The US of Foreclosure

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http://hoanewsnetwork.com/media/news/velkomin-to-the-united-states-of-foreclosure.php

"...Troubles in the sub-prime market have just begun to materialize and already 38 main sub prime lenders have gone kaput. Foreclosures have reached a 37 year high, and an estimated 2 million homeowners will be put out on the street in the next few years.

And that’s just for starters..."

Do I need to have my mortgage completely paid and my cupboards stocked with canned and dry goods? If my mtg is not paid, should I do everything I can to get it paid as quickly as possible--it's a 30 yr fixed with a relatively low interest rate.

I'm concerned about my daughter who bought a house just a few months ago, though I have no idea of the terms. She and her friend are both working now, but he plans to start school in a few months. Available houses here in the West appear to ME to more numerous, staying on the market longer, and are being relisted at lower prices. Even as several new subdivions within a 5 mile radius of me are at "just beginning" to "just completing" construction stages.

Which is wiser:
keeping my pennies in the bank to purchase properties as the market falls farther, faster,
paying off the mortgage,
or taking the pennies from the bank and burying them in the backyard so _I_ end up with them, not the bank, when the market collapses?

Also, my home is in an HOA. So far it's been pretty decent, but there are horror stories of owners driven out and their properties foreclosed on. When the market crashes, will that be a common practice, as the most powerful eat the others?

Check with your crystal balls and tell me what you think. Thanks!