I had a job in Washington, DC, and it was 2007. I bought as close to DC as I could afford, and that was in Gainesville, VA (over an hour commute).
Yes, the foreclosure never really harmed me much. I did not squat in the property. I gave up the collateral when I could no longer pay the loan. Before my credit took the hit, I had already secured a rental. I always had a lot of money to put down on rentals too, so I never needed landlords to check my credit.
If you can pay six months of rent up front, most landlords don't care what your credit score it.
I bought a foreclosure last year. It is in a perfect location for a rental if prices drop, so I won't get stuck with it. The price was too good to pass up too. Basically, I've done the opposite of what I did in 2007.
We cannot tell when the housing market will crash exactly, so you're better off being out early than being out late.
Thanks for the follow! I'm following you too of course. :)