[legion]

I haven't seen a single foreclosure here in Bloomington. I'm sure they happen, I just haven't seen any.

Three houses were for sale on my street at the same time this fall. All three sold within three months.

I'm solidly in the middle of the local RE market. My impression is that most of the foreclosures are occurring at the bottom and the top. At the bottom because people with no or bad credit used those "funny" loans to buy houses and had absolutely no idea how to budget. At the top because people used those "funny" loans to buy houses they couldn't afford and expected just to refinance every few years and cash-out the capital gains.