I am looking at purchasing a winter vacation home and while researching the internet real estate listings, I noticed many foreclosures. My dilemma is the fact the price of homes has gone down while the lender wants the mortgage balance for the property. I do not necessarily have to purchase a foreclosure but are the savings and loan dreaming? Also how many homes can they afford to hold? I would think they are in the same shoes many homeowners are in; your house could be worth less than it was a few years ago. If you want to sell it, you might have to reduce the price.