Most of the comments in the news about sub-prime loans have ended and for good reason and a good buy.  It has been very much overblown.  Ben Stein a commentator of "Sunday Morning" 3/18/07  said it best. "Yes... the companies that made those (sub-prime) loans are in trouble" But, as he notes, "Foreclosures are now about 1 percent of loans.  The lenders will sell the houses and recover at least 50% of the value.  That means the total loss may be about half of 1 percent of the mortgages made and probably less, and a lot of it is inured (PMI). 

So there is no need to panic.  Although lenders overall have become more carefull with lending, I have come across lenders that are more aggressive now then they were during the gung-ho times of just a few years past.  It's possible to get some very interesting loans. 

People should buy now, the big guys are, REITS, Goldman Sachs, get real estate while the "going is good."