Latest / Financial Survival Network / Deadbeat Nation with Debbie Bloyd #5791

Transcript

Deadbeat Nation with Debbie Bloyd #5791 · Financial Survival Network

0:00
You're listening to Carrie Letts's Financial Survival Network, where you get valuable information you
0:05
just can't find anywhere else to thrive in today's trying times. You need the
0:10
Financial Survival Network now more than ever. Go to Financial Survival Network dot com
0:17
and get your free newsletter in gift Financial Survival Network now more than ever,
0:27
And welcome you are listening to watching the Financial Survival Network. I'm your host,
0:32
Carrie Lutts. Well, we're all deadbeats now, at least the current
0:38
administration. As their way, they proposed a rule that I guess all's fair
0:44
in the love and war and politics and the mortgage finance. Basically my understanding
0:51
of it is, and Debbie Bloyd is with us. Shall love further elucidate
0:55
the subject that an additional fee will be charged on mortgage borrowers so that the
1:00
good people will pay for the bad people and make the government whole? Do
1:06
I have that right, Debby? You do? I mean it's the dumbest
1:10
rule ever. Right, So, now we're having to give money to the
1:15
people that don't have and really, you know, carry it doesn't go to
1:19
the people that don't have the good credit. It's just a penalty for those
1:23
of you that have the good credit. We don't know actually where it goes.
1:27
Well, so the people with bad credit, do they have to pay
1:32
this? No, No, because they haven't. They they can't. If
1:36
they could pay any money, they wouldn't have bad credit, right, they
1:38
wouldn't let things pile up and be late. So I don't know where the
1:42
penalty goes, Like, if all the good borrowers are paying it, where
1:47
does it get applied? Because how are you gonna give it to the bad
1:52
people unless the lenders give it? I don't know. They haven't said yet.
1:55
Who gives it? Yeah, well, probably goes to some government slush
2:00
where they can do whatever they want with it. But what's a fee going
2:05
to be? Do we know that yet? Oh, we don't know any
2:07
of that yet. So it can be four to five hundred dollars, or
2:12
it can be a percentage. I don't think they've finalized any of it yet.
2:15
It just whatever it is is going to start May first, which freaking
2:19
everybody out that's trying to buy houses because they don't know what's going on,
2:24
and we don't know what's going on. It's nuts and the last thing we
2:30
need in the current real estate environment is yet more uncertainty. You're right,
2:35
yeah, I mean, you know, it's hard enough to try and figure
2:37
out how to buy a house right now, what the rates are going to
2:39
be, what the rates are going to be six months from now. We've
2:43
got people that are hesitant to put in an offer because it's so volved.
2:47
They're like, we'll just wait. I mean, we're gonna see. Well,
2:51
rates are only going up, they're not going down any right now.
2:53
So all the people waiting to see they're not doing themselves any favors. Yeah.
3:00
So so what is a HomeBuyer to do here that I mean, well,
3:06
I mean, if you're renting, you don't want to keep paying rent
3:09
because you're paying the mortgage for somebody else where. There's a house or department,
3:14
you're paying someone's payment, right, So if you can afford to buy
3:19
something of your own, it's better than renting. But if you don't have
3:22
a cash flow, So you know, everybody that could have a house,
3:24
carry it said, have already gotten a house in the last few years.
3:29
They got it rates for low, So those people aren't moving. There's not
3:32
a lot of choices on the market, and the choices on the market and
3:37
any state gets snapped up pretty darn quick if they're in good condition. Now,
3:42
if they're not in great condition, people are like, yeah, I
3:46
just you know, maybe I should just wait and find something better. So
3:50
it depends greatly carry on the price range that you're in. I have a
3:54
girl that's looking for condos and she can't even afford that, but the real
3:59
state will keep taking her out. But I can't qualifier for much, so
4:02
she doesn't like what she can afford. Then it's make more, pay off
4:08
your car, get another job. I mean, there's other types of things
4:11
you can do, right But I think people are stuck and confused because they
4:15
don't understand the money market in the money world right now. Yeah, so
4:20
look, so what are you telling people to do here? You know,
4:25
I'm telling them if you know, I sat in an open house this weekend,
4:28
and you know, people came by and they were looking for rental property.
4:30
But you know, to make a cash flow, they're going to have
4:33
to pay cash for it. The rates for an investment property or in the
4:38
sevens now and so if you can cash flow the property, go ahead and
4:43
buy it. And they're like, well, I really this whole cash flow
4:46
and then they look at me like I'm the problem, and I'm like,
4:47
well, they need got to put more money down, but we don't have
4:50
more money down. Well, then maybe you want to sit on the sideline
4:54
because the numbers are not going to work for you, or yeah, if
4:57
they don't work to buy it, you've got to buy it much less expensive
5:00
house to rent out. And they're like, well, I don't want to
5:03
be a slum lorder. Okay, then maybe you shouldn't play in the market
5:06
right now. It's like going into a Jaguar dealership and saying, I really
5:11
would like this payment to be two hundred dollars a month and they're like,
5:15
yeah, well it's eleven hundred. You're like, yeah, that's not going
5:16
to work for me. What do they think? What do you think the
5:19
jag dealership is gonna say, you know, oh, okay, because it
5:23
won't work for you, change it. Oh, they say, go buy
5:28
a buug or something. Right, They're not gonna change the way they do
5:31
their business to reflect you. You need to make more, put more down,
5:35
do something different, or not do anything at all. And I think
5:40
a lot of people are just hate to think carry they're just entitled. I
5:44
want a home. I want to be able to buy something and I can't.
5:46
Well I don't know, be better make more, put more down.
5:50
The numbers are not going to work out for everyone want right now, this
5:55
is not a I mean, Biden's trying to make it a god given talent
5:58
right to get a house. So it's a it's a right. And yeah,
6:02
well if you wouldn't know it when you hear people right, I know,
6:05
you know, if you've gone through a divorce, if you've had a
6:09
bankruptcy, if you've gone through a foreclosure, it's gonna be very tough to
6:12
get a house. If you're self employed and you haven't paid your taxes and
6:15
you're using a traditional loan, it's going to be hard to get a loan.
6:19
You know, then take care of your business. Not everybody gets to
6:23
buy a house, and everybody's whining about buying a house. So it just
6:30
doesn't work like that. This is not an entitled business. Okay, So
6:34
so how should it work? What are you supposed to do? And you
6:39
like this, You've got to You've got to put some money down. So
6:42
you know what we're seeing is, you know, I'm in Dallas and in
6:46
the being main parts of Dallas. You know, housing is very expensive and
6:50
it's only going up. The cheaper homes are on the outskirts of town,
6:55
which the outskirts of town keep moving right, just like in Florida, just
6:59
like anywhere else. If you've got to get out to the burbs, well
7:01
I don't want to drive an hour and a half, Okay, then don't.
7:05
But you've got to find something to live in, then you mind be
7:08
a renter. I keep telling people if they're unsure about this and they don't
7:13
like that, you know, car, I've had a client out looking for
7:15
a house for a year and a half. Yeah, and it's not because
7:17
there's a lack of houses. It's because they're very unrealistic, and the longer
7:23
they wait, the worse and guests. You know, they were looking at
7:28
not so pretty houses a year and a half ago when they could have bottom
7:30
at four and a half percent, but they were looking at a lower price
7:34
range and that did not make their standards. Okay. So then back then
7:39
they were looking for a house in the five nineties. Now they're looking for
7:42
houses at eight hundred and that's the price a house they want. But now
7:46
with the interest rates, they've waited so long they can't afford it and they're
7:49
mad. Well, if you move slow in today's market, you're not going
7:54
to be happy. Yeah, it will move fast, right, Yeah,
8:01
So what do you? I asked, what do you do? What do
8:05
you do? You decide faster? You you give pre approved for a mortgage
8:09
with someone like myself, We tell you what you can afford. Then you
8:13
go out and you find what that brings. And if you do not like
8:18
what it brings, you either up your game and make better income, get
8:22
a better job. And everybody in their dog is hiring right now, So
8:26
get a better job, make invest in yourself, or you go back to
8:30
being a rented Yeah. Those are your only choices, all right. And
8:35
so I think that's a really tough pill for a lot of people to swallow.
8:43
All right, Well, that's tough, right, I mean that really
8:45
is. So you you need a house, you want to move, you
8:48
don't want to pay rent, and what are you supposed to do? Right?
8:52
I mean, you got to either raise the bridge or lower the river.
8:58
Right. So you know, I tell a lot of people this little
9:01
girl, you know, try to get out a loan for me this weekend.
9:05
And I don't like honey, you just don't wake an up. And
9:07
she goes, well, I make enough to pay rent for that much.
9:11
I go, yeah, but rent is not being qualified through the government to
9:15
get a loan, so bait. As long as you can make your bills,
9:18
they don't care. There's not a formula like for loans. So they
9:22
just don't understand the basic money principles. Yeah, that's really it, right,
9:26
they don't understand money. Yeah, they think if they can afford eighteen
9:31
hundred dollars rank, they can afford eighteen hundred dollars at a house payment.
9:35
And no, it's not equal. It's qualifications are totally different, all right.
9:39
So so I'm gonna need these people who this kind of attitude, is
9:46
it everybody not? Oh my gosh, Carrie, I talk to people all
9:50
day every day. They just don't get it. And you know, they're
9:54
investors. There's people that want to start investing because they hear now's the time
9:58
to buy, and they've taken some course online that says they can get a
10:03
house for no money down. I'm like, no, not an investment property.
10:07
They're like, well, my class said, and I'm like, well,
10:11
that's a bunch of crap. That's not true unless you find it for
10:15
sale by odor or fire sale or foreclosure, or someone that will sell it
10:18
to you and you run it back to them. I Mean, there's all
10:20
kinds of those one off stories, but that's not the reality of the market
10:26
today. That's so true. And we know that the buyers aren't bullys firmly
10:31
affixed to reality, right, true, and neither are sellers. There's a
10:35
lot of people that thinks their houses are worth, you know, ten percent,
10:41
twenty percent more than they were last year, and that's just not the
10:45
case every the case Shiller report just came out today. It's very difficult in
10:50
some cities to sell your house or when you think it's worth, it's only
10:54
worth when someone will give you for it, all right, So that's what
11:00
it's going to be my next question for you. Then, our housing price
11:05
is actually going down? Have they stabilized? Obviously, this is a market
11:11
to market situation. Is true in Texas or Florida, not necessarily true in
11:18
Detroit, Michigan, or in California or New York. Right, don't just
11:22
survive the financial survival network. Gold Tara Resource Corps is a gold exploration company
11:30
that has assembled a highly prospective district scale land position on the doorstep of the
11:35
city of Yellowknife in Canada's Northwest territories. Gold Terra is currently focused on expanding
11:41
and delineating gold resources at the company's yellow Knife City Gold Project, with the
11:45
goal of discovering over five million ounces. With ready access to infrastructure and multiple
11:50
high grade gold discoveries, gold Terra is on track to re establishing Yellowknife as
11:54
one of the premier gold mining districts in Canada. Gold Terra trades as YGT
11:58
in Toronto in ygt FF on the OTC. For more information, go to
12:03
gold Terracorp dot com. That's gold Terracorp dot com. This is the financial
12:11
survival Network, the information you need to throw now more than ever. Right,
12:16
So if you're moving it. If you're moving from a city and you're
12:20
trying to sell a house in a city that no one's coming into, you're
12:24
going to have to wait longer to sell your house for less. If you're
12:28
in an area where everyone wants to move Florida, Texas, Arizona, you're
12:33
going to stand a better chance of having your value hold. Or if there's
12:37
competition, like there are some houses that go on the market here in Dallas
12:39
carry and because they're pristine and they're perfect, even though they're two million dollars,
12:45
they're selling within a week because they're moving already. They're beautiful. There's
12:50
nothing they has to be done to them. Then there's other houses that are
12:52
eight hundred thousand dollars that have been on the market six months because they need
12:56
a lot of work and nobody can qualify for the loan and have the cash
13:01
to fix it up. So it takes that ride and buyer at any price,
13:07
they just have to be looking for it. So in the good old
13:11
days, you had owner financing and they would basically loan you the deposit.
13:16
But you can't do that anymore under the current market to conditions here under the
13:20
card regulations, because you've got a show income and you've got to show where
13:26
the down payment came from, and they really annoy you about it. I
13:30
went through a while ago, that's right, where did this come from?
13:33
And I said, well, it came from here. I made it.
13:37
Oh, you made it? Like you know? Are we talking the same
13:41
language here? So you can't get owner financing? No, you can get
13:45
limited owner financing, right sir? How much can owners can chip in?
13:48
The closing cost they can and they can give you. They can give you,
13:54
you know, five thousand, ten thousand, a twenty thousand a closing
13:58
whatever you negotiate. I negotiated with a guy last year. He got twenty
14:01
thousand towards closing costs and just to buy my house. Instead of lowering the
14:07
price, they just gave him the money because they wanted to keep the integrity
14:11
of the appraisals for that neighborhood and the people wanted to get out. So
14:16
a lot of people have made the move to another residence when they could afford
14:22
it, and now they're making two house payments. And some of them are
14:24
willing to make great deals. It all comes down to carry their personal financial
14:30
balance sheet, right, how much money do I have coming in? How
14:33
much do I have going out? And you're more willing to cut those deals
14:35
if you're under duress, yes, of course. Hey. So one other
14:39
thing that people do often is they'll put in like a renovation credit or the
14:45
kitchen that's payable on closing, right, right, And that'll go as long
14:50
as you don't go to overboard with this stuff to the point where you're putting
14:54
nothing down. Hey, what, let me ask you what to is now,
15:00
as far as I'd see that loan maximums have been increased in many markets.
15:07
What in the down payment requirements? Well, so FHA is always three
15:11
and a half percent, But when you raise the FHA loan limits, you
15:16
increase what kind of house you can buy for them of the market. So
15:20
FHA was always going to be a first time whole buyer's loan. So in
15:22
Houston, I closed one last week. It did not fit the FHA requirements.
15:28
They had to go conventional, which means they had to put five percent
15:31
down and it's you got to have your job longer. And this girl just
15:33
got out of grad school. It was harder to get her qualified and her
15:37
credit wasn't as good. But in the Houston area that they were looking in
15:41
was more expensive than the FHA limits, so it would have been easier to
15:46
qualify for an FH loan. However, they could not because the house of
15:52
praise for more than that low limit. So the low limits are there to
15:56
put you into different categories. But what a first time whole buyer can buy
16:00
in Houston Maybe five hundred thousand and one neighborhood and maybe two hundred and another
16:06
neighborhood. So a lot of the zip codes or the counties are different,
16:11
and that's why it's different in different states. It's easier to qualify for an
16:15
FHA loan at three and a half percent down because they take in consideration your
16:21
job history, how long you've had credit. They let you run your new
16:26
borrow worse through that program easier Conventional want you to have a two year work
16:30
history. You know, a lot of people when they get out of grad
16:33
school or they get their first jobs, they can qualify for a house,
16:37
but they can go conventional because their job history isn't long enough. So that's
16:41
where FH comes in. And so FHA has been raising those loan limits to
16:45
get more people in that program. Right, I see you like and Florida
16:51
here at the single family home, they're up to a million dollars. Now,
16:56
no, that's what I heard. Let's well, you know, eight
17:00
hundred may not cut it in your neighborhood. Care you're in that up here,
17:03
not mine neighborhood. Well, this looks like a private scam site.
17:10
Let's see loan limits, Lauria. It was some search thing there. Yeah,
17:18
let's see what it really is. Yeah, let's see but I know
17:21
they raised it and oh, well, for fifty three Florida counties, it's
17:26
four hundred and twenty thousand for a single family. But so at the House,
17:32
that means that the House of Prizes for appraises for four fifty they can't
17:36
get that loan. It has to be more twenty five. Then the loan
17:40
balance has to be four twenty five. So if you're trying to borrow that
17:42
much, that's fifty three counties. I think there's eighty something here in Florida,
17:48
and you know some of them go up to a million, eighty nine
17:52
thousand. You know, it just depends on what neighborhood you're in. And
17:57
you know they want to they have to extend limits to every county because you
18:03
know, the government wants to play fair carry but it just maybe a million
18:07
in one county at eight hundred or six hundred and another. Yeah, here
18:10
we'll see you. I'll tell you exactly. I found the chart finally get
18:15
you know, how to google, and like in some counties it's or seventy.
18:21
I'm in Palm Beach County, like not on the island, it starts
18:26
with five to fifty seven or a one unit and goes up to and by
18:33
fifty seven looks like it. No, that means if you're putting your money
18:37
down and after you put your down payment down, the loan that you're getting
18:41
is higher than that, you cannot go that tide of level you can't go.
18:45
So it's just qualifications, you know, a lot of the qualifications or
18:49
two years work history. Credit scores got to be so much, so much
18:53
down It's not always down payment. Sometimes he just haven't been out in the
18:57
world with credit history long enough. That's why that FH loan is there.
19:02
Yeah, now I'm got me curious here. I gotta se Miami Dades by
19:07
fifty seven also, but Okaloosa County, I don't even know where the hell
19:11
that is is six Z three so they must have like no houses there.
19:15
Yeah. Yeah, It's it's crazy how these things are regulated and done.
19:19
And then you know a lot of people, a lot of homeowners do it.
19:23
Think right now, with you being able to google all that in two
19:26
minutes, people will google stuff before they call me, but they like they
19:30
have but they're totally clueless to get clane. And I'm like, with all
19:33
of the you could chat gpt it and it would tell you how to get
19:37
a mortgage, So you'll just tell chat GPT to fill out your mortgage application,
19:45
right, yeah, I sure wish. But you know, people don't
19:48
know what the ramifications are for what they do. So we've had people that
19:52
have had two jobs and they're like, well, I was told that if
19:55
I have two jobs, I can count them both, not unless you have
19:57
them both for two years, right, And then I have people say,
20:00
well it's ten months, Okay, ten months is not two years. That
20:03
fails, you know. You know, so people are not exact on anything,
20:08
and I have to be the exact person. They don't like it because
20:11
they're like, well but it's close enough. Yeah, that's pop underwriter.
20:18
It's not clear right right za if I didn't know better, I think you're
20:21
getting a little burned out here. I am, you know that. But
20:25
you know what, people, I have a closing next month. Carry the
20:27
people have waited and built a house. It's four million dollars. Now they've
20:32
waited a year and a half for this house to be done. And the
20:34
rules have changed for bank statement loans like a hundred times since we started.
20:41
They went from ten percent down last summer. So now they have to put
20:44
twenty percent down on four million dollars. That's a lot of money. Yeah,
20:48
that's so you're talking another four hundred k. That's substantial. Well,
20:55
when we talk in a year, where do you think the market's going to
20:56
be then, But oh heaven, you're ball Oh my gosh, it gives
21:02
me a headache just thinking about it. I think the race will come down
21:07
a little. I think consumers will get more accustomed to the rates being high
21:11
like this and they won't still be remembering the three percent days because that's not
21:17
going to happen. And if you're waiting on that, I think people are
21:19
going to get more realistic because I think the economy is going to be doing
21:22
worse next year. Yeah, I think there's a good chance of that based
21:26
on all the layoffs are seeing, especially in the tech sector, although in
21:30
certain key markets like Texas and Florida, definitely real estate slowed down. We're
21:36
definitely seeing rice cuts, you know, Like I'm a member of MLS here
21:42
in Florida, in Peach County and the Miami it's called IRA Miami Bartie,
21:52
and you know, I get the price cut notifications like constantly coming in and
21:57
I think that's the end the looking ahead. In the meantime, though,
22:03
if you could take on any more people who need your help and who will
22:08
hopefully do a little homework on their own and not just dump on you.
22:12
And what you're talking about is clients dumping on you. They just don't understand.
22:18
Yeah, how did they reach you? How did they connect with you
22:21
on the web? And get more infoe So money Strategies with Debbie dot com
22:27
is a website that has a contact page. They can get with me.
22:30
They can call me. My numbers on there as well. You can go
22:33
to dlbeing Mortgage Services dot com and find me. There's there's lots of ways
22:38
out there, and I've got a phone number. I'm on TikTok, LinkedIn,
22:42
I'm on Instagram and Facebook is under Debbie Bloyd. So just find me
22:48
and I will be happy to help in any way I can and get you
22:52
on the right road. Teach your parents how to buy a house, you
22:53
how to buy a house. How I have to educate the whole family?
22:57
All right, Well, we appreciate that. If you've got a question for
23:00
deb you can always shoot us an email and we will get you with an
23:06
answer. The link to her site is in the show notes for this interview
23:11
on Financial Survival Network dot com. Make sure you go to sign up for
23:15
your free newsletter, Just One One out today, covering a lot of these
23:18
topics. Deb thanks for coming on. We'll talk to you again soon.
23:22
Thank you bye. Thanks for listening to Carrie Lenz's Financial Survival Network, your
23:29
solution to today's trying times. For the latest, go to Financial Survival Network
23:34
dot com. Financial Survival Network now more than ever,