Leadpile’s Blog

At one point or another we have all come across someone that is either loosing their home, lost their home, or on the verge of falling behind. We are all asking ourselves, at what point is this home crisis going to subside? It’s a scary thought to talk to someone who has been around a long time and to hear them state that this is the worst they have seen the economy in their lifetime. There seems to be no end in sight on when the economy is going to get better. NPR is stating that at least 10 percent of mortgage holders had missed at least one payment between January and March of this year, and 4.6% were in foreclosure. Hopefully, the second quarter of 2010 will prove to be a little more positive than this past quarter.

House prices have not been on the rise for six straight months in a row. Fourteen out of twenty metro areas saw an increase in homes from the month before. As of November, 2009 was up 3.4 percent from its lowest back in May, 2009. Phoenix (Arizona) and San Francisco (California) have had the highest month over month increase in their housing markets. Both New York and Chicago had the largest declines in the nation. One of the largest reasons for the increase was the first time home buyer tax credit. With the original end date for the tax credit being in November of 2009, there was a rush to purchase a new home (the tax credit ended up being extended to the spring of 2010). The tax credit was a huge incentive to purchase a home, and with the home prices in Arizona being so low, it makes sense that Arizona saw one of the highest increases in their housing markets.
One of the big questions is if the trend is going to continue to increase? Some economists believe that there is going to be another dip in the housing market because of the the high rate of unemployment and foreclosures. It is expected that we will see these results in the beginning of this year. It goes without saying that now is the time to buy. Depending on the area, people are seeing move in ready houses for as low as $50,000. That is less than a college education!
If you find that you are one of the many who are having trouble keeping your home you may want to consider a loan modification or debt consolidation. Leadpile is trying to do it’s part by matching up the consumers with lenders on a daily basis! Heck, we want the economy to be better too!

In the current state of the housing market and economy, there are many homes being sold or auctioned for well below the value they would have been sold at 3, 4 or even 5 years ago. During the housing boom, prior to the poor economic state, large amounts of people attempted to make money by buying and then quickly selling new houses and condos. That kind of flipping came to a halt as the economy started to fall, and now the flipping is being fueled by bargains at foreclosure auctions.
According to msn.com, there are many risks with purchasing auctioned homes, as buyers often times have to make quick buying decisions without being able to inspect the house prior to purchasing. When purchasing these homes, bidders need to keep in mind the house may need repairs. Purchasing homes from auctions is a gamble in the fact that you win some, and you will loose some. Hopefully, the economy will continue to recover, and buying will continue to be something that is possible for everyone!