Foreclosures ---> Stricter Lending Guidelines (Y1/M10/D 21)

Yes, I'm still hopping mad about the prices of real estate in the San Fernando Valley. But this cheered me up:

"The main factor that will lower prices are lending guidelines, not foreclosures. As investors start to say "enough!" to 0% down, stated income, negative amortization loans, and buyers have to qualify for homes based on their income rather than on a hope and a dream of repaying someday somehow, home prices will have to drop back to their fundamental value. We will return to a historic multiple of an area's income." Read more.

Of course, the rate of foreclosure is what will drive the lending guidelines to be revised. So I'm crossing my fingers for a 10% drop by median home prices by this summer.