The real estate sector can be very unpredictable and susceptible to a downturn in times of economic crisis. Whenever the economy suffers, the number of stressed assets can become a huge problem for housing finance companies. The bad debt and stressed assets result in a liquidity crunch and impact the banks that are lenders to both developers and property buyers. Timely risk analysis of these accounts can help lenders forecast the number and value of accounts that are at risk of developing into a Bad Debt in near future and eventually help them mitigate the losses.
To view the codes, click on Jupyter notebook saved above.