PS, you brought up an excellent point. Not only are sellers going to get whacked by decreasing prices for their homes, but what a sinking feeling to have finally found a buyer and then to find out they don’t qualify for a loan!

Or – they do qualify, but they have to pay excessive fees for having “subprime credit” (what was good credit back when is going to look like bad credit soon). I see the potential for a lot of deals falling through for reasons above and beyond price.