Docstoc

Causes and Consequences of the Foreclosure Crisis

Document Sample
Causes and Consequences of the Foreclosure Crisis Powered By Docstoc
					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 – 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
  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
       Government Response



• The Housing and
  Economic
  Recovery Act of
  2008
       Government Response



• The Homeowners
  Affordability and
  Stability Plan
            Foreclosure Help



• Talk directly with
  the lending
  institution
           Foreclosure Help



• Talk to a HUD
  approved foreclosure
  avoidance counselor
           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
Foreclosure Investment Opportunities

• Short Sales

• Negotiate with
  banks on
  behalf of
  distressed
  homeowners
Foreclosure Investment Opportunities


• Public Auctions

• Bid against other
  competitors for
  foreclosed
  properties
Foreclosure Investment Opportunities

• 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
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/

				
DOCUMENT INFO
Categories:
Stats:
views:11
posted:5/12/2011
language:English
pages:20
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.com