1. How does the Foreclosure Crisis
can affect you?
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
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
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/