Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
Power of sales are just the tip of the iceberg. Those who say its still really low aren't looking at the massive iceberg of distressed home owners and investors bellow the surface.
Many also said that about./... mortgage deferrals, trigger rates, B lender renewals. Maybe they're right but the timing is very very very off currently.
Power of sale still takes around 4 to 6 months from default to listing on the MLS. 15 days after default is when the initial document "Notice of Sale" may be sent. The notice of sale allows a redemption period of 40 days to make missed payments and resume the mortgage as normal. After that, the full mortgage amount is due. I work as a mortgage and real estate agent mostly dealing in Ontario power of sale properties. Would be happy to talk to your team to give more insights on what we are seeing in the market 👍
4 to 6 months, if the owners, or, what have you, have moved out. Most likely, you will have to sue the owners on the covenant to pay and for possession of the property. Physically, getting possession can be another delaying problem, depending on what the owner does in the court action. Generally, the owner/mortgagor will, voluntarily, move out. After you get possession, most likely, you will have to some cosmetic repairs. In most cases, the sales agreement will stipulate that the property is being sold on a, “as is basis.”
@@rickfellman91 You are correct here. The mortgagor has the ability to challenge the lender's claim by submitting a Statement of Defense. If the lender hasn't done anything wrong they will beat the defense in court, but this delays the overall timeline. A big source of delays is also court and enforcement office backlogs, which grew a lot less predictable after COVID.
People are forgetting or don't know the other side of all the defaults happening. That's businesses with bank loans, so many businesses are closing because they can't afford the 11% interest on their loans. Combined with wages, franchise fees, high cost of goods and taxes. Some even took out covid loans and less clientele. Total shit show across the land. 😢
Anyone left in a variable that moves payments in lock step is probably not a first time buyer within the last 7 years. Or someone caught up in the frenzy to over asking in the last couple years. They are the lucky ones that bought low and at higher interest rates so they are adjusting fine, and have the runway to increase amortization back up to 30 years. Where there is trouble is the 2024/25 renewals where the house is under water, and the payments will be unmanageable. Those will get foreclosed on sooner.
you have 120 days before the sheriff shows up to put an eviction note and kick you out and those 4 months give you plenty of time to find an apartment since you won’t be paying your mortgage is already too late for you to make payments leave it alone and use your money for your emergency rental …
What’s key is we are just “starting” to seeing more and more videos discussing defaults, power of sales, foreclosures, low sales, inventory sitting/increasing … prices going down slowly currently as people are desperately trying to hold on and not loose everything is what I see. … what happens next? This is not looking too good IMO … thanks for the update 👍🏼
@PrimePropertiesTO dude houses in muskoka have listed at 1.4 selling at 1m or 950k. We are talking real world 40% has to come off this stuff because it's not sustainable. Dude these rates are normal. There not going down nor should they.
To “think” people can absorb rate increase from .25% to 5.0% is pure ludicrous thinking. Please don’t embarrass yourself. The only reason why you don’t see a massive correction is because everyone is locked into a super low rate, but as they refi, the poop will slowly hit the fan. Stop looking at trends, look at policies, that is where we are headed.
@@Joe-mz6dc They are going to be crapping themselves in the spring time when no one can borrow any money to pay the delusional prices sellers will be hoping for. It will only take a few sellers to cave and that will cause the appraisers to write less and then the downward trend will start.
You only have to follow 1 metric to understand whats going to happen to the housing market, Affordability! Rising housing costs takes money out of the economy which brings higher unemployment which is baaaad, and that increases foreclosure's and prices drop like a stone! No where to hide, the market is doomed! I love your last point on avg sold, that is absolutely manipulating stat, and the sad thing is that you know it, and still use it for your narrative, and I dont need to explain it because I think your audience is much more educated than you give them credit for!
The only people who are struggling with thier mortgage if you didn't lose your jobs are people who overpayed for a home they couldn't afford and those who used their home as ATM and used up all their home equity why do i see so many Teslas and high end vehicles driving around
Oh really, millions of ppl bought into subprime mortgages than sold them overseas to other countries disguised as AAA investments? Be real this is only happening to 1-2% of ppl in Canada.
Sorry brother you mentioned there lender or the mortgagor. It's wrong. Mortgagor is the home owner means the person who takes the loan. Mortgagee is the party who offer the loan. Thanks
Lots of people going POS perhaps, but lots of buyers in the wings. People had to qualify at, what, 5.14%? So I don’t see things being as apocalyptic as people think. Mortgages are rolling over at the sort of rates people had to qualify at. Did I miss something here?
the qualifying rate is fine. Its the pay shocking going from 2 to 5%. While they may have qualified at the time, things may have changed. Things especially different if the property is underwater.
400% from where do you get these figures? All this hype about house prices being out of reach is nonsense. I bought my first house in 1978 at about 10 to 12 times our joint income, this ratio is still about the same but interest rates on mortgages were 8% then. When I moved up to my third house the interest rates had climbed to 12% and my car loan was up to 18%. Yes the numbers are bigger but so is the joint income of many couples and at 5 or 6% the interest rates are the same as my parents were paying 60 years ago. I am in my fifth house now. People like yourself are fear mongering you should keep your mouth shut! Many young families listen to people like you and loose the opportunity of a lifetime. Buying a house is an opportunity to establish excellent money management skills, build equity, provide stability and security on which to build a family.
You should learn how to do math. Being correct in journalism is important. Going from 8 to 37 is not 462% increase. It is 362% increase. And even at that, the comparison is improper.
Foreclosures aren't even a blip if they are only at 37 with 4000 new sales in GTA. But it is an upward trend considering Zombie companies are still holding on and job losses are still very minimal. And if our biggest employer, Government, ever lays people off......
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
Power of sales are just the tip of the iceberg. Those who say its still really low aren't looking at the massive iceberg of distressed home owners and investors bellow the surface.
Many also said that about./... mortgage deferrals, trigger rates, B lender renewals. Maybe they're right but the timing is very very very off currently.
If you have enough equity, banks will keep your monthly payments manageable but Will increase your amortization period.
Power of sale still takes around 4 to 6 months from default to listing on the MLS. 15 days after default is when the initial document "Notice of Sale" may be sent. The notice of sale allows a redemption period of 40 days to make missed payments and resume the mortgage as normal. After that, the full mortgage amount is due.
I work as a mortgage and real estate agent mostly dealing in Ontario power of sale properties. Would be happy to talk to your team to give more insights on what we are seeing in the market 👍
Appreciate the insight. Shoot me a email 🙏
4 to 6 months, if the owners, or, what have you, have moved out. Most likely, you will have to sue the owners on the covenant to pay and for possession of the property. Physically, getting possession can be another delaying problem, depending on what the owner does in the court action. Generally, the owner/mortgagor will, voluntarily, move out. After you get possession, most likely, you will have to some cosmetic repairs. In most cases, the sales agreement will stipulate that the property is being sold on a, “as is basis.”
@@rickfellman91 You are correct here. The mortgagor has the ability to challenge the lender's claim by submitting a Statement of Defense. If the lender hasn't done anything wrong they will beat the defense in court, but this delays the overall timeline. A big source of delays is also court and enforcement office backlogs, which grew a lot less predictable after COVID.
Corporate take over, gentrification done by our own Gov, and soon 15 min cities....is the gist of it
People are forgetting or don't know the other side of all the defaults happening. That's businesses with bank loans, so many businesses are closing because they can't afford the 11% interest on their loans. Combined with wages, franchise fees, high cost of goods and taxes. Some even took out covid loans and less clientele.
Total shit show across the land. 😢
Yo momma
Anyone left in a variable that moves payments in lock step is probably not a first time buyer within the last 7 years. Or someone caught up in the frenzy to over asking in the last couple years. They are the lucky ones that bought low and at higher interest rates so they are adjusting fine, and have the runway to increase amortization back up to 30 years. Where there is trouble is the 2024/25 renewals where the house is under water, and the payments will be unmanageable. Those will get foreclosed on sooner.
Where I'm seeing a lot of motivated sellers aren't recent buyers. It's actually those that refinanced.
Anyone who is close to a power of sale should already be panic selling.
That's probably why the power of sale stat isn't climbing faster.
Power of sales will be a problem if the lender forcing the sale were the big banks. Privates, Mics and B Lenders is part of the cleansing.
you have 120 days before the sheriff shows up to put an eviction note and kick you out and those 4 months give you plenty of time to find an apartment since you won’t be paying your mortgage is already too late for you to make payments leave it alone and use your money for your emergency rental …
Thanks for clarifying the difference between POS and Foreclosures.
youre welcome!
Can u help me find foreclosures im interested in buying something from a seller who can't close or pay there mortgage
If you're talking power of sale, you can book a call with me. www.chatwithzhen.com
Foreclosures are a different beast.
What’s key is we are just “starting” to seeing more and more videos discussing defaults, power of sales, foreclosures, low sales, inventory sitting/increasing … prices going down slowly currently as people are desperately trying to hold on and not loose everything is what I see. … what happens next? This is not looking too good IMO … thanks for the update 👍🏼
You're welcome! Its starting for sure, but how much more of it is there, TBD. Making up 0.3% of the active listings is like a rounding error.
@PrimePropertiesTO dude houses in muskoka have listed at 1.4 selling at 1m or 950k. We are talking real world 40% has to come off this stuff because it's not sustainable. Dude these rates are normal. There not going down nor should they.
To “think” people can absorb rate increase from .25% to 5.0% is pure ludicrous thinking. Please don’t embarrass yourself.
The only reason why you don’t see a massive correction is because everyone is locked into a super low rate, but as they refi, the poop will slowly hit the fan.
Stop looking at trends, look at policies, that is where we are headed.
If I was a real estate agent in these times I would keep my head down.
@@Joe-mz6dc
They are going to be crapping themselves in the spring time when no one can borrow any money to pay the delusional prices sellers will be hoping for. It will only take a few sellers to cave and that will cause the appraisers to write less and then the downward trend will start.
You only have to follow 1 metric to understand whats going to happen to the housing market, Affordability! Rising housing costs takes money out of the economy which brings higher unemployment which is baaaad, and that increases foreclosure's and prices drop like a stone! No where to hide, the market is doomed! I love your last point on avg sold, that is absolutely manipulating stat, and the sad thing is that you know it, and still use it for your narrative, and I dont need to explain it because I think your audience is much more educated than you give them credit for!
his 'audience' is his clients....not you clowns that post trash on every real estate channel you can find lmao
The only people who are struggling with thier mortgage if you didn't lose your jobs are people who overpayed for a home they couldn't afford and those who used their home as ATM and used up all their home equity why do i see so many Teslas and high end vehicles driving around
Lots of money in Toronto? Keeping up with the Jones?
Does this mean we can buy properties for cheap
2008 _Will_ Look Like A..... *_Kiddies B-day Party_* (in comparison to what's coming in 2024)
Oh really, millions of ppl bought into subprime mortgages than sold them overseas to other countries disguised as AAA investments? Be real this is only happening to 1-2% of ppl in Canada.
Are any foreclosure deal in MLS? If not where I can find them??
I didn't know Toronto has foreclosure. I thought there's only power of sales.
It's very very uncommon to have foreclosure. Almost like it doesn't exist because practically it doesn't make much sense in our legal system.
Sorry brother you mentioned there lender or the mortgagor. It's wrong. Mortgagor is the home owner means the person who takes the loan. Mortgagee is the party who offer the loan.
Thanks
But the story from remax and other agents say housing market going again to the roof???
Lots of people going POS perhaps, but lots of buyers in the wings. People had to qualify at, what, 5.14%? So I don’t see things being as apocalyptic as people think. Mortgages are rolling over at the sort of rates people had to qualify at. Did I miss something here?
the qualifying rate is fine. Its the pay shocking going from 2 to 5%. While they may have qualified at the time, things may have changed. Things especially different if the property is underwater.
400% from where do you get these figures?
All this hype about house prices being out of reach is nonsense. I bought my first house in 1978 at about 10 to 12 times our joint income, this ratio is still about the same but interest rates on mortgages were 8% then. When I moved up to my third house the interest rates had climbed to 12% and my car loan was up to 18%. Yes the numbers are bigger but so is the joint income of many couples and at 5 or 6% the interest rates are the same as my parents were paying 60 years ago. I am in my fifth house now.
People like yourself are fear mongering you should keep your mouth shut! Many young families listen to people like you and loose the opportunity of a lifetime.
Buying a house is an opportunity to establish excellent money management skills, build equity, provide stability and security on which to build a family.
Great content, very instructive! Thanks!
Glad it was helpful!
Wow. Its getting worse and worse. Thanks.
Thank you diving into the numbers. I didn't know the difference between Power of sale and foreclosure. .34 percent is fairly low.
😆 Wait.
Correct .34% is a rounding error. If we start seeing the big banks force power of sale, we have a problem. At the moment nothing.
Ever see that 1999 ƒilm *_FlGHT CLUB❓_* (especially _The _*_Ending❔)_*
Nawww but things are fine right ? People making $100k plus can't rent one bedrooms, home equity is going negative but everything is fine right?
this is so sad
So…it’sa lotlower than 2022. And going down quickly. Is that really a bad stat?
It's a moot point. It's being made a big deal so I drew some more attention to what it really means.
Foreclosure and power of sale are two different things what are you even talking about lol
Is debt a solution to producing real wealth?
A tool if used right
you know your video is terrible when you have to make it an add just to get people to watch it lmao
You should learn how to do math. Being correct in journalism is important.
Going from 8 to 37 is not 462% increase. It is 362% increase. And even at that, the comparison is improper.
Foreclosures aren't even a blip if they are only at 37 with 4000 new sales in GTA. But it is an upward trend considering Zombie companies are still holding on and job losses are still very minimal. And if our biggest employer, Government, ever lays people off......
Correct, its a minor blip
None sense
Collapse.
where all these fearmongering coming from?
It's called the reality of economics.
It's a bit fear mongering, These PoS won't move the market.
This is a perfect example why life is not meant for everyone, you just don’t have what it takes.
Mean but true.
I guess I was referring to myself lol
99 percent of thy whole world
Be real to your audience.. the parade is over..
The santa parade? 😢
@@PrimePropertiesTOthe “everyone got fat” while the young generations starved parade.
Dude people like you have been calling for sthf for years calling for a 50% to 70% drop in home prices
Bullshit.
Canada sucks. No chance of getting a good deal for a house 50% off.
keep voting liberals lol