This is a great article just out by Scott Burns of MSN Money.  It shows some comforting statistics.  Among the better news, 99% of homes across the country are not in foreclosure.  Though foreclosure rates have jumped significantly in the past year, less than 1% of homes are in foreclosure.  Further, this appears to be more of a regional problem than a nation-wide problem.  Areas that showed the highest appreciation jumps during the "boom" are experiencing greater foreclosure rates than those that had a more steady appreciation rate.  This seems to just be the market balancing itself out.  Of course, speculation often makes market conditions worse than they actually are.  People's fears can literally have an effect on reality.  However, the reality is that, for all the negative press the current housing market is getting, statistics show that things are not that bad.

 http://articles.moneycentral.msn.com/Banking/HomeFinancing/ForeclosureCrisisIsOverblown.aspx