[Music] Welcome back to real estate mindset Today's video is going to be absolutely Bonkers because I have an amazing Colleague and friend with us today I Have Melody right here to preach the Gospel uh maybe I think it's gospel Maybe you don't maybe you do but we're Going to talk today about the St and Rental foreclosure crisis that is now Starting you guys we got massive amounts Of foreclosure clusters happening in Texas it appears to be from landlords Could be Str strs could be long-term Rental but one thing is for sure it's Just not the same investing in real Estate right now and if you choose to Invest in real estate right now odds are You're going to be greatly at risk and So I have again Melody here with us Today to share some warnings to share The story Melody right welcome back to The channel how are you today I'm doing Well Travis how are you doing I'm good I Feel like I butchered that intro you Know what I'm going through Melody I Have mold all around me I just found a House I'm moving into I have a medical Procedure I'm doing the best I can girl How you doing you said good Same it's been a crazy uh what Summer Started two days ago but it's been a Crazy post uh school getting out time For me but you know hanging in there
Yeah and real quick Melody I want to Just show the viewers again if you guys Want to support us you know spec Especially Melody go to her YouTube Channel uh like And subscribe there but Also if you really want to support us as Content creators you can subscribe to Melody substack she's a writer I wish I Was a writer she's also a GFC Survivor So she's got some good stuff uh you know What I like about your writing most Melody it's you know a lot of people Have data visualized data but it's your Heart it's your soul that you put into Your writing I find it very refreshing Because it makes me feel like a normal Person I'm seeing headlines at the Economy is doing great and then I open You know X and I see there's what was it 800 900 brand new for clo in one city is Is tell us what's Happen well yeah so we just saw a tweet This morning we don't have too much Information I was just doing some Research Travis um to and and trying to Get in touch with this individual but he Posted on Tik Tok I think he may be Either I think he's a property inspector Or maybe an appraiser one of the two I'm Not sure um but he has some sort of job Where he has to go out to these newly New foreclosures and and I think he's Calling them foreclosures I honestly Think they're probably pre foreclosures
What you have to do um you know right Before you're going to refer to Foreclosure you need to do a really good Property inspection um you know you want To know if the tenant is in the home and Things like that so I don't know for Sure why he knows about these uh new 900 uh foreclosures or maybe Preforeclosures in Irving Texas which You Know Travis that's where you and I Stayed that night when we met with the Ladies of well we didn't meet with them We passed them on the Road um in that crazy hotel with the uh Security and we had to have a code yes That was very uncomfortable that was Actually a little scary and also I mean It's depressing because and what she's Talking about guys is how do I say this And not get like a Strike women of the night okay she's Talking about women of the night I mean We were in Dallas uh staying at what we Thought was a very you know nice place We're doing our Metro tours and things Like that and on the way there man I Mean it was just it was just a sight of Dallas um that I've never seen before Right and that's actually where all These foreclosures um are pre- Forclosures are uh the the person on Tik Tock said that you know he had 900 he Had to process the next couple weeks I I Really think he's a property inspector
And so I think that's what's happening But um the way they're clustered makes It look like it could be potentially a Single family rental operator that is Going bankrupt because they're all Clustered in one area but I kind of Looked on um Irving uh County Recorder Site and they're not at a point where They're um you know announcing the sale Which is why I think that these are Probably Pre-foreclosures and Melody just for the Viewers let me show the viewers what We're talking about I just pulled up the X tweet right here so this is what came Up and I'm not sure if it was it was This morning it was this morning right You you text me this morning like Travis I just taxed you on the story we got to Talk about it but this is it right here You guys this uh person on X will'll Leave the link in the description Basically saying there's 900 Foreclosures in irin Texas that just Came in literally a sege of foreclosure And Melody I don't know what software I Think we're trying to figure out what Software I'm trying to figure that it Almost looks like property radar I'm not Sure um but it could be a proprietary Software so that's I'm trying to get in Touch with him um I guess I have to Create a Tik Tock account uh but I I'm Trying to get in touch with him and
Hopefully I'll be able to get more Details on all of this or just figure Out um one of these addresses because Once I can figure out one of the address I can do more digging but you know let's Just put it this way likely guys Everybody has been holding foreclosures And you know and honestly if you're the Non-bank or Bank who has those Properties uh you're looking for any Reason not to refer them to be real Honest um it it's just a it's a hassle And then there's just so many Requirements to refer that anything can Happen and we know these servicers Technology is just so old and you know I I'm telling the story anecdotally of a Client uh that I have who's trying to Refer vacant property right now since January and has and there's no and and Honestly the agencies and and and um Jenny made they they want you if it's a Vacant property they they expedite the Timeline because they think of course There's not a homeowner there now I Don't want anybody getting foreclosed on Except for people who maybe these Investors who lied and said they were Going to be owner occupants um but in Reality like I don't want to see regular Homeowners get foreclosed on but it Happens and when you can't when you Can't pay um sometimes it's the least Stressful option because being under
That burden for so many years you know I Managed to fault and it is just it's Really uh you know you see the worst of Humanity um you see some of the saddest Parts of humanity and the worst of Humanity and that's the fraud that's the Fraud it's not the people in their Hardship and then the saddest are just The people's stories and you know every Application for a modification you have To write a hardship letter and they're Just you know they're they're Heart-wrenching like they they're and These are real people in trouble and and The problem is that a lot of those Investors though um kind of have taken Up so much of the pie it's the real People in trouble that are going to get Get burned and they're also going to get Burned because they're going to turn Around and try to sell their house as a Way to exit and they're not going to be Able to do it and I I can't remember it Was you Travis that showed me this or Somebody on Twitter um Deen lose uh just Shut up and that's what's happening so Let me tell you what aided and I mean You know Travis but for other people What a deed and L is is essentially it's When you're uh in foreclosure you're in The foreclosure process um and they come To you you can't do a short like you're Let's say you could potentially do a Short sh sale that's your option but
Aided and Lou is just a a bit easier in In the sense that uh you just hand over The deed back to the bank and even if You have a deficiency um and basically a Lot of times your deficiency will get Waved in a de Lou um and if if they Can't short sell it so actually as I was Talking and thinking about it you likely You can't short sell it because you Don't have any interest and that's and So the fact that Dean L are going up you Know is very interesting because when People who are in default they're the Whole time they're thinking well I'll Just sell my house I'll just sell my House it'll be fine they're gonna list It and they're going to realize that all That Equity they thought they had is not There and then the clock is running out So anyway Melody let's let's really I Think this is a way way bigger story uh You know then and I know we need to do a A little bit more research as far as the Intimate details title reports let's see How much Equity they have but to me this Is just an underlining problem to me the Bigger problem is the unaffordability I Mean when we really unpack this and help Me unpack this if you will Melody I want The viewers to understand what's really Happening here we're talking about Investors we're talking about people That went into purchase real estate that Are generally got backing they have
Resources they have ability to get Liquidity they do research right they're Looking at wedge they're looking at cash Flow demographics schools the job market They're looking at all these things and To have a sudden surge of 900 investor Foreclosures again it's to me it's Spelling out the underling problem and Melody again can you help us unpack you Know how big a deal that is and and why It's happening again it's probably cash Flow property taxes homeowners insurance Skyrocketing but what I'm really trying To do to the viewers Melody if these Investors that have these programs and These subscriptions and all of this help Are failing rapidly overnight like that To Me it's again it shows that the normal Everyday American citizen that recently There's that's the key word right the Recently purchase real estate are in the Same boat it doesn't seem to me be Because the first thing I thought of When when I heard that story and you got To unpack this for me um is why didn't They just sell if it's an investor They're smart I mean why aren't they Just selling why go to foreclosure Melody what do you think is the real Issue here and what do you think Happened if we were to kind of guess a Little bit what happened here why is There a sudden surge of 900 foreclosures
In a small section of the country Yeah so as we said we don't have the Details but you know in these in these Situations where you have these kind of Mid-tier operators you know they're so Overleveraged um you know we're seeing I Also tagged you on a tweet uh earlier as Well about a foreclosure of a multif Family building in San Antonio that was Cross Collateralized meaning they were Pledging part of the asset on one loan And and part of a different asset on That same loan and then over on the so Double double Cal okay so that there's So much leverage out there because Everybody was giving it out like candy I Mean they really were if you had a good Credit score it was like the last time Non-traditional products you know and so You'd refy and refy and refy and refy And a lot of times what these guys would Do that I've seen some is they would Actually pretend to sell a property to a Fellow investor You know have that deed and then they Would show this as a a way to support That home price that was paid when in Reality no home that that wasn't paid It's just a way to um you know get more Money and so likely what's happened if This if this is investor driven and not Just a slew of foreclosures that's Coming online because we're finally at a
Point where it's they've reached their Timeline and I'll talk a little bit About that Travis so people people can Kind of understand or or know what to Expect but if it if it is invest they're Just walking away and this happens so Much in the GFC and and unfortunately Some of them committed suicide I mean it It's not a happy story and I'm not happy About it but they walk away they just Walk away they and and they Disappear and you can't find them Anywhere that legitimately could be Something that's happened to to your Point the increased property taxes and Insurance everybody just kept thinking They're going to make it they're going To make it number go up number go up Number go up they'll be able to refy It's just the same old song and dance uh From you know the previous crisis you Know and and I like how you pointed out To the viewers I mean to I mean you're In the back end so you see this all the Time I'm in the front end so I see it Differently I see as it pertains to Consumers but you basically said they're Overleveraged yeah and Melody do you Think that they got over first of All I got to be careful how how to say This but it seems like every s s Le Freaking investors overleveraged you Know every it also seems like every Single investor that calls themselves a
Millionaire has more money in debt than How much they're actually worth so it's This whole oh I'm A Millionaire you mean You have you know 10 properties and your Equity is a million dollars but yet you Have you know five million dollars in Loans is that your idea of a millionaire Overleveraged investor with a huge ego That's super naive that's really pissing Me off you know um But they could have overleveraged when Rates were 0 to 2% when Equity was Skyrocket marketing I mean you know What's changed okay you we know they're Overleveraged a whole bunch of people Are overleveraged but this is a it Appears it's again finally starting to Happen these little clusters exploding What's changed Melody well there's no Demand I mean but due to affordability And then as you just said rates have Increased people can't go back to the Till for one of those you know 2% 3% Loans like um you know and it happens to To to us to you know individuals it also Happens to com companies you can look at Rocket mortgage right now uh they just Uh came out and they said well we Negotiated our 1.5 billion facility to Extend till 26 it's now a billion okay So what happened there as L lender said You're not getting 1.5 dude you're Getting one and this is this will this Is what's happening all over the country
To people individuals and to Banks and Non-banks and companies where they're Turnning around they're saying hey You've been giving me the candy for a Whole uh for years what do you mean You're not going to give me the candy And everybody thinks that they're Special everybody thinks that their Relationship with their banker and their Lender is special and they're going to Get certain considerations no you're not Special you're not special and Travis I Don't know if you I don't think you've Probably seen the drama that's been Happening on what they call re twit or Retweet Twit that's What's happening there that's real Estate Twitter and what you're seeing is These GPS or general Partners um limited Part these people that have been out There selling courses selling Shilling Shilling Shilling multif family Shilling You know real estate they're just Shutting down their accounts they're Just going dark I mean not not like you Know it's just gone it's just gone not Taking a break the accounts are getting Deleted um and so the drama is getting Real out there in real estate Twitter Because all these we it's it's happening Guys it's going to take time but it is Starting the implosions are happening And and this is our doctors and lawyers
And everybody that kind of our super Prime who are chasing yield I mean That's what they were doing they just Wanted to make they couldn't put it in The bank and make any money off of it so They chased yield they chased return and Our super Prime are coming under stress Believe it or not and so demand is just Not out there there aren't other Investors Travis who are going to buy Those 900 properties um at this price Because it will not cash flow it doesn't Make sense and it's just going to be an Albatross around their neck and this is And again melan this is really really to Me this is a huge deal Because it's sold okay around mainstream Media around society that when Institutional investors purchase houses They do not sell them when institutional Investors and investors purchase Property single family residents and I Hear this all the time again from more Bullish they never sell them they are Locked up forever but actually Melody We're seeing you know I need to see more Data but it appears that actually Investor foreclosures defaults uh you Know notice Noods it seems like at least in my area I know it's a pocket it seems like it's Exceeding residential for normal Residential primary residence Foreclosures that's a big that's a huge
Deal and and if I want to take this a Step further Melody I'm going to show The viewers one more time let me show Them that map okay now first of all guys Look at all those foreclosures okay yeah Is that if we compare that little Section to the entire nation yeah it's Barely any but if we just compare it to Those residential neighborhoods right There that is a huge huge like bomb of Foreclosures Melody can you please talk To the viewers about how a flood of Foreclosed properties selling for under Market value how does that affect local Markets yeah well it destroys your comps I mean it just destroys your comps and So uh you'll see if you live close to This place the minute those go to sell Um you know your estimate is likely Going to change if Zillow actually you Know acts uh in good faith um so right Yeah so but that's exactly what happens But and The Jig is up I mean this is the Thing like that survey on uh you know is It a good time to buy a house it it's Never it's the it's the worst it's ever Been in terms of that survey people Think this is the worst time to buy a House so your little tricks your little Fomo inspiring Antics they just aren't Going to work anymore on most people and Of course yes there's a few but most People are like no I'm I'm not GNA do it I'm not I mean Travis you're a prime
Example you could do it you could but You know better it's not like no this Doesn't make any sense and so I think That we might have applications up for Mortgages right now but what I've seen From optimal blue is our pull through Rate is down meaning that people are not Qualifying they may be applying but They're not qualifying and so nobody I Mean this just doesn't make sense it's Not logical we cannot afford these home Prices and just to put you know just to Talk about my situation a little bit Because it pertains to what you're Saying you know let's basically a flood Of foreclosures of that extent that we Just saw it's gonna more than likely It's gonna put at least put a lot of Pressure on prices going down it's G to Make prices go down but the thing is Melody here's the problem and this is Why this is a bigger problem than the GFC in my opinion because it's more Embedded in like the system because of Inflation um if value goes down okay I Found a house you know that I'm in a Mold house I I tried desperately to find A house that fit wedge cash flow I loved I couldn't I put two offers on houses I Have to rent but regardless I found a Property 21% wedge so the property I Worked a deal out to where they're going To sell it for under market value so the Market value is here but they're going
To go under they're going sell all right Travis we want to sell it we're Desperate it's been on the market for 150 days whatever 21% of equity all Right so I'm walking in with about 70,000 In wedge right so I could ref I I could Do wedge right fake Equity right we Still it's not real but it kind of is When in a normal market and even with That 21% of wedge I passed on the Property Melody for one specific Reason the property Insurance I can't cash flow I can't cash Flow the property insurance on this House and this was only like a about $340,000 house all right that's my price Point I don't need like you know Supreme So it's a $340,000 house the yearly Premium of insurance was $5,800 it should have been $2,000 that means that house is $380 More per month than it needs to be now It was a special circumstance because The roof was older my point in saying This is if if there's a consumer if They're looking you know in the market Don't just think it's a great deal Because you can buy a house for Now okay it's not just it's not just Price anymore okay and it's not just Just your mortgage payment it's the Other payments that are flexible that Are a not Flex securing costs right yeah
And and they vary property taxes change Pretty much every single year pretty Much homeowners insurance changes pretty Much every single year and what I'm Saying to you and I'm saying to the Viewers you guys right now at least in My Market at least on this property even With a 20% decline in value it's still Did not make sense for me to purchase The the risk versus reward it's just not I'm just not willing uh to take that Type of risk and I See I see that same thing happening Because Melody correct me if I'm wrong But if those are 900 investor Foreclosures I'm assuming that those Investors know other investors and other Investors want to make good deals and Make money and so my question is well They should have never got foreclosure To begin there so there's so right There's so many people on the sideline Melody that's right they're dry powder Okay Sorry told you I was Spicy get spicy Melody we got so many People saying that there's so many People on the sideline that they're Going to scoop up all these houses well Why did those house get Nood right exactly and it's just like so You know everybody's just hoping it's Like a you know it's like a Cereal uh fra they everybody just wants
The the the game to keep going right and So it's like you take a story like the There was a story in Bloomberg two or Three days ago on breed or blo uh you Know the Blackstone real estate trust And it was just talking about how um you Know they really they you know they Close down redemptions and they but They're finally they're finally in a Steadier footing where they're paying People out and so it's supposed it was Like this weird story that was supposed To be kind of like a cautionary tail About what Blackstone had done but they Have this new fund that has 65 billion That's dry powder that they're starting To deploy but because they saved breit At the last minute in 22 by that California capital injection which at The time I said uh Capital injections Are never a good thing guys something Bad is going on but they saved it and so They're going to be smart with that new 65 billion are they they're building Their own data centers and so let's just Say that maybe this whole AI thing might Be a little overblown I mean Travis you And I have seen so many data centers Empty data centers empty industrial all Over the country they're everywhere and They're empty so why are you building More and so I I think they're gonna do Exactly the same thing but this article I I can just I know exactly who this
Article is talking to it's it's talking To someone who thinks yeah yeah it was Close call with the FED doing all that But these guys are so smart and they've Got dry powder guys that's just they Want the fees they want it's just they Want the juice they're just after the Next juice and that's that's what They're chasing and they're it's it's Gambling with you know pensioners money That's that's what your money taxpayer Money is being gambled and your pension Fund is gambling and so it it's just you Know I know a lot of us don't have Pinions Travis and like especially in my Generation but you know that used to be A big thing for a lot of people and it It is still very important to many Americans in the country that are living On fixed incomes and if that blows up I Mean that's that's that's your parents Your I mean this is this is just could Be very very ugly yeah I mean I would Say that the government and the FED Needs to step in to regulate all this Fraud corruption and greed but then the Other part of me says well if that Happens then it's going to be even worse So just like we're in this situation Melody where Really we can only trust Ourselves and we're underprepared most Of us are underprepared with just how This process works as far as foreclosure
As far as data as far as purchasing a Home people just don't care they don't Know they feel overwhelmed I mean I've Been doing this for over 20 years part Of it yeah the overwhelmed yeah and when People feel overwhelmed they pull back a Lot of times and they want to stay Comfortable in their bubble and they'll Just look the other way exactly and and And that is that's actually a survival Technique you and I were talking about Compartmentalization before the show Started and that's a survival Technique We have as humans of being able I mean It's you know it's the same reason we Don't sit around every day thinking About how the universe is created I mean On a no no I'm just saying if we did we Would go insane we would even you know We have to rely on our faith we have to Rely you know but our brain RS would go Nuts and and so I I understand why it's Happening it's just I hope that we can Get some people's attention and to help Give them the tools to navigate what's Ahead because it's going to be it's it's Not going to be Pretty yeah it's not I mean and there's More pain to come unfortunately and That's really what I'm trying to tell my My viewers at least is like you guys we Still have opportunity to like save Re-budget change your spending habits It's not too late take from my own
Experience if I would have just changed My lifestyle six months before I had my Foreclosure it'd be completely different Because I was still making money six Months before it's I look back I'm like Oh my God it feel like it happened Overnight well let me bring us to the Next Thing okay so we're talking about again To the viewers we're talking about Foreclosure clusters we're talking about The Foreclosure clusters so far Appearing like it's coming from Non-owner occupied homes so investment Properties Melody and and you talked About this a little bit in the beginning Of this video but do you think that These type of overnight foreclosure Bombs or clusters do you think that's Going to occur and again I know you talk But do you think that's going to happen More and more throughout the country and Do you have any locations kind of like Dallas area where you think that it's a Higher risk than other areas well Guys so for typical mortgage mortgages Nah you know that it just quickly let me Do the timeline you have to be 120 days delinquent before you get Referred to foreclosure but most people That's when the clock starts because Nobody's going to refer you I mean if You refer someone to foreclosure and you Don't do XYZ a bcde e f g h i I mean
It's you should see what a pre Forclosure checklist looks like Travis It's it's pages long you have to do a SC Search you have to do that's searching With the Department of Defense to see if They're on active duty you have to do a Bankruptcy search you have to do a Property inspection you have to make Sure if there each state has certain Pre-foreclosure notices did that letter Go out in this batch if it didn't the Clock starts all over again I mean it is It's maddening what you have to do on a Typical GSC agency Foreclosure non qm you don't have to do Any of that do you nqm Do you find that investors no no you're Good um you just you hit me because I Was thinking I'm like my god do you Think that investors are taking Advantage of the of the Foreclosure Loopholes do and why would they if if They would do do well anybody anybody That knows is going to take advantage I Mean yeah I see investors in my client Books right now that took the co Forbearance that you know like that are Trying to do modifications yeah they're Going to take advantage and by the way Consumers have been educated on this as Well like I think I told you the Anecdotal story about a borrower who They the servicer was trying to reach Them for over a year and the first time
My client heard from them was a doj Complaint you know and they made one Payment one payment so you know anyway But back to your point because I think This is really important is that these Non-qm mortgages are not subject to the Cfpb rules right and so they will Execute on the contract ra versus the Cfpb rules and that will go much faster Especially somewhere like Texas which Has a much shorter foreclosure timeline Than anywhere else in the country except For Georgia you brought up a good point And I want to talk about this all right And and for the viewers I want I want to Separate out non-qm versus investment Owned property because an investment Owned property is not necessarily A Non-qm in fact and that could be because Of fraud right it could be because of Hiding the occupancy but here's the Thing okay let's let's let's just talk About primary resident versus non-owner Occupied and then I want to tell the and Talk about non-qm versus qm because That's huge as well Melody because Because what I really want to talk about Melody because I think you will know This is is in Wonder under what context Does qm turn non-qm right what context Do you lose those rights but first Primary yeah primary resident versus Investment property are there different Rights so so like if I'm an investor but
I have a qm mortgage like a conventional Non unoccupied mortgage so I did it Legit do I have different rights as you Know compared to as if it was my primary Residence I don't think rights is the Right word I think procedure yeah There's different procedures although During covid that just kind of all went Out the window and so Travis what you're Remembering about the difference between Invest Invest investment properties held for Investment by individual borrowers as a Second home or investment property um a Lot of the distinctions got wiped away On Co and and so have you know there I Gotta be honest with you if it's a GFC Loan just yeah until we get to the point Until we get to the point that the Administration wow whoever that may be Admits that we are in Dire Straits Economically uh just forget it there Aren't going to be foreclosures there Aren't you know what's crazy Melody is Just like it's it's hitting my soul like I never like it takes like I feel like It takes two people sometimes you help Help me grow so much um it's not fair if They're treating non unoccupied investor Homes and they're giving those investors The same foreclosure procedure or Similar rights as primary residents They're basically telling investors hey You have the same right to keep that
House as if it was you know you your own House that you're living in so that's One thing but let's go back now and Let's talk about qm fraud and and for The viewers what melan are talking about Qm versus non-qm all has to do with the Great financial crisis uh during the After the great financial crisis The Dodd Frank Wall Street reform and Consumer protection act legislation is The biggest piece of legislation I Believe was passed in 2009 and in 2009 This new piece of legislation gave Protection for mortgage lenders uh from Lawsuit because they're saying like hey Lenders if you give a loan to someone That can't afford it they can sue you And the banks like what like what do you Mean they could sue us so if a lender Gives a loan based on these guidelines It's considered a qualified mortgage and By offering qualified mortgages these Lenders have protection almost an Immunity almost from lawsuit however When they don't do that say they offer a 40-year mortgage say they offer Prepayment penalty say they offer Interest only loans it now turns into a Non qm or non-qualified mortgage and in Those situations Melody what you're Saying is non-qm they don't H unlike the Investor qm mortgages non-qm has almost No foreclosure rights is that correct Well all right
So I mean what's gonna happen though Travis so believe me they will execute On the contract they've been executing On the contract however when we get in Dire Straits the just like they did with The VA loans they're not going to look They're gonna the the AGS will do a Moratorium like they did last time uh The AGS will come in and put on a Statewide moratorium and so I guess my Biggest point is is that you're not Going to see a bunch of distressed Properties showing up on the market um In foreclosures until we get through the Election likely uh and there could be a Lot of regulatory overhang where it just Takes a whole bunch of time like it did Last time a whole bunch time even for Investors but you're right they don't Have the same protection and hopefully Hopefully um you know some justice will Prevail but the ones where it will Happen Travis will be when they when They've walked away completely I mean That's because then that's blight on the County and the the government will want That to be taken care Of I'm just starting to real like it's Like it's like hitting me like a ton of Bricks so sorry just to no I'm glad Thank god um just to put this in Perspective for the viewers okay when They did those foreclosure moratoriums Those helped out investors just as much
Those foreclosure moratoriums also Worked for non-qualified mortgages which Is BS but it did uh the moratoriums Protected everyone and Melody I want to Talk about now let's talk about the Occupancy fraud you know there are Investors we don't know how many we Don't know the percentage but there are Investors purchasing real estate and Saying it's going to be their primary Residence by doing so that's a qualified Mortgage they have a lower interest rate They have an ability to do higher Leverage which means little down payment Melody isn't it isn't it po I mean it's Fair to say that if we can prove that These people are committing fraud even Though it's started as a qm qualified Mortgage if there was fraud or or any Thing like that in the origination part Of that loan it could then be turned Into a non-qm loan is that right well It's going to get repurchased and if it Gets repurchase then it's a whole loan And it's no longer backed by the gsc's And yes it you you essenti it won't Become a non-qualified mortgage uh now Well are you saying uh specifically if You find that there's fraud well if you Find that there's fraud it will no Longer have the qm protection correct But but yeah but as a whole loan it you Know all of these institutions Travis Everybody's just terrified like they
Don't they know I mean foreclosure is Just So the reality is that it is a big bad Word and it gets you know there's a lot Of emotion around it and since the GFC It it's just It does not work it just doesn't work I Mean I I've been contacted by people who Their houses went into foreclosure back During the GFC and they're still Fighting it still living in the home I Mean and and so it it's just to me this Is why I I don't see foreclosures as a Big part of my thesis because you know Are they going to let those hit the Market likely not like right now you Know what the agencies are doing is are Selling it off they've been doing this Since 2015 all the delinquent out to Investors wanting them to take care of The issue wanting them to be more Aggressive with modifications and things Like that but when things will start to Actually move is when there's nobody There left to buy it yeah and then You're going to see the gfcs start to be Way more just like they did during the GFC they put a gun to our head at GMAC And we're like if you don't process These foreclosures we are going to pull Your service ing which would have met The job loss of thousands of people um And we're going to give it to somebody Else and they they gave us a percentage
We were in bankruptcy we didn't have Money uh but we did it I did it by Sacrificing my life for a year I went on The road and so you know and just Figured out procedurally uh but it's Such a Travis it is so multi-layered it is There are so many issues like the Attorney firms that do this okay there's Hardly any of them left hardly any of Them understand and so what the banks do Is they use an attorney Network you're Supposed to have two attorneys per state And those attorney funds don't have any Money because the way they get paid by The agencies and by the servicers it's Called Milestone billing and they don't Get paid until the majority of it until After many steps have been taken in the Foreclosure so they can't actually Process your loans and so if you're Small you NE you're just buried at the Bottom and this is what I found when I Went out there and so these firms aren't Prepared for this default wave either And they've been gutted and so there's Just I'm I I can't even tell you the Ineptitude that you would find back then And and now and we're going to see it Again that it's just going this machine Is so complicated and so slow like it Yeah the foreclosures just won't hit the Market Until desperation I mean and it's
Desperation by the gsc's they have to Become desperate and when they do it Will happen fast you know you were on a A Todd's podcast I don't know I mean you Guys got like 500,000 views I watched it It was great uh and you were talking About sub2 and when you're talking about Sub2 which in my opinion are scammers And I'd love to have that dude on my Channel and I'd love to talk to him so Pace morby hears this or anyone in Pace Morby have him hit me up because I would Love to have him on here because I'd to Ask him questions like hey man so how Did you justify the scam and the fraud That you're committing and how did you Make become a millionaire uh convincing People that this is the right way to buy Real estate it is what it is Melody I Mean I get it I mean play the game so You don't get played it's just you know They want to go after these people for Misleading anyways here's the thing when I was listening to that it hit me Because notices of default nood okay When someone's about to have a Foreclosure and nood okay notice of Default is filed on a county level with Which is public record public record and It appears to me what's happening is Again this may be why and I love your Point here why for first of all the data Is bs anyway if we look at HUD it's Actually it's a lot more people in that
Are behind but a notice of default is Like a call for help and so you have all Of these people all around the nation That are just waiting they're just Waiting hey we just got a new notice of Default let's go hit them up and try to Get that house from them and you made a Great point just now and I loved it Melody you're you basically said when There is no one left to buy right when There's no one left to buy those because Right now people are seeing Nood let's go try to get a a deal for us Right let's do a sub two let's take over Their mortgage whatever But when when do you you know how do you See that playing out how do you see that Demand going away I mean obviously Affordability property taxes insurance It's happening right now but but tell The viewers you know because you are Such an expert behind the scenes you see Things that people just don't even know To ask about how do you see this whole Thing playing out Melody you know two Years three years from now from from That angle from behind the scenes how Does this all End I don't I don't know that people Really want to know but I mean you know I I did a t Twitter spaces in January of 23 where I shared my theory of how I Think it's all going to end and Unfortunately what I think is going to
Happen is uh what's happening in China Right now which is I think they're going To have counties buying properties um or The gsc's buying properties out right I Think that they're going to I you know I Think I think that um you know you will Own nothing and be happy uh whether by What's that saying hook or crook I mean Whether it was intentional or not like We are we are turning into a rental Nation and I think that the government Is going to end up holding a lot of These assets and they are de facto did I Mean if you think about Black Rock and Its relationship to the US government They are just an arm of the government And and you know I had to work with them During the GFC on distressed assets I Don't even want to talk about it but you Know the point is is that they were they Came in at the behest of the government You know after tarp helped us with these Distress sales they are an extension of The government but I think that you're Probably going to see some sort of you Know kind of uh Government private uh Partnership um where the gsse start to Hold these assets uh so you know of Course we'll see how that goes that that Is far into the future but we're already Seeing squatters we're already seeing uh You know abandoned neighborhoods uh We're already you know so it's just a
Matter of time until the blight becomes So bad that the counties and the Government will will intervene and in Many ways we you know it we're we're all Guys we're buying houses from the Government soon we'll be renting them And by the way in New York this is Already happening at the FDIC is holding Those assets in New York so renting or Buying from the government is our future Unless unless unless you know enough People listen to what we're trying to Say Travis and and and just start you Know calling their Congress people start Making different choices but that's Where we're Headed insane I mean we're not saying There's not going to be a correction or Crash in the meantime right but we're You said something I never thought of This government's not gonna want toay a Top price once once distress is Acknowledged before distress they would Because that's a way to keep everything Impl inflated but once we get there and I think this is what we were talking About Travis in terms of the political Part of calling a recession you know They don't want to call it right now Before the election but when the Election is over the part's going to Want to call it right away because we Are in a recession yeah people want ad Admit it or
Yeah when they have control of the data And they can just change the data I mean It doesn't give us a fair Shake it's It's not fair because they just change The data but you said something Melody And I this again it hit me again a lot Of things are hitting me just beating me Up right now I love it I just love Taking the beating Sometimes some it's It's a selective beating I want to take But did you just say that it's part of Your you know hypothesis if you will Is that I'm getting choked up is that Potentially a government will create Some type of legislation or grant that Will help subsidize uh Counties and did you say that it's Possible that the actual state and city Uh Counties like the counties are now Purchasing a property maybe abandoned Property or foreclosed property and Purchasing property fixing it up and Then either selling it or renting it is That is that is that Can you talk more about that and why Already happening to some degree if you Go look at the cares act and all that Covid money that went out you know There's all kinds of money for state Governments around you know affordable Housing around Rehabing um and so I think to some Degree that's already happening but I
Just think that that goes on steroids And honestly it's kind of what's Happening in China right now they're Looking to the local governments and Giving subsidies to uh buy these Properties and rehab or you know or even Take over large multif family properties And and turn them into affordable Housing Melody why would that be Necessary why because we're all broke That's why That right so so I mean it's like people You know I heard this advice tell me What you think of this Okay I know you're not gonna like but I Was listening to this Kevin arari um I Believe he said it was something to the Effect that like you guys you got to Take advantage of the system or the System is going to take advantage of you So his point was is he basically said Like you guys got to take on as much Debt as possible just debt debt debt Keep getting loans spend spend debt Deb Debt and if you lose just go bankrupt And then start it all over again and Then get yourself in more debt debt debt Debt and I understand like why he's Saying that right I'm gonna take over The world I'm gonna be a billionaire but I'm pretty sure Mel 99% of us don't give A crap about that can you tell me what Make advice like That I mean you know I I it's
Just that means you're not really Focused in my opinion on the right thing I mean I I just what is life and and Everybody has to make that determination For themselves what they want their life To be and and you know my life what I Want it to be is about you know making Sure that the the kids I know around me In my family my family friends have a Shot in life and that's you know what's Important to me and and so my time and Being able to to help in that capacity And making sure I have the time to do it But when your only focus is on money and Status and getting yours then okay you Know that that's just not a happy life And Travis you know that I know that I Mean I know that as well I mean I was a Doom spender as well back when I was Doing that crazy life in the GFC and Didn't have a life and I made really bad Decisions and I've I've s sat down and You know rethought or about you know What was important to me and so if That's the way then you Know then that's the life sorry you know That upsets me so I know let me ask you This what is important to you no I just Told you I mean just the time to be able To help Foster No I meant you melody like what do you Mean in your life I mean what is it what Are you doing right now I mean tell tell The viewers what are you doing to I mean
Here's here's my angle okay sometimes I Wake up I read a headline oh new Record-breaking price and I'm like man Travis you're crazy you're stupid you're Wrong right and I'm like well how could I be wrong when look at the bond market The bond Market's betting against Everyone why aren't those people Speaking up so what are you doing Melody For your Sanity well for my san I've planted a Garden um and I you know that's what I Do in the morning as I get up and walk The garden and just nice um you know in This week it the past several weeks you And I have been talking about this you Know I think that we are at Peak Mania It follows the seasons if you think About it we are we just had the longest Day of the year and um you know we're at Peak Mania and we're we're coming we're About to come around to the other side Uh so it's important that everybody find Something that makes them happy and that Honestly is what is keeping a smile on My face no matter what headline I read When I can go outside and and see that Just I mean of course it's effort don't Get me wrong it's effort and time but It's really so little effort for the Fruits that you get and and to just you Know use the spices from your garden to Cook use the vegetables from your there Is just something you know just
Incredible about that and it just tastes Better I got And I love so yeah that's my dream That's actually when I retire and I love Doing Gard I don't know if you I think I Told you a few times but I mean that's My dream I mean because look at a garden Look at what you're doing you're Nurturing something you're creating life You're preserving it you're protecting It it's yours it's your baby you know And it it's work and effort versus Reward I mean that's the opposite of What we see in the headlines that's the Opposite of Wall Street it's opposite of All these guys who just take and burn And Destroy so let me have my garden man So let me my garden man you know let me Get my garden and just leave me alone And uh go about go about my business but Melody we've been talking for a little Bit why don't you go ahead and if you Can't end us out here maybe talk to the Viewers about what they can gain uh from A video like this and how they can find Encouragement in it because it is scary To hear these things so where's the Benefit here as humans we're meant to be Productive Travis we're meant to work That that's how we're meant to create And and so sure none of us want to work Dickens style and you know in factories Or cleaning chimneys or I mean that's Hard hard labor okay we've come a little
Bit in our society and we don't have to Do that kind of stuff anymore but produ We we are meant to be creative we're Meant to be productive just you know uh Building a building to tear it down That's what hyperf financialization is Is that really if you think about the The times when the happiest in your life The times when you felt the most Fulfilled like that just and and Fundamental not just that brief moment Of oh I just bought a Porsche or I just Bought um a I don't even know all the Fancy car names but you know it's like But it's fleeting it's gone in the Minute it's gone you move on to the next Thing and I can't remember is it wolf on Wall Street you know where he gets the Prettiest girl at the party they get Married you know two years later He's he's bang L movies right pretty Much every movie about someone Successful ends the same way Melody it's It's pretty much but Wolf of Wall Street Yes was there too so true but it's just All of that is fleeting it it's it goes Very quickly you want to you know we're Meant to build things that last and you Know if you want a legacy um you know Probably not putting your name on a Building that's going to get torn down In two years and and that is really Hyperf financialization is they're They're they're just it's just for this
Very momentary elusory sort of goal uh To get those fees tear it down do it all Again and guys I think that's why we are All so uh divided right now but you know Find your why find your why of of of and Your reason to be and if and it is those Things that Kevin o Larry is talking About you know okay I would just sit Down and ask yourself though is that When you were truly happy and is that What truly makes you you know feel good If it is I you know I can't there's Nothing I can say to that uh is just not My reason to be and what people what People can do Travis is like you just Said six months before if you had just Started changing your habits six months Before it is not too late just start to Just be thinking about this stuff um What and and how can this video help you It can help you prepare it can help you To start making the changes in your life To stop Doom spending stop getting into Debt because it is slavery it is the end Is you are renting from the government One way or the other either through Section 8 housing food stamps I mean That is not a life uh that people want To lead because you are always indebted To someone else you cannot fully create For yourself when you're in that sit or You know Really create for yourself and others When you're in that situation beholden
To the government you know here where I Live I know a lot of these people and Guys they're not happy they're not and It is not a way to live and so I just You know I just encourage people small Steps affect radical change they really Really do so just take a couple small Steps and honestly I think you're going To be so much better off than the people That keep spending byy now pay later Later are credit cards with 22% interest Rates well you will never get out from Under that so I hope that's what they Can hear in this message you guys Round Of Applause for Melody you guys see why You know I'm so friends with Melly Melly I appreciate you uh again you guys if You liked what she had to say if you Want to we're not rich people we don't Sell all you know we don't really I Don't sell anything uh not I mean maybe One day uh but again you guys if you Want to support us go to her I'm Struggling here I need to make more Money I'm suffering M when you teach you Make less than sell it is what it is but You guys if you want to support us if You want to support her go to her Substack subscribe to her substack read Her writings Melody it has been such a Refreshing conversation little bit scary What's going on out there but man I Would rather know what's going on than Just feel crazy you know it helps me
Understand a lot more what's happening And why or why not when I get to Understand the what they're hiding from Us or what's not in plain sight uh they Make it very difficult to really we Really can't get the big picture here Can we with the data there's just they Don't have the data to show us the whole Picture do they Melody I mean is there any one place That tells us this is everything that's Going on here's all the home sales's all The DAT no there's not but I think Probably knows I mean I think I think There's there's probably a few that know Yeah yeah they know but they ain't Giving it to us because you got to buy Your subcription over there first no you Just look at the line of Insider selling Right now I mean you know Dell he just Sold a ton of I mean everybody who is an Insider at these companies are selling Their stock right now because they know What's coming they know and guys that's All you need to look at if you don't Look at anything else anything else look At the the guy in Nvidia who has never Bought a single one of his own stock He's just been a seller look they're all Selling so you don't have to believe me And Travis you don't but they know and You know so watch what they do not what They say all right you guys heard it now We're going to get everyone out of here
Melody if you're out there investing in Real estate you guys know you guys know You should beyond a shadow of doubt that We wish you luck and we wish you will Wake up and we hope you win
