Causes and Consequences of the foreclosure Crisis

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Post on 08-May-2015



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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


<ul><li>1.Causes and Consequences of the Foreclosure Crisis A look at the effects of the 2007 collapse of the banking and housing industries.</li></ul> <p>2. Housing or Real Estate Bubble Definition </p> <ul><li>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 </li></ul> <p>3. </p> <ul><li>Housing bubbles are created when fast paced growth in the housing market goes unchecked and spirals out of control </li></ul> <ul><li>Factors include lenient and predatorylending, extremely low adjustable interest rates and a blinding speculative fever </li></ul> <ul><li>Housing bubbles are generally undetectable until after the burst</li></ul> <p>Housing Bubbles How They Form 4. Reasons For The 2007 Burst and Recession </p> <ul><li>Adjustable interest rates reset to higher levels </li></ul> <ul><li>In 2007, 1.3 million subprime borrowers defaulted on mortgages and were submitted through the foreclosure process </li></ul> <p>5. The Domino Effect </p> <ul><li>High adjustable interest rates </li></ul> <ul><li>Millions of foreclosed homes</li></ul> <ul><li>Decline in home demand and home value </li></ul> <ul><li>Housing industry jobs were lost</li></ul> <ul><li>Jobs connected to housing industry jobs </li></ul> <ul><li>were lost, etc </li></ul> <p>6. The Domino Effect </p> <ul><li>Prime mortgage holders defaulted </li></ul> <ul><li>Banks accumulated moreforeclosuresthan they could move, compounding the mortgage crisis </li></ul> <ul><li>Shareholders and investors panicked</li></ul> <ul><li>Lending was basically brought to a standstill, etc</li></ul> <p>7. </p> <ul><li>The Housing and Economic Recovery Act of 2008 </li></ul> <p>Government Response 8. Government Response </p> <ul><li>The Homeowners Affordability and Stability Plan </li></ul> <p>9. Foreclosure Help </p> <ul><li>Talk directly with the lending institution </li></ul> <p>10. </p> <ul><li>Talk to a HUD approved foreclosure avoidance counselor </li></ul> <p>Foreclosure Help 11. Foreclosure Help </p> <ul><li>Seek out state and local foreclosure assistance resources </li></ul> <p>12. Foreclosure Help </p> <ul><li>Contact HOPE NOWwhich is an alliance of HUD affiliated Intermediaries </li></ul> <p>13. Foreclosure Help </p> <ul><li>Contact The Homeownership Preservation Foundation which is also affiliated with HUD and provides foreclosure counseling and help </li></ul> <p>14. Foreclosures As An Investment </p> <ul><li>Low-cost real estate foreclosures abound </li></ul> <ul><li>Millions of foreclosed properties sit with a flooded banking industry </li></ul> <p>15. Foreclosures As An Investment </p> <ul><li>Every day, tens of thousands of homes are being repossessed </li></ul> <ul><li>Foreclosure properties are being sold for 50% or less of their actual value </li></ul> <p>16. </p> <ul><li>Short Sales </li></ul> <ul><li>Negotiate with banks on behalf of distressed homeowners </li></ul> <p>Foreclosure Investment Opportunities 17. Foreclosure Investment Opportunities </p> <ul><li>PublicAuctions </li></ul> <ul><li>Bid against other competitors for foreclosed properties </li></ul> <p>18. </p> <ul><li>Foreclosure Listing Services </li></ul> <ul><li>Normally found online </li></ul> <ul><li>Get the jump on other investors </li></ul> <p>Foreclosure Investment Opportunities 19. </p> <ul><li>Browse listings, photos and info </li></ul> <ul><li>Resources so you can invest with confidence </li></ul> <p>Foreclosure Investment Opportunities 20. For more Information: </p>


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