causes and consequences of the foreclosure crisis
DESCRIPTION
Learn about the Financial Crisis. Its causes, solutions and even ways to take advantage of it are explained in this presentation. For more information visit Foreclosuredeals.comTRANSCRIPT
Causes and Consequences of the
Foreclosure Crisis
A look at the effects of the 2007 collapse of the banking and housing industries.
Housing or Real Estate Bubble – Definition
• Real property which rapidly
increases to the point that
unsustainable debt levels are
reached relative to
expendable income as well
as other affordability
indicators within the economy
• Housing bubbles are created when fast
paced growth in the housing market goes
unchecked and spirals out of control
• Factors include lenient and predatory
lending, extremely low adjustable interest
rates and a blinding speculative fever
• Housing bubbles are generally
undetectable until after the burst
Housing Bubbles – How They Form
Reasons For The 2007 Burst and Recession
• Adjustable interest rates
reset to higher levels
• In 2007, 1.3 million
subprime borrowers
defaulted on mortgages and
were submitted through the
foreclosure process
The Domino Effect
• High adjustable interest rates
• Millions of foreclosed homes
• Decline in home demand and home value
• Housing industry jobs were lost
• Jobs connected to housing industry jobs
were lost, etc
The Domino Effect
• Prime mortgage holders defaulted
• Banks accumulated more foreclosures
than they could move, compounding
the mortgage crisis
• Shareholders and investors panicked
• Lending was basically brought to a
standstill, etc
• The Housing and
Economic
Recovery Act of
2008
Government Response
Government Response
• The Homeowners
Affordability and
Stability Plan
Foreclosure Help
• Talk directly with
the lending
institution
• Talk to a HUD
approved foreclosure
avoidance counselor
Foreclosure Help
Foreclosure Help
• Seek out state and
local foreclosure
assistance
resources
Foreclosure Help
• Contact HOPE
NOW which is an
alliance of HUD
affiliated
Intermediaries
Foreclosure Help
• Contact The
Homeownership
Preservation
Foundation which is
also affiliated with
HUD and provides
foreclosure
counseling and help
Foreclosures As An Investment
• Low-cost real estate
foreclosures abound
• Millions of foreclosed
properties sit with a
flooded banking industry
Foreclosures As An Investment
• Every day, tens of
thousands of homes are
being repossessed
• Foreclosure properties
are being sold for 50% or
less of their actual value
• Short Sales
• Negotiate with
banks on
behalf of
distressed
homeowners
Foreclosure Investment Opportunities
Foreclosure Investment Opportunities
• Public Auctions
• Bid against other
competitors for
foreclosed
properties
• Foreclosure
Listing Services
• Normally found
online
• Get the jump on
other investors
Foreclosure Investment Opportunities
• Browse listings,
photos and info
• Resources so you
can invest with
confidence
Foreclosure Investment Opportunities
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