Happiness is when what you think, what you say, and what you do are in harmony. – Gandhi
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Facts About the Housing Bubble
Before the 2007 bubble burst there were several indicators showing that we were going to have a housing crisis in America.
Housing prices were on the rise rapidly a few years before, and everyone and anyone was getting a mortgage, no matter how bad their credit was. People were being put into homes that were doomed for failure.
Some headlines on ccn.com are saying that people the housing bubble is about to burst again. Possibly could be this year 2020!
There is one specific reason the bubble could burst this year 2020. Housing prices have been increasing rapidly.
According to Zillow home values median house prices have risen 3.7% this past year. The median home value is $244,054 as of January 30, 2020.
5 years ago in 2016, the median home value was $195,000. That is a $48,000 difference in only 5 years!
Crisis On The Way?
Will there be another housing crisis? I have been saying myself ever since the 2007 housing bubble that another crisis will happen due to what I was doing and saw back then.
During my time in the loss mitigation departments, I was doing what the banks called traditional modifications before Obama came out with the Home Affordable Modification Program (HAMP).
The banks were never to use unemployment income and once we would punch numbers to do the modification and had a new mortgage payment, if the homeowner did not have at least a surplus of $100 or more we could not do the modification and had to figure out a different plan for the homeowner.
Once the HAMP came out we could take unemployment income, and the homeowner could have a deficit. We had a spreadsheet that we plugged numbers into, to see if the homeowner would qualify.
I have seen deficits being in the $2000 for the month!
To clarify a deficit means that a borrower would be -$2000 with all of their expenses that they had for the month.
We also forbear-ed principal. For example, if a homeowner owed $100,000, in certain situations we would take $40,000 off of the principal balance of the $100,000, so the borrower would only be paying $60,000.
The other $40,000 would become a lien against the property, that the homeowner would not have to pay on or payoff until the $60,000 was going to be paid off or if they sold the home.
You’ll be able to learn more about the whole situation in my book that will be coming out soon called Big Banks Small Thinking. My new book is published here!
Currently Reading:
Parenting: 14 Gospel Principals That Can Radically Change Your Family. So far this book makes me not feel so bad when I lash out at my children. Did you know God gave you children so that you would turn to him? I didn’t!
Finished Reading:
Dark Agenda: The War to Destroy Christian America. Great view of what is actually going on with our political system and how our rights are being taken away right under our nose.
The No. 1 Ladies’ Detective Agency. I think this book is well written and really enjoyed the different clients that Mma Ramotswe had helped. The clients are a view of our everyday life.
Comments: Do You Think Another Housing Crisis Is On The Way?
