Biden Admin JUST Announced Plan of MASSIVE Housing Bailout!!

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deals hey everyone me kevin here it

looks like

joe biden and the biden administration

are expecting to completely

bail out of the housing industry and

folks

housing has already been booming in my

career

in real estate which is now 12 ish years

long

i've never seen housing inventory this

low many people are clamoring to get

into

real estate so much so that there are

some folks

waiting for that real estate crisis the

mortgage

crisis a foreclosure crisis and eviction

crisis

to finally lead to some more inventory

or houses available for sale coming in

the market so that maybe

prices will go down a little bit and

people can actually afford homes again

well the biden administration is

planning a essentially complete bailout

the consumer financial protection

bureau just released a new proposed

mortgage rule that changes foreclosure

and a loan terms for people affected by

kovid

now right now this is proposed but this

is being proposed under the biden

administration

and it's open to comments but this is

proposed to be effective

starting august 31st 2021 which would be

right before

the first batch of forbearances would

officially come to an end

keep in mind that right now we have

three million people taking mortgage

forbearance so three million loans i

should say are in mortgage forbearance

that means they could be delinquent not

have their credit affected

not pay their mortgage but remain in

their house

but starting in september of those 3

million

1.7 million mortgages need to start

getting repaid

and there's a concern that what if

people who weren't paying their mortgage

still can't pay their mortgage is that

going to lead to a bunch of foreclosures

biden administration is trying to

prevent exactly

that now a lot of people say that hey

the people in forbearance

they're all going to end up in

foreclosure some people say half are

going to end up in foreclosure

some people say 10 of them are going to

end up in foreclosure because

a lot of people are just taking mortgage

forbearance because why not it's kind of

like free stimulus like yeah

sign me up for mortgage forbearance i

don't want to make my payments for 12

months

what happens in most cases fannie mae

freddie mac

fha loans you take the amount you owe

you add it to the back of the loan

and next time you go to sell or

refinance you pay the money back no fees

no interest it's kind of like free

stimulus money if you invest the money

in the meantime

it's it's kind of brilliant for people

to actually take mortgage forbearance

which is one of the reasons i kind of

lean to the thinking that

a lot of people in forbearance and i

want to say all and other people with

real hardships

a lot of people in forbearance probably

don't need to be there or probably

wouldn't be there if there were actually

requirements to prove

that you had a hardship because you

don't have to prove that you have a

hardship

to get or take mortgage forbearance you

today could still take mortgage forwards

in fact i'm pretty sure i daily get

comments on youtube from people like

hey i'm about to close on a house that i

totally qualified for can i just take

mortgage forbearance the day after i

close

and as long as you didn't sign your

right away to mortgage for grants

and you attest that you have a hardship

yeah in theory you could take up to

a year to 15 months of mortgage

forbearance but neither here nor there

let's talk about the new proposed

housing rule

take a look at this folks okay you all

ready for this because y'all's about to

fall out of your chairs

this is this is nuts i've never seen

this before okay

so they say and i'm gonna keep it simple

here loss mitigation procedures all

right you ready for this

a servicer would be allowed to offer now

keep in mind

i know it says would be allowed to offer

they make this mandatory

in a moment which is kind of funny

wording so this is going to be a

mandatory offer and i'll show you that

in a moment in red

but i want you to listen to this okay

let's pretend you're

10 years into your mortgage right now

read this with me

if well i'm paraphrasing here if you're

affected by the coven 19 hardship

now reading the loan modification that

you get offered

would extend extend the term

of the loan by no more than 40

years 480 months 40 years

and would not result in an increase in

payment to the borrower's payments

holy smokes the buying administration

via the consumer financial protection

bureau is basically saying

hey look look look look we want people

who are in forbearance to have the

option

of turning their 30-year or 15-year

fixed-rate loan

into whatever currently or wherever they

currently are in their loan

to plus 40 years 40 years

to pay back your loan like that's that's

crazy because i mean think about this

watch this if we go to like mortgage

calculator here really quick

and all we're gonna do is we're gonna

look really quick and because there's

there's another i mean this isn't even

over yet okay this keeps going here

watch this let's say you have a 300 000

mortgage

at a 30 years if you change that to 40

years your payment actually goes

down by about 150 bucks a month

and it takes you 10 more years to pay

off the loan but hey

your payment goes down and this is 40

years on top of

how long you've already had your

mortgage that's

crazy oh my gosh okay so anyway

if the loan modification allows deferral

so if they then say by the way look

we're not going to

charge you all the amount that you owed

before until the property is sold or

refinanced

they're making it clear there are going

to be no fees

no late fees no stop payment fees and

no accruing of interest which okay

so it's basically if you have

forbearance you have this free option to

all of a sudden turn your loan into a

40-year loan

oh my gosh uh this is really really

generous

and then on top of that because remember

over here it said a servicer would be

allowed to offer certain loan

modifications

okay right here the loan modifications

must

be made available for borrowers who are

experiencing a coven 19 related hardship

so basically everybody gets the right

to maybe be offered a 40-year

loan as a loan modification term but

anybody affected by covid which is the

reason

most people would probably be in

forbearance they have the

right to a 40-year

extension to their loan no fees

nothing but that's not all folks look at

this

oh man the proposal would add a

temporary covid19 pre-foreclosure review

period

where a servicer is not permitted to

file

a notice or filing for foreclosure

until after december 31st 2021

so that means for the 1.7 million folks

whose forbearance ends in september

they have another three-ish months to

work with their servicer

to basically get this loan modification

done and if they want a 40-year

extension to their mortgage why would

you not take that

that's crazy oh my gosh so that

literally means

the amount of money you owe could in

theory just get kicked down the road

40 years like if you invested that money

over the last 12 months

where you used it to survive or whatever

you needed for whatever like i'm not

discriminating on what you used it for

it doesn't matter to me

but this is this is a really incredible

rule

this right here uh is so incredible for

people who are behind

that i i just don't see any of these

actually turning into foreclosures

if this rule actually goes through now

right now the rule is tentatively

planned to go through

it's just open to public comment right

now but if that rule

actually goes through that is a complete

bailout by the biden administration

of the housing sector by by foreclosure

crisis

like anybody

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people who actually available real

hardships good

like help the people help people not

lose their homes right all for that

but really for everybody else who's just

like i kind of just want mortgage

forbearance because

anybody can kind of just raise their

hand and ask for it well good for you i

mean

hey there you go it's more stimulus for

the homeowners

wow this um this is incredible anyway

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