Once, I saw a man sitting under a cardboard box with a cutout for his window - his house I assume (i think he built it from the ground up with no financing)
The same thing is happening to America. We are done!!! 44.5 million on foodstamps, twice that many on welfare or social security, real unemployment at over 15%, 1/3 of America's children are fat and diabetic, and 1.5 million abortions anually. This is the end. I hope all you liberal democrats are happy. You have successfully ruined the greatest country in the world. Freedom has been flushed down the drain.
i love how the american people take it right up the kazoo, no fighting back, no protest. in fact, they defend the banks and the bailout that should of went to the common people. if the bailout went to the citizens who are consumers, we would have spent the money and it would of washed back to the top. instead they kept it at the top, and the banks gave thereselves large bonuses. wake up america or get fucked more...
@911jediknight911 Yea, the people who were the cause of the problem, got even more power after things went to crap! Funny huh? The relationship of power and money!
@stephentsang2000 Thank you for sharing we will never get free of these sytems unless we share with each other what is going on. Japan also has more than one generation mortgages (which means death grip). Is one reason Hong Kong has a lot of business (better commerce rules) more open marketplace? I only ask because I think that is being controled then realestate is worth more in these areas, and they can then change the rules on you. Blessings
The Hong Kong government uses the slogan "large market, small government" to attract foreign business investments. The income & business tax is indeed very low here, and is skewed to benefit the rich people. To balance the cheque-book due to low tax revenue, the real estate tax became the government's main financial source. Hong Kong government deliberately limit the land supply to push up the property prices, and speculators, banks & landlords work together to do the same. Damn!!
@stephentsang2000 Great comment. Wouldn't it be cool to see a comparison of each countries' mortgage status and the years to repay, etc. I suppose in some countries the mortgage isn't even worth the paper it is written on.
Yes, that would be a more accurate way of measuring each country's real standard of living. Hong Kong's PPP per capita ranked 6th in the world, and yet people's living standard is even worse than people in some of mainland China cities because of the high property prices.
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@blauaugen63 Why would they ? Or should they? They had lousy credit and lousy job and got to live in a new house for the same amount of money as they paid for rent...You would too under the same circumstance.
The sky is falling in. The Global Pandemic flu is gonna get ya. The pollution is bad and wht earth is doomed cause of global warming...
and these fear mongering jerks don't have a dime invested in the markets, either
In 1966 you bought a house in Vancouver for $20,000 and 2 years later you bought a second smaler one fo r$18,000. THEN the market moved and today you sell that SECOND house for 2 million. Not bad return on the down of $2,000.
@sparwood8 So what? Your post makes you sound like a lucky piece of arrogant shit that happenned to be living and buying in a no lose world. BFD. Impress somebody and make some good choices now microchode!!!
@drummerforreal1 "65 year old loser that trolls my mail box after blocking me from replying. Coward jerkoff." wtf?, you're a 60 yr old serial troller that trolld memorial forums and makes fun of the dead guy to the people mourning them, you are the biggest loser most people will ever come across, just ask around if you dont believe me. Jeff the unemployed ex janitor lol.
lol yeah some loud mouth bitch all telling her husband that he is a piece of shit and how her mamma said she shouldnt be living in a apartment. So the low self esteemed foo goes and leaverages money for a home. All because he stuck his wee wee in the wrong place.
Why do we ever let these people breed? Stupid people "Hooking Up" with other stupid people. Having stupid kids. And they hook up with even worse people and yet have dumber kids. At some point we need to get a handle on this. Animal breeders don't breed sick animals ones with defects. Why do we - the most intelligent species (rolling eyes) allow this to happen Ill never understand.
Since it it Christmas day, I wanted to pray for everyone today. I am praying for the whole world in these troubling times. I know that the Lord Jesus Christ is the true king upon which the righteous government of the earth will someday be built. He is the only one that can solve all of these problems. He is the only one that can bring true peace. I pray for Him to bless you and keep you, and for His face to shine upon all of you and to give you His true peace and understanding.
People can keep pointing fingers, but who is stupid enough to sign something without reading it or having their lawyer? Not to mention if I'm going to buy something on payments (car, house) I'm going to pickup a calculator and play with the interest and months of payments to see the cause and effect. Anyone signing a piece of paper thinking your going to finance 400K at 1300 a month has a hole in their head! That is a 3500/month payment! Or 4300 on a 15 yr!
i dont think people are at fault, there should have been laws preventing this. lenders got to buyers through the sales pitch. a lender tells you you are going to make a fortune on your house with rising home values, sells the idea to the wife, that the kids need a backyard, this i is the best time to buy, you are going to miss the boat, you can do it..etc..anyone can get suckered in given all those conditions.
The banks are screwing people over and it is time for someone with a back bone to legislate new laws to protect the consumer. Oh and your attitude stinks
Its all very well saying that the consumer must take personal responsibility, but it is the banks who knew what they were doing who have caused the chaos in the markets. These banks should be punished, but instead the gov use tax payers money to prop them up again. You and I must pay the price for the bankers who are stealing from us. Gov need to legislate and must do it to protect the people. Fathom the concept
laws allowed lenders to do this. they profited huge. laws should have been in place that prevented these sort of loans. obviously people didnt have bad intentions and were like im going to scam the country, they just wanted part of the american dream. now banks got everyones monthly payments, commissions, possibly even down payments, and on top...they get to keep the home once the people foreclose WHILE driving everyone elses home prices down. complete swindle
There is a way to hold predatory lenders responsible, help people to keep their homes, and not put the tax burden on future generations. It is called term ownership. Do the research and tell your senator about it before it's too late.
Communism removes the incentive for productivity. A visit to many parts of eastern europe (including russia) serves as a reminder. Its like walking 50 years into the past, stagnation, deteriorated bldgs etc.
The capitalist system was the best in history until Americans were duped into the privately owned federal reserve.
Greed is responsible for everything in your home. (greed isn't bad, political / economic systems are.)
When I started buying properties 20 years ago it was a no brainer to get 20 year AM with weekly payments.
While Canadians were living in lala land buying left right & center in 2006 / 07 I was selling 50% of my worst income properties to pay off the best ones
Why? Only take advise from those who've done it better than you. In this case, I listen to multi millionaire real estate investors, not the idiots on TV, or bankers who know nothing.
@Crazyman1212 I hope your wrong, because I'm to ill to put up much of a fight, and I have elderly parents who would be sitting ducks, sweet loving people, my dad is blind in one eye, do you think he could put up a fight.
lol, great video. very educational. I can't believe people buying a home and never calulating the real costs...no wonder america is in so much trouble
Israel has 7 million people. Divide that into 3.36 billion and you get about $500 per head. Also, U.S. foreign aid was estimated at over $20 billion in 2008 (Council of Foreign Relations). So, 3.36 billion is about one sixth. But, I read this: "The $6.72 billion figure does not include loan guarantees and annual compound interest totalling $3.122 billion the U.S. pays on money borrowed to give to Israel. " (Washington Report on Middle East Affairs). Less than 1% of the stimulus bill , hehe.
And add to your mix that that 1/3 that is given to Isreal is actually 50% of the total foreign aid strapped on American taxpayers over the past 60 years.
@debrabee = Bullshit with numbers, lets try some facts. Saudi Arabia provides more USA petrol dollars than these numbers to build mosques each and every year, and even more $ to promote it's version of Islam. Israel is a real democracy unlike it's Arab neighbours and most of Asia. And Israel has more patents per head of population as their brains are their main resource. Pitty you left yours in your shoe.
@debrabee = Bullshit with numbers, lets try some facts. Saudi Arabia provides more USA petrol dollars than these numbers to build mosques each and every year, and even more $ to promote it's version of Islam. Israel is a real democracy unlike it's Arab neighbours and most of Asia. And Israel has more patents per head of population as their brains are their main resource. Pity you left yours in your shoe.
lol great point (only the biggest investment of your life) - as long as the real estate lawyer is not working for the bank, broker, selling agent, appraiser, or escrow,
Good video - however it is astonishing that Americans have become so collectively stupid that someone has to explain to the them that if you just make the minimum payment, you'll never pay off your mortgage. No wonder Bush was elected twice...
yeah mainly the federal reserve... most think when they pay the federal tax it goes to the government.. we are being robbed and if everyone only knew about it this would change.. sadly this shows how people dont check these things.. just pay blindly and figure it's okay cause everyone else is paying for it..
This is a great and quick example of the zero sum game that the uneducated are sucked in to. You get what you deserve when you think that you deserve beyond your means. Think about it. No one gives less of a fuck about the proposed American dream than money lenders. They have their own American dream to fulfill at your expense. Get your head out of the clouds and think.
You are correct. The people who took these loans are not to smart. Their quest for a beautiful home blurred their better judgment. And of course the bankers were motivated by greed.
I also agree. People live above there means and expect other to feel pity when they loose there house. My wife and I are both college grads but the first thing we did not do was take out a 300,000 loan. Evaluate you income and expenditures and figure out what you can AFFORD. Still some people will not learn. Don't come knocking on my door and asking to help. I earned what I have. That's the way it should. No DEBT!! Anyone want to respond!!
Everyone was motivated by greed, including homebuyers. They expected to make money for nothing - they just call it equity. People bought homes with no money down because they wanted a life style they couldn't afford. Or, they borrowed on their 'equity' so they could have an SUV, granite countertops, and a vacation in Barbados. It doesn't require an education to buy a home. It requires some research, realistic expectations and financial prudence.
This is sad but what is sadder is people such as myself who bought a $300,000 home back in 2000 and put down $200,000 on it. My mtge payment is about $1700 a month due to high property taxes in NJ. My interest rate is only 5% on a 15 year FIXED RATE, NOW I am getting nervous because if I lose my job, I could lose my house and all my equity. Our governor (Corzine) keeps raising our taxes; property taxes on a 1600 sq ft house are $8,000 a year and going up, up, up. Democrats love raising taxes.
Srhandel You have got to sell your house FAST we are going into a Deflationary depression the value of your house is going to keep going down and down for years, all your equity will be wiped out.Dont get locked in on the slope of hope that most people will thinking prices will rise again in a few years they WONT. Go to elliotwaveinternational and pay $89 dollars for the global perspective report it will be the best $89 dollars you have ever spent.Once you have read it you will understand.
Buyers that can, should make a 1/2 payment in the middle of the month and end of the month. I paid my loan off in half the time by this method, and my home mortgage was at 10% fixed (Fannie in 1985).
A vivid example of what's partly been going on with the mortgage crisis. Banks love mortgages - any kind of mortgage - because they make a lot of money on them over the amortization period, so long as the loan doesn't default.
The subprime lenders schemed up these 'circus and pony' mortgages to take advantage of the low interest rates during the economic slowdown after 9/11. We can now see the damage this kind of lending has caused in the United States and beyond.
of course McCain is a real and respected patriot. But can he understand the economy mechanics? Is he able to make the right choices? See what the republican did to the economy... military budget, financial risks...
why did i put every penny i had into it??? cause a billionaire on tv said you'll never get rich unless your debt free. Why pay out 7% when you can get 7%, the difference is 14%!!! Banks are a scam to treat people like cattle and gain wealth over them. we are slaves giving power to a few unkowns
you can't do what is popular and do well, it is always the same story. And it is not just the institutions, it is mostly the people itself who just do not care about being lied to. In fact, what is happening right now, is like a tax for an ignorant mind!
Blame greedy lenders, sure, but the whole thing is built on the questionable morality of investing in real estate for the purpose of cashing in on its increasing value. The housing bubble is a land speculation bubble obscured by calling it a "housing" bubble as if houses could increase in value when all they ever do is depreciate while contractors madly increase their supply. Land speculation is a scoundrel's game since nothing is gained except at the expense of others. Sacred right of property?
It's nice to know that the geniuses that implemented these and other great vehicles get to keep their millions in bonuses for creating so much artificial wealth.
6) Common Sense: Mortgage salespersons had less regulation/education/licenses (or none in practice) than your personal stock broker. Why would you trust that person with the largest investment of your life - a magnitude 10 to 1000 times greater than a mutual fund investment. And the mutual fund managers trusted them :)
7) Simple Math: U.S. students lag behind other countries' students in math, science, and technology. Make math a priority & fun. Invest in math education.
3) Rich get richer - there is a metric called the "Gini Coefficient." Google it :) It lists by country
4) Home appreciation - we have so many other examples in history. A look at Japan's housing decline in the 1990s would provide some insight
5) Inflation - I always thought that the inevitable way to repay these ubiquitous loans were through massive inflation and devaluation of the dollar (i.e. bailouts)
1) Option ARMs: Yes, they were created for the rich who had enough in the bank to beat interest. Then, standards got more lax.
2) Politics: Obama is against mindset of increased quarterly profits on Wall St. which contributed to lax standards for higher revenue (Option ARM). McCain is about moral and responsible borrowing. Both are good. We need to read more.
The mal investment should go bankrupcy as well as all companies involved including FED, then we will have correction. Bailing out mal investment at the spense of our profitable business or citizens, or through inflation debasing the dollar will just create more problems for everybody, even for the same banksters who started the whole bubble.
Nobody will lose their homes because they never were their homes, they never paid for them. And the world will not end, if they can pay a mortage they can also pay for an apartment.
Secure a mortgage on bottom end of home prices as they begin to rise. Rent the place out. Just as home prices hit the peak. Sell the house and make a profit. Repeat same process for multiple houses and repeat when the time is good to do this again. That is the ARM loop hole. Investor pays ultra low rates for a short time, rack it in, and laugh at all the long term suckers.
People, do you not understand the purpose of an ARM. ARMs were created as loop holes for investors. Actual residence were not meant to take part is this loop hole. Well, wealthy smart nomadic residents could come out on top. Which is just the definition of my use of the word Investors in my previous sentence.
I was leaning towards Obama until now! I just read the Washington Post. Obama got a sweet heart deal when he purchased his mansion. No Points, no origination fee, and a lower interest rate. Why? Because senators monitor and regulate the lending industry. he basically was paid off to look the other way and NOW our home values are dropping and foreclosures litter the landscape. Obama YOU ARE scum for taking this legalized pay off! You have cost us A LOT of EQUITY and MONEY!
Research Hon. It was debunked. He got a 5.6% interest rate and they NYtimes stated it was from good credit.They noted it was the going rate for the area in HydePark and he sold his 3 bedroom condo, to put as a downpayment. It was manufactured that people in the neighborhood started to complain that it was wrong assessment. This was his first home unlike does with 8 homes. Moreover, i think it was people like Dodd who got special rates.
Touchet Dizzy i concur. I do not think people who lost their homes is a laughing matter for me personally but i do agree with people living within their means. On the other hand i can't feel to sorry for those who over extended themselves with ARM loans in homes they could not afford in the first place. Didn't anyone do the math or atleast consult someone who knew how to read a amortization chart? how did people not understand that a $400,000 loan at 6% is not $800 per month.
Can you afford gas, and food and basic health insurance? If so, good on you. This isn't my father's economy. And I hope you never get sick or injured and get plunged into bankruptcy. God bless the system. Rich get richer and the middle class get poor.
Man... I might as well leave my house and get an RV
I'm a veteran, and I got a VA and was given the impression that when my loan adjusted I would go from 5.25% to somewhere around 6.25% if it went up that year (and that its capped) and wouldnt rise much more then a point, and if it was higher the following year it would go up to 7% (etc. etc). I'm screwed, I got excellent credit but I cant afford payments like that. My house is "not comparable" to other houses so I was denied refinancing
You people are IDIOTS! LOL you blame the banks for your stupidity. I got my first job in 1975 while living with my parents. I saved my money. 3 jobs later while in a low rent apartment I had enough to buy my first home CASH. My wife and I still own that home and rent it out for 1200.00 / month. I owned 9 other homes out right by 2004 and sold them all by 2005 knowing that the bubble was going to burst. I now have plenty of cash free and clear and will buy when we hit bottom in 2010 - 2012.
Good for you tomincal. You did things the old fashioned way and it pays. But I wonder, will all your cash be worth anything in the long run? Why buy more houses? Why not buy lots and lots of good farmland instead? And, maybe a tractor, seeds and cows. And a large gun. With a scope? Just wondering...
I just got a letter from GMAC staating I should reiance to a FIXED loan, I dont "get it" I dont have a subprime loan and I DELIBERATELY ASKED over 6 times (husband and sister were there as witnesses) and he said it will NEVER GO UP, now I find out I have a fixed adjustable where I am at 5.25 and SHOULD refinance to a 6% fixed non adjustable??!!! WHAT???!!
What the hell is with these people they are SO DECEPTIVE and it does NOT matter if you ASK they LIE! So we are refinancing higher now
I think I'll stop paying my mortgage, and when they come for my pile os stix that I worked hard building myself on loaned money I'LL just burn it and they can collect the ahes. By the way any rich folks out there wanna help buy my house off for me at $92,000 and I'll give you $1,000 a month for 10 years! By my calculations you make $28,000 in only 10 years with nothing to lose and my house would be all mine like it should be!!! Now don't that sound fair.
Fixing how we pay for real estate won't accomplish much until we fix the underlying economics. The underlying economics include the economics of land but not one person in many thousand understands that because after Henry George made the issue perfectly clear in the latter part of the 19th century, the vested land monopolizers hired professors to write and teach that land is capital. So what you say? Slave owners also said slaves were capital. A clue for the dispossessed of the earth. Us.
USURY is only prohibited to PEASANTS (like YOU and ME), not the people "IN THE BUSINESS". Ever since NORTH DAKOTA rewrote the CREDIT CARD LAWS, Credit Card Issuers can charge ANYTHING THEY WANT, and the US Supreme Court said all the other States have to honor it.
Your CREDIT CARD INTEREST can be as high as 30% (and more!)... plus all kinds of "fees". You probably could get a better deal from The MAFIA!
I bought a house in Canada 3 years ago this coming May. At my bank (Scotiabank) they wouldn't even entertain the idea of a 'Teaser' rate, you could get a variable rate but they recommended against anything longer than 3-4 years.
We locked in at 5% for a 10 year term and made sure we understood the deal in it entirety.
Banks have a license to steal!!! The whole system is fraudulent and rotten since deregulation and preys on people's stupidity. If there was truth-in-advertising many mortgage lenders would sit behind a desk with a ski mask on and a gun in hand as they coax the customer into signing on the dotted line.
Well I might as well not buy a house. Poeple talk about the American dream but I don't know, heck maybe you ought to just be a millionaire and buy the home therefore you don't have any mortgage payments. If you aren't making over 100000+ you might as well not buy a house. I hear people say renting an apartment is throwing away money but heck there is more to buying a house than just signing papers. Utilities, maintenance and taxes definitely adds to the purchase.
but youll eventually be able to sell it, and theoretically in the long run, prices will go up so you'll maybe even make a profit, by renting you're guaranteed to take a loss, just dont get suckered into the deal this clip warns about, and you'll eventually own your home outright and never have to pay any type of rent ever again, which will definitley make up for the utility costs
Bought my first home last year and man, you can plan all you want, but there is a gigantic flow of dough away from you 24 hours a day once you sign off on the deal. Met a rich guy who only rented apartments, he knows how the system works.
There you might be right. It seems almost pointless to consider home ownership. And renting--it is about as bad as a mortgage payment in some places. It's like, let's force the remaining would be first-time homebuyers into this scam by making rent equal to a mort. payment and sell them the idea that they could be building equity in a home instead of throwing it away. The government and greedy people have ruined something so basic as housing. It is a shame.
I totally agree. The idea of homes in real estate sickens me. So what is next after finally figuring out how not to be scammed? You are nearly forced to get a home inside an HOA! Or the other plague these days. You home automatically becomes an HOA without your consent. Every which way is next. Every possible way conceivable those with all the resource find ways to deprive you of yours.
As the dollar sheds value and loses its privileged position as reserve currency, US living standards will take a serious knock.
If the US government cannot balance its budget by cutting its spending or by raising taxes, the day when it can no longer borrow will see the government paying its bills by printing money like a third world banana republic.
The best warning yet, to sub prime morgatge buyers. I have seen many calculations explained, and this exceeds by far to simplify it to the core. Nicely done Armcrash!
Consumers are victims, always. "subprime" describes the class of applicants targeted in the mortgage scam. In 99.9% of cases the banks were/are fully collateralized. The entire mortgage writing process is a fraud. Reference the Credit River Decision 1968, Mn. and UCC exchange law. They killed the judge afterwards, but the decision still stands. Why do you think Goldman gave out $600M+ in bonuses for 2007?
Thank you for posting that in a way that is easily understood by all. I was a victim of the same thing, and had the same problem with re-fi. When I got my loan, the broker kept saying - Dont worry! You can re-fi before the rates go up! Didnt happen.
Here is the Bush plan. Your house was purchased for $500,000. You get the bailout for 5 years. Market declines or adjusts approx. 30% so now your $500,000 house is worth $350.00. The new 5 year bush loan plan at $3,000 a month which you are paying now times 60 months = $180,000. So now you own a house that is worth $350,000 30% decline but you are paying on a house that you bought for $500,000. After five years you now own a house worth $350,000 and have may no dent in your equity.
You will go down in history as the empire that DENIED the GENOCIDE of the FIRST CHRISTIAN NATION of the WORLD, The Armenians, while you conspired with the JEWISH BANKERS to defraud the world -- the same JEWS who had JESUS CHRIST CRUCIFIED. Americans, you torture and kill in the name of democracy and freedom. YOU are an ABOMINATION.
Truthful brokers lost customers to these option arm loans, but at least we sleep well at night knowing we did not put anyone into these loans that could not handle it.I thank God for my conscience.
Excellent, succinct video!! I wish this had been shown to all the unfortunates who ended up with these adjustable rate loans "before" they signed on the dotted line. To anyone who believes this was made clear to loan applicants, I have a house in SoCal to sell ya!
There you go stupid jackasses. You have done us all in because you cannot count. "I don't like math, I am an artist/writer/web designer/model/journalist(insert other lame occupation where math skills and real education are non-existent). I don't need math."
Nice elementary view of a complex loan intended for sophisticated borrowers. However - commissions are NOT higher for Option ARM loans and 12% of mortgages in 2006 also were not Option ARMS. If the figure of 12% is near anything it would be the percentage of ARM loans that were Options.
I'm an economist and Chief Operating Officer for a lender. Just because a journalist wrote it doesn't make it accurate. Then that is a major part of the problem today - most of the information in use is from writers and authors and not the people with their asses on the line.
Sophisticated people utilize other people's money through no guaranteed return investment contracts (you know the fine print) that might pay a small dividend. I believe many of these sophisticated people are called bankers.
No major news network has the courage to air this segment. Instead they show some complete idiot wearing a suit and throwing out words like "fed, adjust, stable, safe, etc..." while moving their hands a lot to look like they know what they are talking about.
These amoral parasites need to be prosecuted and put in jail. Forget deregulation - bring back usory laws and ENFORCE.. still another example of our current criminal administration. Yet, there are those who still support them - the rich and the blindly loyal (brainwashed). Unbelievable.
Some $600 Billion in ARMs will reset in the next 14 months, so we just seen the very beginning of the credit crunch. Look for a recession within a year or so.
ncntv[dot]org/events/homeownership07/ppt/6_taking_up_challenge.ppt#9 is the best chart I've found. The author of the ppt mistakes the x axis for weeks. X axis data is months to reset as of Jan. 2007 so disregard the purple bubble.
Once, I saw a man sitting under a cardboard box with a cutout for his window - his house I assume (i think he built it from the ground up with no financing)
mknewstub 6 months ago
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The same thing is happening to America. We are done!!! 44.5 million on foodstamps, twice that many on welfare or social security, real unemployment at over 15%, 1/3 of America's children are fat and diabetic, and 1.5 million abortions anually. This is the end. I hope all you liberal democrats are happy. You have successfully ruined the greatest country in the world. Freedom has been flushed down the drain.
09geauxtigers 7 months ago
i love how the american people take it right up the kazoo, no fighting back, no protest. in fact, they defend the banks and the bailout that should of went to the common people. if the bailout went to the citizens who are consumers, we would have spent the money and it would of washed back to the top. instead they kept it at the top, and the banks gave thereselves large bonuses. wake up america or get fucked more...
911jediknight911 9 months ago
@911jediknight911 Yea, the people who were the cause of the problem, got even more power after things went to crap! Funny huh? The relationship of power and money!
armcrash 6 months ago
It needs 120 years to repay the mortgages here in Hong Kong. By the time you or your grand-kids own the apartment, it has already broken into ruins.
stephentsang2000 1 year ago
@stephentsang2000 Thank you for sharing we will never get free of these sytems unless we share with each other what is going on. Japan also has more than one generation mortgages (which means death grip). Is one reason Hong Kong has a lot of business (better commerce rules) more open marketplace? I only ask because I think that is being controled then realestate is worth more in these areas, and they can then change the rules on you. Blessings
wolftreetree 1 year ago
@wolftreetree
The Hong Kong government uses the slogan "large market, small government" to attract foreign business investments. The income & business tax is indeed very low here, and is skewed to benefit the rich people. To balance the cheque-book due to low tax revenue, the real estate tax became the government's main financial source. Hong Kong government deliberately limit the land supply to push up the property prices, and speculators, banks & landlords work together to do the same. Damn!!
stephentsang2000 1 year ago
@stephentsang2000 Great comment. Wouldn't it be cool to see a comparison of each countries' mortgage status and the years to repay, etc. I suppose in some countries the mortgage isn't even worth the paper it is written on.
armcrash 6 months ago
@armcrash
Yes, that would be a more accurate way of measuring each country's real standard of living. Hong Kong's PPP per capita ranked 6th in the world, and yet people's living standard is even worse than people in some of mainland China cities because of the high property prices.
stephentsang2000 6 months ago
Great Video
ThePlatinumChild 1 year ago
What's with Beethoven's 9th?
gyrgrls 1 year ago
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0210cyntia 1 year ago
Find some homes at
forecloseddealz.cogia.net
prkoqui 1 year ago
No one held a gun to these peoples homes. Most of these people had 80/20 loans and borrowed money without considering the consequences.
I bought a house in 2000 and never refied, I sold my house and was not upside down because I chose not to cash out like so many.
Stop blaming mortgage companies for the loan papers you signed.
blauaugen63 1 year ago
@blauaugen63 Why would they ? Or should they? They had lousy credit and lousy job and got to live in a new house for the same amount of money as they paid for rent...You would too under the same circumstance.
drummerforreal1 1 year ago
@drummerforreal1
This is what happens when the government tells the banks they have to loan money to certain folks.
blauaugen63 1 year ago
Basically American homeowner are paying off a loan amount which is far higher than what the property is worth,which is what negative equity is.
drfan2004 1 year ago
The sky is falling in. The Global Pandemic flu is gonna get ya. The pollution is bad and wht earth is doomed cause of global warming...
and these fear mongering jerks don't have a dime invested in the markets, either
In 1966 you bought a house in Vancouver for $20,000 and 2 years later you bought a second smaler one fo r$18,000. THEN the market moved and today you sell that SECOND house for 2 million. Not bad return on the down of $2,000.
Only fools listen to dweebs like you
sparwood8 1 year ago
@sparwood8 Try to do it now dickweed
drummerforreal1 1 year ago
@drummerforreal1 Go back under your bridge. Little troll. This post is 4 months old.
sparwood8 1 year ago
@sparwood8 So what? Your post makes you sound like a lucky piece of arrogant shit that happenned to be living and buying in a no lose world. BFD. Impress somebody and make some good choices now microchode!!!
drummerforreal1 1 year ago
@sparwood8 = 65 year old loser that trolls my mail box after blocking me from replying. Coward jerkoff.
drummerforreal1 1 year ago
This has been flagged as spam show
@drummerforreal1 "65 year old loser that trolls my mail box after blocking me from replying. Coward jerkoff." wtf?, you're a 60 yr old serial troller that trolld memorial forums and makes fun of the dead guy to the people mourning them, you are the biggest loser most people will ever come across, just ask around if you dont believe me. Jeff the unemployed ex janitor lol.
guitdude09 1 year ago
@sparwood8 That;s cause your a bankster shill dude.
drummerforreal1 1 year ago
@sparwood8 + Gubamint fannie mae obama model buttplug shill.
drummerforreal1 1 year ago
sad and scary....
nextlifeguitarist 1 year ago
lol yeah some loud mouth bitch all telling her husband that he is a piece of shit and how her mamma said she shouldnt be living in a apartment. So the low self esteemed foo goes and leaverages money for a home. All because he stuck his wee wee in the wrong place.
festiveclown 2 years ago
Why do we ever let these people breed? Stupid people "Hooking Up" with other stupid people. Having stupid kids. And they hook up with even worse people and yet have dumber kids. At some point we need to get a handle on this. Animal breeders don't breed sick animals ones with defects. Why do we - the most intelligent species (rolling eyes) allow this to happen Ill never understand.
traffety 2 years ago
This has been flagged as spam show
Since it it Christmas day, I wanted to pray for everyone today. I am praying for the whole world in these troubling times. I know that the Lord Jesus Christ is the true king upon which the righteous government of the earth will someday be built. He is the only one that can solve all of these problems. He is the only one that can bring true peace. I pray for Him to bless you and keep you, and for His face to shine upon all of you and to give you His true peace and understanding.
mrraydean68 2 years ago
buyer beware!!!
greed is a thorn in your side..
live to your means.
mean to live.
MrMuse79 2 years ago 3
People can keep pointing fingers, but who is stupid enough to sign something without reading it or having their lawyer? Not to mention if I'm going to buy something on payments (car, house) I'm going to pickup a calculator and play with the interest and months of payments to see the cause and effect. Anyone signing a piece of paper thinking your going to finance 400K at 1300 a month has a hole in their head! That is a 3500/month payment! Or 4300 on a 15 yr!
ucannotescape 2 years ago
i dont think people are at fault, there should have been laws preventing this. lenders got to buyers through the sales pitch. a lender tells you you are going to make a fortune on your house with rising home values, sells the idea to the wife, that the kids need a backyard, this i is the best time to buy, you are going to miss the boat, you can do it..etc..anyone can get suckered in given all those conditions.
catharthic 2 years ago
who allowed it. who wasnt wastching this .its all set up to fail.
MrDeerecub1977 2 years ago
Nobody put a gun to these people's heads and forced them to take a time bomb mortgage. F 'em.
sritger 2 years ago
The banks are screwing people over and it is time for someone with a back bone to legislate new laws to protect the consumer. Oh and your attitude stinks
nomoreterrorism 2 years ago
My "attitude" is called PERSONAL RESPONSIBILITY. Fathom the concept.
sritger 2 years ago
Its all very well saying that the consumer must take personal responsibility, but it is the banks who knew what they were doing who have caused the chaos in the markets. These banks should be punished, but instead the gov use tax payers money to prop them up again. You and I must pay the price for the bankers who are stealing from us. Gov need to legislate and must do it to protect the people. Fathom the concept
nomoreterrorism 2 years ago
You'll be sayin' "eff me" when you're getting dragged out of your home for no reason.
marshemell0w 2 years ago
Not gonna happen. My shit's paid for!
sritger 2 years ago
@sritger just remember not to refinance like some people tried to do....... lol
689362003 2 years ago
laws allowed lenders to do this. they profited huge. laws should have been in place that prevented these sort of loans. obviously people didnt have bad intentions and were like im going to scam the country, they just wanted part of the american dream. now banks got everyones monthly payments, commissions, possibly even down payments, and on top...they get to keep the home once the people foreclose WHILE driving everyone elses home prices down. complete swindle
catharthic 2 years ago
There is a way to hold predatory lenders responsible, help people to keep their homes, and not put the tax burden on future generations. It is called term ownership. Do the research and tell your senator about it before it's too late.
lashark19 2 years ago
I know people that signed these loans.Most have already lost they're homes.
b2flyer1 2 years ago 10
This is a loan from a financial institution, if I didn't know better I would say you borrowed money of the fucking mafia
bcmalloy 2 years ago 4
Communism not comunism.
2112foru 2 years ago
Maybe we should rethink comunism and let the state gives us homes.
razlika 2 years ago 2
communism could work if it weren't for corrupt leaders and business men. If humans were not greedy, communism could work.
Crazyman1212 2 years ago
Communism removes the incentive for productivity. A visit to many parts of eastern europe (including russia) serves as a reminder. Its like walking 50 years into the past, stagnation, deteriorated bldgs etc.
The capitalist system was the best in history until Americans were duped into the privately owned federal reserve.
Greed is responsible for everything in your home. (greed isn't bad, political / economic systems are.)
chrisvet1 2 years ago 2
When I started buying properties 20 years ago it was a no brainer to get 20 year AM with weekly payments.
While Canadians were living in lala land buying left right & center in 2006 / 07 I was selling 50% of my worst income properties to pay off the best ones
Why? Only take advise from those who've done it better than you. In this case, I listen to multi millionaire real estate investors, not the idiots on TV, or bankers who know nothing.
chrisvet1 2 years ago
the internation bankers are just going to take your money and throw you into a labour camp like the rest of us.
Crazyman1212 2 years ago 3
I hope your wrong - but years of research says its either that, or a series of natural / man made disasters that will change this world drastically.
The upside is having the means to construct elaborate underground self sufficient shelter 100's of miles away from the nearest civilization.
The question however, is when do you go into hiding.
chrisvet1 2 years ago
@Crazyman1212 I hope your wrong, because I'm to ill to put up much of a fight, and I have elderly parents who would be sitting ducks, sweet loving people, my dad is blind in one eye, do you think he could put up a fight.
wolftreetree 1 year ago
WOW! If this is true, then this is a ticking time bomb! There is no time left!
dcprotests 2 years ago
Their goes my future,lol.
Marlon1416 2 years ago
lol, great video. very educational. I can't believe people buying a home and never calulating the real costs...no wonder america is in so much trouble
drunkenmonkeyrage 2 years ago
America Tax payers give around one third of its foreign aid budget to Israel
Israel's citizens are among the wealthiest in the world,
50 million plus of US citizens cannot afford basic health care
Israel's foreign aid allotment is 3.36 billion per year of OUR taxpayer money
it actually works out at $50,000 dollars in aid per head of every Israeli citizen directly and indirectly.
I dont want anymore of my taxes going to Israel what can I do?
debrabee 3 years ago
Israel has 7 million people. Divide that into 3.36 billion and you get about $500 per head. Also, U.S. foreign aid was estimated at over $20 billion in 2008 (Council of Foreign Relations). So, 3.36 billion is about one sixth. But, I read this: "The $6.72 billion figure does not include loan guarantees and annual compound interest totalling $3.122 billion the U.S. pays on money borrowed to give to Israel. " (Washington Report on Middle East Affairs). Less than 1% of the stimulus bill , hehe.
armcrash 3 years ago
And add to your mix that that 1/3 that is given to Isreal is actually 50% of the total foreign aid strapped on American taxpayers over the past 60 years.
chrisvet1 2 years ago
@debrabee = Bullshit with numbers, lets try some facts. Saudi Arabia provides more USA petrol dollars than these numbers to build mosques each and every year, and even more $ to promote it's version of Islam. Israel is a real democracy unlike it's Arab neighbours and most of Asia. And Israel has more patents per head of population as their brains are their main resource. Pitty you left yours in your shoe.
regappleby 1 year ago
@debrabee = Bullshit with numbers, lets try some facts. Saudi Arabia provides more USA petrol dollars than these numbers to build mosques each and every year, and even more $ to promote it's version of Islam. Israel is a real democracy unlike it's Arab neighbours and most of Asia. And Israel has more patents per head of population as their brains are their main resource. Pity you left yours in your shoe.
regappleby 1 year ago
Great information! Thank you for helping educate people. Here's another resource to consider. FederalHomeLoanMods(dot)com
LouieFrias 3 years ago
This is a fantastic video!
Every person ready to sign on the dotted line should watch this first!
amylou1238 3 years ago
or better to have a realestate lawyer present.
3089280288 3 years ago
lol great point (only the biggest investment of your life) - as long as the real estate lawyer is not working for the bank, broker, selling agent, appraiser, or escrow,
armcrash 3 years ago
look at the demographics of this mess. Mostly in southwest..ehum.. near the Mexican boarder.
to blame Americans is a bit of a farce.
to blame aggressive lenders would be good.
to blame open border policy would be finest.
thanks for the vid lot of good info!
uturniaphobic 3 years ago
true,but many are americans of all demographics.
sandroeleven 3 years ago
ok I am referring to proximity of the boarder.
and the amount of sub-p lending that took place there compared to elsewhere. It's higher here.
Not blaming illegal immigrants either. I point to those who exploited these circumstances.
to me, it shows us that humans will do anything for a buck. even undermine their own country.
uturniaphobic 3 years ago
Good video - however it is astonishing that Americans have become so collectively stupid that someone has to explain to the them that if you just make the minimum payment, you'll never pay off your mortgage. No wonder Bush was elected twice...
ram16821 3 years ago
yeah america is a scammers dream....lots of takers
sandroeleven 3 years ago 2
Solution:
watch?v=9NDnQ9eBoHM
jarevnow 3 years ago
Wow that was awesome!!!!!!! Goodbye economy!!!
Euph662 3 years ago
congrats!
Kcastle001 3 years ago
The Jewish bankers who caused this need to be held accountable:
Lloyd Blankfein: Chairman & CEO (Goldman Sachs)
Martin Feldstein: Director (AIG)
Alan Fishman: CEO (WaMu)
Richard S. Fuld, Jr CEO (Lehman)
Stephen Roach: Managing Director & Economist (Morgan Stanley)
James E. Cayne: Former CEO (Bear Stearns)
Alan Schwartz: CEO (Bear Stearns)
Alan Greenspan Former Chairman, Federal Reserve
Ben Bernanke Chairman, Federal Reserve
atencopic 3 years ago
yeah mainly the federal reserve... most think when they pay the federal tax it goes to the government.. we are being robbed and if everyone only knew about it this would change.. sadly this shows how people dont check these things.. just pay blindly and figure it's okay cause everyone else is paying for it..
shadowlesswalls 3 years ago 2
Attention USA YouTube Subscribers:
For more information regarding ENDTHEFED 11/22 Rally "National Day of Support for Constitutional Sound Money"
go to ->>
w w w(dot)AbolishTheFederalReserve(dot)com
ENDTHEFED US 11/22/08
prayfortruejustice 3 years ago
Stupidity is a dangerous thing.
HoSayLiaoLah 3 years ago 11
This is a great and quick example of the zero sum game that the uneducated are sucked in to. You get what you deserve when you think that you deserve beyond your means. Think about it. No one gives less of a fuck about the proposed American dream than money lenders. They have their own American dream to fulfill at your expense. Get your head out of the clouds and think.
seditionape 3 years ago
You are correct. The people who took these loans are not to smart. Their quest for a beautiful home blurred their better judgment. And of course the bankers were motivated by greed.
Noahgoy 3 years ago
I also agree. People live above there means and expect other to feel pity when they loose there house. My wife and I are both college grads but the first thing we did not do was take out a 300,000 loan. Evaluate you income and expenditures and figure out what you can AFFORD. Still some people will not learn. Don't come knocking on my door and asking to help. I earned what I have. That's the way it should. No DEBT!! Anyone want to respond!!
colman324 3 years ago 3
It is common sense. Debt is bad.
Noahgoy 3 years ago 4
Everyone was motivated by greed, including homebuyers. They expected to make money for nothing - they just call it equity. People bought homes with no money down because they wanted a life style they couldn't afford. Or, they borrowed on their 'equity' so they could have an SUV, granite countertops, and a vacation in Barbados. It doesn't require an education to buy a home. It requires some research, realistic expectations and financial prudence.
kabloozie 3 years ago 3
This is sad but what is sadder is people such as myself who bought a $300,000 home back in 2000 and put down $200,000 on it. My mtge payment is about $1700 a month due to high property taxes in NJ. My interest rate is only 5% on a 15 year FIXED RATE, NOW I am getting nervous because if I lose my job, I could lose my house and all my equity. Our governor (Corzine) keeps raising our taxes; property taxes on a 1600 sq ft house are $8,000 a year and going up, up, up. Democrats love raising taxes.
Srhandel 3 years ago 3
Srhandel You have got to sell your house FAST we are going into a Deflationary depression the value of your house is going to keep going down and down for years, all your equity will be wiped out.Dont get locked in on the slope of hope that most people will thinking prices will rise again in a few years they WONT. Go to elliotwaveinternational and pay $89 dollars for the global perspective report it will be the best $89 dollars you have ever spent.Once you have read it you will understand.
marky1333 3 years ago
we have relatives in NY - I can't believe the amount of property taxes they pay. It's astounding.
You guys need a Prop 13. I think with this housing mess, maybe it will happen.
kabloozie 3 years ago
gh jhgj f hc dj hfkh gfkhj fgkh
fxterrapin 3 years ago
The U.S. debt is actually over $45 TRILLION.
Srhandel 3 years ago
Buyers that can, should make a 1/2 payment in the middle of the month and end of the month. I paid my loan off in half the time by this method, and my home mortgage was at 10% fixed (Fannie in 1985).
ech77066 3 years ago
@ech77066
Did your bank hassle you about doing that? I've been thinking of it but I have BOA and I'm nervous about not getting proper credit that way.
wolftreetree 1 year ago
This is such a perfect example of what has happened!
Predatory lenders with ignorant people signing their names on the dotted line.
WE ARE BOTH AT FAULT.
Consumers were looking to compete with "the Jones'" and look rich when they weren't.
We reap what we sow.
Remember, LENDERS ARE NOT YOUR FRIENDS!
towel64 3 years ago
million of americans stood back and did nothing when the bad people sucked from america now there going to get what they deserve
tomanyasses 3 years ago
A vivid example of what's partly been going on with the mortgage crisis. Banks love mortgages - any kind of mortgage - because they make a lot of money on them over the amortization period, so long as the loan doesn't default.
The subprime lenders schemed up these 'circus and pony' mortgages to take advantage of the low interest rates during the economic slowdown after 9/11. We can now see the damage this kind of lending has caused in the United States and beyond.
HowieTheFink 3 years ago
US debt now at over $10,000,000,000,000. I am running out of room.
RJWooller 3 years ago
Try 51 trillion
b2flyer1 3 years ago
jobs lost in greedy banks great ha ha ha
hujjesb 3 years ago
700 Billion = $2,333 per person for a population of 300 Million
Current National Debt:
$12 TRILLION = $40,000, per person, for a population of 300 Million
The Fed receives 6%, by law, in dividends
for every US$ printed... to pay loans that provide the World economy with $US dollars.
That means $2,400, per person, just in annual interest, on $12 TRILLION, for a population of 300 Million!
Has anyone in Congress read the Constitution?
statesRcountries 3 years ago
the people havent even read it why should congress
tomanyasses 3 years ago
"Current National Debt:
$12 TRILLION = $40,000, per person, for a population of 300 Million"
The last realistic estimate is 51 Trillion, Yet,we start more wars,and bail out Fatcat Banksters,while the country falls apart.
b2flyer1 3 years ago
of course McCain is a real and respected patriot. But can he understand the economy mechanics? Is he able to make the right choices? See what the republican did to the economy... military budget, financial risks...
raoulhery 3 years ago
why did i put every penny i had into it??? cause a billionaire on tv said you'll never get rich unless your debt free. Why pay out 7% when you can get 7%, the difference is 14%!!! Banks are a scam to treat people like cattle and gain wealth over them. we are slaves giving power to a few unkowns
bomberfan99 3 years ago
6 years ago i bought my 4 bedroom house, paid it off in 5, 30 years till retirement :)
bomberfan99 3 years ago
Very nice video : ) good JOB
Aztekss 3 years ago
America MUST RIOT if this bail out plan for the criminals goes through.
Dandaniels1978 3 years ago 2
time to kill all the money-grabbing jews?
northernTide 3 years ago
you can't do what is popular and do well, it is always the same story. And it is not just the institutions, it is mostly the people itself who just do not care about being lied to. In fact, what is happening right now, is like a tax for an ignorant mind!
tomfromeur 3 years ago
That reminds me of my student loans
Susieshepherd 3 years ago
I gave my butt to the bank and my heart to Jesus LOL
bigdog49094 3 years ago 3
Blame greedy lenders, sure, but the whole thing is built on the questionable morality of investing in real estate for the purpose of cashing in on its increasing value. The housing bubble is a land speculation bubble obscured by calling it a "housing" bubble as if houses could increase in value when all they ever do is depreciate while contractors madly increase their supply. Land speculation is a scoundrel's game since nothing is gained except at the expense of others. Sacred right of property?
ourearthhome 3 years ago 3
It's nice to know that the geniuses that implemented these and other great vehicles get to keep their millions in bonuses for creating so much artificial wealth.
ddubrul 3 years ago
Thankfully I live in a cardboard box with a nice view overlooking the resevoir
debaucheryBotched 3 years ago 6
Debauchery I just love my van down by the river.
bigdog49094 3 years ago 4
how about this anytime u sign a legaly binging contract bring these items: highlighter, magnifing glass, microscope, and a lawer
speedboo 3 years ago 3
Part 2 of 2:
6) Common Sense: Mortgage salespersons had less regulation/education/licenses (or none in practice) than your personal stock broker. Why would you trust that person with the largest investment of your life - a magnitude 10 to 1000 times greater than a mutual fund investment. And the mutual fund managers trusted them :)
7) Simple Math: U.S. students lag behind other countries' students in math, science, and technology. Make math a priority & fun. Invest in math education.
armcrash 3 years ago
Part 1.5 of 2:
3) Rich get richer - there is a metric called the "Gini Coefficient." Google it :) It lists by country
4) Home appreciation - we have so many other examples in history. A look at Japan's housing decline in the 1990s would provide some insight
5) Inflation - I always thought that the inevitable way to repay these ubiquitous loans were through massive inflation and devaluation of the dollar (i.e. bailouts)
armcrash 3 years ago
Part 1 of 2:
Wow - I noticed some great comments recently.
I made the video. Here are my responses.
1) Option ARMs: Yes, they were created for the rich who had enough in the bank to beat interest. Then, standards got more lax.
2) Politics: Obama is against mindset of increased quarterly profits on Wall St. which contributed to lax standards for higher revenue (Option ARM). McCain is about moral and responsible borrowing. Both are good. We need to read more.
armcrash 3 years ago
The mal investment should go bankrupcy as well as all companies involved including FED, then we will have correction. Bailing out mal investment at the spense of our profitable business or citizens, or through inflation debasing the dollar will just create more problems for everybody, even for the same banksters who started the whole bubble.
ficote72 3 years ago
Nobody will lose their homes because they never were their homes, they never paid for them. And the world will not end, if they can pay a mortage they can also pay for an apartment.
ficote72 3 years ago
Part 2 of 2:
Secure a mortgage on bottom end of home prices as they begin to rise. Rent the place out. Just as home prices hit the peak. Sell the house and make a profit. Repeat same process for multiple houses and repeat when the time is good to do this again. That is the ARM loop hole. Investor pays ultra low rates for a short time, rack it in, and laugh at all the long term suckers.
Anothercoilgun 3 years ago
Part 1 of 2:
People, do you not understand the purpose of an ARM. ARMs were created as loop holes for investors. Actual residence were not meant to take part is this loop hole. Well, wealthy smart nomadic residents could come out on top. Which is just the definition of my use of the word Investors in my previous sentence.
Anothercoilgun 3 years ago
these are the greatest videos. If they taught simple math in American schools maybe less people could have been duped into these crazy loans.
OmarThePug 3 years ago
Bush is nothing more than an Israeli agent. A pawn.
scottroberts44 3 years ago
I was leaning towards Obama until now! I just read the Washington Post. Obama got a sweet heart deal when he purchased his mansion. No Points, no origination fee, and a lower interest rate. Why? Because senators monitor and regulate the lending industry. he basically was paid off to look the other way and NOW our home values are dropping and foreclosures litter the landscape. Obama YOU ARE scum for taking this legalized pay off! You have cost us A LOT of EQUITY and MONEY!
RadicalDemocrat 3 years ago 3
Research Hon. It was debunked. He got a 5.6% interest rate and they NYtimes stated it was from good credit.They noted it was the going rate for the area in HydePark and he sold his 3 bedroom condo, to put as a downpayment. It was manufactured that people in the neighborhood started to complain that it was wrong assessment. This was his first home unlike does with 8 homes. Moreover, i think it was people like Dodd who got special rates.
jeun23 3 years ago
good thing that we OWN our home. It's this new concept called: Having what you can actually afford!!! If own your home, this video is comical.
DIZZZZY1975 3 years ago
Touchet Dizzy i concur. I do not think people who lost their homes is a laughing matter for me personally but i do agree with people living within their means. On the other hand i can't feel to sorry for those who over extended themselves with ARM loans in homes they could not afford in the first place. Didn't anyone do the math or atleast consult someone who knew how to read a amortization chart? how did people not understand that a $400,000 loan at 6% is not $800 per month.
costamesa22 3 years ago
Can you afford gas, and food and basic health insurance? If so, good on you. This isn't my father's economy. And I hope you never get sick or injured and get plunged into bankruptcy. God bless the system. Rich get richer and the middle class get poor.
HarjasKaur 3 years ago
That is just evil.
truthsabre7 3 years ago
Man... I might as well leave my house and get an RV
I'm a veteran, and I got a VA and was given the impression that when my loan adjusted I would go from 5.25% to somewhere around 6.25% if it went up that year (and that its capped) and wouldnt rise much more then a point, and if it was higher the following year it would go up to 7% (etc. etc). I'm screwed, I got excellent credit but I cant afford payments like that. My house is "not comparable" to other houses so I was denied refinancing
KARStarla 3 years ago
LOL!! USURY LOL!!
It takes an IDIOT to get used. L O L!!
tomincal 3 years ago
You people are IDIOTS! LOL you blame the banks for your stupidity. I got my first job in 1975 while living with my parents. I saved my money. 3 jobs later while in a low rent apartment I had enough to buy my first home CASH. My wife and I still own that home and rent it out for 1200.00 / month. I owned 9 other homes out right by 2004 and sold them all by 2005 knowing that the bubble was going to burst. I now have plenty of cash free and clear and will buy when we hit bottom in 2010 - 2012.
tomincal 3 years ago 4
Good for you tomincal. You did things the old fashioned way and it pays. But I wonder, will all your cash be worth anything in the long run? Why buy more houses? Why not buy lots and lots of good farmland instead? And, maybe a tractor, seeds and cows. And a large gun. With a scope? Just wondering...
hartley8184 3 years ago 4
I just got a letter from GMAC staating I should reiance to a FIXED loan, I dont "get it" I dont have a subprime loan and I DELIBERATELY ASKED over 6 times (husband and sister were there as witnesses) and he said it will NEVER GO UP, now I find out I have a fixed adjustable where I am at 5.25 and SHOULD refinance to a 6% fixed non adjustable??!!! WHAT???!!
What the hell is with these people they are SO DECEPTIVE and it does NOT matter if you ASK they LIE! So we are refinancing higher now
:(
KARStarla 3 years ago
I think I'll stop paying my mortgage, and when they come for my pile os stix that I worked hard building myself on loaned money I'LL just burn it and they can collect the ahes. By the way any rich folks out there wanna help buy my house off for me at $92,000 and I'll give you $1,000 a month for 10 years! By my calculations you make $28,000 in only 10 years with nothing to lose and my house would be all mine like it should be!!! Now don't that sound fair.
captbeazy 3 years ago
Fixing how we pay for real estate won't accomplish much until we fix the underlying economics. The underlying economics include the economics of land but not one person in many thousand understands that because after Henry George made the issue perfectly clear in the latter part of the 19th century, the vested land monopolizers hired professors to write and teach that land is capital. So what you say? Slave owners also said slaves were capital. A clue for the dispossessed of the earth. Us.
wtfitzgerald 3 years ago
I LOVE THIS VIDEO.ARTHUR ROBINSON
americanplanninginc 3 years ago
I am so very thankful that I have a 5.85 fixed rate.....phew
utubeuser1971aok 3 years ago
USURY is only prohibited to PEASANTS (like YOU and ME), not the people "IN THE BUSINESS". Ever since NORTH DAKOTA rewrote the CREDIT CARD LAWS, Credit Card Issuers can charge ANYTHING THEY WANT, and the US Supreme Court said all the other States have to honor it.
Your CREDIT CARD INTEREST can be as high as 30% (and more!)... plus all kinds of "fees". You probably could get a better deal from The MAFIA!
AsianAmerican68 3 years ago
.....In the bible......they call it usary....renting money
vachief 3 years ago
I bought a house in Canada 3 years ago this coming May. At my bank (Scotiabank) they wouldn't even entertain the idea of a 'Teaser' rate, you could get a variable rate but they recommended against anything longer than 3-4 years.
We locked in at 5% for a 10 year term and made sure we understood the deal in it entirety.
Paetaor 3 years ago
Banks have a license to steal!!! The whole system is fraudulent and rotten since deregulation and preys on people's stupidity. If there was truth-in-advertising many mortgage lenders would sit behind a desk with a ski mask on and a gun in hand as they coax the customer into signing on the dotted line.
loveliberty1776 3 years ago 2
Banks have license to steal and people have license to borrow without limit. Yes just shift the responsibility to someone else.
moniequa 3 years ago
Well I might as well not buy a house. Poeple talk about the American dream but I don't know, heck maybe you ought to just be a millionaire and buy the home therefore you don't have any mortgage payments. If you aren't making over 100000+ you might as well not buy a house. I hear people say renting an apartment is throwing away money but heck there is more to buying a house than just signing papers. Utilities, maintenance and taxes definitely adds to the purchase.
tanio12 4 years ago 4
but youll eventually be able to sell it, and theoretically in the long run, prices will go up so you'll maybe even make a profit, by renting you're guaranteed to take a loss, just dont get suckered into the deal this clip warns about, and you'll eventually own your home outright and never have to pay any type of rent ever again, which will definitley make up for the utility costs
crazyclown003 3 years ago
Bought my first home last year and man, you can plan all you want, but there is a gigantic flow of dough away from you 24 hours a day once you sign off on the deal. Met a rich guy who only rented apartments, he knows how the system works.
guitarsrule1 3 years ago
There you might be right. It seems almost pointless to consider home ownership. And renting--it is about as bad as a mortgage payment in some places. It's like, let's force the remaining would be first-time homebuyers into this scam by making rent equal to a mort. payment and sell them the idea that they could be building equity in a home instead of throwing it away. The government and greedy people have ruined something so basic as housing. It is a shame.
jdc8000 3 years ago 2
I totally agree. The idea of homes in real estate sickens me. So what is next after finally figuring out how not to be scammed? You are nearly forced to get a home inside an HOA! Or the other plague these days. You home automatically becomes an HOA without your consent. Every which way is next. Every possible way conceivable those with all the resource find ways to deprive you of yours.
Anothercoilgun 3 years ago
As the dollar sheds value and loses its privileged position as reserve currency, US living standards will take a serious knock.
If the US government cannot balance its budget by cutting its spending or by raising taxes, the day when it can no longer borrow will see the government paying its bills by printing money like a third world banana republic.
Vote Ron Paul
sallyann22 4 years ago 7
The best warning yet, to sub prime morgatge buyers. I have seen many calculations explained, and this exceeds by far to simplify it to the core. Nicely done Armcrash!
Shaftttttt 4 years ago 3
Now I know why moslems thinks whom charge interests are evil!
kurohune07 4 years ago 9
Consumers are victims, always. "subprime" describes the class of applicants targeted in the mortgage scam. In 99.9% of cases the banks were/are fully collateralized. The entire mortgage writing process is a fraud. Reference the Credit River Decision 1968, Mn. and UCC exchange law. They killed the judge afterwards, but the decision still stands. Why do you think Goldman gave out $600M+ in bonuses for 2007?
guesswhotoo6 4 years ago
Thank you for posting that in a way that is easily understood by all. I was a victim of the same thing, and had the same problem with re-fi. When I got my loan, the broker kept saying - Dont worry! You can re-fi before the rates go up! Didnt happen.
angelsoulnme 4 years ago
Here is the Bush plan. Your house was purchased for $500,000. You get the bailout for 5 years. Market declines or adjusts approx. 30% so now your $500,000 house is worth $350.00. The new 5 year bush loan plan at $3,000 a month which you are paying now times 60 months = $180,000. So now you own a house that is worth $350,000 30% decline but you are paying on a house that you bought for $500,000. After five years you now own a house worth $350,000 and have may no dent in your equity.
Hopefl1 4 years ago
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AMERICANS,
You will go down in history as the empire that DENIED the GENOCIDE of the FIRST CHRISTIAN NATION of the WORLD, The Armenians, while you conspired with the JEWISH BANKERS to defraud the world -- the same JEWS who had JESUS CHRIST CRUCIFIED. Americans, you torture and kill in the name of democracy and freedom. YOU are an ABOMINATION.
insidebetween 4 years ago
Truthful brokers lost customers to these option arm loans, but at least we sleep well at night knowing we did not put anyone into these loans that could not handle it.I thank God for my conscience.
Queens1969 4 years ago 6
Great video that is packed with a lot of great info. Thanks
back2naturemom 4 years ago
Excellent, succinct video!! I wish this had been shown to all the unfortunates who ended up with these adjustable rate loans "before" they signed on the dotted line. To anyone who believes this was made clear to loan applicants, I have a house in SoCal to sell ya!
sunnystreets 4 years ago
thanks for being one of those who see that the emperor is naked. what a shame for the future generation affected also would be theirs.
taps0865 4 years ago
There you go stupid jackasses. You have done us all in because you cannot count. "I don't like math, I am an artist/writer/web designer/model/journalist(insert other lame occupation where math skills and real education are non-existent). I don't need math."
Once again the hippies have killed us all.
schizrade 4 years ago
Nice elementary view of a complex loan intended for sophisticated borrowers. However - commissions are NOT higher for Option ARM loans and 12% of mortgages in 2006 also were not Option ARMS. If the figure of 12% is near anything it would be the percentage of ARM loans that were Options.
reibroker 4 years ago
Thanks, but I need your sources...mine are business week. Doesn't match up.
armcrash 4 years ago
I'm an economist and Chief Operating Officer for a lender. Just because a journalist wrote it doesn't make it accurate. Then that is a major part of the problem today - most of the information in use is from writers and authors and not the people with their asses on the line.
reibroker 4 years ago
Sophisticated borrowers?
That might be an oxymoron?
Sophisticated people utilize other people's money through no guaranteed return investment contracts (you know the fine print) that might pay a small dividend. I believe many of these sophisticated people are called bankers.
kirkifer 4 years ago
Thank you very informative.
Kalydosos 4 years ago
Now you're back where you started again lol. ARM's, another scam created by the criminal mortgage industry.
alanhowitzer 4 years ago
No major news network has the courage to air this segment. Instead they show some complete idiot wearing a suit and throwing out words like "fed, adjust, stable, safe, etc..." while moving their hands a lot to look like they know what they are talking about.
texan176 4 years ago
That's true - but they will air it in the future, lol.
armcrash 4 years ago
2 words..........Full Documentation
christophgerald 4 years ago
These amoral parasites need to be prosecuted and put in jail. Forget deregulation - bring back usory laws and ENFORCE.. still another example of our current criminal administration. Yet, there are those who still support them - the rich and the blindly loyal (brainwashed). Unbelievable.
phosphotase 4 years ago 4
Aw hell, the govt just comes in & takes it by eminent domain! No win situation!
:/
VonHelton 4 years ago
The fools in this country are preparing to vote Democrat to show those dirty Republicans, right?
Remember: There are no democrats and there are no Republicans. There are those who have and many many more who have not.
kirkifer 4 years ago 4
Just remember: wealthy people are WEALTHY FIRST and people second.
floridaredhead 4 years ago 3
Some $600 Billion in ARMs will reset in the next 14 months, so we just seen the very beginning of the credit crunch. Look for a recession within a year or so.
JoeDebtor 4 years ago
Where did you get that data? I was looking for it...
armcrash 4 years ago
ncntv[dot]org/events/homeownership07/ppt/6_taking_up_challenge.ppt#9 is the best chart I've found. The author of the ppt mistakes the x axis for weeks. X axis data is months to reset as of Jan. 2007 so disregard the purple bubble.
jasonama 4 years ago