Causes and Consequences of the Foreclosure Crisis - PowerPoint PPT Presentation

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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 – PowerPoint PPT presentation

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Title: 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.foreclosure
deals.com/wp/feed/ http//www.linkedin.com/compan
y/foreclosure-deals http//www.facebook.com/Forec
losureDeals
http//www.foreclosuredeals.com/
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