You will own nothing and be happy - Careful with your homes

[OneMoreRep]

I am noticing a slowly & quietly growing initiative that can prove to be disastrous if not properly checked. History might not just repeat itself, but result in far worse than what we've seen before (think 2008 subprime mortgage crisis, but likely worse).

Bank of America has launched its Community Affordable Loan Solution in select communities, an initiative tailored to expand homeownership opportunities to historically underserved borrowers. What's the catch? You need no down payment, has zero closing costs, waives insurance and is not contingent on their credit scores!!!

More information on this program can be found here: https://www.mpamag.com/us/news/general/bank-of-america-expands-minority-lending-possibilities/419947

Citibank also plans to expand a program that aims to eliminate key barriers to homeownership in diverse communities, particularly with regard to cost and affordability. Citibank has made this program available within these cities: San Francisco, Los Angeles, New York, Miami, Washington, D.C., and Chicago. Their future goals include integrating this program to markets that include Atlanta, Austin, Denver, Dallas, Houston, Philadelphia and Cambridge, Massachusetts. What's the catch? You guessed it...You need no down payment, has zero closing costs, waives insurance and is not contingent on their credit scores!!!

More information on this program can be found here: https://www.cnbc.com/2022/09/09/citi-expands-program-to-increase-homeownership-in-diverse-communities.html

What's the moral of the story here? I think this is bigger than the 2008 subprime mortgage crisis. I believe this lends itself to the narrative of, "You will own nothing & be happy" that's slowly being pushed just beneath the surface. The Federal Reserve just unveiled plans for what they call the FedNow service, which will serve as the infrastructure for a Central Bank Digital Currency (CBDC). These so-called loans for underserved communities sound to me like a terrible idea that resembles a lot of what we saw circa 2008. Unqualified borrowers will be given mortgages they won't be able to pay. They will default. The bank will sell the debt to the Federal Reserve. The Fed will own the homes, the people will in turn rent homes from them. The CBDC through the FedNow will be completely monitored and no one will have a sense of privacy, control of their finances or true property down the line.

Look to China to see what the future might have in store for us...

Thoughts?

"1"

[Henda]

They announced not long ago over here that the affordability check is no longer required despite it first coming into place on the back of the last recession of which people taking on mortgages they could never afford was a big contributing factor. Not sure what the purpose of this is but it does lend weight to your suspicions I know jeffley has mentioned similar.

To be fair not sure how it is over there but here what’s to say you actually fucking own your house anyway? There is a database on line and you can pay 3 quid to see who owns any house all it has is your name and the adress and weather there is a loan on the property or not. Who’s to say this can’t be wiped and it was all a con and you never actually owned it ?

[MorganSA]

Rewarding a person based on the colour of their skin is totally not racist as long as they are not white, and has worked really well for South Africa. Good luck with this.

[robcguns]

Rewarding a person based on the colour of their skin is totally not racist as long as they are not white, and has worked really well for South Africa. Good luck with this.

Hahaha, right.

[OneMoreRep]

To be fair not sure how it is over there but here what’s to say you actually fucking own your house anyway? There is a database on line and you can pay 3 quid to see who owns any house all it has is your name and the adress and weather there is a loan on the property or not. Who’s to say this can’t be wiped and it was all a con and you never actually owned it ?

A bigger scam that exists here in the USA is that although people assume they can own their home "free and clear" if and when they paid off a mortgage or simply bought a home in full, the fact of the matter is that you NEVER own the actual land your home is on. Yes, you pay for the land lot and home that is built on it, but there is something we call property taxes (again not certain how they do things on your side of the pond) and with these property taxes the moment you stop paying them or go bad on them, the local city government can repossess your home (place a lien on it) and take ownership of the home you thought you had owned. This lien is a legal claim against your property that can be used as collateral to repay the debt of property taxes owed to the local government. In other words, nothing you think you fully own in the USA, by way of a home, is ever truly yours. So as long as you pay property taxes, you're still renting the right to have the home on that lot of land, but go bad on your property taxes and that home ceases to be yours.

"1"

[joswift]

A bigger scam that exists here in the USA is that although people assume they can own their home "free and clear" if and when they paid off a mortgage or simply bought a home in full, the fact of the matter is that you NEVER own the actual land your home is on. Yes, you pay for the land lot and home that is built on it, but there is something we call property taxes (again not certain how they do things on your side of the pond) and with these property taxes the moment you stop paying them or go bad on them, the local city government can repossess your home (place a lien on it) and take ownership of the home you thought you had owned. This lien is a legal claim against your property that can be used as collateral to repay the debt of property taxes owed to the local government. In other words, nothing you think you fully own in the USA, by way of a home, is ever truly yours. So as long as you pay property taxes, you're still renting the right to have the home on that lot of land, but go bad on your property taxes and that home ceases to be yours.

"1"

if anyone thinks they own their own home try giving it to someone without paying for the privilege to do it.

[Tennisballz]

A bigger scam that exists here in the USA is that although people assume they can own their home "free and clear" if and when they paid off a mortgage or simply bought a home in full, the fact of the matter is that you NEVER own the actual land your home is on. Yes, you pay for the land lot and home that is built on it, but there is something we call property taxes (again not certain how they do things on your side of the pond) and with these property taxes the moment you stop paying them or go bad on them, the local city government can repossess your home (place a lien on it) and take ownership of the home you thought you had owned. This lien is a legal claim against your property that can be used as collateral to repay the debt of property taxes owed to the local government. In other words, nothing you think you fully own in the USA, by way of a home, is ever truly yours. So as long as you pay property taxes, you're still renting the right to have the home on that lot of land, but go bad on your property taxes and that home ceases to be yours.

"1"

Property tax rates vary quite a bit too.  In A lot of states it’s over 1% and in a few it’s over 2%.  You are on a 50-100 year mortgage that never ends.  For a lot of people owning their own home is considered “making it”.  They’ve done a good job of scamming young people into assuming massive amounts of debt in the name of home ownership. 

I know 2 Dutch guys who are brothers and they bought 5 or 6 properties in the area I live back in the late 90s or early 2000’s and they’ve been able to rent them out as commercial and residential for the past 20 years now.  That effectively pays them probably 15k a month or more and they have never had to work here.  This is they type of property ownership that can be very profitable, however very few property owners are in this kind of situation and with todays prices in my area you would need probably 4-5 million to buy 5 or 6 properties.  If I had to guess, they probably paid less than 1 million for all their properties back in 2000ish.

[Gym-Rat]

More brainless libtardism. Ruining America one bone-head idea at a time.
Hiding illegals all over the country, hoping to get their votes to build another Venezuela, a 3rd-world shithole.
Handing them the keys to the country. If I were an old-school Dem I'd be furious.
And no, you're not an "independent" if you whine about TRump 24x7, but say nothing about todays disaster. (Pant-Shitters take down of America).
But the brainless ones that go along with it, well they are far-left extremists. And they talk about Trumptards   

No fucking comparison to the bleeding heart retardz, with bleeding ass-holes.
Low No IQ individuals' group of morons.

Your fathers must be proud they gave birth to epic phagz (and I dont mean homosexuals).
The dead ones are rolling over in their graves (maybe ass-up if they are anything like our resident libturdz). 

[kreator]

taxes are one of the biggest scams

[joswift]

This will making owning your own home pointless.
If its paid for who is going to buy it when they can get one on a cheap rental basis.

I live in a pretty much all white area, the only black and asians are successful ones (footballers /Doctors)

5 miles away its a different story although its mostly Eastern Europeans, the streets are no go areas at night, people openly selling drugs on street corners.

No matter where you choose to live in future unless you can afford not to work and move to the countryside you will be surrounded by peoiple who have never had to work for anything in their lives with an overwhelming sense of entitlement.

Thats why the USA has such a bad problem with blacks, its the sense of entitlement that whitey has told them they have.
They are now out of control.

[Irongrip400]

Just playing devils advocate here, so without reading the details I may be just talking nonsense. But, from what I understand it’s in run down areas, which I’d assume would make the prices of the homes very cheap, like car payment cheap. I’d also assume the interest rates would be such that they could make up the fees with the interest over the life of the loan. Maybe, other than virtue signaling, they think they can expand ownership to minorities, and have them start accumulating “wealth” and get their children as customers? I mean, White folks are on the decline, they’re going to have to get their money/customers from somewhere. Maybe this is a low risk/high reward type deal in their eyes? I’m sure that they’ve had their statisticians and economists crunch the numbers.

[G_Thang]

I mean, White folks are on the decline, they’re going to have to get their money/customers from somewhere. Maybe this is a low risk/high reward type deal in their eyes? I’m sure that they’ve had their statisticians and economists crunch the numbers.

LOL, delusion!  Every encounter in history proves opposite.






Takes about 2 generations.

[chaos]

I never understood the idea that after you pay off your mortgage you still have to pay taxes on your property. I always thought that was pretty lame. The government is fucking us all.

[OneMoreRep]

I never understood the idea that after you pay off your mortgage you still have to pay taxes on your property. I always thought that was pretty lame. The government is fucking us all.

Agreed.

It's always been used as a way to economically fund local and city governments, amongst a few other things, but in reality it's a way for the local government to always have a claim to your home/land.

Most things you think you own are not truly ours to begin with. We fall for the illusion of ownership.

"1"

[Moontrane]

Carter signed the Community Reinvestment Act, but Clinton gave it teeth.  Wasn’t it Barney Frank who said something like, we have to get rid of antiquated standards like credit history, down payment, and proof of income so we can promote home ownership?

No down payment means no skin in the game – one can treat home ownership like renting and just walk away.  Heh, at least with a rental one has to put up a deposit and perhaps first and last month’s rent.

[OneMoreRep]

Wasn’t it Barney Frank who said something like, we have to get rid of antiquated standards like credit history, down payment, and proof of income so we can promote home ownership?

No down payment means no skin in the game – one can treat home ownership like renting and just walk away.  Heh, at least with a rental one has to put up a deposit and perhaps first and last month’s rent.

Yes. It was in fact Barney Frank who said that.

It all smells like a bad idea to me.

"1"

[Primemuscle]

A bigger scam that exists here in the USA is that although people assume they can own their home "free and clear" if and when they paid off a mortgage or simply bought a home in full, the fact of the matter is that you NEVER own the actual land your home is on. Yes, you pay for the land lot and home that is built on it, but there is something we call property taxes (again not certain how they do things on your side of the pond) and with these property taxes the moment you stop paying them or go bad on them, the local city government can repossess your home (place a lien on it) and take ownership of the home you thought you had owned. This lien is a legal claim against your property that can be used as collateral to repay the debt of property taxes owed to the local government. In other words, nothing you think you fully own in the USA, by way of a home, is ever truly yours. So as long as you pay property taxes, you're still renting the right to have the home on that lot of land, but go bad on your property taxes and that home ceases to be yours.
"1"

There is also eminent domain. If state or federal government decides they need your property for some purpose, they have known as eminent domain which means they can force to sell them your property. If you refuse to sell, they can condemn it and take it from you. 

[Al Doggity]

These so-called loans for underserved communities sound to me like a terrible idea that resembles a lot of what we saw circa 2008. Unqualified borrowers will be given mortgages they won't be able to pay. They will default. The bank will sell the debt to the Federal Reserve.

This doesn't really sound anything like the 2008 recession. That was caused by institutional investors who were looking for ways to invest in US housing market and the banks creating a bunch of sketchy retail products to get as much money from institutional investors as possible.

I looked into this, and it's not a program designed for "unqualified" borrowers. This program uses flexible metrics to finance buyers looking to purchase in lower income neighborhoods. From what I can tell, they must still provide verifiable employment and a solid history of monthly payments in rent and utilities. In 2008, you had people making less than $30k/yr getting mortgages on million$ homes. Not at all comparable. I'd never give big banking too much credit for anything, but this is a modest program that realistically isn't going to have a large impact on the housing market.

[The Scott]

Agreed.

It's always been used as a way to economically fund local and city governments, amongst a few other things, but in reality it's a way for the local government to always have a claim to your home/land.

Most things you think you own are not truly ours to begin with. We fall for the illusion of ownership.

"1"

In Oregon the state schmucks use their high property taxes to ultimately steal homes from the rightful owners.  Given that their goobenor is trying to out-crap ours, I hope to one day see the Crapture take 'em all.

[Marty Champions]

The low races will get adjust rate mortgages , theyll defaualt, free rent for a year till they default fuk it up. Just a bunch of low lifes will game the system, great political move will benefit those looking for a free year

[Mayday]

I’d watch Europe and see what actions they are going to take.

EU has been very open that nobody is going to own anything.

I think for that to happen you need to make things useless and/or cost prohibitive to own more so than bottom up assistance programs. Both would get you there in the end I guess.

[Primemuscle]

In Oregon the state schmucks use their high property taxes to ultimately steal homes from the rightful owners.  Given that their goobenor is trying to out-crap ours, I hope to one day see the Crapture take 'em all.

With regards to Oregon property taxes here are a couple of things of note:

Oregon has property tax rates that are nearly in line with national averages. The effective property tax rate in Oregon is 0.90%, while the U.S. average currently stands at 1.07%.

Oregon's property tax is local. All property taxes are collected locally to fund schools and governments in the area. The state does not receive any property tax revenue.

Oregon does not have a sales tax.

Oregon’s current property tax system was created to ensure that a homeowner’s tax burden doesn’t rise more than 3% in a given year.

It is almost impossible to "get taxed out of your home" in Oregon. There is a property tax deferral program for seniors and disabled homeowners to defer payment on their property taxes if their household income is less than $51,000. Whoever inherits the property pays the deferred property taxes. 

I don't know anybody who likes paying property taxes.

Many people pay their property taxes into an escrow account on a monthly basis, so as not to get hit with a big bill in November. I prefer paying mine all at once. 

[tommywishbone]

B of A shareholders must love this great idea.

All I need is some shoe polish, a few hundred points off my credit score, erase my entire work history and I too can get a free house.

[Mayday]

As most expect a cataclysmic property crash, I bet for a property bailout back in 2020.

People convinced property would crash with just 1% of rate rises and now we are staring at a 3.4% this month and target of 3.9% by year end……. And still no property crash. Credit markets look only slightly sick.

Those calling for bigger than GFC event are missing the point entirely. GFC PVR was 55% and currently we are at 30% equal with the best ever position pre the last 40yr property booms.

[Gym-Rat]

Homes were selling above asking price around here a while back. People offering much more just to snag the place.
It has slowed and prices are coming down again.

Still outrageously high though, ridiculous actually...

I bought this one for 389K back in 2005.
Could easily get 649K now.  (Until it crashes again that is)...

The one down the road, just got 650K, much smaller than this one, smaller lot, not private, etc.
Nuts...