Foreclosure.com Founder, President and CEO, Brad Geisen addresses the growing foreclosure “crisis,” as well as the current and future condition of the national housing market. Mr. Geisen will shed light on the massive disparities among providers that track nationwide foreclosure figures.

1. The Truth Behind the Foreclosure Numbers
The Truth Behind
National Foreclosure
Numbers
With Brad Geisen

2. The Truth Behind the Foreclosure Numbers
Moderated by
Stephen Chip

3. The Truth Behind the Foreclosure Numbers
Brad Geisen
Foreclosure.com Founder, President and CEO

4. The Truth Behind the Foreclosure Numbers
Brad Geisen
Foreclosure.com Founder, President and CEO
• Successful real estate investor, broker,
developer and entrepreneur for 24+ years

5. The Truth Behind the Foreclosure Numbers
Today’s Agenda

6. The Truth Behind the Foreclosure Numbers
Today’s Agenda
• Explain data

7. The Truth Behind the Foreclosure Numbers
Today’s Agenda
• Explain data
• Foreclosure process

8. The Truth Behind the Foreclosure Numbers
Today’s Agenda
• Explain data
• Foreclosure process
• Foreclosure stats

9. The Truth Behind the Foreclosure Numbers
Today’s Agenda
• Explain data
• Foreclosure process
• Foreclosure stats
• What we see happening

10. The Truth Behind the Foreclosure Numbers
Today’s Agenda
• Explain data
• Foreclosure process
• Foreclosure stats
• What we see happening
• Credit Crisis or Credit Crunch?

11. The Truth Behind the Foreclosure Numbers
Data discrepancy

12. The Truth Behind the Foreclosure Numbers
Data discrepancy
• Properties counted multiple times

13. The Truth Behind the Foreclosure Numbers
Data discrepancy
• Properties counted multiple times
• Bad or expired data

14. The Truth Behind the Foreclosure Numbers
Data discrepancy
• Properties counted multiple times
• Bad or expired data
• Time period undefined

15. The Truth Behind the Foreclosure Numbers
Foreclosure Process

16. The Truth Behind the Foreclosure Numbers
Foreclosure Process
1. Preforeclosure
(Notice of default, Lis Pendens - Sheriff/Trustee sale.)

17. The Truth Behind the Foreclosure Numbers
Foreclosure Process
1. Preforeclosure
(Notice of default, Lis Pendens - Sheriff/Trustee sale.)
2. Foreclosure
(Foreclosed and owned by lender, REO, Bank owned)

18. The Truth Behind the Foreclosure Numbers
Foreclosure Stats

19. The Truth Behind the Foreclosure Numbers
Foreclosure Stats
Pre-foreclosures (Notice of default, Lis Pendens, Etc.)

20. The Truth Behind the Foreclosure Numbers
Foreclosure Stats
Pre-foreclosures (Notice of default, Lis Pendens, Etc.)
• New properties / monthly

21. The Truth Behind the Foreclosure Numbers
Foreclosure Stats
Pre-foreclosures (Notice of default, Lis Pendens, Etc.)
• New properties / monthly
• Total inventory / monthly

22. The Truth Behind the Foreclosure Numbers
Foreclosure Stats
Pre-foreclosures (Notice of default, Lis Pendens, Etc.)
• New properties / monthly
• Total inventory / monthly
Foreclosures (Foreclosed and owned by lender, REO)

23. The Truth Behind the Foreclosure Numbers
Foreclosure Stats
Pre-foreclosures (Notice of default, Lis Pendens, Etc.)
• New properties / monthly
• Total inventory / monthly
Foreclosures (Foreclosed and owned by lender, REO)
• New properties / monthly

24. The Truth Behind the Foreclosure Numbers
Foreclosure Stats
Pre-foreclosures (Notice of default, Lis Pendens, Etc.)
• New properties / monthly
• Total inventory / monthly
Foreclosures (Foreclosed and owned by lender, REO)
• New properties / monthly
• Total inventory / monthly

25. The Truth Behind the Foreclosure Numbers
Source: Foreclosure.com

26. The Truth Behind the Foreclosure Numbers
Source: Foreclosure.com

27. The Truth Behind the Foreclosure Numbers
Source: Foreclosure.com

28. The Truth Behind the Foreclosure Numbers
Source: Foreclosure.com

29. The Truth Behind the Foreclosure Numbers
Source: Foreclosure.com

30. The Truth Behind the Foreclosure Numbers
Source: Foreclosure.com

31. The Truth Behind the Foreclosure Numbers
Source: Foreclosure.com

32. The Truth Behind the Foreclosure Numbers
Source: Foreclosure.com

33. The Truth Behind the Foreclosure Numbers
Source: Foreclosure.com

34. The Truth Behind the Foreclosure Numbers
Source: Foreclosure.com

35. The Truth Behind the Foreclosure Numbers
MBA (Mortgage Bankers Association)
March 6, 2008

36. The Truth Behind the Foreclosure Numbers
MBA (Mortgage Bankers Association)
March 6, 2008
• Currently 2.04% of all loans are in foreclosure process
(Not every property in foreclosure goes through the entire process)

37. The Truth Behind the Foreclosure Numbers
MBA (Mortgage Bankers Association)
March 6, 2008
• Currently 2.04% of all loans are in foreclosure process
(Not every property in foreclosure goes through the entire process)
• Currently less than 2% of all loans will be foreclosed

38. The Truth Behind the Foreclosure Numbers
MBA (Mortgage Bankers Association)
March 6, 2008
• Currently 2.04% of all loans are in foreclosure process
(Not every property in foreclosure goes through the entire process)
• Currently less than 2% of all loans will be foreclosed
• Banks estimate a 2% default rate (Industry standard)

39. The Truth Behind the Foreclosure Numbers
MBA (Mortgage Bankers Association)
March 6, 2008
• Currently 2.04% of all loans are in foreclosure process
(Not every property in foreclosure goes through the entire process)
• Currently less than 2% of all loans will be foreclosed
• Banks estimate a 2% default rate (Industry standard)
• Banks use 5% default rate as a reserve

40. The Truth Behind the Foreclosure Numbers
MBA (Mortgage Bankers Association)
March 6, 2008
• Currently 2.04% of all loans are in foreclosure process
(Not every property in foreclosure goes through the entire process)
• Currently less than 2% of all loans will be foreclosed
• Banks estimate a 2% default rate (Industry standard)
• Banks use 5% default rate as a reserve
• In 2007 the default rate was less than 1%

41. The Truth Behind the Foreclosure Numbers
What we see happening

42. The Truth Behind the Foreclosure Numbers
What we see happening
•10 years of appreciation in 5 years

43. The Truth Behind the Foreclosure Numbers
What we see happening
•10 years of appreciation in 5 years
•TIME catches up to the VALUES

44. The Truth Behind the Foreclosure Numbers
What we see happening
•10 years of appreciation in 5 years
•TIME catches up to the VALUES
•CORRECTION

45. The Truth Behind the Foreclosure Numbers
Then vs. now

46. The Truth Behind the Foreclosure Numbers
Then vs. now
•What is the big difference from
today vs. savings and loan crisis
in the 80s?

47. The Truth Behind the Foreclosure Numbers
Prime rate chart
Source: Board of Governors of the Federal Reserve System

48. The Truth Behind the Foreclosure Numbers
Unemployment chart
Source: United States Department of Labor - www.biz.gov/lau

49. The Truth Behind the Foreclosure Numbers
GNP chart
Source: U.S. Department of Commerce: Bureau of Economic Analysis - www.bea.gov

50. The Truth Behind the Foreclosure Numbers
Subprime problems

51. The Truth Behind the Foreclosure Numbers
Subprime problems
• Foreign investment in sub-prime paper

52. The Truth Behind the Foreclosure Numbers
Subprime problems
• Foreign investment in sub-prime paper
• Banks had 10 years of profits

53. The Truth Behind the Foreclosure Numbers
Subprime problems
• Foreign investment in sub-prime paper
• Banks had 10 years of profits
• Term Security Lending Facility (TSLF)

54. The Truth Behind the Foreclosure Numbers
Subprime problems
• Foreign investment in sub-prime paper
• Banks had 10 years of profits
• Term Security Lending Facility (TSLF)
• Loss mitigation / Short sales / Loan workouts

55. The Truth Behind the Foreclosure Numbers
CREDIT CRISIS or
CREDIT CRUNCH?

56. The Truth Behind the Foreclosure Numbers
CREDIT CRISIS or
CREDIT CRUNCH?
• Buy today at yesterday’s prices

57. The Truth Behind the Foreclosure Numbers
CREDIT CRISIS or
CREDIT CRUNCH?
• Buy today at yesterday’s prices
• Money is cheap

58. The Truth Behind the Foreclosure Numbers
CREDIT CRISIS or
CREDIT CRUNCH?
• Buy today at yesterday’s prices
• Money is cheap
• Good economy

59. The Truth Behind the Foreclosure Numbers
CREDIT CRISIS or
CREDIT CRUNCH?
• Buy today at yesterday’s prices
• Money is cheap
• Good economy
• Elections are coming

60. The Truth Behind the Foreclosure Numbers
CREDIT CRUNCH

61. The Truth Behind the Foreclosure Numbers
THANK YOU!