0% Mortgages Next NAIL IN THE COFFIN For Housing Market

0% down mortgages along with ninja loans and adjustable rate mortgages is what got us into the subprime mortgage crisis and ultimately led to the housing crash back in 2008. Apparently everybody has short term memory on that since lenders are now starting to offer the 0% down mortgage once again. Looks like history will be repeating itself.

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Articles Mentioned in the Video

#realestate #housingmarket #homeprices #housingmarketcrash

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[Riggsnic_co]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[nicolasbenson]

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.

[USNavyVet_STG]

I remember 2008 very well. People were literally walking away from their homes, just leaving the keys on the kitchen counters and bailing.
We've learned nothing.

[scottarmstrong]

To my own research In USA, individuals living in cars due to partial homelessness result from a complex interplay of factors. High housing costs relative to income, stagnant wages, and income inequality drive this issue. Job loss, weak social support, medical expenses, evictions, and lack of affordable housing also contribute, while systemic problems and inadequate policies further perpetuate the phenomenon.

[LifeLongLearner-omjx]

Do you think they don’t know they are offering these mortgages with the likelihood that they will probably default. Then the lender can foreclose and take the property back and pocket all the payments they did make. It’s predatory lending at its finest.

[LavishPatchKid]

"No money down! You're just going to get the worst interest rates in history - for a house that costs 10xs what it's really worth!"

[ConsolidatedPBY]

Michael is the reason no one watches mainstream anything anymore. The real knowledge and creativity lies all around us.

[omega]

Famous economist John Kenneth Gailbraith was asked once, towards the end of his life, if something like the Great Depression could ever happen again. He thought about it for a minute, and then, this was the answer he gave: "Yes, and all it will take is for another generation of suckers to come along."

[rachaelkennedy]

I was shocked to see home loans with just 2 % down and thought, "we sure didn't learn from the last crisis."

[irvingcm]

Rocket Mortgage definitely has the right name. They strap a rocket on your back and aim you towards the "poor house"

[luiscarrion]

Worst story I ever heard from 2008 in Rhode Island. Immigrant family from the Dominican Republic, husband and wife together making $38k combined. Wanted to buy a 3 family home and could not decide between 2 they had seen. $300k each. Despite not having enough income to afford one house and not having a down payment, the real estate agent and the loan officer from the bank gave them a loan for both houses. Guess what happened to that family? Lost both houses when the crash came. Loan officer and real estate agent got their commissions. 11:26

[TinCupChalice]

I was a real estate agent in CA. Paying 6% no matter what price the home is, is a rip off. I’m glad people finally woke up

[cydonia]

"May you live in interesting times." I lived through the 08 crash and everything that came after and I'm really kinda over living through economic chaos....but here we are.... again! Buckle up my friends, it's gonna be a bumpy ride.

[bizHammer]

Down size I did. basic paid off car, paid credit off, paid off home. I am pinching pennies, dropped my lawn service, purchased a riding lawn mower from a garage sale for 200. dropped netflix and disney, hulu.

[EvySurvived]

This is as good as it gets. 90% of potential home buyers cannot afford property insurance and taxes let alone the mortgage household utilities maintenence etc.

[Joseph-zwsb]

Buying is great if you find a great deal in great location. It's not really a "profit" until you sell, though. So your networth will climb, which feels pretty good, but you would still have to pay rent or buy a new house if you were to sell. You would have collateral, though, which means you could borrow money for other things. Or you become a landlord like Graham and you get other people to pay your mortgages for your downpayment/investment. But owning a house will soak up a lot of your income compared to finding cheaper rent. Mortgages kind of suck, because they make you pay more towards the interest than the towards the actual ownership of the house.

[willia]

Nobody is responsible anymore. Just walk away. Dog eat Dog works both ways.

[denniss]

Been divorced for a while. Alimony and Child support kept me from qualifying so I paid cash for a fixer upper. No mortgage ever again! 100% equity.

[jimhanty]

I’m almost 80…I have seen this happen 3 times since 1979. Then around 1990 then in 2008…each generation does the same thing over and over..people don’t remember and people don’t change..

[hoosierdaddy]

Shit. Here we go again like in 08. Lived through it and survived barely.