All Forum Posts by: Account Closed

I believe we're at the high of the market, so I'm selling off most of my inventory and preparing to buy again when those 8,000,000 people facing foreclosure start feeling the pinch. I'm not saying that all 8,000,000 foreclosures will hit at once, I don't think that will happen. I think the government will step in to stop that. 

But as they open the flood gates even a little, I'll be prepared. The banks will start turning the screws on people who are behind and put a LOT of pressure on them to sell or do Deed in Lieu. Most people don't like that kind of pressure and will sell just to get out from under it.

I think (although no one knows for sure) that in about October/November 2021 we'll see a fair amount of foreclosures and people who have been in moratoriums wanting to sell. On the east coast, mortgage foreclosures take a while to get through the court system but on the west coast it's a relatively fast cycle because of DOTs. So, timing is important and being liquid is essential.

Or, I could be entirely wrong and move to a Llama farm in Uruguay in shame. ;-)

Credit Unions are great. My unsecured LOCs are with a Credit Union I've had accounts with for a couple of decades. I haven't had a "bank" account, must be since the 1980's. After what I've read about the things Chase, Wells Fargo, Bank of America etc have done to people and the economy, I have no pity if they should go under. Just do a search and weep. 

Did they say WHY they wanted out of consumer debt? It's been very profitiable for them over the years. What has changed? Why would they leave such a huge market? There is always a reason banks make a huge decision like that. The signal to us is that they ARE making the change, buut they won't advertise their prosition. You have to think like a bank.

It's a common practice to have a bank or an investment firm say one thing in the media, to set one kind of expectation by retail investors (mom & pop investors with 401(k)'s ) who then follow & invest the same way and then do something contrarian to reap the benefits.  Look up Pump & Dump.

I can't really claim that I came up with all of that myself. Tho' it does make sense.

It's from someone a whole lot smarter than me. It's from the one eyed autistic odd ball MIchael Burry, who called the 2008 debacle and made a few hundred million in the process. He is at it again . . . (and no, he didn't say anything about alien invasions ;-) This time I'm listening to him.

https://www.businessinsider.co...

 You are what the American Dream is all about. I'm very proud of you. Keep it up.!  

There are two huge looming factors, either of which changes the presidency.

I've specialized in these scenarios for the last 25 years. There are things to do and things not to do depending on your goals and capital position.

The best solution is to pay what you owe and be done with it. Foreclosure is nothing to ignore, of course.

If you can't do that:

1. Lenders sell their loans all the time. Depending on the new lender, you may be able to request a loan modification. It doesn't hurt to ask. 

2. If they won't do a loan modification they plan on taking the property if you don't bring the loan current. Some loans are backed by the government, FHA, VA, USDA , Fannie & Freddie and that means the loss to the lender is lessened. If it's a VA loan, contact the VA immediately for advice on your particular situation.

3. No investor in his right mind lends to someone in foreclosure. If they offer you money, it's so that they can get the house. And there are plenty of avenues to winding up with your property.

4. You can't borrow your way out of this unless it is family or friends (make sure you put together a written agreement if you go that route.) Your credit score is trash right now anyway.

5. You can sell your property up until the day of the auction, it is still yours.

6. There are specialized options as well, but they require more information and have to be discussed in confidence. So, for sure, don't away give personal information in a public forum.

7. Time Matters. You have to take action now, immediately.

Agreed. And as you remember, the whole crisis in 2008 wasn't a housing crisis per se, it was a liquidity freeze. Businesses couldn't get enough liquid capital to operate and pay their bills because they rely on banks and investment banks to fund them on a daily basis. 

When push came to shove, because of fractional banking (which is a disgrace) and then banks using money that legally should have been held in reserve, instead used that money to invest in Collateralized Debt Obligations, which it turns out nobody understood how to properly rate for risk, & it caused contagion ( a cascading effect). Wells Fargo sees it coming again and is smart enough to prepare this time.

Banks and our present economy rely on the velocity of money and the velocity stopped. Here we go again . . .

Will it be today, probably not, but that is Exactly what was thought the day before the collapse. It's probably just the beginning of the beginning, but it is coming.

Watch for Black Swans: Bank Bail-ins, sudden change of U.S. presidency (which is what I predict in October-November  2021 timeframe), China invading Taiwan (not this year), proof Covid was developed in China as a BioWeapon, not naturally occuring, a shipping container shortage, (already happening), a computer chip shortage (already happening), 8,000,000 possible foreclosures, the ending of the foreclosure moratorium, the ending of the eviction moratorium and whatever BLM & Antifa have planned (riots, etc). One of those or one we haven't seen before could send it all crashing down. It happens like clock work and it's always the one you don't expect. 

But, Wells Fargo believes they know something that we don't. Congratulations. You get to go through 2008 all again. This time "Think Different".

 Kind of expensive to buy a rental on credit cards isn't it? ;-)

When banks start restricting credit, they are not confident about people's ability to repay. That means the use of Lines of Credit, HELOCS and other lending for real estate investing will dry up too.

Customers have been given a 60-day notice that their accounts will be shuttered, and remaining balances will require regular minimum payments, according to the statement.