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
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
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/