Mortgage rates are at historically low levels, with low home values creating record levels of housing affordability. Is now the time to invest in a home, a home that is currently underwater or foreclosed upon? Will the bad luck that has befallen the current owner of that property be transferred to you, the new owner?

According to Zillow Real Estate Market Reports, foreclosure re-sales made up 19.1 percent of all sales, up from 17.4 percent in September, 2011 and home values ...