Causes and Consequences of the Foreclosure Crisis
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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 Foreclosuredeals.com
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Causes and Consequences of the Foreclosure Crisis
- 1. Causes and Consequences of the Foreclosure Crisis A look at the effects of the 2007 collapse of the banking and housing industries.
- 2. 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
- 3. Housing Bubbles – How They Form • 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
- 4. 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
- 5. 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
- 6. 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
- 7. Government Response • The Housing and Economic Recovery Act of 2008
- 8. Government Response • The Homeowners Affordability and Stability Plan
- 9. Foreclosure Help • Talk directly with the lending institution
- 10. Foreclosure Help • Talk to a HUD approved foreclosure avoidance counselor
- 11. Foreclosure Help • Seek out state and local foreclosure assistance resources
- 12. Foreclosure Help • Contact HOPE NOW which is an alliance of HUD affiliated Intermediaries
- 13. Foreclosure Help • Contact The Homeownership Preservation Foundation which is also affiliated with HUD and provides foreclosure counseling and help
- 14. Foreclosures As An Investment • Low-cost real estate foreclosures abound • Millions of foreclosed properties sit with a flooded banking industry
- 15. 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
- 16. Foreclosure Investment Opportunities • Short Sales • Negotiate with banks on behalf of distressed homeowners
- 17. Foreclosure Investment Opportunities • Public Auctions • Bid against other competitors for foreclosed properties
- 18. Foreclosure Investment Opportunities • Foreclosure Listing Services • Normally found online • Get the jump on other investors
- 19. Foreclosure Investment Opportunities • Browse listings, photos and info • Resources so you can invest with confidence
- 20. For more Information: http://twitter.com/fcdeals http://www.foreclosuredeals.com/wp/feed/ http://www.linkedin.com/company/foreclosure-deals http://www.facebook.com/ForeclosureDeals http://www.foreclosuredeals.com/