According to an article in this weekend edition of the Wall Street Journal the number of homes in foreclosure that had reached a RESET date was less than 50% ... that means that many were foreclosing not because of an increase in payments but because they never should have been able to purchase the home in the first place (Under-Writing)

According to the same article $88 billion in loans will reset for the first time in Q4 of 2007 and the same amount will reset Q1 2008 then the peak reset will be Q2 2008.

Meaning there still can be some BIG corrections in certain markets that have been leveraged by sub-prime loans.

Best time to buy, for those that can wait maybe Summer of 2008.  HOWEVER, remember the most important part of the statement just made, "for those that can wait" ... if you need to buy than buy, just make sure you are buying to hold not for a quick price flip.