Key TermsFinancial/Housing Crisis

Debt

• When you owe more money than you have.

Foreclosure

• When the bank takes your house because you have stopped paying your mortgage.

Credit

• the ability of a customer to get/obtain goods or services before payment, based on the trust that payment will be made in the future

Bubble

• When the value of something is overvalued

Credit Rating

• The rating that tells the bank how likely you are to repay a loan.

Mortage

• A complex loan for a house.

Real Estate

• Property one owns

Asset

• Something one OWNS that is worth money.

2007/2008

• Years that mark the beginning of the financial crisis (Housing market crash)

Overspeculating

• “over predicting” the value of something.