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Sean Langston
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Full Transcription Below:
1
00:13:37,369 –> 00:13:43,810
Sean, what happens after the mortgage
forbearance and well, Brian, after the
2
00:13:43,810 –> 00:13:48,819
mortgage forbearance period ends in
effect, what happens is any homeowner
3
00:13:49,060 –> 00:13:54,699
that was not making their payment during
that period, they’re basically going
4
00:13:54,699 –> 00:13:58,420
to be responsible for that payment
in some way, shape, form, or fashion.
5
00:13:58,869 –> 00:14:00,160
Uh, they may be.
6
00:14:00,894 –> 00:14:05,574
Able to put that balance on the
end of the mortgage, but it depends
7
00:14:05,574 –> 00:14:07,854
on who your mortgage lender is or.
8
00:14:08,589 –> 00:14:10,869
They may have to make up that payment.
9
00:14:11,050 –> 00:14:17,259
And so that’s my concern that if you have
a lender that won’t work with you and put
10
00:14:17,259 –> 00:14:23,259
that balance on the back of your loan and
they want you to make up that payment,
11
00:14:23,680 –> 00:14:26,139
that can be a huge hardship for somebody.
12
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If you think about it.
13
00:14:27,519 –> 00:14:33,369
We’ve been in this, um, forbearance
period for about 18 months, I guess.
14
00:14:33,729 –> 00:14:38,920
And you talking about somebody has
a mortgage that’s two grand a month.
15
00:14:39,249 –> 00:14:45,520
That’s about $36,000, like who
just has $36,000 to give a lender.
16
00:14:45,999 –> 00:14:47,589
So that’s my concern.
17
00:14:47,609 –> 00:14:52,780
If, if you have a lender that’s going
to require you to make that payment.
18
00:14:53,374 –> 00:14:57,395
Then I think that that’s going
to cause some problems in the
19
00:14:57,395 –> 00:15:01,114
mark is going to cause some
problems for the average person.
20
00:15:01,234 –> 00:15:06,454
And so I think that we’re going to
start seeing that impact the real
21
00:15:06,454 –> 00:15:08,045
estate market in, in some way.
22
00:15:09,280 –> 00:15:09,699
Got it.
23
00:15:10,719 –> 00:15:10,959
Yeah.
24
00:15:10,959 –> 00:15:13,930
So it’s like, depending on the
lender, they’re going to try
25
00:15:13,930 –> 00:15:17,800
to probably work something out,
hopefully with, with each day.
26
00:15:17,999 –> 00:15:18,540
Yeah.
27
00:15:18,569 –> 00:15:18,930
Yeah.
28
00:15:19,199 –> 00:15:21,030
It just all depends on the lender.
29
00:15:21,030 –> 00:15:21,389
Right.
30
00:15:21,629 –> 00:15:25,439
You know, you have a couple of
different kind of entities that
31
00:15:26,159 –> 00:15:30,420
back these loans, you get government
sponsored enterprises, what they call.
32
00:15:31,209 –> 00:15:35,349
You got what’s called like FHA
or Fannie Mae, Freddie Mac.
33
00:15:35,439 –> 00:15:39,819
And so normally when you have a loan,
that’s backed by those entities.
34
00:15:40,359 –> 00:15:41,530
They’re a little more lenient.
35
00:15:41,530 –> 00:15:42,369
So yeah.
36
00:15:43,165 –> 00:15:48,114
You know, if you got a loan with bank of
America, Wells Fargo chase, or what have
37
00:15:48,114 –> 00:15:53,784
you, if they’re backed by any of those,
uh, government sponsored enterprises,
38
00:15:54,145 –> 00:15:56,994
then they may be willing to work with you.
39
00:15:57,354 –> 00:15:57,774
Right?
40
00:15:57,774 –> 00:16:02,244
And when I say willing to work with
you, they may be willing to put that
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balance on the back of the loan.
42
00:16:04,734 –> 00:16:05,484
But if you have.
43
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A lender that basically has what’s
called a portfolio loan, meaning that
44
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they actually are the owners of the loan
and the lender, because what happens is
45
00:16:18,670 –> 00:16:22,780
these bigger services, you know, like
bank of America, Wells Fargo, a lot of
46
00:16:22,780 –> 00:16:24,189
them, they don’t actually own the loan.
47
00:16:24,550 –> 00:16:31,989
They actually just collect the payment for
these government sponsored enterprises.
48
00:16:32,199 –> 00:16:33,089
And so with.
49
00:16:33,979 –> 00:16:37,489
They have to do with the government
sponsored enterprises, want them to do,
50
00:16:37,639 –> 00:16:43,489
but if you have a lender that’s under
a portfolio and a private lender, like
51
00:16:43,489 –> 00:16:44,719
they can do whatever they want to do.
52
00:16:44,780 –> 00:16:46,089
And they may want all of that.
53
00:16:46,099 –> 00:16:46,189
Right.
54
00:16:47,079 –> 00:16:49,089
Once the forbearance period ends.
55
00:16:49,089 –> 00:16:52,629
So it’s going to be interesting
to see how that plays out.
56
00:16:53,040 –> 00:16:53,839
Yeah, yeah.
57
00:16:53,849 –> 00:16:56,040
That is uh, w yeah.
58
00:16:56,040 –> 00:17:01,619
W we’ll see, um, w when, okay,
so like, generally speaking, like
59
00:17:01,619 –> 00:17:03,300
when, when is this happening?
60
00:17:03,300 –> 00:17:06,689
Like, what’s, we’re in July
of 20, 21, like what’s, when
61
00:17:06,689 –> 00:17:08,460
should we expect this to happen?
62
00:17:09,060 –> 00:17:09,480
Yeah.
63
00:17:09,480 –> 00:17:13,230
So I know that the, uh, the
Biden administration, they.
64
00:17:14,034 –> 00:17:15,685
Extending it pushing it out.
65
00:17:15,984 –> 00:17:21,054
So not sure where that’s going
to go, but I do know that when
66
00:17:21,054 –> 00:17:25,734
it, when it happens, um, a lot of
people are going to be blindsided.
67
00:17:25,824 –> 00:17:26,214
Right.
68
00:17:26,244 –> 00:17:32,425
You know, a lot of people are going
to, um, have a situation where they.
69
00:17:33,190 –> 00:17:37,570
Um, don’t really know what’s what’s
going to happen and how they going
70
00:17:37,570 –> 00:17:41,230
to make up that shortfall because
what’s, what’s been happening.
71
00:17:41,230 –> 00:17:47,919
Brian is if you’re under forbearance,
meaning that you’re not responsible for
72
00:17:47,919 –> 00:17:51,969
making your mortgage payment to your
lender during the forbearance period.
73
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Right.
74
00:17:52,740 –> 00:17:56,490
And so during that time, you
don’t have to make the payment.
75
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There has been no negative
impact on your credit report.
76
00:18:02,754 –> 00:18:08,274
And so a lot of homeowners have just
kind of been, you know, Using that money
77
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that they otherwise would have paid
towards the mortgage to try to maybe,
78
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you know, pay down some other things.
79
00:18:14,004 –> 00:18:18,774
You know, this pandemic has impacted
a lot of people in a negative way.
80
00:18:18,985 –> 00:18:22,225
And so that money that they
would otherwise be paying as
81
00:18:22,225 –> 00:18:23,965
a, uh, towards their mortgage.
82
00:18:24,695 –> 00:18:26,134
They are using that money.
83
00:18:26,134 –> 00:18:28,895
Some people are, you know,
putting that money to the side.
84
00:18:28,895 –> 00:18:32,675
Some people are paying off other
bills and then you got some people
85
00:18:32,675 –> 00:18:36,185
who are just splurging and just
spending that money like crazy.
86
00:18:36,185 –> 00:18:40,864
So those are the people that are really
going to have an issue if they don’t.
87
00:18:40,985 –> 00:18:43,294
Um, if they’re limited on doesn’t work.
88
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Right, right.
89
00:18:44,710 –> 00:18:46,899
They’re like, uh, going
to Hawaii or whatever.
90
00:18:48,219 –> 00:18:49,250
You’re like, whoa.
91
00:18:49,419 –> 00:18:51,550
Um, exactly right.
92
00:18:51,960 –> 00:18:54,750
Um, hopefully not too many
people are doing that though.
93
00:18:54,780 –> 00:18:58,830
Or like, you know, with, with, uh,
with the money they’re supposed to,
94
00:18:59,100 –> 00:19:04,139
you know, just cause they have leniency
right now, but, um, that’s really crazy.
95
00:19:04,169 –> 00:19:04,739
W okay.
96
00:19:04,739 –> 00:19:06,210
What so-so.
97
00:19:07,225 –> 00:19:11,034
W we haven’t S we’re like we know
about, we can kind of see maybe
98
00:19:11,034 –> 00:19:14,215
the storm up ahead or like, oh,
like, it’s gonna rain up ahead.
99
00:19:14,215 –> 00:19:17,004
Like, what’s, what’s going
to be the impact, like on the
100
00:19:17,004 –> 00:19:18,655
market, like what’s going on.
101
00:19:19,524 –> 00:19:19,915
Yeah.
102
00:19:19,915 –> 00:19:25,134
So this is my personal opinion and
just, you know, talking to some of, uh,
103
00:19:25,195 –> 00:19:30,655
some influences in this industry and
they follow the market as well as I do.
104
00:19:31,105 –> 00:19:37,254
What we’re thinking is if that happens
where you have a number of people who.
105
00:19:37,925 –> 00:19:41,645
Are going to be responsible for making
those payments, like, say for instance,
106
00:19:41,645 –> 00:19:46,925
like I just mentioned, if somebody has a
$2,000 mortgage and they hadn’t paid it
107
00:19:46,925 –> 00:19:49,804
in 18 months, that’s, you know, 36 grand.
108
00:19:49,804 –> 00:19:50,165
Right.
109
00:19:50,405 –> 00:19:54,304
So if they owe that 36 grand and,
and they probably don’t have the
110
00:19:54,304 –> 00:19:57,485
ability to, uh, pay that all at once.
111
00:19:58,405 –> 00:20:02,544
If they don’t have the ability
to do that, then what that person
112
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is more than likely going to do
is put that house on the market.
113
00:20:07,225 –> 00:20:12,145
And the reason why we believe that is
because the other alternative could be,
114
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it might have to go to foreclosure, right?
115
00:20:15,294 –> 00:20:15,835
Yeah.
116
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More people are going to be willing
to put their houses on the market.
117
00:20:20,230 –> 00:20:24,939
So they don’t lose the equity that
they do have built up in the house,
118
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you know, because this market has
been so great over the last few years
119
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that most people do have equity,
but if you can’t make your pay.
120
00:20:33,185 –> 00:20:36,245
And you stand to lose your house,
you would lose out on your equity.
121
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So it’s definitely going to add
more inventory to the market.
122
00:20:41,135 –> 00:20:42,395
That’s what we believe.
123
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We believe that the fact that some
people are going to have a hardship
124
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and can’t come up with that difference.
125
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They’re going to have to put
their house houses on the market.
126
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And with that being said,
we really feel that.
127
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They’re going to be more
houses on the market.
128
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I don’t know that there’s going to be
a flood of houses on the market, but I
129
00:21:00,610 –> 00:21:02,409
think there’s going to be more inventory.
130
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And once you get more inventory, normally
prices tend to level out a little bit.
131
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Um, and, and so that is going to
totally help, you know, some buyers that
132
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have been trying to get into market.
133
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Some buyers that have been, uh,
looking for more opportunities
134
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and more choices in the market.
135
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And so we really think that.
136
00:21:23,820 –> 00:21:27,929
If you have a individual who can’t make
up their payment and they put their house
137
00:21:27,929 –> 00:21:32,939
on the market, we definitely think it’s
going to help solve some of the inventory
138
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issues that we’re having in this.
139
00:21:36,139 –> 00:21:36,560
Absolutely.
140
00:21:37,129 –> 00:21:41,000
Would there be any recent or like
people can just refinance that we like
141
00:21:41,030 –> 00:21:42,889
to take equity out of their house.
142
00:21:43,520 –> 00:21:44,060
Oh man.
143
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That’s yeah.
144
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Yeah.
145
00:21:45,870 –> 00:21:47,239
I like that question.
146
00:21:48,565 –> 00:21:50,725
That’s easier said than done, right?
147
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Because in order for you to be able
to refinance and take the equity out
148
00:21:54,895 –> 00:22:00,054
of your property, you have to have
the income and maybe some people
149
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weren’t working during this pandemic.
150
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Right.
151
00:22:01,764 –> 00:22:03,054
So you got to have the income.
152
00:22:03,294 –> 00:22:05,754
You also gotta have the right credit.
153
00:22:05,905 –> 00:22:09,715
You gotta have a decent credit
score to even do a refinance.
154
00:22:09,715 –> 00:22:13,165
So yes, you know, on one
hand, people can do it.
155
00:22:13,614 –> 00:22:17,125
If they have those two things
in order, if they have the.
156
00:22:17,949 –> 00:22:20,409
Income and they have decent credit.
157
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Yes.
158
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But for others that do not,
they don’t have that choice.
159
00:22:25,090 –> 00:22:26,320
So it’s just a matter of yeah.
160
00:22:27,085 –> 00:22:30,654
Do I figure out a way
borrow money from somebody.
161
00:22:30,654 –> 00:22:34,675
I don’t know if you got a rich uncle or
rich cousin or somebody that can give you
162
00:22:34,675 –> 00:22:37,284
the 35, 40 grand to make up your payment.
163
00:22:37,344 –> 00:22:42,295
That’s a beautiful thing, but for
you most people and don’t, you
164
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know, you got some choices to make.
165
00:22:43,875 –> 00:22:44,384
Yeah.
166
00:22:44,475 –> 00:22:44,864
Yeah.
167
00:22:45,105 –> 00:22:49,875
It’s which for some people like selling
that is just the best option for them.
168
00:22:50,145 –> 00:22:52,274
Um, eventually, yes.
169
00:22:52,485 –> 00:22:55,634
Um, man, that would be interesting to see.
170
00:22:57,574 –> 00:22:58,475
And, and, and stuff and yeah.
171
00:22:59,469 –> 00:23:03,879
Hopefully the effects happen
over time slowly, not just all at
172
00:23:03,879 –> 00:23:06,730
once, because until that happens
in the market, it’s like, Ooh.
173
00:23:06,840 –> 00:23:07,319
Oh my gosh.
174
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Exactly.
175
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Exactly.
176
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I know.
177
00:23:09,090 –> 00:23:09,870
That’s what we’re hoping.
178
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We’re hoping.
179
00:23:10,350 –> 00:23:14,340
It’s just finding like a, just a
steady trickle instead of using.
180
00:23:15,235 –> 00:23:17,245
Uh, gelada houses coming on the market.
181
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I don’t know that it’s going to
be that, you know, from what we’re
182
00:23:19,975 –> 00:23:23,574
seeing, most people believe it’s
just going to be a steady flow
183
00:23:23,574 –> 00:23:25,284
of houses come into the market.
184
00:23:25,524 –> 00:23:28,855
And so it would just kind of be
a gradual thing and we’ll start
185
00:23:28,855 –> 00:23:31,044
to see prices, uh, level off.
186
00:23:31,044 –> 00:23:36,475
So, you know, to think that prices are
going to just take, uh, a crash and die.
187
00:23:37,225 –> 00:23:39,235
I don’t think that’s going
to happen anytime soon.
188
00:23:40,179 –> 00:23:42,580
Okay, which is, yeah,
it was to wrap it up.
189
00:23:42,580 –> 00:23:45,010
Like, so the housing market
is, is it going to crash?
190
00:23:45,040 –> 00:23:49,510
Like what’s what’s what should we
expect in the next, the next year or so?
191
00:23:50,040 –> 00:23:50,490
Yeah.
192
00:23:50,490 –> 00:23:57,210
So we’re not going to have another
2007, 2008 market crash at the
193
00:23:57,210 –> 00:24:00,360
end of this forbearance period.
194
00:24:00,600 –> 00:24:01,630
That’s what I’ll say.
195
00:24:01,670 –> 00:24:07,975
So it’s not going to be, uh, uh, uh,
S you know, A situation where houses
196
00:24:07,975 –> 00:24:13,165
just go down tremendously in value that
that’s not going to happen right away.
197
00:24:13,284 –> 00:24:21,264
Now over time, if more and more people are
impacted by this forbearance ending then.
198
00:24:21,264 –> 00:24:22,045
Yeah, I think, yeah.
199
00:24:23,274 –> 00:24:29,215
If that happens, um, and it continues
to happen and more people can’t recover.
200
00:24:29,605 –> 00:24:30,114
I think, yeah.
201
00:24:30,145 –> 00:24:34,735
Prices will go down, but we’re not going
to have a crash because the difference
202
00:24:34,735 –> 00:24:39,695
between this market, what we’re in now
and the issue that that’s going to come.
203
00:24:40,199 –> 00:24:41,820
Prices to correct a bit.
204
00:24:42,540 –> 00:24:48,570
Um, this is because we had a worldwide
pandemic, you know, in 2007, 2008,
205
00:24:49,020 –> 00:24:51,300
it was directly related to housing.
206
00:24:51,570 –> 00:24:55,920
You know, all the craziness that was
going on, you know, with lending and
207
00:24:55,920 –> 00:25:01,260
so forth in the housing that, that
caused housing to crash drastically.
208
00:25:01,560 –> 00:25:03,300
But this has impacted all.
209
00:25:03,884 –> 00:25:05,655
People in all industries.
210
00:25:05,955 –> 00:25:11,534
And so is it going to be a
market crash like 2007, 2008?
211
00:25:12,074 –> 00:25:13,395
My opinion is no.
212
00:25:13,935 –> 00:25:16,784
And I’m willing to put
my name behind that.
213
00:25:16,784 –> 00:25:21,705
I don’t, I don’t think it’s going to
be a crazy housing market crash, not,
214
00:25:22,094 –> 00:25:23,775
you know, here in the near future.
215
00:25:25,795 –> 00:25:26,215
Yeah.
216
00:25:26,245 –> 00:25:26,485
Yeah.
217
00:25:26,485 –> 00:25:31,105
And I’ve also heard cause um, people
have equity in their houses, whereas
218
00:25:31,105 –> 00:25:37,105
before in 2007, um, people didn’t have
any equity and they’re just have a giant
219
00:25:37,105 –> 00:25:40,605
house and just, yeah, exactly, exactly.
220
00:25:40,605 –> 00:25:40,815
Yeah.
221
00:25:40,815 –> 00:25:45,105
So since then, you know, lending
guidelines are more strict, so,
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you know, they’re doing more, uh,
Investigation on, on buyers and so forth.
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So, uh, they, they learned a
little bit from the 2007, 2008,
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uh, housing market crashed.
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So more, more people got skin in the game.
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More people have more money
put down on the property.
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And like you said, most people
in most markets, they do have
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equity in their properties.
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Yeah, absolutely.
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Viewers, please put your opinions,
comments, questions, what you
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guys think is going to happen.
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00:26:17,860 –> 00:26:22,540
Um, the market, if you think we’re way
off, please let us know in the comments.
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Yeah.
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00:26:23,400 –> 00:26:24,750
I would love to get opinions.
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00:26:24,780 –> 00:26:28,110
I want to see what people are
thinking because that’s how we build.
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00:26:28,389 –> 00:26:29,699
We want to get some money.
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00:26:30,274 –> 00:26:35,014
Some opinions on this and kind of
see what the, uh, consensus is and
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00:26:35,014 –> 00:26:37,955
what, you know, some of the different
opinions I would love to see you.
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Yeah.
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00:26:39,264 –> 00:26:40,134
Yeah, absolutely.
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And then, uh, we’ll have to, we’ll have
to do an update later down the line,
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too, just to kind of see how, like this
kind of unravels and how it unfolds.
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Um, you never know in life,
but, but hope hopefully.
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Hopefully it is something
that it’s manageable.
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Um, be cool.
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Cool.
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Thanks Sean.
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00:27:02,735 –> 00:27:03,274
Thanks Brian.
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Appreciate you.
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If you like this content,
definitely share and subscribe.
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Appreciate you guys.
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Perfect.