market – With the slump staggering into a third year, buyers are having trouble getting home loans because lenders are tightening credit standards, and the surge of mortgage defaults and foreclosures is adding.

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LOCKED IN BY BAD MARKET, HOMEOWNERS CAN’T MOVE – Mike Larson, a real-estate analyst with Weiss Research in Jupiter, said those who must move might no longer have a choice. "If you bought in many Florida. with people who want to move, but in order.