Unfortunately there are some loans that people never should have gotten out there that may have been investments or flips that could still come unglued! However prices are at the lowest, interest rates can be in the low 5's to high 6's but these are still historical lows, the first time buyer program gives up to 8,000.00 to first timers "check out realtor.com for the full list"!
However prices are alredy adjusted base on the area and usually priced to sell. Mortgages are harder to get as under writers are making sure that the money used is not borrowed from an unfamiliar source!!!!!!
If you are looking to buy, now is the time, first time home buyer $8,000 credit is going to stop as of Nov 30th.
If you see something you like, put in an offer. There are bad properties out there that are not worth much and are money pits. My advice would be to get a Buyer's Agent and let them do the research and leg work for you. There is NO payment from you. The Buyer's Agent will split the commission with the listing agent.
Good Luck, if I can be of assistance, please feel free to contact me.