👉Mortgage Market Meltdown : Delinquencies Reach Highest Level Since 2011 !!

👉Mortgage Market Meltdown : Delinquencies Reach Highest Level Since 2011 !!



A house was a need, then it became an asset, and now an investment, and even speculative instrument in many cities. Buying a house in 2020 would be like buying a house in 2006! Anyone who buys a house right now is either a millionaire or an idiot. In about September or a little bit after, the government stimulus package will end, and you will see the real economy plays out. Layoffs will skyrocket, followed by bankruptcies, followed by foreclosures, and followed by the great abyss of depression. The average house is way beyond affordable for the average income in many areas of the country. We are overdue for a correction. It is a myth that an average income person should be able to afford an average priced home. There is a reason why less than 2/3 of Americans own their homes, and the rest are renters. If you have a mortgage or you're looking to take a mortgage out in their future or even refinance, then you definitely need to watch this video to make sure that you're fully informed. There is a clear imbalance between the state of the economy and the price level in the housing market. To take advantage of the low mortgage rate, it's unwise to pay $100K more in the conforming or $200K more in the jumbo market. V-shaped short-term reversal is not 'necessarily' recovery; a recovery is a sustainable event, so it's too early to talk about recovery. Welcome back to The Atlantis Report. You are here for your daily dose of the truth, the whole truth, and nothing but the truth. Please take a second to smash that like button. Thank You. Nobody in their right mind should acquire any more debt at this time. Instead, everyone should focus on getting out of debt and save, save, save for that mansion that’s around the corner. The average house is way beyond affordable for the average income in many areas of the country. We are overdue for a correction. The housing crash will happen after the auto loan default and credit card default. The housing market will be called next; it is a domino effect. The U.S. Housing Market Crisis Is Inevitable; Here's Why. Today U.S. household debt tops $14 trillion and reaches a new record. It added $193 billion of debt in the fourth quarter, driven by a surge in mortgage loans, and overall debt levels rose to a new record. Mortgage balances rose by $120 billion in the fourth quarter to $9.56 trillion. Now just to put all of this into perspective; In 2008, our entire economy had a meltdown. The banks collapsed because of mortgage debt, guess how much! How much was that debt back in 2008; 800 billion dollars! The unemployment rate today in 2020 is higher than 16 percent. Real unemployment as per shadow stats is closer to 40 percent. Compare that to less than 10 percent rate in 2008 when we had an economic bust. The economy is a dead man walking. Today Home-Mortgage Delinquencies Reach Highest Level Since 2011. Only 15% of homeowners in forbearance made payments as of June 15, down from 28% in May and 46% in April. What we have now is historic debt; a historic number of people with no income,45 million are jobless, and forbearance that allows those folks to not pay their bills until six months from now. The big question is, what happens six months from now when they have to start paying back their bills! What happens when the gravy train runs out! Many experts are claiming that very soon. You won't even be able to get a mortgage because so many banks and mortgage providers will be going bankrupt. Overall the banks have a very very high risk of taking on any new mortgages right now, and they know it. This is why they are declining mortgage applications in record numbers. We're already seeing tighter lending policies, especially if millions of people are now going to be living off 80 percent of their previous earnings. According to the mortgage bankers association or the MBA, about 8.55 of the mortgages are currently in forbearance, and that equates to about 4.3 million homeowners. Black knight, a company that provides data to the real estate and mortgage industries, reported that about 80 percent of people in forbearance right now have at least 20 percent equity in their homes. The homeowners who are at greatest risk of losing their house to foreclosure down the road are those who have lost their job and are not getting their job back. And despite The Federal Reserve cut interest rates to almost zero, surprisingly, mortgage lenders have actually increased their rates. This is due to the high demand they claim. The banks are not your friends. You've got to get that clear; they are not your friends. The banks know that a lot of people are afraid of losing their jobs, so they're increasing these interest rates. And people haven't really got a choice; they either accept it now, or they wait knowing they may lose their job and they won't be able to get a mortgage. So really these banks are preying on vulnerable people. The bank pay's you .05% interest on your savings account, but charge you 18% compounding interest on your credit card. Won't help much when 65% of Americans couldn't afford or have the means to cover a $400 emergency, and that was pre-COVID. So, wheres the downpayment going to come from! 70% of Americans carry $10k or more in credit card debt. Millions of people have lost their jobs permanently during COVID. How and who will benefit from record low mortgages? The people who already own and corporations that eat up the property. Unless they are going to loosen up lending restrictions and get back to subprime mortgages, which will lead to another 08 recession, once the pent-up demand due to the lockdowns wanes and the statutory restrictions are withdrawn. The real estate market will see a steady decline. The mere fact that 45 Million people lost their jobs and the vast majority of whom are homeowners will negatively impact the real estate market. Americans have skipped payments on more than 100 million student loans, auto loans, and other forms of debt since the coronavirus hit the US. The latest sign of the toll the pandemic is taking on people’s finances. The number of accounts that enrolled in deferment, forbearance, or some other type of relief since March 1 and remain in such a state rose to 106 million at the end of May, triple the number at the end of April, according to credit-reporting firm TransUnion. US home-mortgage delinquencies climbed in May to the highest level since November 2011 as the pandemic’s toll on personal finances deepened. The number of borrowers more than 30 days late swelled to 4.3 million, up 723,000 from the previous month, according to property information service Black Knight Inc. More than 8% of all U.S. mortgages were past due or in foreclosure. The increase in delinquencies was smaller than the 1.6 million jumps in April when the economy ground to a halt nationwide. Still, the path ahead is clouded by the spread of new Covid-19 cases, uncertainty over business reopenings, and the looming expiration of benefits that have helped jobless homeowners avert delinquency. Just wait till the mass evictions start, and the government now owns your home or apartment complex. 45 MILLION UNEMPLOYED;( with many more not counted) and more underemployed. And What about the 37 million of homeless people living under the bridges and supermarket parking lots begging for food and winter clothing; are they accountable to the 45 million jobless! And Illegals not included, that adds another 10 million easily. If you want a government-sanctioned hovel, then you must sign up for universal basic income and a vaccine. Families are going to be thrown out into the streets, and all their luxury items will be seized under civil asset forfeiture. Black Rock got 2 billion to gobble up homes after the scam of banks telling mortgage holders: " don't worry for three months" after that, you can't pay everything now? Lose it. They are partners. Bank gets a kickback for stealing your house for a 15 billion hedge fund that, for some reason, needed 2 billion more. Black Rock has over $7 TRILLION that enables them to purchase huge numbers of bankrupted businesses and foreclosed homes for pennies on the dollar. They bought up huge swaths of repossessed homes after the 2008 economic meltdown and then drove up rents across the country as absentee landlords. The US government just handed $6 TRILLION to massive bailout corporations like Boeing and cruise lines, while small and medium-sized companies couldn’t even get the application submitted for a bailout. Apparently, this “bailout” heist was planned before coronavirus emerged. The coronavirus is a smokescreen for the biggest heist in history. The virus didn't inflate this giant bubble. It just ended it. The pandemic was used to transfer wealth to eliminate the middle class and enslave the world. It was a master plan to steal trillions of dollars from taxpayers and save big corporations and Wall Street. The biggest transfer of wealth in history. Big banks and corporations were collapsing in debt, the repo market was completely out of control in Sep 2019, they had to do something, so they used this pandemic as an excuse to get billions of dollars in bailout money. Hedge funds and Wall Street walked away with billions. The government bought mortgage-backed security, junk bonds, everything. Wonder how many houses are going to be owned by banks after this is all said and done. Like 2008, except small businesses thrown in this time, it'll be the greatest transfer of wealth from the middle class in history. And like all Bank-owned houses, they will be stripped of all the copper, heating eq, anything that can be taken. Around here, banks let people live in the houses so the thieves wouldn't wreck them. Wait for boomers to start moving to Florida and leave the housing market from natural causes. That's when prices will really drop. That's exactly what's coming down the road. All western countries have huge amounts of baby boomers, and when they get older, they will need to cash out. We will see the biggest housing crash in history. The only reason prices were going up is everyone was Buying. Once the boomers start selling, it is the end of real estate. A huge bust is on its way. I think you better be prepared. Get a tent and a hobo stove. You will need it. What the fed and the government are doing now is delaying the problem and kicking the can down the road, which makes the problems even bigger in the future. Everything now because of COVID is in delay mode. Delaying the problem does not make the problem go away. It simply sets a new timeline for that problem. We are living on borrowed time. When stimulus payments end and the moratorium on evictions is lifted; We will see 35 million new homeless by the end of the year. Over $50 million in unpaid mortgages this month alone. Mortgage literary means "Death Pledge" in Latin. The Federal Reserve is destroying Savers right now by printing unlimited fiat cash, so the price will be inflation, and a wave of stimulus checks. Debt-free is the only way out. Building society and banks pay a pittance for people's savings but still charge over inflation rate and definitely a lot less than the savings rate, and it this money that they give as mortgages as far as I am concerned legalized thieves. And Nationwide has adverts saying they are for the people, what a load of tosh. How they jump from 0.1% interest to 5, 10, or 15% per year those "mortgage lenders"? What kind of job can you have to pay a $250K for a house! It has no meaning! But if you calculate in another way, the loan is created to never be repaid, and the "lender" repossessing the house, after a while. At that moment, the system has a meaning. A clear mean meaning! All in the plan. America will only have the big corporation's to deal with. Just look at who and what the government declared as essential, and you will see your future economy, no more middle-class businesses! The entire made up recession in the name of COVID 19 was to put people in more debt which is an asset for the creditors, More money for Wall Street's Ponzi scheme. In Germany, by the way, unemployment went from 4% to 6% because the German Government gave money to the People, not the RICH. The government has a perpetual claim on your assets, and it's called property taxes. No one owns anything in America except for the government. "Buying a house" is a long term rent that is permanently married in with property taxes. Try to stop paying taxes on a paid-off house, and you will quickly find out who owns your house and the land it sits on, hint - not you! The concept of ownership implies that a purchase price + sales tax is paid only ONCE. That being said, a homeowner is someone who voluntarily becomes a lifelong victim of legal racket and extortion. The tax structure should be changed. No one should be forced to lose their home in their golden years. Yet it happens every year. There are more equitable ways to get the funds needed to support the Government like income tax, sales tax, etc. In Pennsylvania alone, over 18000 people lost their homes because of the ever-increasing school tax on property. When the other taxes are used, instead, everyone pays to support the Government services, and the burden is not left on the homeowner. Housing people are the most optimistic people, but it takes a lot of optimism to buy a house and tie up your income for 30 years, Well, that is easily accomplished when you have real estate agents (the notorious "Realtors" and mortgage brokers colluding to get people to buy too much house with too big a loan... it requires instilling a LOT of optimism in that hapless buyer, and by gosh, they do it. Their commissions depend on suspending the disbelief and caution that any right-minded person would have when being asked to commit to perhaps the most illiquid and most expensive of all assets. Realtors always say that the best time to buy a home is today, no matter what time of year it is. A lot of people fall for pump scam. Buy a house because you want a home, and are willing to make the sacrifices that it will demand of you, but don't buy it as "an investment." If you want good returns, there are many better investments. The only problem is that they don't offer the eye-watering leverage you can finagle out of your bank when getting a mortgage. That gets a lot of people's greed-meter pinned into the red zone. As long as prices are too high compared to income(which it is in many areas), there is zero chance of a good year for the housing industry. The median-income, home buyer in Los Angeles, pays 103% of his monthly income for his newly bought, median-priced house payment. The FED might want to focus on making a sustainable economy, and not just focusing on preventing an asset price collapse for the baby boomers. The more these prices go up ridiculously for various assets, the less confidence I have for the US economy, going forward. The FED's version of inflation is not based in reality. The FED is lying to us about the economy to prop up the over-leveraged banks from collapsing. Wages can not support current housing prices. I wonder how property bubble 2.0 will end? Soon, only Chinese millionaires and billionaires will own houses in America, and Americans can rent from them. This was The Atlantis Report. Please Like. Share. Leave me a comment. Subscribe. And please take some time to subscribe to my back up channels, I do upload videos there too. You'll find the links in the description box. You will also find a PayPal link if you want to make a donation. Thank you wholeheartedly to all those of you who have already donated. Stay safe and healthy friends!
















Peter Schiff is a well-known commentator appearing regularly on CNBC, TechTicker and FoxNews. He is often referred to as "Doctor Doom" because of his bearish outlook on the economy and the U.S. Dollar in particular. Peter was one of the first from within the professional investment field to call the housing market a bubble. Peter has written a book called "Crash Proof" and a follow-on called "The Little Book of Bull Moves in Bear Markets". He is the President of EuroPacific Capital, which is a brokerage specializing in finding dividend-yielding, value-based foreign stocks.