The stimulus package will help our local market with increased demand; however, the market still has to digest the large number of foreclosures and short sales currently on the market and more to come.  29% of the current active inventory is either a foreclosure or a short sale, where a seller tries to sell for less than the total loans against the home, subject to the lender's approval.  Most of the troubled home activity, 69%, is below the $500,000 mark.  94% is below $750,000.  The areas hardest hit, with over 40% of the active inventory either a foreclosure or short sale, are Santa Ana, Anaheim, Lake Forest, Garden Grove and Rancho Santa Margarita.  They account for 46% of ALL troubled home activity.  The areas with the lowest percentage of troubled homes, with 2% or less, are Laguna Woods, Seal Beach, Newport Coast and Corona Del Mar.