Meet the California Homeowners Hit Hard by the Housing Crisis
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- Опубликовано: 26 сен 2024
- Desperate Households (2008): How Wall Street's mistakes are being paid for by homeowners.
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This year, millions of homes in the US will be repossessed. Wall Street was aware of the risks involved with sub-prime lending but chose to ignore them. No ethics, just money- here is a story of greed and recklessness
In California, the sub prime crisis has hit homeowners full on. Repossessions have become routine and the foreclosure rate is still accelerating. Neat façades and tidy gardens can 't prevent houses being sold for almost half of what they cost a year ago. Pressed for time and money, owners are torn out of their homes: "It' s like leaving your children" says Rob. He is hoping the bank will accept a quick sale and forgive the loss, but this is unlikely. Most are made to wait until they default on repayment, which wrecks their credit record. Former bankers reveal how low interest rates were meant to boost the economy. Banks looked for ways to make profit despite low rates and chased high-risk mortgages that would pay 8 or 9%, ignoring the consequences for borrowers if prices fell and interest rates rose again: "There's no perception of the guy in some tiny little house in Detroit or in Philadelphia or in Stockton who basically might be losing their home. " Now that the system has failed, banks are less ready to lend money and this impacts on the entire economy. Families lose their homes, businesses fail; Wall Street gambled and the world has to pay.
SBS Australia - Ref. 4044
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When I saw Mcdonald's workers buying 400k homes, I knew we were in trouble. You simply cannot loan massive amounts of money to the poor working class on a massive scale and expect it to work.
I lost my American Dream in 2009 first my job next my savings and finally our home we’re still recovering and trying to get back on our feet. The only advice I can tell anyone is to be careful save as much as possible and don’t buy anything unless you absolutely need to
are you still a poor?
@@juanshaftpatel7488 everybody is rich flipping NFTs.
War is good for nothing. Edwin Starr
Move to Mexico folks, if retired or can work online.
I have always had 6 months stock up of food. Water. And money tp pay rent etc. For 6 months. When ATM is down and banks are closed
Move to Mexico.
R. I. P. Everyone.
Greed is the reason for high prices.Happy I moved to Mexico in 2021 at 79..Washington D.C. is stealing zillions. Rents, utilities, gas etc. Get the heck out of the USA if retired or can work online
acajudi100 for my RUclips videos from age 70.75
I bought a house in Texas when I was 37 yrs old. I was offered a Adjustable Rate mortgage but even the common sense told me NO u want to b in a fixed rate so u will not get any surprises. I am now 54 and will finish paying off house in 2 yrs. u have to turn down risky adjustable rate mortgages
Doreen Hernandez so your house was wat 100k?
Doreen Hernandez RIGHT🙆♀️🙆♀️🙆♀️
Exactly, stop borrowin money you cannot afford to repay. Sometimes te borrowers are just as Greedy as te bankers
I am with you Doreen. When I bought my house in in 2004 my realtor (god bless him) patiently explained both an Adjustable Rate Mortgage (ARM) and a fixed rate mortgage. I thought about it for a few minutes and it was a no-brainer. It was no question that the fixed rate mortgage was best for me. Has may monthly payment gone up? Yes it has. 100.00 which I could easily afford. The result??? I have paid my mortgage on time every month except one since June 2004 and that has really helped my credit score. Be wary everyone and do not buy a bigger house than you can afford.
@@Sirphil-dj9dh Same here, 3.375% V.A. fixed.
This is why you don't buy the most expensive house you can. Regardless of how much you get qualified for, you need to buy a modest home. You should factor in the possibility of financial change when deciding how much you can actually afford. I bought a small home. My mortgage is less than $1000 a month. I could pay my mortgage on minimum wage if I had to. The problem is people trying to keep up with the Jones and wanting more than they can afford. I too fell for this when I was younger. Ended up filing bankruptcy, lost my home, cars, toys, etc. Now I pay cash for everything other than my home. Others need to do the same. You don't need the nicest SUV, toys, etc. I prefer financial freedom over ridiculous payments. If I can't afford it, I don't DESERVE it. Save for what you want!
Most of the people who Lost their homes were the people who Never should have "owned" the house to begin with. It also doesn't help that most men are balless and just buy the most Flashy Overly Expensive homes because they want their Wives to shut up and be happy for once instead of being miserable and complaining all day.
i remember the era around the year 2000, a friend applied for a loan and was approved for a house just like the ones here. she told me to apply and i did and was approved but i asked myself at the time, how can i be approved making 12 dollars a hour and paying half my check - 600 dollars in rent. i passed ... by 2008 she lost the house.
And devastated her credit score too, meaning it’ll be a long time, if ever before she owns another house.
Look at the size of those houses! Clearly living beyond their means! Fur coat and no knickers!
In Texas we say big hat, no cattle. 🤠
In this video? Those houses were common, average size homes
This is still above the heads of most Americans. Just look at the lack of views and comments.
Bochanable I was just thinking that, half the people commenting have no idea what happened here.
no,its just hard to give a shit when they keep voting for the same idiotic liberals that tax them out
I can sense that too however I can put my finger on the real causes and learnings beyond surface level: avoid adjustable rates, live in your means.
It's all about people living beyond their minds. Everyone wants huge , expensive homes yet are living paycheck to paycheck. And NEVER < EVER GET AN ADJUSTABLE RATE!!!
Sounding like a broken record now. How many times are you going to post this comment?
Leaving beyond their means. Unless you were making a pun, in which case it's not a bad one.
WTF???? only w*ite people are Greedy??? you are a racist moron
Freudian slip there; you meant "beyond their means!" Yeah, they're beyond / out of their MINDS, too!
Greeeeeeedd
We bought a house well below what the mortgage company said we qualified for. It’s not a giant, fancy McMansion, but it’s clean, safe and affordable on one income. The feeling of safety and security that comes with having an emergency fund, retirement savings and some mad money is worth so much more than pretending to be rich while you’re leveraged up to your eyeballs. I really wish financial literacy classes were mandatory in high schools.
I agree,I wish this was taught in school I graduated last year and it suck not knowing anything about stuff like this.
Cookie? 🍪 🥛
"We bought the house at 100% financed" -- There's the problem right there. There's always been plenty of lower priced houses in Stockton. They chose to buy the new expensive house that they really couldn't afford.
Exactly why they are being put out
People making money off of people suffering will never admit its imororal
It's 2018.
Housing crisis is now a homeless crisis.
@white : We will ALWAYS have homeless.
@white yes
Paul Colburn no
@@allgoo1990 the "pandemic" hasn't impacted housing, rather the disproportionate reaction to it in the form of economic restrictions has. Luckily the unwarranted response isn't consistent across geography, but in strict areas it's common sense that unemployment rates of 50% will impact the buying power and ability to secure a loan of the working class etc. In fact people are concerned about affording rent and food, let alone considering buying a home, at least among the socio economic groups I associate with in my specific area. It would be wise to be frugal and cautious for the foreseeable future, and learn cost cutting skills.
@@allgoo1990 the point was a flu isn't going to directly impact housing. People's poor decision making is affecting housing. No, I haven't heard of it, I'll look into it on a different site, thank you. Not necessary to have a condescending tone by the way, as not everyone is from California or happens to know every law passed in California. Good luck out there!
2020 in the house. Let's see where this goes
Some people don’t understand this. I think days of big homes are gone. I am so busy in the handyman trade with 1200 regular customers. I have 35 years on the job. I’ve been lucky but if anything I can teach I love teaching my handyman skills to homeowners who are interested in saving money working on their own house.
That's awesome that although you know it may result in less calls for you, you are willing to teach your clients!💜
@@MamaHarperr I’m currently retired from two occupations so my handyman work is beer money
@@dormandavis2767 🤣🤣 right on!🍺
^^ this is Canada right now. We didn't learn anything from 2008 USA.
that sucks man, i always felt canada was too trusting/accepting for their own good
Daniel Tynan says:
"^^ this is Canada right now. We didn't learn anything from 2008 USA."
==
US didn't learn anything from Argentina 2001.
Argentina didn't learn anything from Japan 1992.
Spain, Australia, China, everywhere didn't learn anything from other countries mentioned above.
It's reasonable to think they are more like trying to duplicate it.
Yes, they learned it good.
Daniel Tynan Except the sub-prime mortgages.
Theresa F says:
"Except the sub-prime mortgages."
==
So you thought.
It's still alive and well.
wolfstreet.com/2016/06/21/ny-fed-warns-government-insured-subprime-mortgages/
More,
www.google.com/search?q=subprime+mortgages+still+alive+2016%3F&ie=utf-8&oe=utf-8
I'm from Thunder Bay, we just had our ridiculous peak in 2016. I wasn't able to sell my house until 2017. Held on to an apartment from ten years ago. That was a very smart move, my rent is way less than what it takes to run an average home here. Going to get an RV for the summer, there's lots of camp site around the city. The market here is going to bottom out in eight to ten years. So many people are going to lose their shirts. What a waste, greed did this, and lack of future planning by too many people.
California not such a good place property is a rip-off and overpriced everywhere
Ripping off folks is now the normal...
Wanting what you cannot afford is another normal.
all of it is called
COVETOUSNESS.
Good Documentary Telling The Truth,
That same home that went from 450 to 225 is now worth well over 1.2MM. If only they could have kept it
Dont bite more than you can chew and you will ok long term.
Nathaniel Carreon false. I didn't bite more than I could chew, got laid off and rent went up. assed out.
Nathaniel Carreon that’s right
SuperPhdiva SRB tent.... there’s the problem
Back in 2002 when I went to buy my house in Florida Bank of America pushed and pushed for me to get a balloon mortgage. my mom ,long gone , had warned me against ever doing that so I did not do it. I also got away from Bank of America completely and signed up with the credit union which I am with to this day. You wouldn't believe how many homes in my area went up for auction and all the circus in 2008 2009 when people were leaving their homes in the middle of the night with whatever they could carry and simply disappeared...Within weeks, here came auctioneers right on the sidewalks in front of the homes !! Since we have a strong HOA, they stepped in with the lawyers and stopped that circus pretty fast.
If you had an ARM, then you couldn't afford the house to begin with. You got suckered into the "finance everything" era because of lack of discipline. Pure insanity.
John Gray
Sorry, I was JUST refinancing for a divorce, I kept the house when my ex couldn't afford it, when I had started my business a year earlier, it wasn't my fault. I could have afforded MY ten year home if they didn't break the mortgage market, and sell my loan so many times illegally clouding my title, making it impossible to sell unless it forclosed.
John Gray My ex got $37,500. Half the equity.
He got everything. I took a loss of the home I had built onto, to increase the value, then paid off the 20k loan after the remodel. Then the market crashed. I just lost it now, dec, 2017.
Due to them clouding the title and Ocwen illegally foreclosed. They tried to forclose evey month.
Despite it all most people are still just as stupid as before. They have no idea what the following is
CDO
CREDIT DEFAULT SWAP
ABX
Etc....
Live beyond their means
Don't save for an emergency
Don't have savings to cover them for 6 months
Lesson learned: if it cost way more than your income, don't buy it. What happened to the homeowners in the video shows that if you have to borrow money to pay for it, then you don't own it. The lenders own it, and they can repossess it at anytime. .
@Nickey Price right on!
3:48 Wow! 100% financed on a $360,000 mortgage!
insane. You know damn well they could not afford that, c'mon.
It was definitely no education on credit and how loans work. These people should have learned something before jumping into this with their children
based on One income with overtime! SMH...
@david stewart The American dream and the banks encourage them and rely on the fact that they are naive or uninformed.
Thats was my first impression.
They didnt put money down so nothing lost, but dont buy houses you cant afford. They should hae spent half that
Leon Henry if you have to work overtime to afford it, you can’t afford it.
@@janiecel Exactly, Well said.
It is just the normal cycle of society and its powerful governments. It starts good and it always ends bad. Greed and corruption take hold of it all. In the end you have nothing.
Society can tolerate some corruption, gambling for instance, and it gives the unemployable an income (men who fall through cracks or those with criminal backgrounds). This Ponzi scheme, one of many, has become a heist of biblical proportion.
What you expect? That’s life. They’re highs and lows.
So true
True but Greed also on te part of t*e borrowers, w*o are also only t*inkin of a fat profit, on te re-sale value
Um let's look at track records for a minute. I don't see an entire Nothern Hemisphere folding in my lifetime, even where things are "bad" like where I am from, it's still a comfortable living. With a hell of a lot of stress but comfortable
This is why I am in no rush to buy a house. My apartment is just right and at least of the rent goes up I can leave but I have been here for awhile so I doubt that. I see getting a mortgage as a headache. It was a time I was excited about it in my 20s and when I was married but now I’m single and only have myself to depend on. For now apartment living is for me. I love my amenities and not having to worry about fixing a dam roof or sidewalk. Maybe in my 40s 🤷🏽♀️
Happening again in 2022
You should have bought in 2021😢
@@reactionreaper2501 I don’t live my life like that. If it was meant to be it would be and I was not in a position back then either so it’s ok. I’m grateful for what I have
Its happening again. If your mortgage is 80 percent of your income. You shouldn't buy a house.
banksters are gangsters it's everywhere the same!!!!!!!!!!
X. Sandman Who owns the Central Banking System? The Rothschild family, of course. Bunch of deviants!
utility companies, insurance, and car rentals are also gangsters. if you dont know how to earn lots quickly and how to legally stay out of trouble and debt, youre a slave to american society.
Worked as review appraiser FNMA Dallas 2004-2009. All Fannie Mae insiders knew paper was poor. We did not "want to upset our Asian investors". Quote me.
Jawohl! Fannie and Freddie were humble compared to the Bear Stearns etc. bubble. They should have let them go down and hung out to dry. Amerikans are always obsessed with communism but taxpayer Dollars as bailouts - what is that then? Richard Fuld had the nerve to say at a Hearing "when we did well, the bank did well ..". So Fuldi, let´s assume you suffer from Cancer. I sell you 10 Cancer pills. Now what you don´t know is that only 1 is suitable medicine for you, the rest is 4 Aspirins, 3 tic tacs and 2 air filled nothings. You buy. I then turn around and bet on your death and while I am at it, the death on your entire Family. The quicker they die, the richer I get along with massive fees. When you check with a Rating agency Standard and Arschloch, not knowing I paid them for tripple A Ratings, you feel safe. It is fine that People make Money but These Arschlöcher deserve to rot in hell. People over there still live in tents, commited suicide etc. etc. just so some arse gets his Bonus. Deutsche Bank wanted in on These "financial innovations" (just the Expression makes me vomit) and they are in Trouble over this. Someone call Hank Paulsen in Chicago and see how he is doing!!
I wish to own a home, but it seems like walking over fire, running a marathon, swimming to Catalina and back.
Not with the property taxes, homeowners insurance that you have to have. Without it, the fire department will let your house burn. Then there's all of the upkeep. Houses fall apart real fast without regular maintenance.
Our first new online foreclosure defense course will launch Monday, Aug. 3rd.
If you have rental properties you need to check this out!
winincourtnow.teachable.com/
#foreclosuredefense #stopforeclosure
no, just flat out overpriced homes.
There are a whole lot of people to blame for the 2008 crisis, but the buyers were definitely one of them. To have very limited income and then sign up to buy a 450K+ house and have no idea how you are going to pay for it, is pretty stupid
I agree, the banks were greedy and the buyers were ignorant on what they were getting them selves into. We could even argue that they were greedy to the point that they didn't care if they were ever going to pay off the home as long as they could get into an overpriced home because the initial payments were low.
9:34 This guy that's being interviewed sure does have an interesting collection of books in the back ground. Hit To Kill, Powder Burn, 2 copies of Hatred, Japan Rising and The Wonga Coup.... very very interesting....
just noticed he has "The Failures of Interrogation" as well, quite a "broad" selection.
I have heard that many bankers/mortgage brokers knew what they were doing when engaging in what was called "predatory lending." They granted loans to customers they knew couldn't afford them, with the idea that the bank could eventually repossess the house and sell it at a profit. The expression was "lend to own," in which case the one owning in the end would be the bank.
So sad:(
prices are pretty much back where they were pre 2008 in California. If you didn't lose your job, all you had to do is just keep living in it and making payments. It was bullshit that these people lost money on paper and were able to walk away to buy later when prices went down. It should have been like anyone who invests in the stock market, if prices go down, you lose. Taxpayers ended up holding the bag. People who did this ( ones who did not lose their jobs) are the biggest thieves, bigger than the bankers. I know people who kept refinancing to buy cars, additional houses etc. They didn't like the fact that on paper they owned more than the house was worth at the time so they just stopped making payments, lived a year or so in the house for free, then walked away to buy at the low prices.. Looks like nothing changed since then, so I wouldn't be surprised if 2008 happens again, actually I expect it.
How did they do that with ruined credit?
I live in socal and many of the people that lost their homes during this time were not able to get back in when prices were actually low. It's all very specific based on location, but in my area many of the home prices rebounded by 2015. So it's not as if they were able to pickup deals during 2013 and 2014. And now in 2018 prices are really high.
I've saw a lot of ppl do exactly what you said. They kept making payments then bought a way cheaper house and walked away from original mortgage. I also saw ppl stage their home like it was destroyed then a family member would buy as short sale at crazy low price. The real estate agents are corrupt & helped them with the scam. I had real estate agents offer me short sales if I paid them cash on top of real estate fee. In 2010 One of my neighbors bought his house back for 90k after originally buying it for 405k.. he recently sold it for 389k and retired to New Mexico.. good times
209Control
How do you walk away from an original mortgage? Do you not have to make up the shortfall if you sell the house for less than the mortgage?
theuglykwan the first 2 years you did of housing crisis you did but then Obama passed a law that you didn't have to pay. Originally the difference between what you owed and what house sold for was considered income and you were taxed on it. The banks then started paying people when they moved out so they wouldn't destroy the house. You have to remember the banks were getting paid 2x since tax payers bailed them out. My dad bought a short sale house that the guy owed 400k on for 103k.. the bank paid him 8k to move out! It was all a scam.
These days, as affordability becomes increasingly impossible, middle and upper middle class houses are being subdivided into rental units. Flophouses, to be more precise - units with 3+ unrelated tenants. Rent on apartments is through the roof, so this is the only option, for many, many people.
In the Soviet Union it was called ‘communal apartments’ with several unrelated room mates sharing one kitchen
I don’t think I want to buy a house. Maybe one day but right now I like renting. I signed a 2 year lease so that means my rent will not change guaranteed for 2 years. I also live in a good area where rent is pretty fare. A house just seems like a burden not a dream anymore
2022 REPLAY... as it's been said, those who don't learn from history are doomed to repeat it.
i might be 5 year's old but this is happening again 〽
It happens over and over...
Buy when rates are low and you can barely make payments on the ARM.
Rates go up. You are screwed.
Don't do ARM. If you have to do ARM to buy the house you can't afford it.
American nightmare u mean.
Stockton has a high crime rate. I'm surprised they were able to even sell those homes prior to the crash.
These poor people should have taken their 50,000. Got an apartment and then walked away. It is also called greed. Start out with what you can afford if one if you looses their job! Banks pushed this on everyone- big houses for the cheap.
Another contributing factor is lack of financial literacy,~~ the customer with a high risk profile, who assumed cheap loans.Their self confidence, total trust in the banking system, and shortsightedness of the singke pursuit to own a home by assuming mortgages , also contributed to their financial ruin.
Absolutely! Certain communities were targeted because they just aren't typically financially saavy....not a good excuse, but true.
I bought a home in Colorado 12 yr.s ago, the lender said I could afford more house than I needed. I was set to spend $160,000 for a house. This gal said to me, You can buy so much more house, you qualify for $450,000--My response was who is going to pay for It??? I am only me and my wife. It was crazy sub prime stupidity. I did not bite and bought within my budget. My house payment is manageable, lower than rent in the area. Lesson is do not buy more house, cars or whatever you can't afford!!! Especially on credit cards, they are not your friends when the time comes to pay it back, just give us your money on interest. DUH!!!!
I am hoping the money lenders are suffering as much as their borrowers.
Start small on the first home, build equity, move up. Not every house is lucky enough to get me. It’s a shame when they’re left to rot. Large homes are for large incomes unless you can fix them up.
Those people were poor before the crisis - then the banks gave them the possibility to own a house they can't afford - then when they missed the first payments the house went back to the banks. Those people built nothing and when the crisis hit they lost nothing. It is simple and it is fair.
Yup.
Very very very true they took the bait they got it.
Oh wow your a genius....this govt needs know it all's like you to fix everything! These people had their hard earned money stolen by banks sir! Lemme guess your a Trump supporter.
This kind of business is not for me lying to people and profiting just to give them a loan. Then after they default turn around and sell their homes for less than the purchase price and profit again. I got a conscience that will hunt me at night and rid me of my sleep and peace. Thank you God.
Very interesting - one of the statements about the subprime loans - some of lenders couldn't manage the rising interest rates - and that potentially some of the lenders we not informed (when they took out the loan) that at some point rates would rise sharply. If this is true - this is criminal.
You'd be surprised how well the money piles up when you don't buy things you can"t afford much less need.
Lessons learned don’t buy an ARM.
I had bought 2 houses in my life time and never had to take out a mortgage.Nothing was ever given to me ! I just went to work each day and saved up for a house! ITS REALLY THAT SIMPLE !
In my city it would take you 23 years to save just the down payment on a house.
I would NEVER take out a mortgage! Why give them any interest monies! I never paid a cent in interest! ,you can do it too !
Because if your equity raises by more than the interest on your loan (which typically happens outside of housing bubbles) then that's profit for you. I can't do it in the city I live in - not possible to buy cash on my salary.
ok, thanks for the info ,I didn't know that
White Greed created the housing crisis,and Whites must suffer for it. Reap what your Greed has Sown. Everyone should have the right to an affordable home,food,clothing,and education. Your super inflated homes are now too inflated for your children,and yourselves.
Why does that silly woman - who's forced to leave her house - keep laughing?
People react like that because of stress. Not because of IQ. She's in a state of shock.
It's better than being in utter despair. You've lost your home, don't lose your sanity too.
Laughing through the pain... a coping mechanism 🤷🏾♀️
@@theuglykwan i think u already lost ur sanity if u buy a house u cant afford.
@@roscoeelcocko1863 I think that is the norm for most people depending on what you mean by afford. Most people do not put cash down and buy their house outright. They need borrowing, likely a mortgage. In that sense they cannot afford it at that moment. I agree with you if people buy a super pricey home where they cannot afford the payments if interest rates go up or don't have a cushion if they lose their job.
Realtors are to blame. Speculating should be against the law and realtors should have to have degrees with ethics laws. They should not be able to sell homes to investors instead of homebuyers and should not be able to set rents or home values.
$230,000 for a nice large house like that? A bunch of Aussies are watching this jealous. lol
Offer 175K cash
Stockton is a shithole. A few hours west this house will sell just under a million.
Naw offer 25K
Location, location, location.
230 thousand AMERICAN dollars.
6:56...do you think these loans,are unethical....watch the guy squirm...you know you screwed people pal!
This is old 2008. Stockton had a boom in prices for 2016
Well... Time to leave these shores... I am selling my home and most if not all of my possessions...and LEAVING... Costa Rica, Spain or Jamaica... See ya
You'll just be bringing foreign money to those countries and overheating their market. Basically spreading the crisis to new places.
SquillyMon true I'm from San Diego and my grandparents recently passed out and he leave several houses in Tijuana, Mexico, my granfather leave me a house of 3 bedr. for 2 cars and a big yard. guess who is moving there when finish college me xD (the district where the house is its perfect 3 minutes away by foot from the international border, a nice neighborhood.) I already filled most of the paper work and talked with the lawyers.....I dont have to worry i'm really lucky I dont have to worry about student loans because I dont have I step out 3 years into working 3 works (one full time and 2 part times) because I didnt want to tranfer to college and be working or asking for loan to survive....while studying I need to think before doing sh*t!
Vi Ma lucky son of a bitch
I don't feel sorry for these people these people got themselves into this knowing what's going to happen in 5 years when the rate becomes a floating rate
100% financing with an ARM. And there you go.
but they had very little choice. the cost of housing back then was increasing at an insane rate. people here were critical about them not saving enough but with the real estate price getting so out of control, how in the world can you save enough? there was a lot of fear that if you don't buy the house then, you will never be able to afford one. it's just sad that something as basic as a home have to be so out of reach for majority of the population.
Jesus those houses are enormous! Good god we have lost our way. No wonder it was financially unsustainable. We used to be smart and live below our means. I don’t feel sorry for any of them. They can barely form a complete sentence. 100 percent financing? Sheer Stupidity.
Let's be honest. There isn't a regular home that is really worth more than 100k. Everything is blown out of proportion. It's not wages. It's the prices. My father bought his first house in 1973 for 19000. His salary at that time was 17000. A little more than a year's salary for him. Where are those homes now? Average american earn around 50k. Find a good house in an area with decent jobs for 60k
Exactly why I don't want to work for bank (even though graduated in Finance). Studying Finance and Banking makes me realise how they are cruel criminal. I scared to commit in loans with bank because I don't want to be trapped by their lies and rules for many years. I rather rent apartment or rely on public transport system to go around.
If you have a big mortgage...now's the Time to sell and get out from under it before the bubble breaks again.
$5000 a month ! Wtf !!
I bought a house in Indiana in 2001 after my divorce sold it and moved back to Illinois in 2003 I took a 30 year mortgage at the time with 20% down paid that house off in 14 years I bought what I felt I could afford not what the bank thought I could afford. Thankfully I am more of a saver than a Spender I don't need more stuff I quit my full-time job and I'm currently living on just Social Security of 1069 a month and I still put 200 a month into savings.
My friend just told me today her daughter sold her house and is purchasing a more expensive home because of medical debt didn't put the loan in her name it is in her husband and grandmother's name what really got me is that the real estate taxes will be $5,047 a year her daughter works part-time at a bank and is pregnant with her third child so will most likely be quitting her job. I can't believe the grandmother is doing this her house is paid for but she is putting her home in jeopardy by doing this. My kids know that I would not put my home in jeopardy for them. When the mother told me this she just shook her head .
The problem is most people live beyond their means. When buying a high ticket item u must take in to consideration that things happen. U become unemployed, have accident or become ill. There has to a plan B. Banks and investors are working in your best interest. Therefore, I have to protect yourselves. Do your research.
The guy said, buy now before the market changes. There is nothing on the horizon that suggests the market will ever change in California.
thats why laziness doesnt pay. build your own house with your own hands and muscle plain and simple.
Sabastian Mclaurin it's simple til the city gets involved.
exactly
U can't just up and go build a home anywhere or any where you want. Material cost is a factor but labor cost is large. Yes u could save a chunk of money by using your own labor but u need various skills also. Easier said than done of course. JUST SAYING. SUH!😈
I ain't feeling sorry for them .They clearly are living way beyond what they can .
As with cars the same applies to home buying. Never buy either one according to monthly payments. Always make a decision based on final price.
Buy way below your means, get a fixed mortgage of 25 or 30 years. Don't buy expensive cars. Stay in the house and pay it off don't flip your housing several times. Just don't. These houses they are showing were sold at one time for $450,000 - that's insane. Who are you Clark Gable or something?
What a DEAL! Only $230K for that cardboard box -- originally "worth" $450K? In Stockton, armpit USA? Oh gawd, hold me up or I'll fall over laughing. I'll give ya $55K tops.
Brian Ellefson u probably make 8$ an hour at walmart
2009 was the best time to buy. What an opportunity! Bought my house for $35K back then - now back up to $160K. LOL!
Keyword: Stockton, CA
A crime honeypot.
Aka shithole! That place is awful.
My credit card was swiped for one grand illegally the first day I stopped in Stockton, CA
Welll the builders and the salesmen thank you. Especially the sellers who had a clue what it costs to build without Government regulations.
AND now it's happening again!
My ex bought a large house like these in Escalon Ca. hign vaulted ceiling's started to crack, expensive to heat during the winter months.
Where's the video about the housing crisis in Connecticut? It was called the Savings and Loan Scandal. Dodd theCT Senator and Barney Franks were the banking committee when CT families were swept out of their homes by the prime rate increase.
no P.M.I. ( private mortgage insurance, which protects the Bank's loan not the borrower ) next to nothing has ever been said about since this crime started
If a house occupier leaves the house and the outstanding debt and not be pursued for it if they come on better times? In Ireland the outstanding debt stays with the debtor for life. It does not extinguish with the foreclosure sale of the distressed property. This condemns many people to a life of homelessness or perpetual dependence on the state for housing needs. If they are lucky enough to get another job and make some money again all of the debt must be paid off before they can start to get into solvency again. Some never achieve this. New laws are being enacted in Ireland to make insolvency and debt write-off more streamlined than it has been in the past. New lending criteria means that many banks will not lend to people whose employment has been affected by the recent COVID 19 outbreak. People in receipt of wage subsidies or even a short time on unemployment payments due solely to the virus lockdowns are now being refused loans because of the perceived risks involved. Irish banks have gone from being liberal and free with loan approvals to being very strict on them, locking many people out of the housing market.
2008 was an opportunity to buy, just like when the stock market drops 30 or 40%. In my SF neighborhood prices doubled between 2010 and 2017.
Nah cmon now, no matter how much money that guy was making a 5k payment for a house is insane. Like cmon bro
Also the other family, she said her brothers and her mom were paying for homes. Like why? Why does your family need so many homes? Focus on one home first then the next one. Like tf
yeah these people are idiots. That means that even with sub-prime loan payments they were probably paying over 3k am month. Yes the banks did take advantage of a booming housing market and gave out bad loans but just common sense and basic logic should have told them they can't afford that home. You can't assume you will always make the same amount of money specially since the lady clearly said they could afford the payment because the husband was working overtime. And that was to make only the low junk loan payment.
unfortunately people think that the sun shines everyday,nothing is guaranteed in life.
One problem the money is fake!!!!!
My grandfather always told me to be on a cash basis. Not such good advice today but one must anticipate any sort of emergency. I bought an 800 sq ft house in Berkeley in the '90s for $99K. The home today is more than double that. I spent a lot of money renovating it and I made a nice profit when I sold it. Recently I made $250K selling another home. Because I'm elderly now I look forward to putting my favorite people in my will. I'm in a rental now that needs a lot of work but I just might let the next tenants deal with it.
This films quite historic. 2018 now and things aren't much different.
why would you do an ARM loan on a 360k loan?
100 % financing is never a good idea. I feel so sorry for this family.
Overpriced houses,non- qualify buyers.people paying5,000dlls mortgages,city taxes for this house over8,000 x year. 1 bedroom apartments renting for 2,500 dlls x month,people having to work 3 jobs just to get by.the question is?why are they still doing in California?
2008 a big problem was people who were working class were being given predatory loans to buy expensive houses that they obviously couldn't afford, especially in a place like california that is horrible, california in itself is fucking expensive idk why anyone would wanna live there, buy a house in cash outright and live mortgage free with a home that you know you can afford.
Its stupid that people are buying houses with no back up plan and no savings!
It’s the same in London. £300 PCM can get you a spacious flat (apartment, if you’re American) in Edinburgh, Scotland, whereas for the same price in London, you can get a small shared twin-room in Putney. It just goes to show how England has a massive housing crisis compared to the rest of the U.K. (Scotland, the Welsh Principality, and the Northern Irish province).
@Zachariah, all nations that mimic corrupt Amerikkkan ways of culture and business,will have the same social and economic issues as Amerikkka. North Korea has no homelessness. That is the only good I see from that country. You can learn from your enemies. Even in bad people,you can find at least 1 good thing.
These homes look like exact design of homes in Carona Ca... The homes here are outrageous ... no one can afford to purchase these homes.
Its easy
You cant aford..!???
Then.you dont.buy...!!!!!
Property tax will get you. You never own your home.
Give it about two or three years if that long the country as we know it today will be far from where its is today. People wake up
Check again. Prices are now exorbitant.