Newly released housing data shows that foreclosures were at a record high during the last three months. It seems that the wave of embargoed foreclosures the banks were holding back have finally hit the market.

This new wave of foreclosures is generally among more expensive homes. In the past, it had been at the lower end of the pricing scale. That means both hazard and opportunity is on its way.

Clark thinks we'll see another attempt in Congress to allow workouts, as they do in commercial lending. This effort has failed in the past. But now with the rich losing their homes, there's a greater possibility they'll exert their influence in Washington D.C. and get it passed.

Yet workouts (aka "cramdowns") are not just freebies; there is a market cost to them. That cost comes when lenders have to factor in the risk of losing money on a workout, thereby driving up their mortgage rates. There is no free lunch for anyone!

The market overall still has awhile to go before things get healthy. Look for intensified opportunity to buy foreclosures in 2010. The best opportunities will be in discretionary home purchase categories like vacation homes and second homes.