Fannie Mae is Selling Thousands of Non Performing Mortgages - Don't Tell Anyone!
HTML-код
- Опубликовано: 1 июн 2024
- Todd Sachs is a Maryland Real Estate Broker and not a Lender, CPA, Attorney, or Financial Advisor.
Any information provided in this and any of Sachs Realty's videos and/or descriptions are for entertainment purposes only and not to be construed as broker representation, legal, financial or tax advice. All content written, spoken or implied is for informational purposes and deem to be accurate, but not guaranteed. It is your sole responsibility to verify any and all information for accuracy and correctness.
Todd Sachs or Sachs Realty is not representing you unless you have a written representation agreement. This is not an advertisement for a property for sale, and if you're currently represented by another Real Estate Brokerage, this is not an attempt to solicit your representation.
Sachs Realty is EVERYTHING REAL ESTATE!
Looking to buy or sell? We efficiently assist buyers, sellers, landlords and tenants in Maryland with both residential and commercial real estate services.
NOT IN MARYLAND? We offer nationwide assistance to buyers and sellers through our PREFERRED BROKER REFERRAL of great real estate professionals like us!
If you're in need of residential or commercial assistance, you can always expect timely, reliable and top-notch service from Sachs Realty or any referral agent we recommend.
What's your real estate need? We want to hear from you! Email Todd Sachs directly at ts@sachsrealty.com with your inquiries.
Main Office: Sachs Realty 443-318-4514
Maryland Broker License Number 607720
Equal Housing Opportunity
![Eminem - Houdini [Official Music Video]](http://i.ytimg.com/vi/22tVWwmTie8/mqdefault.jpg)
Early in my career I had a HUD contract in S Broward County. When an FHA went into foreclosure I was called to appraise and hire contractors to make repairs before the sale. I saw TONS of fraud. The same “low income” people buying these homes with no down, low interest and sometimes other grants or gifts. They would buy these homes, rent them out and never make a payment, all while they were taking rent. The homes would go into foreclosure. I noticed many of the homes were held by similarly named people. I reported it to HUD. Linda E. At HUD was so angry that I reported fraud. She said “Everybody has the right to the American Dream”, (most of the “owners” were foreigners) and threatened my job. It took me a bit to realize she was probably a part of the scam.
Ok, I've been wondering since 2019 who is even buying these houses and how they're pricing people out of the market. I have noticed a lot of Chinese names which is wierd because in sacramento, we have lots of russian/Ukrainian/American (lots of veterans here too from the base), so like what's going on? But I hope this gets highlighted soon. We are all being taken advantage of!
@@wepid3426 I don’t know about your particular area, but when I was working the contract there was a lot of ID Fraud going on, especially with new immigrants.
@@wepid3426 Lots of ID fraud.
@@wepid3426 ID and SS# fraud
HUD fraud is rampant across the country. I refused to sell HUD homes.
Government interferes in money supply, interest rates, capital markets, housing loans, tax brackets, payment and rent moratoriums.... and people still blame private enterprise!
So a government sponsored entity loses money by discriminating against the little guy who isnt even allowed to bid.
Does this make any sense? What is going on.
In commercial defaults, a company can actually bid on their own bank sale. Wouldn't it be great if we could do that too? "yes, I'll take my own house for half off please, thanks!" 🤣
I try to be Fannie's friend. She said she didn't want no scrub.
@@SachsRealty this is the topic of your next video. Then I'll subscribe
Money isn't their end game, control is ,remember they can create money out if thin air
These foreclosures are going to the hedge funds then listed on the MLS as great starters/investor "deals" with tenants in the unit (lease up soon! buy now!). No real estate sign outside, you'd never know it was For Sale. Lots of shady business going on right now.
Cause those investors have been giving the banks *benefits* and since it's the banks properties, they can give to who they want. It's not fair, but that's how the world works.. rich get richer, poor will usually stay poor.
It's called a pocket listing. Befriend a real estate broker. 🤑
I believe that “ Pre -Listed” ..”Sales”…. Are illegal. As this make properties available only “select” customers ... @@lizardspiral
This is my third week in a row appraising at least 1 foreclosure property. I did a search and my area is flooded with pre foreclosure properties and auction properties. Everything is fine though…..
What area?
@@k.scottphillips8933Central CA
Right , what market is flooded with preforeclosures?🤔🤔
@@k.scottphillips8933 Central CA.
What is the difference between pre-foreclosed and auction properties?
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless." - Thomas Jefferson
I've been looking to buy a house. But I've been looking at funding it all wrong. Looks like the new way to buy is get the highest priced house you can get a mortgage on. Pay 3 percent down. Then don't pay your mortgage and wait till you qualify for some government program to kick in. How long do you think you can stay in the house without making any payments?
Haha I think you’re on to something here…
Don’t forget to spend 40-55 percent of your income towards the mortgage payment in order for you to be able to qualify.
Again...
This is the ticket
Like in 2002-09, all centered around govt giving out afforable loans for social purposes to most people without the capacity to make the payments over an extended economy. Most of the defaults in 2009-13 wiped out the savings and credit ratings of the lower to middle income population, which were nearing retirement years. Self created by govt policy
The govt owns FNMA and the govt is subsidizing these repayment plans. In 2010 the govt forced FNMA to sell foreclosed properties in bulk to investors in order to get a quick clean up, and billed the taxpayers with the losses. Nothing different this time, except selling sooner to get 80-90% of value, versus 30-40% after the foreclosure. The modification plans are up to 40 year terms, and have negative equity and below market rates, which will never be paid back unless the current housing market goes up 30%+ from here, not likely.
I would imagine China was the big purchaser of many properties...
Todd, your comments on quality of homes is sub par as is materials and the labor in today’s homes.
I’ve witnessed this and been voicing this opinion for nearly two decades.
A home built today would have no way been acceptable by any trades person, builder, lender or architect 30 plus years ago.
The box stores, HGTV and television has ruined the home industry by DIY culture. Opening the door to unacceptable, poor standards in craftsmanship assuring homes built today will not stand the test of time or the life of a mortgage.
loss mitigation dept underwriter here ! Todd, you are once again spot on !
Which company do you work for?
You say it’s not sustainable and I totally agree but I don’t think they’ll let it crash. They’ll just normalize the 40 or 50 year mortgage. And we all know that will do to prices.
We reward failure in this country
We reward corruption in this country
And we reward stupidity
Exactly, Japan has long had 100 year mortgages. Great observation because that’s exactly where we are going.
You hid my comment, RUclips
Auto loans are nearly as bad, I saw my 1st ad for a 9 year auto loan the other day. They way it's headed, but your kid a truck at age 5 so they can have it paid off by retirement age.
@@laser31415No way I finance a car for more than 4 years.
Again? I remember when Fannie got bailed out thanks to corrupt politicians like Barney Frank. His lover worked at Fannie Mae at the time of the bailouts.
The reason why Fannie exist is to inflate the housing market so you pay more tax. Their biggest are supporters all the Realtor , State/Local govt. Because most buyers dont have 20% down so Fannie will issue those non-conventional loan. So the housing market will not be so inflated if borrow needs 20% down, and thus why housing is so expensive for new buyers. Govt creates the housing speculation so it attract sinvestors .
Serious question. If most sellers use realtors, how will these prices ever come down? I think it's been the realtors propping up the market, more than anything. They don't want a low commission, or low price sales.
Sorry but I feel like it should be illegal to buy a house unless it's for you or your family. Companies shouldn't be allowed to buy homes just to rent them
Another guy I watch said he reached out to his realtor to buy this smoking deal on an abnb(he is super into abnb) as the house was originally listed for 1.2m and now is down to 650k. His friend told him the area no longer allows abnb so he passed
Sounds like Palm Springs
Florida man sells abnb?
@@RayQ101 born and raised there. I can't believe how much people were spending on houses in a desert that is almost unliveable 9 months out of the year.
I have a Childhood friend a Multi,Multimillionaire, bought Blocks of 100 homes, at a time.
BANK OWNED during 08,09
for penny's on the dollar.
That's just how it is.
FHA just announced more forbearance and deferrals and reductions in payments today!
Yeah, you'll be seeing these through November.
They don't want to foreclose. Who they sell them to will gladly do it.
By the time the foreclosed upon home is ready for sale, they will be buying from the bank, not you. Whoever buys the home from the bank has no fault or any reason to feel responsible for the prior history of the home. Why should the home set empty after foreclosure? That depletes the values of the neighborhood.
Awesome Content past Mortgage Banker and Real estate Agent
Great set. Very sleek & professional
Todd, kudos to you, but please know Adam Taggart should be interviewing you! You’re more informative than a RUclipsr who just regurgitates what he hears from macro/micro. As a long term real estate investor, I greatly appreciate research, insight & real life experience from another investor rather than what a RUclipsr “hears.” The perspective & experience is far different when it’s your money as opposed to borrowed funds. I own a dozen or so homes in a small town in Georgia next to a lake community. 30+ yrs as long term investor. So many unscrupulous realtors who know not what they’re doing. Most are still on crack over-pricing homes (to get the listing). House then sits on the market with price reduction after price reduction. Miraculously, MLS listings will disappear than reappear “new” with a lower asking price & pending/under contract. Builders are playing games with the MLS, too. They’re intentionally manipulating the housing data - days on market, percentage sold at list price, back dating when closed etc. They push to buy now & refinance. Just sad!
Aren't these BPO's partially based on local comps at the time of the BPO? This could imply that the buyers of these FNMA properties would have to require high rents just to cover the difference between the percentage of the BPO prices they paid and the actual new BPO values of the properties? What about the local property tax calculations? What about the Liability insurance on each property?
Has there been any mention or exploration of loan assumptions allowed on non performing home loans for a buyer who would wants that home?
If they cannot get them through a foreclosure , then property taxes , insurance will be jacked up so much that they will be forced to sell or delinquent and then be foreclosed on.
I can see why usually was illegal in biblical times, all this financial engineering is just insane
Great time to buy!!! The Federal Reserve Minutes warned about a Housing Bubble😆😆😆
wonderful to get this info...just a little point of correction where you repeatedly read to us the number 13th that is written as 30th (thirtieth) regarding Fanny Mae loans.
Thanks I realized after the fact. 👍
Todd is the GOAT. A man of truth!
Appreciate you 🙏
Todds the best in the business at what he does
This was the same game played by govt back in 2008, rinse , repeat.
So the plan is to foreclose these properties and then convert them to rentals.
What a scam and a half
Very interesting information. I learned something I did not know. Thanks
Great content! You earned my sub!
Thank you for such an informative video.
junk mortgages
All for one man’s legacy! Or all to stop another man from his legacy, all in how you look at it.
Almost to 100K subscribers!
Super grateful for everyone 🙏🥹
@@SachsRealty Y'all have worked hard for it! God gives the increase! :)
So is Black Rock or Blackstone going to scoop them up???
They started too early - during the peak of Covid housing prices. Now they are taking losses.
Can they? Aren't both of them down 75% right now and underwater?
Would be interesting to know the effective yield based on Pimco's price paid (under a best case scenario where the loans would get paid in full even though they wont)
Good point!
This is interesting information.
You keep saying 13th, but the text clearly states 30th. 😬
Economic investigator Frank G Melbourne Australia is still following this very informative content cheers Frank 😊
Question. I am a small investor and would like to find out the most effective way to find these properties.
What is the duration of investment home loans in America please?
I lost a lot of money on Fannie Mae's and Freddie Mac They said they were guaranteed but they came like stock and they kept going down and down and you couldn't get that money back
I am the literal first mover. Sold out local "first top" in March 2022 when multi year lease backs, appraisal and inspection waivers, and $200k over ask were typical. Our median sale price tanked 12% through December! Then, it came back up and set a new sale price top in Aug 2023, but the aforementioned madness was gone. Our prices have been falling each month since then. Buyers are here, but they're just waiting like buzzards.
Not here they keep going up no supply. Maryland.
@@k.scottphillips8933 the supply is higher here, but still low. Are you seeing all those things I referenced in my first top, or just prices going up? Those are 2 very different markets
I live in Wesley Chapel Florida . They continue to say it’s time to buy , however I also know developers are turning whole developments into Corporate Rentals. I don’t see how they can keep up with these overpriced houses. I see foreclosures in the future, especially with a high cost of homeowners insurance taxes HOA n CDD fees .
spot on. watch gold starting to brake out huge amount layoffs
This was a good video for my mental health, I will wait and watch instead of rushing through
very interesting!
Thanks Sachs
Love Adam Taggart!
Finance! What would prices be without it?
'Pimpco' - lol
So when does Fannie-Mae report their massive losses?
FNMA is oened by the govt now, the losses are charged off to the taxpayers. Prior to 2009, FNMA had investor capital to absorb losses, now govt has to cover the losses.
@@robertbender73 - Is it reported?
Folks forget we still haven't paid for the GFC.
So when is that inventory going to hit the market?
Never. They don’t want the average person to buy the homes just their corporate buddies. They are not going to let those homes sit on the market vacant like they did in 08 and get tore up and vandalized. They also don’t want to get realtors involved now that they realize they can hire a few corporate employees and pay them a low salary to do the work of a realtor. Licensed realtors will gladly take a corporate job with a salary and benefits versus get paid all commission since most realtors only close 4 transactions a year if that.
There is going to be a massive inventory influx. If for no other reason than the Boomers are aging. All of use go eventually and you can't take anything with you to include your house.
There is nothing happen in Bay Area, CA yet. Houses are still crazy high. No force closures yet. A lot of people said it will not happen in Bay Area.
Sadly... I have the credit... I have the want... I have the wherewithal... I have the ability to maintain on EVERY FRONT....
The only thing I can't do is buy, because I am mid custody battle and need to determine where my overall budget is going to be afterwards.
I think what you meant to say when you read the title of reperforming mortgage group sales, it was the 30th, thirtieth, not 13th. That's 17 more mortgage group sales from fannie. That's an astronomical difference in dollars
interestingly a lot of homes in my area are going back up for sale after only 6months to year of ownership. some even being sold at a loss. This wasn't the case a few months ago.
plenty of houses are going back up for sale for +100% in my area...still... if not all for +100% it still will be at least +20% if after 6months or so...
If I'm making double house payments to pay off my house faster go against me?
PIMCO and others are buying homes for half the price. They will keep them and rent them (not sell them) once the property is foreclosed
Light the fireworks were in for a show
We are getting poorer precisely because a narrow elite has organized society for their own benefit at the expense of the vast mass of people. Political power has been narrowly concentrated, and has been used to create great wealth for those who possess it.
Do these properties show up on sites like HUBZU?
Enjoy your podcast! You need to bear down on those readers it says 30th sale 😂
Is this 2.5B of questionable FannieMae loans assumable by the Federal Reserve
(assuming we are entering a period of Quantative Easing) ?
Hardly any of these homes would be move in ready if they became available for sale to the general public. With owners unable to pay their mortgage, they are also unlikely to keep up with regular maintenance. In fact if they get kicked out of their house or walk away from it, they are likely to strip anything of value out of it. So these homes will need major fixing up to be ready to be put back on the normal retail homebuyer market
These gov home loans are supposed to be offered to peoole who want to live in them for 45 days before investors
Sacks👍👍✌️
✌️
Feds just don't learn
They forgot 2006-2008
I feel like they haven’t forgotten, it’s more the case that they are trying their best to prop up overinflated asset prices in a deflating economy. At some point the economy weakens to a point that doesn’t support the asset values.
Seems very true.
Repeal of Glass-Steagall was indicative a setup was underway.
True but last time NONE of them went to prison for lying or encouraging lies on Loan applications. (150k/yr jobs as a fry cook in a fast food joint) Will they get prosecuted this time around?
There is a great book, "the secret life of real estate and banking". It explains why we keep repeating the same mistakes. It {boom bust cycle } is baked into the system.
Y'all should have 1st time home buyers & those going through the process on your show so people can understand their side of things & talk about the whole process people go through this would help so many people understand from an average persons perspective
Great idea. Send me an email and I’ll have you call in to our show. ts@sachsrealty.com
@@SachsRealty Ok I just emailed y'all Thank you so much 😊
@@SachsRealty I emailed & was being asked about homes instead of being a guest???
Very informative channel, up there with George Gammon and Thoughtful Money.
Wow! I’ll take it, honored to be placed amongst that crowd 🙏
@@SachsRealty great insight into the US real estate market. It’s interesting to see how Australia’s housing market compares to the US. If you think house prices are high over there, $1 million gets you an average house within 30 mins of the city over here. We are in for a very hard landing.
Thanks for reporting
Sounds like Adam Hancock in Sarasota
I think is better to sale all this bad loan in whole sale this way this foreclosures will never hit the market 1,000 homes sold all at once but it also should be sold to a investors but with conditions to rent it at a reasonable rent ol let say 2,000 per month regular rent but whole sale at 1,500 to new renters
I wouldn't expect foreclosed loans to have such low balances. We're these homes encumbered by heloc 2nd?
If you're wondering when the market will adjust all you have to do is watch what the fed does the defend keeps interest rates higher for longer and continue quantitative easing and eventually something will break and will have a downturn and that's when you can go out and pick up some deals, that will be when you're purchasing power of your hard earned money will be maximized
They want you to buy at the top knowing full well that the majority will be default and they will take it right back for way less
Inventory may very well hit the market but there will be a decreased buyer pool who are individuals. An indivial cannot compete with a. Institutional investor. An individual may need time to get a mortgage , they will want things fixed et.c vs a Blackstone or someone who is the bank and will close as is on 5 days zero concessions
Todd is so great. Ivy League expert knowledge with a blue collar touch. Very in tune with the average person. His builder/contractor knowledge adds another whole level. He is super helpful. If you live in Maryland, use him! Most agents say they have your back, but are LIARS.
Great content, right on point. Been stacking cash for a few years now and being patient. We cannot sustain these levels. In my opinion, 2024-2027 will be a great time to buy a house. 2024-2025 for auto. Hopefully it’s not as bad as 2008, so it doesn’t devastate too many peoples lives.
No it's not
Inventory is at an all time low. And Corporate is purchasing homes in record numbers. There may be a pullback but I don't see a massive decline given Corporate, fewer housing starts and new opportunities would emerge for first time home buyers once rates drop.
Define 'bad mortgages".
I would not buy a foreclosed home.
I’ve been buying property out of foreclosure for years. It’s not how you sell, it’s how you buy.
Fannie gettin' funky
Most years they have a Democrat CEO that cooks the books for bonuses then is found and forced to resign only to have the next do the same.
None of these numbers sound good for the pool buyer.
The aggregate outstanding balances seem like a very low percentage of the aggregate opinion of the market values for the properties.
My gut says that the value assessments are overly optimistic. Combine that with all of the foreclosure mitigation the pool buyer must preform prior to foreclosure, and the buyer is all but assured to loose principle.
I agree! A downward facing spiral of more debt.
Can you say "Black Rock"??
Hmm sell non performing loans to get them off your balance sheet sounds like the Federal Reserve; Balance Sheet is anything the organization says it is...
Just remember when they sell your loan you own it free and clear due to the fact that your signed loan contract is with the bank you went to table with, so the bank will be in breach of contract unless you signed a brokerage mortgage
They all have assignment language in the mortgage that allows it to be assigned.
30th not 13th. Sorry, had to mention it.
Todd I love your show but need to fix an inaccuracy. The largest financial markets in the world are, in order from biggest to smallest, Forex, Bond, Stock market... and then the Real Estate Market. At least that is what I believe to be true... but "it is not what you don't know that gets you into trouble, its what you know to be true, that is false, that does" So If I am mistaken please comment. Thank you for the great show.
Real estate is the largest asset class in the world. Over $280 trillion globally. Google search will tell you this. Thanks for your comment. Many of what you’re mentioning also includes real estate assets within their portfolios. Appreciate you 🙏
@@SachsRealty Thank you. In case anyone was wondering. Market cap by market. Is Forex 2.4 quadrillion ( I can't even wrap my head around that number) Real Estate 613 Trillon, Bond Market 133 Trillion and the Stock Market 109 Trillion. Largest asset class is Real Estate. I stand corrected. Thanks Todd.
30th, not 13th.
Gee when have we seen ol Fannie Mae and Freddy boy dumping loans like that?
Wages just are not and will not be high enough to buy homes. Renter nation is what they want
The fact that Franklin Raines never saw the inside of a jail cell, and instead was able to parachute away from Fannie crashing with tens of millions in compensation bonuses, is outright travesty of justice. In 2003 alone, Franklin Raines raked in $20 Million.
WOW a Silent 2nd mortgage. with no payments. You only pay on the 1st Mortgage. What hokus pokus is that???
Are property taxes going to skyrocket due to the increased home prices?
Yes, it already has
Mine went up starting in 2019. Homeowners insurance as well. Some people had insurance go up 10 fold making their payments almost as high as their mortgage. Interesting because it affects prepandemic homeowners.
@@wepid3426 I sell insurance so I definitely see the premiums skyrocketing. A house I was watching had a tax bump of $5000 a year this year I was thinking it was a glitch lol
It's just another pandemic, this one affecting houses. What's needed as to being affordable is house sharing. New home builders need to build expandable/shrinkable ones with "Slider" technology that helps with both security and energy savings.
That's the Best route to take. Another
idea is to have Trader houses, where
people can trade their house for another person's. 🤔😯😊