Transcript of "How does the Foreclosure Crisis can affect you?"
How does the Foreclosure Crisis can affect you? 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/
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