One Million Homes Foreclosed in 2010!

I started this blog in 2005 thinking we had seen the peak in foreclosure in the U.S and foreclosure support. Little did I know back in 2005 that the worst is 5 years to come.

The year 2010 saw a record in recent times of US housing foreclosures. The number hit 1 million homes!

Many investors, bankers and home owners lost some money, and some clever investors and bankers made lots of money.

Investment bank Goldman Sachs made billions selling mortgage loans that they had to appear in front of the US Congress to testify.

How could home owners foresee such a burst coming and save their homes? This is the question! And Sadly, hardly is there a way for the ordinary homeowner to realize a bubble. This is the answer.

To see a bubble in housing, as an ordinary homeowner, you have to look at the business side of homes. Buying, selling and new homes construction. You have to look at long term numbers, rise in home prices, population growth, economy and many more factors. This whole load of analysis and access to data to ordinary home owners makes the home owners misinformed and aid in helping create a bubble that smart well researched investors make loads of money off.

Right now figures show a rise in home sales in the recent month. I am in no position to speculate what it means. My only advice to home buyers and sellers is to take sometime and look at some data over time before finalising on decisions.

Government Owned Properties.

In the height of the credit crunch. Governments had to step-in to save the economy from crumbling. Apart from banks and the big car companies, the government also had to play a role in individual economies by buying up personal foreclosed property.

Well, now that the future has a better outlook, people can bid and buy these properties back from the government.

Buying up such investments may prove profitable later on if there is a property boom.
Here is a link I found on such properties and it may explain more how you can participate and may be buy a home for yourself.

http://www.homesales.gov/homesales/mainAction.do

This recession is the worst for decades, where are heading next?

Global stock markets are still plunging, people are still losing money, millions have lost their jobs and millions have lost their homes to foreclosure, the banking system is in crisis. Have we seen the worst yet.

It started with a falling dollar, record rise in crude prices, people defaulting on mortgage payments, credit crisis, record forclosures and now the whole global financial system is in shatters.

Hopefully there shouldnt be another depression, everything is getting worse.
Will the governments act right and save the world?

if the governments ensure that the packages of money they give to banks and other institutions are put into their intended use, then we might just avoid being hit by the worst. but if like what caused this whole thing, care is not taken in spending the government packages by the world financial institutions, then kaos may break.

More people trying to save their homes.

Many people in America are now attending foreclosure clinics, educating themselves and discussing with many different experts on how to save their homes. It's alarming to know how many homes are on the verdge of foreclosure.

Many of the people you find at these foreclosure clinics lost their jobs during the recession and are now, unless something is done, are about to lose their homes.

Experts in such places give people advice and help them negotiate a deal with the bank to save their homes.

Please could someone tell me where all the tax payers money that were given to the banks have gone? Things are still not better than the were before the bail out.

The real estate business

Dealing in and building real estate may seem as a slow way to make money to many, (atleast thats what I though also). But with the right knowledge, it is a fast way to make a lot of money. Just take a look at many of todays billionaires, many started with and are still into real estate.

Take a look at Donald Trump, Sheik Muhammed Al Jaber and Berlusconi (the media mogul), they are all big names in the World of business, each of them is a billionaire and they all started building their fortunes on real estate.
There are many millionaires that deal in real estate almost in every city on earth.

Therefore for everyone who is looking forward to increasing his or her income real estate should be a real consideration.

If you try and learn the real estate secrets, you might as well make a million bucks. The good thing is, there are a lot of books, and online information to help you do this. I will have a list of them in my next post.

Decline in real estate and foreclosures signalled the start of the current economic downturn

So is now the time to buy and hold untill the prices rise again?
It's a good practice to buy when prices are low, and wait for them to rise again before you sell. even if you are buying real estate to hold, now is the right time to close in on a big bargain.
Back in november, many people started claiming that the prices of homes are no longer in a free fall, though we continue to see many foreclosures. or may be this are just early signs of consumer/buyer confidence coming back and possibly a recovery. Though the latest figures I saw just before christmas, say the housing prices are still falling.

So if you wanna cash in, what do you do now. Right now, there are a lot of foreclosed properties and many people trying to sell their homes and the only thing that may prevent you from buying right now is the feeling that prices may fall further. Top world economists are not helping things by saying that the only time we should expect any recovery is in the later part of the year.
Later part of the year means atleast 6 months to come, and by what we have seen in the recent past, 6 months is a lot of time for so many things to happen (i.e prices to begin to rise or for them to fall sharply).
So if you are looking to make a quick buck by buying and flipping a house as soon as there is a bounce back in price, then hold on, just dont buy that house yet. Prices may fall again. But if you are looking to make a long term investment by buying and holding a property, then the time is right, you will surely buy at a bargain.

Credit Crisis still hitting on the markets.

American markets are still plunging even after the bailout. Well my opinion is this all needs some time to add up and for consumer and investor confidence to be back up.
Meanwhile I am presently working on a startup business, I dont know if this is the right time but its just coincidental with the economic crisis.

One thing for sure, its becoming more important to be self reliant may be through entreprenuership to avoid putting all your eggs in one basket like an investment portfolio or real estate which as seen recently loses value with this type of economic melt down.