Causes and Consequences of the Foreclosure Crisis

Causes and Consequences of the Foreclosure Crisis:

Causes and Consequences of the Foreclosure Crisis A look at the effects of the 2007 collapse of the banking and housing industries.

Housing or Real Estate Bubble – Definition :

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 Housing Bubbles – How They Form

Reasons For The 2007 Burst and Recession :

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 :

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 :

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

Government Response :

Government Response The Homeowners Affordability and Stability Plan

Foreclosure Help :

Foreclosure Help Talk directly with the lending institution

Foreclosure Help :

Talk to a HUD approved foreclosure avoidance counselor Foreclosure Help

Foreclosure Help :

Foreclosure Help Seek out state and local foreclosure assistance resources

Foreclosure Help :

Foreclosure Help Contact HOPE NOW which is an alliance of HUD affiliated Intermediaries

Foreclosure Help :

Foreclosure Help Contact The Homeownership Preservation Foundation which is also affiliated with HUD and provides foreclosure counseling and help

Foreclosures As An Investment :

Foreclosures As An Investment Low-cost real estate foreclosures abound Millions of foreclosed properties sit with a flooded banking industry

Foreclosures As An Investment :

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

Foreclosure Investment Opportunities :

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

Foreclosure Investment Opportunities:

Browse listings, photos and info Resources so you can invest with confidence Foreclosure Investment Opportunities

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