Bad News For Real Estate | The Mortgage Crisis Aftermath

Let’s discuss the new changes to mortgage requirements, mortgage deferment, and how the issues with forbearance - Thanks! Add me on Instagram: GPStephan
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JP Morgan Chase, one of the nations LARGEST mortgage lenders, just raised its standards as to who can get a loan, and many lenders followed. Some of the new requirements include:
One, making sure you’ll still employed, and this is verified 3 days before your loan actually closes.
Two, they’re only using the most recent bank statements as possible within the last 60 days.
Three, if you’re self employed and UNABLE to show bank statements with proof of income - then your qualifying income, as in - what’s on your tax return - will be reduced by 25%, just to give a little more wiggle room if anything was to happen.
Four, and this is HUGE for real estate investors…Rental Income can ONLY be used if you have a FICO score ABOVE 700, and you can document 6 months of reserves for each financed property in which rental income is being used to quality.
Five, banks have lowered their maximum debt to income ratio - meaning, your mortgage payment can’t exceed 50% of your take home pay.
Six, Bank of America just raised it’s credit score requirement from 660…all the way up to 720 for anyone wanting to cash out of their home equity.
HOWEVER…even though lending is tightening up, here’s where we get into the NEW potential concern of the week: Home buyers NOT making their mortgage payments, and I’m calling for the “MORTGAGE FORBEARANCE TRAP.”
What many buyers must understand is that Forbearance is different than DEFERMENT…which is where you can miss a few of your payments, and apply that to the END of your loan. HOWEVER…that’s not an easy process to go through. This is done ONLY on a case by case basis, for pre-approved borrowers, when they know EXACTLY how long you’re not going to be paying for…because, while you’re not paying your mortgage, the mortgage servicer STILL needs to make your interest payments to the fund that now owns your loan. And, the mortgage servicer is unlikely to want to make these payments on your mortgage - on your behalf - without wanting to catch up on those payments upfront, and that’s where the problem lies.
So, I have a feeling - that, after this forbearance period is up - if buyers are STILL unable to pay, they’re going to be processed through a different application for either a loan modification, which allows for the buyer to add those missed payments to the end of the mortgage, or a payment plan which allows the buyer to make small, extra payments towards paying down the outstanding debt.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at [e-mail]
*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.

[@finanzasiji6534]

I been in finance for over 10 yrs and you Graham hit it right on the nail 🔨 . The feds are spitting out cash but you ..... you are spitting out gold.

[@skateandfingerboard1]

Honestly, for me, a 22 year old guy with an okay income, this might actually be a blessing for me. I've been stacking cash hoping that I'd be a homeowner in the next few years. If this keeps going, I may get ahead of schedule.

[@abdul-jaleeldieng2660]

Bruh ! We're in the same boat. Wanna link up ?

[@NewYorksVenom]

Right there with ya

[@metavash]

Same. We're very fortunate

[@patrickdelgado6475]

Same. Now if only housing prices take a lil dip we'd be golden!

[@DemetriPanici]

I'm glad that it's the right situation for you!

[@johnf.hebert1409]

Graha Stephens was the kid reading all the rules of monopoly before even picking a character.

[@testingmysoup5678]

Shoe is my favorite character

[@bradvincent2586]

John F. Hebert and that’s how he won, haha

[@masterofceremony3728]

And you're the guy who didnt and watching him🤣

[@keyessense2409]

I screamed😂😂😂🤣🤣🤣

[@VixGuyOfficial]

Commercial Real Estate (and to a lesser extent Residential Real Estate) is going to be at the epicenter of this crisis if it takes as long to incrementally open back up as it looks to be playing out (God help us if we have a second infection wave and have to lock back down).

[@MeetKevin]

There goes my Real Estate

[@GrahamStephan]

Don't worry... ...I'll buy it from you ;)

[@JoeGator23]

@@GrahamStephan Maybe he can mow your lawn? :)~

[@chrisglaze1410]

Just got off work at JPMorgan Chase and the amount of $1200 withdrawals was astounding. Let’s see how this goes...

[@GrahamStephan]

Must be off to buy Toilet Paper

[@chrisglaze1410]

Probably

[@jacobburgess9439]

Investing With Chris Have you seen the beginning of a run on banks you believe? Are people panicking?

[@andrescalderon1122]

Or tigers 🐅

[@FGO23]

People off to spend money instead of saving it 😬

[@nater88dawg]

The decrease in home prices might be painful for homeowners, but on the flip side, tightening up on lending should prevent the bubble seen in 2008. I want a healthy market.

[@CaptainCaveman1170]

You mean deflate the bubble. The bubble already happened and it crested last year.

[@Zalgud]

I'm renting right now, keeping my cash in the bank, and planning to buy AFTER the real estate market crashes!

[@justinquitadamo]

you and me both sir. patiently waiting for that downturn.

[@AustinGarner]

Graham when laundry gets done during regular electric hours: “This is a financial crisis that I will never recover from” ⚡️

[@mrnobody5381]

Regular electric hours? o wait, its California. Can only imagine what the rate is.

[@jcrowley1985]

Or if the price of iced coffee skyrockets to 21 cents

[@thechubbsjochez]

That's a 5% increase just for coffee!

[@benriding8678]

@@mrnobody5381 LOL fking liberal policies!

[@tracy_cakkes]

Lol

[@bigtechinsights4849]

Graham: WHAT"S UP YOU GUYS! Me (bored out of my mind in quarantine): YESSSSSS!!!

[@GrahamStephan]

enjoy ;)

[@DemetriPanici]

XD

[@urwifesmacho777]

Ps4 helps a bit lol

[@pyritzpension9010]

what do you think about buying this stock? kzbin.info/www/bejne/pJWmi6GYh7ihorM

[@John69420]

Yessir

[@omidfilms]

You’re going to end up paying in installments. Upfront will lead to housing crisis.

[@stevencooper4422]

"You'll get your rent when you fix this damn DOOR!"

[@andymadrid5626]

Your clarity of prose is really appealing. There seems to be an honesty to your videos as well and I just wanted you to know you have a fan.

[@fridaysaleh8333]

Is it just me or does anyone get a voice in their head of Graham tellin them that the coffee that you are going to buy will be worth a 100 dollars when you retire?

[@GrahamStephan]

Invested for the next 40 years, with dividends re-invested, adjusted for inflation

[@hunterentrepreneur520]

Every sip of my coffee man... every sip....

[@HyperGadgets]

@@GrahamStephan at an average 7% return?

[@schmitty69]

I stopped at dunkin for an Americano on the way home today...my excuse was "well its better than buying a 1,000 dollar espresso machine"....but graham still makes me feel guilty haha

[@Ali-yy5ow]

😂 hahahaha

[@theChef1337]

Jesus bro. 1.7M? I was just watching you the other day and you were at like what, 200k subs? Congrats on the success, well deserved. Smashing that like button as always 👍

[@GrahamStephan]

yeah it's been growing like crazy, thank you!

[@BustDoff]

maybe you watch at The Graham Stephan Show the second channel^^ :)

[@theChef1337]

pelle karlsson nope been watching the original channel for over a year now, also remember when the 2nd channel came out, even before GG started making appearances on the videos. Just crazy to think how time flies when you take a step back from the normal routine and actually think about where things were a year ago

[@MegaHatLady]

I have my house up for sale for 493K BEFORE the manufactured crisis. I had 88 'saves'. 2 days after the lockdown. 22 saves. I lowered the price of my house 30K and still nothing. Thats whats REALLY happening.

[@JaRaffeBowling]

I got lucky. Closed on my condo April 1st. Only had to have $4,000 down and got a first time buyer grant. Locked in a 3.125% for 30 years.

[@johnandrew00]

Chicago Carter how are the additional fees??

[@RenderedThoughts]

Where’d you get that rate?

[@tommycastro9424]

Renee Scott Chicago?

[@JaRaffeBowling]

I was in Chicago, I moved to des Plaines right outside of Chicago. I used Bank of America’s first time buyers grant and program.

[@JaRaffeBowling]

The bank I used was Bank Of America tho.

[@2videosilike]

Thank you for explaining the difference between forbearance and deferment, That's why I SMASHED the like button!

[@GrahamStephan]

YOU GOT IT!

[@canttReid]

You’re a smart dude. I love watching your videos. They remind me to stop spending like an idiot and save more.

[@GrahamStephan]

thanks! :)

[@JamesHollowayYT]

ll His KZbin channel was one that helped me see my way out of debt, and start investing! Now I have two rental properties, and I teach real estate investing on my KZbin channel.

[@Ricardo_C]

Same here , makes me feel guilty everytime I buy a red bull.

[@skytrakn]

Forbearance and how it’s being handled is something that is constantly changing so if you need a forbearance you should speak to your mortgage company about your specific loan.

[@JH-qs4rh]

Mortgage loan officer here... just FYI, the 50% debt ratio is based on your gross income, not your take home pay. That makes a big difference. We're still offering 3% down with a 680 score!

[@underpressure9799]

That V-Neck is lower than my hopes and dreams

[@InvestToLive]

Bravo, I mean, just well done!

[@Ty111506]

Hahaha

[@joel.3112]

Lmfao I cant stop😂🤣

[@rlolo777]

😂😂😂😂😂

[@eliubfj]

😂 😂 😂 😂

[@JustFrugalMe]

GRAHAM IS THE MAN! I've applied Grahams' advice, jumped out of my comfort zone and now I'm on target to achieve my own youtube goals on my very own channel and business. I have been inspired! Thank you for not just make a video, but for making an impact!!!

[@RayWallacer]

This is great stuff Graham. Mark Calabria at the FHFA is making this even more difficult than it needs to be. CARES ACT says "lenders you need to allow forbearance" Calabria says "lenders you need to keep paying us investors (Fannie and Freddie) even if your borrowers have stopped paying.

[@sethfrye2890]

I just wanted to say that I thoroughly enjoy your videos. I came from watching Dave Ramsey's videos and now refer to you as the higher education version. DR got me into the basics of being mindful of money and now you are introducing me to transitioning into letting my money work for me. I feel like you guys work well together, even if you guys can be polar opposites at times. I think it's always good to see both sides before making decisions.

[@NickSkye]

I like how Graham says "you and I" like we make over a million dollars a year as well 😂

[@GrahamStephan]

:P

[@Level_No_Curve]

We will all be poor together here soon. only billionaires will make it out of this relatively uneffected

[@chriswayneecf9236]

Grammar Police: should be "for you and me".

[@Pete_xp]

@@chriswayneecf9236 You and I

[@johnnywalker3179]

@@chriswayneecf9236 Punctuation police: the period goes inside the quotation marks.

[@AngieLamourt]

I’m a mortgage servicing representative & all this situation is such a headache! 😭

[@GrahamStephan]

Yeah, seems like it! :/

[@DIVISIONINCISION]

I'm surprised you still have a job, frankly. The housing market is in a stand-still. They've been laying off underwriters in many of the larger firms.

[@AngieLamourt]

@@DIVISIONINCISION I work at a bank, I actually thought so too with everything that is happening, but you wouldn't believe how insane is the amount of work we are drowning in right now! They are even making us work every day of the week even weekends. The sad thing is they don't let us work from home even tho I'm in a call center, they make us go every day at the office with everyone else there near each other & people won't stop calling :(

[@christiancardenas6811]

@@AngieLamourt sounds like hell on earth😫

[@lorenzorodriguez6872]

I did mortgage servicing back in 08 I can only imagine now 😶

[@theguitarvirtuosoforgod1152]

I’m staying away from real estate for now. I’ll keep O and Nrz which I already have but I won’t buy anymore reits for now. Utilities are the way to go in my opinion. As long as civilization lasts people will always pay their light, gas and water bills. The biggest utility company in the world is Duke Energy which is a must have stock. It’s the first one you should buy if you’re planning on investing in utilities. After that, I would buy So (Southern Electric), Dominion Energy, Exelon and and Awk(American Water). In my opinion you should have those energy/utility stocks in your portfolio. From my studies I’ve found the utilities do not suffer the extreme dip that most others do. They’re much more stable and predictable.

[@cesarzumaeta]

From a pro to a noob. Dont follow the price down. Wait for the trend to change and then get in.

[@purepassionfx]

Pretty crazy to how many of us you've actually helped and inspired to hit both our financial and KZbin goals!

[@GrahamStephan]

ah thanks!!

[@ZeCouncilOfNEIN]

You were instructed to hit the button, not goals

[@shayargilani]

Wayne Morris specifically came here to say what you just said here. haha cheers

[@chrisparkhurst5158]

Don't forget he inspired you to hit subscribe and smash that like button too lol

[@leonjhendrix2]

I'm a simple man. I see Graham losing his mind on a thumbnail, I click.

[@bigtechinsights4849]

Leon J. Hendrix 😂😂

[@Rebel084]

😅😅😅

[@ItsJordiee]

Lmaooo 😂

[@user-it1np9jx7f]

Long time listener, First time caller. Love the Channel. Yeah, Graham I think you're are wrong on this one. The 15% minimum might be a requirement for investing properties? But a little less than half of homes put down less 5% of the purchase price. I saw a figure of 46%, depending on what data you look at. The loans you are probably looking at are conventional. FHA only requires 3.5% .Many states also have grant programs where many times you don't need much down. Both FHA and grant programs have looser credit requirements.

[@jessejess9456]

The Rate LF these KZbin adds is Brutal But your content is worth it

[@israelnazari9900]

I don’t think the average homeowner understands how this forbearance plan works

[@yangyangnezin208]

Israel Nazari forbearance agreement is mind twisting to read and very hard to get out of,

[@DIVISIONINCISION]

It's not exactly hard to understand. Forbearance isn't Forgiveness. If you are smart enough to buy a house, you'd better be smart enough to understand the mortgage details. (Shaking head.)

[@allie8442]

I agree. My husband and I weren’t sure at first. We figured it out, but seeing the numbers of forbearances, I am sure you are right. 😔 Perhaps public schools aren’t good at teaching critical thinking 🤔

[@justinfigley4867]

Nope, I didn't. Glad he explained that part for me so I need to memorize that part. Luckily I don't need to worry about it atm....

[@DrsGanandMo]

Israel Nazari I was so shocked when a personal friend of mine was advising his coworker to just do the forbearance even though he was still employed and had no prob making the payment. People are thinking that they don’t have to pay that money lol He was honestly dumbfounded when I told him that it doesn’t work that way lol Btw, my buddy is a very very successful doctor; the point of this is that financial education is not something many people have and don’t assume that people with higher education know how to manage their finances

[@chrisglaze1410]

Who else turns to Graham over CNN for their news?

[@NioxyHustles]

me 😂

[@GrahamStephan]

ah thank you!

[@samweirich5973]

CNN should rename themselved "Xi NN" cause all they do is parrot CCP propaganda....

[@bigtechinsights4849]

🙋

[@samweirich5973]

@Stocks Trading and Investment thx, sadly I can't claim credit, Donald Trump Jr tweeted it out and I thought it was pretty slick....

[@BrettMcNary]

Your last point is the most important in my opinion. Government or the FR will at some point need to step in and change all mortgages from forbearance to deferment. This is where I can see the entire market possibly getting tripped up and falling. GREAT video.

[@artur7301]

5% down payment? This is crazy. You are so lucky guys there. I live in Spain and banks here would ask for AT LEAST 30% down.

[@wild_taco_gonecrazycorona9112]

yes but in spain atleast you guys don't make cheap houses like USA believe me my family owns multiple houses here in USA its not sturdy cheap material and cardboard is used lol neighbor is fuking his wife you can tell when and where and how thats bad example but true and mortgage+ pmi+ insurance and taxes also maintenance of the house if you count all that all you own is nothing because you pay yearly taxes for land you are staying in,,,, so all in all its not a good deal as an economist I say

[@Sultanrx]

Im starting to think these banks watch Graham’s videos and take advice from him. Thats why his predictions are spot on lool

[@GrahamStephan]

Hahah If that's the case I need a cut of their profits ;)

[@zookiatookya320]

@@GrahamStephan or you know..help us out and "predict" that banks will get rid of their loans so we can all own our properties 😋

[@alexreid2393]

Zaia Sarkis 😂

[@fubarexress6359]

Honestly I'm looking forward to the massive housing price reductions. so I can actually afford to get a house that I really like instead of settling for something that's crazy overpriced and end up upside down a hundred K like my parents did during the last crash.

[@bmarie8965]

yes good idea but im sure interest rates will sky rocket so be sure to pay it down as much as possible

[@atl3630]

Younger people who were planning to buy a house soon are going to benefit, as long as they have good credit and cash down payment.

[@Nooneknows59]

atl3630 You think so? I’m 24 and have been saving for a home but I’m an Los Angeles resident so I didn’t think I would have enough saved up for a while. I really hope this is an opportunity for my brother and I to buy a home!

[@BrookeEli]

We do foreclose property management on our channel and are seeing some good houses for cheap right now.

[@CasaUwU]

Looking into houses right now. FK a C-virus. Kept debt down and even successfully churned a 3rd credit card for rewards.

[@damone3331]

I am OK with all the lenders changes they need to keep these permanent. Rules have been so relaxed for too long. No more stated anything ever as well.

[@Catholicweddingvideo]

You're my favorite Graham! Can't wait till I can purchase my first property using so much of your guidance over the past year

[@matthews8580]

Commenting for the algorithm. Will come back to watch later. May the algorithm accept my offering... Edit: wow that's a lot of likes! I wonder if the algorithim pushes comments that like the algoritihim... lol

[@GrahamStephan]

enjoy!

[@michaelluciano2925]

Me too

[@theheadguy1212]

Or you could add it to you watch later list.

[@joshmcgoo]

replying for the youtube algorithm

[@timothyswindell4924]

His channel doesn’t need algorithmic manipulation tho... he’s just greedy.

[@ReggieBryant]

Graham- your thumbnails are iconic, sir! Great content as usual. Your videos have great information but the way they are delivered legit inspires me as I continue to grow and develop my channel!

[@GrahamStephan]

thank you so much!

[@rochellesmith8837]

i closed on my condo on March 26.... right at the beginning of this. In order to incentivize closing, my broker paid for me to be part of a payment assurance plan, which will cover my mortgage (outright, not a loan) for up to 6 months if I lose my job in the next two years. That mitigated so much risk for me. I also have a roommate that covers 60% of the payment. I am in the midst of flipping it, and will probably have 15-20K of upside. I probably bought at an inflated price in a particularly hot market (metro Denver), but i'm just planning on holding. Worst case scenario, I can rent it out. It's a bummer, because I probably bought at a peak when its probably already worth less, but I think it'll be fine long term.

[@dazed_and_amazed1296]

Rochelle Smith a good investment. Just hold onto it as prices will likely drop in the next 6-12 months and we are also having food shortages meaning food prices will go up. But if you hold out through this all it will all be worthwhile

[@gulrezbarmare317]

Graham can talk and talk and talk but it all make sence ........now that's a talent

[@RealLifeMoney]

It’s extremely interesting and even concerning to wait and see how this real estate market will be effected in 6-12 months 😱😱

[@GrahamStephan]

Agreed!

[@DIVISIONINCISION]

Foreclosures to begin in the summer. Those people who thought they wouldn't have to pay are going to come to the realization that the bill is due. August time-frame.

[@williamwilson6499]

Affected.

[@JamesHollowayYT]

Nick Scuderi - RealLife Money Same! I just made a video about this. I believe foreclosures will happen 6 to 12 months down the line and prices will begin to fall.

[@TwoDollarGararge]

Nows a good time to buy soon

[@davidthompsonfinance8760]

Graham has yet again rubbed the crystal ball 🔮

[@GrahamStephan]

I just need to find out when DAL stock is finally going to go back up..

[@JamesHollowayYT]

David Thompson Finance Agreed. I believe the market will fall! Even though I have two properties right now, they are still cash flow me $1100 a month, and I will be holding onto them long-term. So this doesn’t concern me for my two properties. But it’s Definitely going to allow me to buy more in the near future!

[@StephenShreds]

My balls are not crystal.

[@wesley9342]

Payments will be moved to the end of the loan not after the 3 months. they specifically added that for those predatory loans that expected you to pay them after the three months to a year of forbearance. I just looked at my Wells Fargo and it says at the end of the loan term. It was specifically updated because of predatory loans that were issued saying that you had to pay it back at the end of forbearance which you are talking about. So it has been corrected. They specifically added in good faith forbearance to the terminology.

[@brandyhaymond9212]

Wesley thanks for posting that. I was thinking that’s what it was. Adding it on at the end. Make sure u save that agreement.

[@irkaart5556]

Wesley it’s not that simple. you will have to have a loan modification in order to add anything on. So yes if they approve you for a loan mod, you will have it added to your loan. You better get everything they tell you in writing, most people will be screwed if they don’t.

[@wesley9342]

@@irkaart5556 definitely have to be careful but it's what the federal government placed into the bill to cover people from the predation.

[@sorsorsor11]

This is area specific, but certain areas which were tourist centric are destroyed. Pretty much 95% of jobs disappeared, people are either moving together or leaving to parents. I already saw rents drop by 50% (yes fifty!) in a month. But even at that rates, nobody is renting, so landlords will give even further discounts. Not to mention businesses are closed, so office spaces are empty and AIRBNB owners now forced to compete in the rental market. So far it looks like I will get a 80% rent reduction and my landlord considers himself lucky to even have anybody to rent. I would sell my house as I could not take it mentally.

[@mmmmuffinman]

In Canada the banks are giving us deferment. Forbearance hasn’t even been mentioned.

[@yoe-c5x]

Andre same as UK, up to 3 months

[@zunedog31]

Good luck to those lenders going from gazillion of dollars in income a month to nothing

[@donm2067]

@@zunedog31 they make additional money on the back end, banks never lose lol.

[@zunedog31]

@@donm2067 Banks, no. Non bank lenders, yes.

[@chrishammer5925]

It's basically the same thing.... You still have to pay, you just pay later. Even in forbearance you don't HAVE to pay it all back at once, you can pay most of it back even later and spread out over time

[@davidsdinero]

Last time I was this early my life.... was normal.

[@bigtechinsights4849]

Professor Finance 😂😂the good old days

[@DrsGanandMo]

I actually never watched so my KZbin in my life till now I keep telling myself that I’m watching educational content so I don’t feel bad about my life Lol

[@UltimateBargains]

Was bat soup still on the menu?

[@davidsdinero]

@@bigtechinsights4849 miss when I didn't have to wear a mask to go to walmart lmao

[@davidsdinero]

@@UltimateBargains legally it was haha maybe they're still serving that somewhere in the world

[@albeerobert]

This is the 2008 mortgage crisis all over again. Most people do NOT care about being mortgage free. They just want to keep taking out mortgages to enrich themselves. They do NOT care about paying their mortgages especially if it appears nobody else is paying their mortgages. Everyone needs to get back to WORK or this is only going to get MUCH WORSE.

[@George_Perez]

never clicked a notification so fast..

[@KellanJames]

Look at that fresh haircut!

[@DidiGrooves]

No social distancing there. Could be his gf too though.

[@bodiesbydefinition]

Wait.... HOW MUCH DID THAT COST???!!!!! 😡

[@jeffreyjewell75]

DidiNYC you mean bf ?

[@purepassionfx]

Always dropping 🔥 bro, thank you! First time homebuyer here, only 24. Always learning from you 💯

[@GrahamStephan]

happy it's helpful!

[@ImHimEli]

PurePassion Fx Congrats 🍾

[@thetristyman]

That's crazy that in the U.S, banks have been doing forbearance... Here in Canada banks and financial institutions have been deferring payments. Basically, they push back your next payment for up to 6 months. The catch is the interest is still calculated and is owed in full when the payments pick up again. But, you can capitalize that interest back into the principal of your mortgage, so all in all a much more helpful approach than the U.S financial institutions.

[@theaustinlewisPP]

You're the studs of all studs

[@steinerfarm]

Don't worry everyone has a emergency account with at least 6 months of funds in it 😂😂

[@bradvincent2586]

Today on the Farm yes I totally was prepared😅😅😅😅 Lol but I will be next time

[@joaquincortada1483]

@Wendy Darling he was being sarcastic

[@throwawayaccount1728]

You meant 6 hours...

[@David-bc4hh]

I had 3 months and my God... I'm glad I did!

[@turbokid8719]

Nope 😂

[@Maturelyme]

No the mortgage payment is just added to the end of the loan. Due a month later than it wouldve been. Atleast for my morgage company

[@glennheightstownhome3200]

Who's your company?

[@theohanalife9899]

Same in Europe

[@RedShortsPolitics]

Idk what's a bigger flex than having a T-rex head on your desk... lol

[@tbrayden3694]

Just got a 30 year fixed refi down to 3.25% (closed last week of March). Got $3.5k in lender credits, so pocketed around half that after appraisal, title, etc. Luckily I still have a job, but employer making rumblings of doing mass layoffs.

[@TheEntrepreneurChannel]

So glad graham has two years or more expenses! Wish I saved more but I’m adding every day to my emergency fund. 💵💵💵

[@GrahamStephan]

Oh yeah, probably even more than that with uninvested cash...but then again, regretting not buying more into the market recently :/

[@HyperGadgets]

@@GrahamStephan I know you already know this but hindsight is 20:20 😅

[@TheEntrepreneurChannel]

Graham Stephan might be another chance on the horizon! 💵💵💵

[@JamesHollowayYT]

James Germain - My Financial Journey Channel I wish I had two years to! I only have six months of reserves for both of my rental properties!

[@kdrguru]

@@GrahamStephan what about that 100k reno..let's get an update.

[@psilence0]

I thought this was standard since 2008 already... 20% down, employed for a year, score over 700, 6 months reserved. This isn’t new!!

[@GrahamStephan]

Nope, they eased up a lot these last 3 years

[@5026944]

Low down payment (3-5% )Home owner that have a hard time paying will just let the home go to foreclosure. They simply have nothing to lose. They will ride out the process , live free for 6-12 months even longer and go rent a home. We’re facing a record number of foreclosures. Home prices will sink to record lows.

[@newtonfb]

Real estate prices are insane right now. It needs to come down and I dont feel bad if some ppl lose their homes, ppl buying with these insane prices are the ones keeping the prices up

[@peterk.9641]

I feel like there were like 5 breaks for ads in this one. Seems a bit excessive.

[@trendinvestor2893]

I have not watched one KZbin ad in over 2 years. Paying for KZbin premium is definitely worth it.

[@anh7807]

@@trendinvestor2893 Thats their goal is for you to resort to paying for youtube. Drive you insane with ads.

[@mexcanfun4498]

No ads at all here in Mexico.

[@sergeshoemaker5218]

Agree, having over 1,5 mln subscribers he definitely could afford not using these stupid adds for making extra $ KZbin is gonna make money either way by feeding you with extra BS or by making u to pay for not swallowing their crap!

[@mylifeisamememylifeispathe3140]

The printing of money is really bad they're devaluing our currency and the wealth gap is getting wider and wider if others don't move up I can't move up either.....v 0.0

[@jaxtheripper9663]

Squidward over here dropping KNOWLEDGE!!!

[@Thefunkeemonkee]

Yes, but the vast majority of Americans do not even have an idea of what or how inflation happens and all they care about is getting a check which they will probably burn in less than two weeks.

[@christianjcedillo]

Prices are dropping which is deflation so atleast right now we should be fine but if prices stop going down, we might be a little fucked lmao.

[@Thefunkeemonkee]

Christian Cedillo Its going down same way as how the stock market was going up. It is just an strategy to cover up a crisis behind it.

[@bespoke4187]

I see some owners are taking their homes off the market in certain markets and want to wait and see how things progress the next 6 months. If good they will sell. If not then they could hold until things recover like they did the last recession. No one wants to be low balled.

[@danhall5761]

In the UK our government had frozen mortgages and just extending the term for the length of the freeze, brilliant for anyone with a mortgage as the inflation will make that negligible if you’re planning to pay off the property.

[@michaeltrevisani829]

Prices are going way down in 6-18 months. Who is renting AirBnB properties? Job losses, credit drying up, 720 credit score requirement: cash will be King. Better for people who have saved and planned than BlackRock that is my fear.

[@justinquitadamo]

This crash will show who's been saving for a raining day and who's been living beyond their means. I'm patiently waiting on the sidelines for the cards to fall.

[@alexesteban]

I’m putting all my investments in Avocado Toast. It’s the hidden gem no one is talking about. 🥑🍞

[@bigtechinsights4849]

😂😂

[@DemetriPanici]

best idea I've heard all week

[@nikkis8827]

The Mexican cartel already beat you to it. 🤷🏻‍♀️ nice try tho

[@bonesjones988]

Good luck I put all mine in Shrimp Toast some 30 years ago after eating it at Hunan Palace and needless to say it didn't quite work out as expected.

[@earnthis1]

Take that millenials who had nothing to do with this situation!! You are a comedian!

[@bctaylor]

There is a really good video. So much “popcorn” out their. This is real meat.

[@MmonowClub]

Lol

[@markoticz]

NAME ONE DAY TRADER THAT IS LEGITIMATE AND POST AUDITED BROKERAGE STATEMENTS

[@mikewallin6049]

Out there NOT their😁

[@pyritzpension9010]

what do you think about buying this stock? kzbin.info/www/bejne/pJWmi6GYh7ihorM

[@phillydoo781]

@@pyritzpension9010 do you mean BP? if yes then bad idea, we can see that it's only consolidating at the moment having a hard time rallying, I have little optimism as oil prices have reached lower lows and the macroeconomic impacts are still largely to be felt meaning demand will be lower too tl;dr I would be short or neutral and wait for it to go lower to buy

[@evangeliamintzai6302]

Working at Risk Management in a bank I find it finally relieving that banks are lowering their leverage. Banks should create more pessimistic stress scenarios and not lend money to clients who want more house than they can afford. The assumption to this tactic is that the economy and the financial situation of the client will continue being the same for the lending period. Luckily, big banks are well capitalised and can deal with market shocks like this one. I wouldn't say the same for smaller lenders.

[@shuntamonique4647]

As a mortgage underwriter I have been extremely busy since February... working 10-15 hours of overtime each week, sheesh! I was worried about another crash happening, I’m actually glad the regulations have gotten strict! The guidelines for employment verification has gotten very tight as well.

[@AboutAysha]

Well then, let me go sell this flip QUICK!! 😩

[@Thefunkeemonkee]

Aysha Chaudhry - Property Investing It also depends on which market you are at, where I live RE is non essential but it varies from county to county.

[@DIVISIONINCISION]

Know your market. I live in a nice suburban area and home prices are down. The couple people who are selling are not getting anything. I see properties being pulled off the market. If you live in a major market like LA or NYC, real estate is overpriced anyway, so I don't see those markets being affected as much.

[@petet-rex5589]

Too late. Game a over

[@DrsGanandMo]

Aysha Chaudhry - Property Investing how are the flips going right now btw since the lockdown; in south Florida where I’m at agents can’t do open house and everything is virtual as such people aren’t closing on much these days Let alone all the new bank restriction that decrease the buyer pool

[@NeilMcCoyWard]

Thanks for sending me 11% of my traffic from this video 😀👍😂

[@GrantNavarre]

LIKED! Keep it up Graham!

[@justinze9995]

A lot of these new stipulations have been in place in Canada for the last decade if not longer 20% down min 2 of your most recent pay stubs 2 of your most recent tax returns Letter of employment from employer 45%-50% DTI If you have rental property only 50% of rental income can be used

[@Naija4K]

There will be a bailout for homeowners...it’s an election year...the policy will be to reschedule and allow the missed months to be added on the end.

[@VannaMae]

Look what happened in 2008..

[@acbedmbedc862]

Vanna Mae Sorry for sounding naive (I‘m just not from the US): What happened 2008? They did NOT bail out homeowners, right?

[@daystarcreations]

@@acbedmbedc862 they did not.

[@gp7110]

It already is, did mine today, will restructure or modify loan at end to put on the end.

[@justinbrown5424]

Yes with a refinance, higher interest, and refi fees for the bank. Do you think people who already mortgages to the max are going to afford that ? Add in the lower income than prior covid, and you still go bankrupt. This will last for years.

[@jacobfair6069]

U.S. owes the fed 24 trillion dollars, but have the audacity to tell us we have a credit score...

[@Cahluvca]

😂...right

[@denniscosban6145]

They do it went from AAA to A.🙃

[@tazyou11]

We had a situation after we were hit by a hurricane where we didn't have to make a mortgage payment for 3 months, but after that we didn't have a lump sum of 3 months worth of mortgage payments, they broke down those 3 months of mortgage payments into 12 months of paying extra to our monthly mortgage payment, which I think is reasonable and the mortgage is still 30 years, not an extra 3 months.

[@simretsingh7921]

Malaysia has requested all the banks to allow for a differment for 6 months. Some banks allow to differ the principle and add the total 6 month principle into the remainder of the loan without changing the tenure, so after 6 months there will be a small increase in payment every month. Some banks allow for total differment of 6 months and adding this amount at the end of the loan hy adding 6 months in the tenure. Pretty good options for us Malaysians

[@DeeLuxist]

Graham: “Banks are not stupid” Banks: laughs in CDO’s

[@chriswagner9778]

I'd like to watch all of "The Big Short" (movie), got a link? If you can, do it ;-)

[@justinitdoesntmatter7515]

If the housing market dips I’m buying my first house!

[@rustyscrapper]

Give it a year. Try to save 20% for a down payment. Lending might get really strict. Don't wait too long, hyperinflation is coming down the road. In the short term there will surely be a dip. Unless the FED interferes in the housing market too and buys all the bad mortgages from the banks, and the houses sit empty boarded up off the market. I wouldn't be surprised if the fed did that and sat on millions of vacant houses.

[@CaptainCaveman1170]

@@rustyscrapper I say two years. The first year will be all kinds of programs, giveaways, forebearances, mods and other moral hazards that will distort (and somewhat prop up) the market, but they will ultimately fail to a large degree.

[@masterofceremony3728]

Better be sitting on a good amount of cash because all the flippers and investment firms are praying on the same Good luck to you my brotha

[@benzielke7149]

Best time to buy, it's what I did after pukebama ruined the economy last time.

[@robgeach8105]

housing is priced based on location and cost of replacement. unless there is a glut of skilled construction labor in the near future there isn't any major downward pressure on existing stock. the demand guidelines by chase are a result of their own risk assessment and other smaller lenders are going to have different calculus that allows for higher risk precisely because the lending business is so crazy profitable. that's not to say you can't find a "good deal" in a temporary lull like this, but if buyer demand shrinks too much for the comfort of sellers a great many sellers will just take their house off the market and wait out the lull, shrinking stock to match. this isn't going to play out anywhere close to the way 2008-2009 did.

[@mikefobert9485]

I am a SR Loss Mitigation underwriter in Phoenix AZ. For all loans that are FHA,VA, USDA, Freddie and Fannie there is already a end game plan for the forbearances as long as your loan was current as of 3/1/20 and a owner occupied home (for now). For FHA loans as long as you were current as of 3/1/20 and you have not max out your available partial claim amount you will get that. However keep in mind this will create a 2nd mortgage for the amount of the payments that were put on hold at 0% interest and due when you pay off the loan. The others are going to be modifications at this time and subject to change.

[@sjf4405]

Requiring people to have 20% down payment is a good thing! This will drive real estate down to actual affordable prices in the long term.

[@thatzmental]

The reality is many people will see their credit score drop substantially now. Think about how easy it drops. Add any amount on a credit card-drop it 20 points. If people miss a payment, which is going to happen to some, they should expect a huge drop in their score! So qualifying for a loan is going to get very tough, especially in California!

[@Cahluvca]

Very true

[@FamilyFinance]

My hubby is self employed and getting a mortgage was already difficult enough ...😱

[@vltod9167]

Why is it difficult? If he show 2 years earnings and paid taxes I dont see a problem or I am missing something?

[@Cahluvca]

@@vltod9167 It can be more complex for self employed but doable just have to do less deductions

[@WeedmanSmokes805]

My mother got forbearance and she was given a few options for paying it back, one option was to add the missed payments to the back end of the mortgage.

[@JamesHollowayYT]

Yes but this is mostly a loan modification. And a loan modification hurts your credit score!

[@NickWright]

All of these strict standards seem like good things to me! People shouldn’t be drowning in debt just to buy a home.

[@ReeceIovine1]

I picked a great time to try and get a cash out refi on one of my rentals...everyone is crazy busy and doubt I'll be able to pull out as much as I could 2 months ago 😥 ohh boy lol

[@GrahamStephan]

We'll see what happens!

[@matth4784]

Yea but if you did a cash out before this then you'd be underwater on the property. Blessing in disguise

[@DrsGanandMo]

I actually reached out to my broker over a month ago to refinance my primary to a 15 year when the rates dropped but missed the window and a week later the numbers on the new rates don’t work for me Another blow is that the non-qm loan products have been discontinued or stopped for now and I’m already over the Fannie/Freddie limit and have two closing lined up for June but not sure if I will be able to get a loan. Even I wear to close cash the returns are not nearly the same

[@indigojustice8032]

Are you not able to get in contact with someone to help you out with the refi?

[@skytrakn]

Gan and Mo Keep in touch with your broker to refi because rates have been moving up and down and they aren’t too far off the lows we saw about 4 weeks ago.

[@iceman2921]

Poor stay poor. Middle class fall more behind, rich stay rich and find some really great investment opportunities coming up. Wealth transfer in the works!

[@alexreid2393]

iceman hmmm

[@POLARISFPV]

Buuutt there will be a lot more opportunities to move up a class as well, with all these fire sales approaching us. The stupid stay poor the smart get rich. If you're like me you've been stalking away cash for years, just waiting to either get cheap property, or some really fine equities a bargain prices.

[@laxsneha]

@A I well said, pal👍🏻

[@GaryCruz]

While we were closing on our 15yr Refinance, we had to DocuSign a Forbearance statement. I texted our Mortgage Broker what that meant and then I saw this video. Great timing! The bank also asked for an update payment stub. They are triple checking!

[@nheme87]

I suspect, IF they keep these standards, that the price for home ownership will decrease in the years to come. In the 50s a house would cost a bit more than a years salary (at least for a teacher, one person) and the mortgages was structured differently: You paid 20%-50% up front and paid the rest of the mortgage down between 5 to 7 years.

[@AndrewEthanZeng]

Always, always diversify income beyond one income stream! Along with investments, create businesses. Like if you agree ✊

[@OrlandoPropertyAdvisor]

excellent "perfect borrower" explanation. These are the people I see now with excitement entering the buying market. Sellers still dont want to take low offers though, we aren't there yet

[@believeimages6034]

My mouth is salivating for deals. Been waiting 6 years

[@AnnM223]

We’ve been there already, forbearance, modifications are BS!

[@titiscreations9554]

Graham should trademark “20 cent coffee” it’s the intro to the majority of his videos

[@josephhummel6200]

I would expect a lot of current homeowners to be renters in the near future.

[@hockeyandrew3206]

Subprime borrower picture is priceless!!! Hahahaha

[@DOGbackwardz]

700/20% is incredibly significant. There are dozens of markets that basically required prospective buyers to enter into contracts at 5-10% down because of expense:income.