Welcome back to real estate mindset Today's video is going to be absolutely Bonkers now the data is in and The Perfect Storm for a foreclosure Catastrophe is brewing and one of those Things that's forming you guys is the Lack of consumer Awareness on what's Going on in the Foreclosure department And so obviously I have our community Expert Melody Wright here to break down What's going on under the hood with Foreclosures Melody first how are you Today I'm doing well Travis how are you Doing I'm good just uh you know slamming those Energy drinks trying to trying to keep Up but uh real quick guys if you if you Don't already know who Melody W is she's A genius she's a friend she's a a Fighter for the people she was just on Fox News as well uh but if you guys like What you hear today you like her Breakdowns don't forget go to her Substack Melody right definitely Subscribe to that maybe the paid version Maybe not whatever you can budget but Great writings here and don't forget Also you guys she does have a YouTube Channel Melody right as well and Melody You know I'm gonna go in uh right away And I'm going to talk about the various Data providers and how that data is all Over the place but before I dig into to What's going on under the hood is there
Anything you want to start with Saying well Travis no I just think this Is the time when things are starting to Get really or I should say it's Important that we start paying attention Because I think we've reached a critical Inflection point and all this work that You and I have been doing is about to Pay off because we have an understanding Of all of these different metrics they Limitations you know we understand how To look at them and so I just feel you Know I don't I don't feel good about the Path we're on but I feel very solid in Terms of the information that you and I Have been gathering over the last Several years and and what that's going To do to help us um help other people as We go through what's Ahead well said that was actually my Next line but and you took it from me I Feel like I feel like you can see Through my computer I'm just joking Melody I mean well said and where I want To start is by again just reiterating to The viewers that there are basically Three different providers of delinquency Data and all three of those providers Have different data I want to start with Atom now atom came out I think about a Week ago August 14th you guys can see That right here stating that us Foreclosure activity sees a monthly Increase in July of 2024 and really all
I'm going to read is that you know it Was a pretty drastic increase we had an 18% increase uh as far as foreclosure Starts and a 14% increase as far as Foreclosures completed so there you know All of these data providers are Acknowledging that foreclosure activity That trajectory is going up but again my Issue is is when we look at you know one Of the leading providers which is Black Knight Black Knight has its own story They're telling in fact they're only Saying and by the way they're only going To June so massively lagging data but They're saying that there was 22,000 Starts so again they're saying 22,000 Starts attom is saying 32,000 starts a Lot of misleading data Black Knight is Saying that delinquency rate is 3.49% but when we go to HUD and we look At the survey HUD is saying 5.17% that is a much much different Picture three and a half to 5.11 seven Is much much different also what's Interesting Melody and I don't know how They're breaking this down but they're Saying mortgage delinquency rate Prime Versus subprime I didn't know we're in The early 2000s again I didn't know People were using the word subprime but Okay guys but they're saying it has a Delinquency rate of 177% oh my gosh 177% but also what's Interesting um you know I find that's
Very very interesting is the amount of People underwater so borrowers Underwater uh they're saying about a Million people underwater So you know instead of going into all of This here's the data I want to look at Okay this is data that you put together Melody uh this is just the top I believe 15 Metro areas that you're tracking and The corresponding delinquency rate can You take us through this real quick Absolutely so this comes from the Black Knight data backend data and these are The delinquency rates for uh our July And as we we can see Travis who's on top There which in my opinion puts you ahead Of me in our Florida versus texus debate One thing I'm working on right now is a An analysis on for every uptick and Delinquency what is that impact to home Prices and so working on that to Hopefully share with folks soon the Other thing before we jump to this Travis I wanted to kind of tell you that I thought was interesting I had dug into The blackend uh the black end the back Black Knight database and realized um I Was really looking at okay what is the Formal definition of subprime and it's Essentially like I think 670 and Below But in reality the way and you're going To love this the way they bucket the Data is um I think it's like 680 or or So I can't remember exactly but there's
A 10 10 point of the credit score that Really should be out of that so you Could look at and this is in Black Knight so they you could look at Black Knight subprime only and what that Percentage delinquency is but they've Basically created the categories so that You cannot see like the lower 10 points Of of what's categorized as subprime Does that does that kind of make sense Yeah it makes sense it makes perfect Sense it's called an llpa uh tier and The way that pricing works in the Origination end is it goes in tiers of 20 so you have your 680 you know it goes To 680 700 720 so the fact that they're Doing it by T again again allows them to Control the narrative so yeah I know What you're talking about okay um so Anyway but back to the schedule uh you Know we're this is something that I Would say if we were if we had a Scoreboard in Travis you and I probably Need to get one for Texas versus uh Florida Texas would be winning at these Very large uh delinquency statistics in My opinion 6% I no one would want their Book to be 6% delinquent you know the The average and I have July's numbers You had up June but the average Delinquency for MSA was 3.68% and so Texas is far above the Average and I just had somebody say to Me well as a percentage Point all that
Meaningful when it comes to default it Absolutely is Meaningful you don't see Large percentage swings like this unless That there's um unless there's trouble Brewing and Melody can I confirm You did say this is from Black Knight Which means that this is the most optim Probably the most optimistic Rosy color Data that you can get meaning that black Knight probably doesn't even cover half They don't even cover some of the most Distressed servicers that's right that's Right yeah meaning that this information I mean we could safely assume it is much Worse on the ground than what's reported Here is that right absolutely I mean it Without a doubt and I think by looking At those other data sour versus we we we Know this you know and we like you Stated we know Black Knight only has About a third of all the loans that are Out there and and I'll read this just Quickly for the viewers and I want to Get your opinion on why you think Houston's number one but Houston's Number one and then you know couple you Know Woodland Sugarland uh number two San Antonio so um number one and two Texas and then Atlanta four is Bakersfield and then Cleveland Philadelphia Pittsburgh Atlanta Surprised to see Richmond on there Indianapolis Rochester Chicago I'm not Surprised uh Cincinnati and Detroit do
You have any idea Melody of why Houston May be leading the Way it's probably property taxes and Insurance Travis that would be my best Guess I mean I those property taxes in Texas just crucified borrowers I'm Seeing it in all the books yeah yeah I Mean I mean it does I mean there's a Huge problem going on in Texas with Property taxes and that's just not not Just the tax rate the assessment value On the C level the amount of fraud that We've uncovered in in Texas is is is Absolutely shocking but now I want to go A little bit further under the hood and I want to show the viewers Melody the Data for mortgages that were originated In the last six months and I I want to Explain to the viewers and show the Viewers the birth of loan modification Uh because essentially there's a lot of People saying we're fine because the Delinquencies are okay but what I'm Trying to tell people is if you're Looking at the delinquency rate on Mortgages that's not a recessionary Indicator if if that's what you're Looking at to see if there's recession Coming understand that you don't get That data until during and well after The recession couple points I want to Make here Melody first of all again this Is the delinquency rate of all mortgages Conventional FHA NBAA this is six months
After origination so this is new Homeowners right six months new Homeowner and right now you know first Of all let's go to the left all right And I want people to understand that the Delinquency rate started to this is Crazy okay the delinquency rate for Newly originated loans started to Plummet when the recession started and That's why I highlighted this here you Can see the FHA delinquency plummeting Uh conventional va8 everything Plummeting because this was the birth of Loan modification and so the reason I'm Pointing this out is they're supposed to Be low after the loan modification it Becomes clear that we don't need massive Delinquencies and defaults for a Potential crisis to form because again You see the delinquency rate plummeting And it stayed low after recession but Again I thought it was interesting Melody because you you could clearly see You know the delinquency dropping the Birth of loan modification and also this Was the birth of consumer awareness and It was also the birth of when we broke Contract law in this country Travis uh Doing those low modifications because Essentially you weren't supposed to be Able to modify those notes uh so a lot Of things happened then that changed the Housing Industry um in my opinion yeah And then even you know 2012 but Melody
Can you tell the viewers you know what Does that data that I showed you what is That data the birth of loan modification Right and then the suppressed Delinquencies after what can that tell Us about The Narrative of Today well what can it tell us I mean Firstly we need to be paying attention I Think probably what you're pointing to Is that um the these these levels are Not going to tell you what's really Going on under the hood and I should I Should mention that we have had GFC Style intervention already uh from A Loss Mitigation perspective those 18month forbearances the payment Deferrals where you put everything that You did not pay at the back of the loan To be paid off when you sell it or pay Off the loan the partial claims for fa a Um and that's very similar to the Payment deferral the partial claim plus The modification that you can do for FHA The 40-year modification so all of that Has been happening since 2020 guys and So in many ways we had a GFC style loan Mod event already which is suppressing All that delinquency but what I can tell You specifically is that I still oversee Client books and I do something not a Lot of people do is I do lone level Review because what I learned when Managing default back during the GFC is That you cannot look at delinquency and
And default from an aggregate Perspective you want it to move Foreclosure is a legal process that's Different in every single state so you Have to do loan level and I can tell you What happened between June and July we Saw a modest Improvement in delinquency However it is still up from May by over Eight% and 30 plus and we are seeing Stickier stickier delinquency what Everybody needs to be looking at right Now is the role from 30 days to 60 days Honestly because if you are 30 days Delinquent you should be swooped up Immediately into what's called a simple Repay plan and that's just where they'll Say Hey you can pay me like $100 towards It for the next year they don't even Need agency approval for any of that or If you're FHA and most people don't call In that first month or delinquent they They wait until 60 days or 90 days you Can do that part claim immediately and Wipe out that delinquency but what's Already happening Travis is you're Seeing a combination of new delinquency People that have never been delinquent And that's what that huge jump was uh From you know may to June over 19% and 30 plus delinquency those are new Delinquencies but what's happening is You're you also have people who have Been delinquent before they are now Non-performing again and they are out of
Options and so what's going to be Important is watching that number grow From here and I think you know I believe We'll see material delinquency by June Of next year yeah I mean and is this Fair to say Melody I mean they're so Good now and E effective at loan Modifications you know we already may Have GFC level loan modifications going On right now would you agree with that Well I can tell you that all the Servicers this month are freaking out I Mean I just the volume of activity of This new surges and delinquencies and Reviewing these people you can see it And when I'm looking at my client books The activity went from you know just Kind of rolling along to shooting up and So you know this this is definitely when You start to take notice um Travis the These types of changes when you look Over you know every single month change In delinquency you never see more than a Percentage point so what we saw last Month is really Um an inflection point and you know no Matter if we see minor increases in Those numbers in the months that has It's what's sticking that we really need To pay attention to because those are The people that cannot take advantage of Those loan Modifications and and let's make sure Melody that the you know people are
Paying attention to how foreclosure Inventory works I'm sick and tired of Hearing the Bulls say oh what Foreclosure inventory what foreclosure Inventory what people have to understand Is a foreclosure inventory really didn't Happen until after recession not even During recession it was after recession Take a look guys the recession ended in 2009 and you guys can see in 2009 is Right here the Foreclosure inventory Increased after the recession and stayed Elevated we didn't have a massive Foreclosure issue necessarily I we could Say it was brewing though so there was An issue there just like there's an Issue here right now but as far as Inventory actually hitting the market You know that happened after the biggest Price decline Melody that's the crazy Thing you know that's the craziest thing Of all we didn't even get inventory Until later so you know I want you to go Over that Melody and I also put a star Here and I put QE 2012 I'm going to get To that here in a minute but I want the Viewers to you know remember where this Is at and essentially I highlighted here Because this is when they started QE and You can see the minute they started QE Look at the inventory absolutely Plunge and I'm going to my point go Ahead yeah go ahead and why that is is Because that's when Wall Street took
Advantage of lower cost of funds our Lower interest rates to borrow and go Out and buy up all of those uh homes That were in that foreclosure inventory At auction and you know I I went to Those auctions I saw it happen with my Own eyes and so I think that that time Is very important and believe it or not Travis that's when I was managing Default I came in in 2012 and because I had to Deal with a crisis at my company and so I completely agree with you the reason We saw that inventory go down was Because of QE and favorable borrowing Terms for Wall Street to come up and buy All these properties on the cheap to Rent them Out I mean I can't wait to get to this Next part but you know would you agree Especially after seeing that data you Know the going well past recession is Watching mortgage delinquency a good Recessionary indicator no not in my Opinion you know and it's only well Because I mean well we just saw it we Just looked at it but like what you said It's the aftermath I mean delinquency is The aftermath of the recession it's what Comes after people lose their jobs and So if this has been such a great economy Why do we even have you know any Delinquency right now um but the fact That we're at Q32 06 levels in the Fred
Series which I cannot wait for that to Get updated here soon um tells you that We're we're on the runway and we're We're getting ready for this style of Event and yes government is going to do Everything they can to keep it from Happen but H happening but I gotta tell Everybody they've already done that They've already done it and the workouts That they've provided are not working The people that are the the the ticking Up in delinquency are the people that Cannot Avail themselves of the Workouts you know Melody I'm going to Show the viewers you know something I Really haven't gone over and it's kind Of a theory uh I'm working on to show The viewers because there's a premise That even if there's foreclosures it's Not going to matter because demand will Be so high at that point the demand will Just absorb these houses yeah I mean That's what they say I mean right that They say there's demand so so I want to Show the viewers that there's actually Demand has been been like we showing has Been pulled forward and there is not Going to be this flood of buyers but I Want to do that by starting by showing The viewers a chart of negative equity So what we have here is negative and Limited Equity mortgages now I Highlighted right here this is 2006 okay So 2006 and I went to about 20 you guys
See about 2018 so in other words guys What I what I'm painting here is once The collapse started it took 13 years For the housing market to get quote Unquote back to normal from an negative Equity standpoint and this chart here is What the Bulls don't want you to know as Viewers this is what causes massive Hardship for families and obviously mom And pop investors and things like that But you guys it took 13 years and I want To point out this melody again the Blue Line are the amount of homes underwater Okay so this is all the way way to 2012 So again if people think that this is Going to be some flash foreclosure Situation wrong this is going to be a Long drawn out painful process that's Probably going to take massive Government intervention just to control And that's probably going to just make Things worse but look at here again I Highlighted here melody in 2012 QE in 2012 look at how much negative equity Started going Down right when that QE hit you could See that year-over-year decline right There the biggest decline happened when That QE started to hit so what I'm Saying is is not only is normal mom and Pop demand pulled forward but my Question is is as a result of all that QE did they also pull Wall Street demand Forward first can we start here though
Melody what impact and tell the viewers Okay because it was hard back then what Impact does negative equity have on the Potential for homeowners to refinance And to sell Yeah so you know I started when I Started on Twitter in 21 I probably Didn't send my first Twee for a good Year as I was just watching but when I Would start to talk about things like um You know saying that distress was ahead People would always say but look at that Equity position I'll say you know what I Started in September of 2006 in Corporate Financial Planning and Analysis at a top five mortgage Originator and servicer and loan to Value Equity looked fine Credit looked fine my job for the the Next few years was watching all of that Deteriorate over time and just like You're saying Travis they can't with Negative equity they cannot refinance That you know they can't use their home Uh to to help pay their bills anymore it Just becomes a complete drag and also That negative equity essentially uh Impairs them from a credit perspective And so they can't get other types of Credit and so it is not a position that Anyone wants to be and just because Something is today doesn't mean it's Going to be that way in the future and I Would I two important updates since we
Last spoke Travis is that Mark Calabria From the industry put out a piece Yesterday in National Mortgage uh news Talking about what you and I have been Talking about for uh years almost is That credit quality or credit scores Were artificially inflated uh during the Covid years and this is a first time I've seen someone else from the industry Come out the second thing we got I think I need to wait because I think it's Probably your next slide uh and I just Want to talk about all the uh dancing That happened around lower rates and What people thought was going to happen From a refi perspective so I'll stop There Travis we yes we are going to get there Well done uh but let's just let's paint This picture again so this is what is Happens guys Okay so recession hits job Loss when job loss hits people stop Paying their mortgage does that mean They leave no not necessarily okay they Stop paying their mortgage when negative Equity happens and values flattened out They start walking away okay so first You have delinquency job market Recession and then no more Equity cats Out the bag people start to walk away so That's the chain of things and I wanted To ask you know would you agree Melody That that pretty accurate like you know Not having Equity will cause an increase
In foreclosures and Delinquencies yeah it will but so here's Where I might take a a contrary view Travis is that it it's probably I think A lot of people this time around who Walked away before who are your actual Living in the property owner occupied That's their primary resents residents Right they're probably going to stay Longer than they did last time because They're they're going to realize it's Not hopeless and I think a lot of people In the runup before did think it was Hopeless and they just walked away so I Think your primary borers are going to Are stay longer offsetting that and and I don't know to what degree are going to Be those investors are going to be the People that you know really have no Interest in the property because they Bought it for passive income or they Bought it to Fix and Flip or things like That and those investors would Definitely start to walk away and that Will increase uh that inventory uh in Foreclosure okay let's you know let's Let's close this one out and finish by Showing the viewers the mortgage back Securities this is what's called Quantitative easing you guys which is B Basically fed buying assets uh mortgage Back Securities and I highlighted this In yellow here because this is when to Me it's a clear sign of the fraud and
Corruption it's assigned to me that what Happened here is the Fed bailed out Wall Street the FED bailout the banking System and all of us are now paying for That right now we we're literally got Taxed our futures was stolen and that's What you see in yellow right there that Is our future being stolen and the and That's the one of the reasons why we Cannot Thrive right now we are getting Destroyed right now that's one reason And I wanted to point out again that Star right there as soon as this started Happening that's when foreclosure Inventory started going down and that's When negative equity started going down Why Melody Wall Street Wall Street and That's what happens there and hope you Guys understand that and look I Highlighted this in green right here Because remember the fed's reactionary That means they don't even intervene Until they've realized I'm sorry they Realized they until we realized they Made a problem and then they react and That's what you seeing that green so you See the reaction in the green they were Trying to get control of this but Instead of getting control of the clear Bubble uh that they were creating Something else happened lockdowns and Instead of that bubble again being Handled that's going back to the American way look at that mortgage back
Securities absolutely blew up and so Melody you know I just wanted to ask You do you think that the FED fixed Anything by doing that and and can you Also say is it possible that by them Doing that it actually put today's Borrowers further at risk I 100% believe That Travis you know we pulled for that Demand but what we've done is eroded Future purchasing power Of so many people similar to the way That we did in the GFC had we just left The housing market alone but I think What I would encourage everyone to Understand is that for Wall Street to Come in this time to save things what Would have to happen it's not just Quantitative easing right what else Happened prices went down prices Plummeted correct the only way Wall Street is going to come for this and fix It guys is if prices come down now now The other thing that I think may happen Is that you may see Fanny May Freddy ma Get involved in actually um taking some Of these properties onto their balance Sheets that were not originally mortgage Assets and they will try to come in and And help counties with asset um like Dissolution like getting rid of these Assets but it will not be enough to keep Prices from coming down well um because Fanny May and Freddy Mack are the Taxpayers is is that correct Melody they
Are they are definitely uh subsidized by The taxpayer so you're saying that you Don't think that the taxpayer could Afford to be taxed Anymore yeah yeah it's you know they can They cannot afford to be taxed anymore I Know I can't I know I can't you know I Got fourk I can't I mean my God I mean It's so hard to uh you know keep up but I want to show the viewers another thing Here and that is if you didn't wait if If you got impatient if you purchased a House recklessly you you put yourself in Danger now obviously if you purchased Homes with um more fundamentals like You're looking for wedge looking for Cash flow you're going to be better Armored for for downturn right I'm not I'm I'm not saying it's good to buy I'm Just saying there's a difference between Buying with emotions and buying with Math and what I'm want to show the Viewers Melody is I don't think these People bought with math here um you see Here basically three years 2022 2023 and 2024 and you see this share of mortgage Rates being over 5% some of them into The 8% and and what I'm trying to Explain is how um Divided what's the what's the special Word again I completely lost yeah Bifurcated that's that's a special super Word code word bifurcated can I come in The club now so you
Know this is an indication of that Buying box that toxic buying box getting Bigger and what I see here 20 2022 2023 And 2024 this to me is the buyer that's In the biggest risk now I know pre 2022 There's still in hardships right now Melody obviously most people max out the Pre-qualifications so if you bought in 2020 you maxed out your pre-qual now Your property tax your home owners Insurance your HOA or 50% more your Life's upside down I get it and if you Bought a car I get it it's even harder Um but can you tell the viewers you know How you Know people buying right now are Actually at put themselves in a bigger Risk than what's Necessary absolutely and you can see it I mean it's just it's it's it's obvious Everywhere you look it's obvious with United H Wholesales like uh below 2% Teaser rate I mean everyone is dying From not having the ability to Securitize these mortgages to keep that Machine going and that machine is not Built to help you and so you know what They're trying to do right now is bring Everybody that didn't that didn't get a Loan before in by offering all kinds of Promises you can see it everywhere the Problem is you're going to get trapped If you buy right now with a mortgage and Honestly if you have all cash um unless
You can lose 40 to 50% of your cash you Know that and and that doesn't impact You in any way it it would not be a good Time to buy now Either and there are people that say Melody that they there's enough Demand On the sideline right now that as soon As something goes into foreclosure it's Going to be bought up now until the Ft I Get it until the FTC shuts down that sub To fraud cult I could see why they would Say that but the thing is um I don't Know that there's going to be enough Demand and we already see Wall Street The the biggest investors selling houses That they were supposed to keep forever According to some people now rates are Lower and now we have data and and let Me show the viewers that even though Rates are lower right now demand's gone And so if demand's gone there's going to Be no saving you know there's no saving This there's no there's going to be no Flood of demand and the reason why is There's no money people don't have the Money to support the type of demand Needed to sustain the price I'm not Talking about rates the price what's More important is the price always the Price take a look at this could have Used the headline data uh that showed This going down Melody but I don't need It because I could show the viewers Right now where we Peak this year we
Were at 7.22% mortgage purchase I'm dividing out Refinancing now okay mortgage purchase Applications were and this is an index So it's measuring it based on an index Was higher at 141.5 so the highest the interest rates Were this year demand was at 141.5 now Rates have gone down about almost 75 Basis points but along with the rates Going down demand has also ticked Down so we had almost a full percent of Interest rate drops and demand drop too Melody I mean you know why do you think That even though rates went down because When rates go down purchasing power goes Supposed to go up but why didn't that Happen this time well firstly I think The most important thing is price again Travis you know we are definitely seeing A frozen Market out there in terms of Transactions lower than we saw in 2008 Lower than what we saw in 2007 on an Absolute level and so yes rates make a Difference to affordability but we have Reach such high levels of Unaffordability that these small rate Moves are not going to bring people back To the market additionally we're seeing Layoffs increase you know very U Atypical for an August if you don't Follow macro Edge I would encourage you To do so you can see they do this great Layoff tracker based on the warn notices
That have to be filed at state level and So you you basically have prices that Are too high for even those that do have Jobs and you have layoffs at the same Time additionally I wrote about this in My substack you know to really hit a Mass that can move this Market you would Need rates to come below 5% and and That's not where they are now and I also Talked about how um why they actually Went that low and during Co and it was Just because the same it's the reason You showed in that chart Travis is the Fed started buying the MBS or mortgage Box Securities and that's why you had Such low mortgage rates so until they do That nothing is going to move the needle In a way that will be material for the Housing market and likely as you kind of Showed there they always do that after The recession has started and after it Really could make a difference and so um You know I was not at all surprised to See purch apps not go up materially and To actually be down week over week with The data we got this week as well as Refinance apps to be down week over week Too because I've talked to many people Who tried to go in refinance and they Were told hey you just kind of need to Get your credit score up five more Points or so or rates need to go down Maybe like 50 more basis points and this Will make sense for you so and again
That that population is not that large It's only until you get to the sub 4.4% Population which is over 68% of Mortgages that you're going to be able To move the needle and housing I have Something for you I have something for You I'm G to challenge you a little bit Take a look at this take a look at this Mortgage rates look at that I don't I Don't think five I don't think under 5% Is going to do it Melody I mean yes it Will pull some demand forward but if we Think for the you know the last 15 years They've been pulling demand forward they Pulled loan modification forward they Confused consumers like we're at a dead End right now I mean look at this I mean Rates were under four under 5% look at This so starting in 20 March 25th 2010 4.99 and look at they stayed low Melody Some a lot some of these years look 3% So they were in the four and three Perents For I mean gez I'm talking about this Point for Travis like so not a more of a A historical analysis of more of a what Do we have in terms of outstanding Mortgages at this point and so I'm Speaking to that analysis um because and Looking at you're below 4.5% looking at that next tier up and so To be able to speak to what happened I Think back then you'd want to look also As what were people sitting in what
Mortgage rates did they already have That would be my only kind of response To that Counterpoint yeah and honestly I Sometimes I forget though Melody that we Have like you know historically low Sales I keep forgetting it's already Dumpster fire and sales trans have Already I mean they're lower than the GFC they're lower than 2007 lower than 2008 lower than 2009 you would expect the slightest Increase then because we don't have to Have that much increase to get above the 1980s and 1990s uh so yeah I mean Naturally but you know it's just it all Goes back to the affordability thing I Mean absolutely it's just there's just This perfect storm of confusion and lies And fraud and quantitative easing and Wall Street Belling Wall Street out I Mean my gosh Melody I mean what what's The solution Here to let the market dynamics play out We need creative destruction you know we Need really what we need to wash through The system is a speculation I mean it Just it was bad during the GFC you had Investors back you know Mom and Pop Investors back during the GFC this time Around you had Mom and Pop plus the Institutionalsales that all came to the Party and we just need to let that Speculation wash out of the System yeah and sooner rather than later
So we can kind of get this you know over Are you worried that they're going to be Able to continue money printing you know And that prices won't go down for houses I mean is that something that you worry About that that prices won't go down Well say that you know we get a Government and a Fed that just decides We're just going to P print 10 trillion And we're going to do some type of Universal income um were you worried About stuff like that well sure if that Happens who's going to decide who gets To live in what House and and with what show of force Right this would be a very different Country and so I think if people believe The inflationist you better believe We're about to be living in a a very Very different country that most of us Would not want to live in I mean Honestly Melody I don't see when I look At all the data after two and a half Years you know going down this path and Listening to everyone looking at so many Different factors becoming an e Economist what the hell I just want to Buy a house um I don't see any other way For this situation to sustain without Universal income and I say that because The whole system's broken it's not able To be repaired without a bust and crash And people can't afford it if unless the Go and and not only can people not
Afford it companies cannot afford to pay Their Employees that much I mean we see Businesses going out of B following Bankruptcy like crazy and so again the Only thing that I can see is we become a Socialist country even communist country And the government starts paying People's salary there's no other way Mathematically that this sustains I mean By the way they were paying our salary During covid I mean you you if you don't Think that your company did not get a PPP loan that was forgiven go look it up On propublica because most of us were Being paid by the government whether we Thought it was coming from our company It was actually through those PPP loans That were largely forgiven and so and This is what happened this is what Happened when we were all being paid by The government guys homes became Completely completely unaffordable so if You think that's what you think the Solution is it it's not it it will mean You will be you will be priced out yet Again because somebody else who has Means is going to outbid you if Everybody gets a million dollars from The government somebody out there is Going to have that extra cushion oh the Same top 1% 10% or 20% today and they Will out bid you every time and you will Be living in that one of those you know
Trailers we saw at Colony rid Travis Because and and and and you see this Already in Florida in Cal California Everywhere I mean it's as bad as the Great Depression people are living in Tents they're living on the side of the Road they're living in those you know Trailers they're they're trying to make Anything housing they're renting out you Know their floor I mean this is insanity And and the only reason people don't Think it's insanity is because the top 20% control the media and we're not Seeing these pictures but get out of Your house go to your downtown drive Around and you will see what we're Talking about you will see that 6% Delinquency in Houston you know you'll See that 47% delinquency we saw in Colony Ridge so the you know this is out There it's just being Hidden I mean I think you're 100% right You know that's that was the other part Of the equation like yeah I can only see It working if you know government starts Universal salary but that's only going To temporarily work right and that's why I was asking like do you think they'll Do something temporarily because if they Continue to do that we already know What's going to happen because we see Other countries turning into third world Countries Venezuela blah blah blah blah There's a reason why we need High
Interest rates there's a reason why That's how the US was built with high Not even high interest rates just higher Than 1% right like we're not asking for Much here average since the 70s is 7% Around 7% you know that's the average Since the 70s they're supporting bad Spending habits and that's the problem And and you support bad spending habits For two decades this is what you get Yeah this was the experience in my this Was the experiment in my opinion Travis Because essentially what you did is you Gave everybody a fake credit score so They could they could qualify you gave Them a little additional income um Through fiscal stimulus or you know they Were able to get a cheaper loan uh and And so everybody suddenly was able to Qualify and what happened what happened This happened and so if they do it you Know people are right if they tried to Do it again this would happen again However I think you're seeing the American people say no absolutely not I'm not participating in this market Anymore and and and so I I don't I think That we the people have much more power Than we ever acknowledge and that really We can stop this Madness yeah if we stop ourselves from Supporting it right like wasteful Spending rep spending I mean my gosh Your dollar vote with your dollars yes
Yeah span wisely so Melody that was a Great talk today we're in about 40 Minutes uh I'm going to get us out of Here anything you want to say before we Go uh you know today's the day we got That downward Revision in employment Over 800,000 guys if you think that you Know what's really happening by reading Mainstream Media I'm not sure what else to say at This point uh that is direct evidence That for whatever reason be it Completely you know innocent or being on Purpose we are not getting the facts out There that matter yeah and I believe That's the biggest Revision in history If I'm not mistaken downward revision But uh and the market Aid it Mar because Again the the only the elite are they're Controlling the markets they're Controlling mainstream media so why deal With either of those things but anyways Melody I appreciate you thank you for Being a friend of the channel and an Expert in all things mortgage Delinquency foreclosure we will lean on You and guys don't forget to show her Some love go to YouTube her substack and If you're out there investing in real Estate you guys already know we wish you Luck and we hope you win
