My background is in economic and financial statistical analysis. My sister's company buys and sells/rents REO properties in bulk. So I do a lot of analysis for her (pro bono because she is my sister) what both her and I have witnessed is that there is a lot of starry eye buyer insanity out there still. For example, in April of 2008, she placed seven different CASH offers (at list price) on seven different REO properties in the Capitol Hill, Highlands and City Park area of Denver at list price. She was out bid on all seven of them. NOW six of those seven properties are in foreclosure with the NEW owners and the seventh one is for short sale depending on bank approval. We are completely floored! Banks are still lending to people who cannot afford the mortgage or that cannot prepare for and mitigate economic uncertainty! So she contacted some of these people in foreclosure and they said that they had no idea that it would cost so much to fix the various issues associated with the respective home(s), even though the inspector(s) warned that a minor problem can imply a major problem in hiding! Ironically, this was illustrated on a HGTV "My First House" episode that was taped here in Denver in the Washington Park area and a couple made and won an offer only to state that they are going to have to take a second job just to make the mortgage! payment and the house had some expensive structural issues! So the rational investor/buyer has to step away from this mosh pit of insanity until it all settles down! It behooves us that people are so emotionally driven on what is the biggest purchase in their life that they chose to be penny wise but pound foolish! It is absolutely nuts!