I went back to school to learn how to build houses because I had a bankruptcy. Took 5 years to build myself with cash and never needed a mortgage. Now building my 3rd house here in NC. Can build your own home as long as you live in it for 12 months. When I am finished at Christmas,, will have 300,000 in equity
@nesq4104 nope! 💯 negro! Lol! Me and my wife lived off one income and I use my income to buy materials and build the house. Hope to be in the house by end of year. Waiting on trusses to be delivered and will pay someone to put it on. I will do all the rest! It's not that difficult to learn. Most of the information is on TH-cam. I will start the next build asap after we settle in. This house will go on the market as we get closer to finishing the next one.
I’m confused. I had my home built. Initially your taxes are based on just the land. The following year payment goes up because taxes will be based on home and land(they should have told her this). As the value of your property increases so does your taxes, which increases your monthly payments. She had an adjustable rate mortgage…that’s why she experienced this. This happened a lot during the recession, many people lost their homes. A house is one of the most expensive purchases that most people ever make in their lives. You have to do research before buying and get a good understanding. I bought when I was 25 and went to many classes. They told me how much money I could get from the bank, but I crunched numbers and took way less than they offered me. If you live in a good area, your taxes will go up. I’m sorry this happened to her.
I'm sorry this happened to her to as well. However, I would like to see receipts of property tax increase or the address of the property in question. That's a huge increase. I'm guessing it was her ARM that increased, but I could be incorrect. Hopefully she becomes more knowledgeable of homeownership. She got hustle in her, but she has to do her research first. Even if someone tells you what to do, research it. You can't take the word of what everyone one says. Also, our eyes are bigger than our pockets. Get what you can afford. Know about the area and the tax property prices along with the increases in prior years.
initially I was confused because of the way she explained everything. It’s like she still doesn’t understand what happened, so she didn’t articulate it properly. I had to sit and think about what she was saying. I’m assuming that’s what happened to her because I had a similar experience.
@@vedamichele1295She stated that she was in Orange County NY. I am not familiar with New York but while watching this, I googled a city in that county called Newburg. I said eenie meenie miney moe and stopped on the real estate listing of a house randomly. The house is old (historic)built in 1890, very beautiful and renovated. The last 10 years of property tax history was shown. In 2016, the taxes were 4K per year. Today the taxes are at 12,500 per year so she probably is talking about just her taxes. Thats currently over 1K per month in taxes. Disgusting.
@AlexsMom826 You are so correct Learning from other’s mistakes helps protect you from making those same mistakes yourself Actually I believe the good book says the wise learns from the mistakes of others
No wonder they always say " If your the smarter one of your friends YOU need NEW friends " surround yourself with people you can continually learn from. Blessings 💜
You can always seek out a lower rate for homeowners insurance and depending on your state, you can challenge the assessment of your property taxes with the assessors office.
Why ? We're you not aware taxes and insurance jump EVERY year ? Home purchased 2001 p.i.t.i cost was 979.00 a month...same house PAID OFF ( NO principle or intrest) 2023...t.i ( taxes and insurance) only 2100.00 per month...yes over 2 times original payment just for taxes and insurance.
No no no no . The issue is ARM🤦🏾♂️🤦🏾♂️🤦🏾♂️ NIV does not mean you can't afford the house or you don't qualify. It simply means as a business owner or contractor, you take all your allowable deductions to lower your taxable income. Which of course affects how much loan you can get approved for. Thus making NIV or Stated Income loans attractive to such buyers. As per escrow, taxes n insurance is always changing. So monthly payment is always changing. You can either pay the shortage upfront to keep your payments the same or you can spread it over 12 months. I'm not familiar with a tax liability being carried over several years by the bank like this lady is saying. They typically want it paid within the yr before the new tax assessment hits. The situation I just explained is how it works for everyone with escrow accounts. I'm a fan of fixed rate loans. Will never consider ARM. The loan amount is too big to account for all the possible variables. Everyone's risk tolerance is different!✊🏾
@TheIkeman74 There is no problem with an ARM if you can prove you can pay for it if it goes up. Stated income is also called a liar loan because folks can just lie. Lol, I know what stated income means, and yes, when used properly, it works. By the way, those business owners and contractors you use as an example still need to be able to afford it. It's math. Oh, and the loan is not too large for some people. There are levels to everything.
Back in 2005 my now exhusband and I lost our dream home. I had a heart attack and stroke after we signed the closing papers. At that time he had a good civil service job with the Army. He lost his job in 2015and never recovered from this. We got behind in our mortgage and was scammed not once but twice from law firm out of New York and California. I told him to research them and found out they couldn't practice in the state of Georgia. He was a 21 veteran of the U. S. Army and lost everything because of a well known Bank along with the scammers. We had nothing and our marriage of 43 years didn't survive 😢.
Oooh this brings back my trauma Rochelle thank you for your transparency. In 2007 As a single Mom wanting to move from the Bronx to Jersey with my son for a better life. I bought a condo with what I later learned was a predatory lending 2 lenders a ARM $1500 mortgage $375 in HOA exhausted all my savings..... lasted to years lost my home to a short sale. I had to file bankruptcy after having perfect credit to avoid the second loaner coming after me for the debt😮😮An expensive lesson.
I will FOREVER stan for NACA NACA NACA....NACA!! I'm so grateful my mortgage came through them. It may be a grueling process, but they truly prepared me for homeownership and what comes with it. Now two years later I'm still at peace with my decision. If you are reading this message, I beg you to look into a NACA mortgage you will be well informed and in a home you can truly afford.
NACA is for people who can’t manage money. You will have to do 3x as much paperwork. They will qualify you for a lower amount because you are high risk. Also raise your interest rate 1 to 1.25% because you are going through this program. Use as a last resort!
@@jaypesos6788 Lmaoooo you are misinformed. NACA is for anyone who wants to save money. You have to do so much paperwork because they’re going to make sure you can afford your home not just buy your home. Numerous people buy a house and they’re “house poor” because other lenders only care about their cut. In my situation I had over a 700 credit score, 100k in savings and I make over six figures I could’ve gotten a loan anywhere. But with NACA I had no down payment, no closing costs, 1% lower than national average interest rate and no PMI, and my house was 355k but I could have went as high as 500k so I’m not sure what you’re referring to. Issa first choice for me, and I’ll tell anyone who will listen about NACA!
Before I bought my first property I researched the process of buying a house, I knew about mortgage rates, arm, conventional and fha’s.. pmi ‘s , I studied the game before I entered the game.. when I was at the closing, I read everything before I signed it , if i didn’t understand something i asked the lawyer to explain it .. I even had to check my inspector at the inspection for missing obvious things that were wrong with house , I wasn’t an expert, but at least I had an idea of wtf was going on
Same. I was rough with the loan offices I had too. To the point that I switched loan offices a couple times bc I felt like they thought I was unintelligent on what I knew. And low key tried to screw me bc I was a first time home buyer. When I didn’t understand something I had some older friends in finance, banking & insurance so I questioned them on something’s for a clearer understanding. So that was helpful too. The entire ordeal was exciting and stressful. I don’t understand how ppl go through the buying process of getting a house multiple times in a lifetime.😅
So that’s $5000 increase per month. So that’s 60,000$ in taxes. The real question is why is the government getting away with that. It has nothing to do with the assessment. That’s criminal.
She had an ARM…this happened during the recession 2007-2008 time. Companies were giving loans out at low interest rates 1.9% …super low. When the economy tanked, the mortgage rates skyrocketed, which ballooned people’s payments.
She didn’t pay her taxes for years..so they kept tacking it to her escrow account which had a shortage and the interest rate adjusted up with an ARM..she was clueless because she wanted to be..just to be a homeowner..this wasn’t the banks fault..or the governments fault..
The mortgage went up to $7500 because she became behind on the taxes over the years. I can’t imagine being in a home where the taxes are $12,000 a year (and eventually $18,000 a year). On top of being behind on taxes that adjustable rate mortgage caused the monthly payment to increase even more. Awful experience for this lady but a hard lesson learned. ARM loans should be illegal. I blame the lender that gave her a “no income verification” loan for the hardships she faced. What she got was a “setup for failure” loan.
Don’t buy a home you can’t afford, get a fixed MTG rate, have taxes/insurance included in your mtg, if you have a PMI make extra payments towards your principal, NEVER EVER take out a loan against your home unless it’s a reverse mtg for end of life care. If you can’t afford to pay, sell now. DO NOT exhaust your savings trying to save face!
Better to own a home overseas than to own one in the USA because, in many countries overseas, people don't pay property taxes on their homes. In the USA, you never really own your home because it's tied to property taxes and sometimes HOA fees. If those alone are not paid, you lose your home even if your mortgage is paid in full.
@@sbostic08UAE, Malaysia, other Asian countries and most of African countries if not all. I believe some European countries too don’t have property taxes.
Lack of education and tools were part of the problem. If she had the right information and guidance when purchasing the home, things would have been easier.
Totally agree. People just jump into things with no research. Seems though she is still a little confused on home financing by the way she answered some of his questions and could see that he saw that and did not press her.
@DRventura333 first time with no mentor , you will have problems with just reading because it's a business that has many different elements for investors you need experience. ....they hustled her. With the 100 deal😊 on taxes. She didn't think to research what ny taxes are. She didn't know to research arm???? She just saw a new house 😊 She figure it would just be a reasonable increase... more so if she has no finance education 😊
So important to get people to start thinking about building their own homes and not using mortgages. When you understand what the word actually means, then it will become more clear. Mort= root word for death( mortician, immortality, mortality) Gage= means measurement ( fuel gage, oil gage, etc) Mortgage= measurement of death!
@@nolongeranurse3369 having no mortgage, prepares your finances for those things. They are inevitable, but having no debt helps determine when one can retire.
THAT'S A CURSE. IT'S SURE NOT NO BLESSING FROM THE LORD. I WOULDN'T WANT NO PART OF THAT DEMONIC EVIL IN JESUS NAME. GOING UP AND UP..I THOUGHT A MORTGAGE WAS SET PRICE.
@@user-lw8pk6fx6fIf you have a fixed rate mortgage then ONLY the mortgage payment itself doesn’t increase. However, because most mortgages combine the property taxes and homeowners insurance if/when those increase your overall monthly payment increases. If your mortgage itself is not fixed and an “arm” aka adjustable rate mortgage it will fluctuate to whatever interest rate the market is. Most people who should consider an arm are short term homeowners. A mortgage person recommended an arm to longterm owners is suspect. Likely trying to lock in more clients in a good market but too the clients detriment when the market goes bad. The people in this moment complaining their mortgage payment increased are actually experiencing steep increasing in their property taxes, insurances, and/or HOA fees. Too many people took advantage of the fixed low interest rates a couple of years ago so I doubt thats problem for many that their mortgage payment itself increased because interest rates are high at the moment.
Wow, this information was fire. I know Rochelle’s pain. I purchased my first property at 23yo, not knowing a thing about what I was doing. I lived some of that. I was able buy my way into real estate seminars where I learned so much. Information is power.
This interview was rough/tough to hear, from beginning to end! I am glad she acknowledged her lack of education….I cannot imagine being in this situation because I didn’t do my part; EDUCATE myself, trust but verify, fact check, etc.
This makes no sense. I live in NY and taxes are outrageous, but it is not assessed that frequently, that quickly. Clearly an ARM. Shady loan product to begin with, where they ask for no income verification.
it was a new developement so as all the people moved in slowly it went up because the school taxes had to be paid for all those people's kids. Plus it was not a fixed mortgage. It was adjustable. Interest rate was going up
You are not ready to buy a home until you are educated and know all about what is included in your mortgage payment. Be sure you are not purchasing an adjustable mortgage. Second, check out the homeowners insurance prices before you close. Next, visit the tax assessors office to be educated as to what you will most likely be charged the following year. Understanding property taxes is so important. There are places that are not affordable because of the property taxes. Also, some areas charge an exorbitant rate for water. The buyer must understand all of this, or should they rent until they do.
The problem was she never paid her taxes from year to year so the taxes built up. Also, you can contest the property taxes to have them reduced if the assessment is above market value.
Yep. My mom contested hers last year. They built several new builds 2 blocks from her and of course, that raised the value of her home; therefore increasing taxes. She contested because she was turning 65 and is now exempt.
She did pay her taxes. The taxes keep raising every year. 1st year $100/mth was added to her mortgage but the area was not assign a land tax amount because it was a new construction. After the land tax amount was assigned they raised the tax amount every year. But she didn’t really understand the process. She had two kids and probably just wanted a house. So she rushed the process and the leader/bank got her good. It was a learning process for her.
This was before the GFC of 2008. This type of loan is illegal now days. ATR has to be met prior to approval in today’s lending environment. She is a typical consumer. Most will go with something especially if they like it if others say they can have it. This is the aftermath of that. Moral to the story is buy what you can afford people! She didn’t even know what type loan she had! Not being educated is no one else’s fault but that person! In her defense she did admit that she and the realtor didn’t care how it went in real life. They both just wanted what they wanted! 🤦🏿♂️
Wow….. great session. You pay on the front-end or the back-end--- more $$$$ on the back to learn from your mistakes or lack of knowledge. Kudos to Rochelle for sharing her experience.
I used to be a real estate agent and I always warned my clients who were buying new construction that their taxes would go up, especially when the entire area was new and they would have a lot of new development around them.
She had an adjustable rate mortgage and she also had property taxes increasing when her income wasn’t verified which isn’t even allowed anymore to qualify for a mortgage. They also calculate DTI using the type of mortgage and if it’s new construction taxes of land + improvements beforehand so that this cannot occur anymore.
initially I was confused because of the way she explained everything. It’s like she still doesn’t understand what happened, so she didn’t articulate it properly. I had to sit and think about what she was saying.
Real Estate is a chasm so many different doors into it. I think she still doesn’t have the full understanding of what happened. But love her transparency to help others. I wish her the best.💜
Mortgage lenders were incentivized to sign customers up for ARM loans. I wanted a conventional loan in 2006. The lender sent the paperwork, and it was actually an ARM loan. I was OUTRAGED and made her redo the paperwork for a conventional loan. Thank God my Mama taught me to read the fine print before signing my name. Many people were tricked 2006-2008, which resulted in them losing their homes. It was criminal in my opinion.
@@eliot5220You have to play the equity game in Cali. Start off with a small new build (350-450K) in cities like Sacramento, Bakersfield & trade up to a bigger home in a better city after five years.
I commented on this a few weeks ago. I'm like she's not telling the whole story. OMG! I stand corrected. Yes, she is. One of my friends moved from that area because of the property tax increased abundantly. I just saw a video of a lady in Florida, where her property tax increased to over 100%. It's getting real out here people. Property tax is going up all over. However, my county proposed 6.9% tax increase. They agreed on 4.9%. People check your county tax rebates and homestead acts for reductions. Also, you have to keep a stash of cushion money for just in case.
@@plynn136 I didn't get a notice when my taxes and insurance increased. I received my statement in Nov and saw the increase in taxes but I had to call and question about my insurance
The only way I would get an Adjustable Rate Mortgage is if I were a disabled veteran with benefits. They don’t have to pay property taxes, some are reduced.
Even with a fixed rate mortgage, your payment will go up....taxes increase. Insurance costs go up... my taxes and insurance alone are triple now what my original payment was the first year I bought my house.
I believe her because I was paying extra on my mortgage and they still ask for 1000 at the end of the year .they where hoping she couldn’t keep up .to take the house back.but god had your back
Are you in an area being gentrfied? Prices soaring? That can cause ur taxes to increaae. Insurance is also going up too. They request extra to make sure those things are covered. You can also contest ur assessment. Chk if you have a homestead exemption. But I think certain things she said were true but there was a lot she isn't saying. Bcse after the 2yrs and the increases why didn't she refinance? It's likely she was told to refinance after the 2 yrs into a fixed. There was a reason she did a no income proof in the beginning. She either didn't make enuf to buy the house she wanted or I don't think she keeps meticulous business records either and that could be purposeful. So she can get her house and get other programs too. That's why I think she allowed her pmt to go so high. Why did she not contact the bank for options? Wouldn't be surprise if the loan she took out for the other was an arm too. Maybe to pay the mortgage on this NY home. I don't think she is as clueless as she let's on. It's just way to much info out here. She could easily research what an arm is.
@@TWLogik I think at the time during 2006-2008 after Obama got in the government opened up programs to help people who were underwater with their mortgages because of the housing bubble (remember he helped out the banks). In 2009 I had finished building a new house and the appraisal (Wells Fargo) appraised less that what I had built on a new house in a gentrifying neighborhood. At that time Wells had a 2n1 construction to permanent loan program. When I finished building they said we did not appraise at the value of the home and in order for us to get a permanent loan they forced us to do an ARMs which I did not want to do. I wanted the traditional. To make a long story short, we did the ARMs for one year, kept up the payments, then refinanced to an FHA for the 30 year mortgage. We even went to NACA and they told us to walk away from the house, but we couldn't because we had built this house ourselves from the ground up. This was one of the most stressful times in my life because I knew what happened to alot of people who had ARMs. I did a lot of praying but God pulled us through! All praises go to him.
If her mortgage was originally $2500 and she had to pay $21,000 in taxes, she would add $1750 per month to the mortgage so $4250 per month? Where does the $7500 come from. She just must have not paid any of her taxes and it caught up to her? Otherwise, doesn’t make sense.
They pay the previous years property tax and then add it to your escrow in addition to your new property tax. In a year her mortgage would have dropped to maybe 4250 as u calculated
That’s exactly what happened…..I’m confused that she’s STILL confused. That doggone ARM and lack of paying her full taxes caught up with her. This is simple stuff…..and I hate the fact that she’s further confusing people on this matter.
She paid $2500 on the land before the house was built, Once the house came up, Now she owe 2500 for the land and the rest was for the taxes on the new home which total 21,000
The only way this happened is because she didn’t set aside any taxes for years and this amount was due to an escrow shortage..the bank will add this to the payment until the escrow shortage is resolved. This isn’t the new long term payment..these types of things need to be explained so the youth or people who are not educated on home ownership don’t get the wrong idea of what happens when you buy a home. This lady bought a home during subprime days..no income verification..and no money set aside for Taxes..this is not a banks issue..this is all the homeowners issue..this is why so many people lost homes back in the day..she couldn’t afford the home from day 1..
Not necessarily that she couldn't afford it; pre-planning and information being relayed properly by the realtor and mortgage lender. This is still happening today!
@@jacquelinepinkett-smith4004 this isn’t shade..this is facts..over feelings..education on home ownership helps people and so it’s important that false narratives are checked and corrected because her clip went viral..this is why a lot of people don’t own anything..they hear someone else’s half truth story and they never take a risk out of fear..I currently own multiple properties across the country and I purchased two of them as a single parent right after a divorce with no settlement, making under 60k, because of the USDA loan and because I worked hard and saved my money. Back in the day to get a ARM of a first time Homebuyer loan you had to have a first time home buyers class in most markets..I attended one in 2001. People bought houses with these loans anyway regardless of what they were told even after those classes..this comment will save you time, fear and money spending it on a course. Your local state will help you buy a house if you qualify and most Americans do if they are flexible with location and willing to see past outdated things that don’t matter at the end of the day. I don’t mean to sound arrogant, but to whoever this comment helps, your welcome.
@@jacquelinepinkett-smith4004Exactly. She had money. She pulled 150k from her income property and she had a job making good money. Her ignorance did her in. She should’ve bought a smaller more inexpensive house to begin with. A 5 bedroom for herself and two kids…and a single parent! Too much house. Had she gotten a fixed rate or refinanced for a fixed rate. She would have a paid off house today and an income property on top. True her lessons were expensive.
There is so much free information available to provide knowledge about the home buying process but people don’t take the time to learn about the biggest purchase they will most likely make in their lifetime.
If you cannot get approved for conventional 30 year loan. You need to wait until you can. This is what happens when people can’t qualify. They get in the arm loans and end up like this.
This is a Barbados to what I went through, I paid someone to help me refinance my house and they ripped me off. My mortgage went up every month on taxes and I had a harm loan on the house and I call the bank to let them take the house and I left. It was a sad situation for us at the time but I learned my lesson the hard way.
Meanwhile some other smart people will take less than a 100k and invest in cheaper homes to live like a King. If we as a people fail to wake up to understand the trickery we will continue making this mistake. You all know this is not what life is about- living to pay bills and mortgage.
I love this! I know plenty stylists who make all kinds of money but yes…putting it under the mattress. No LLC, no S-Corp. she is so right… it’s time to structure.
Her 1st mistake No income verification loan, 2nd mistake got into ARM loan😲, 3rd mistake not doing her due diligence find out the breakdown of your mortgage payment P&I. She didn't consider property taxes and homeowners insurance. She's right, she wasn't thinking. Don't bite off more than you can chew.
Everyone please read books and learn the terminology of the Real Estate words before you buy a home💫💫 Especially know and understand the mortgage product you are buying before you choose a mortgage product👍
So true to seek knowledge. I was going to get credit repair until I started watching you tube videos and did it myself. And so many people been scammed with that.
Work and pay cash for a foreclosure. Say No to mortgage payments. It’s possible if you work and make enough money and pick up side jobs and save for some years.
No one scammed her. She did not attend the classes for first time home buyers. They were free and all realtors offered them at that time. I bought my homse at the smae time and attended the classes. She also bought too much house.Her pay check could not afford the house. Home owneres property taxes will always goe up until you turn 65. In NJ you will pay half at age 65
Im in Rochester NY, the average house price is $375k. For a 1500 sq ft house. Im 26 and i have a trucking company and i really want to get into real estate.
Wait longer for prices to keep increasing. Because I was waiting since 2015 for this magical correction that was happening every year and now everything doubled
@@ruthreddick8369 I was waiting for cheaper prices in the boroughs of NYC and it never happened. All these "experts" and regular people said wait next year because the market is going to correct. They said this every year since 2015 literally and prices never correct down only upwards. 😂. Now I could never buy a house in NYC region unless I'm probably making 500k annually. Average small house is about 800k . But anyway I games the system by moving far away and getting a house for low 100k..
True. You broke this all the way down. My head was hurting trying to figure out exactly how. I clicked off in the middle because I was getting annoyed 😂. It was like the perfect storm of events.
Principle, Interest, Home Owner's Insurance and Property Taxes, when you can no longer afford your mortgage they can all increase depending on the circumstances. I was a product of the beginning Mortgage Crisis in 2005 by losing my home due to an ARM which was just another name for the old Balloon Mortgage. Interest rate ballooned every year the index rate increased. I was sold on the fact of being told I'd be able to refinance after a couple years. Being a single parent household the payment got out of reach after 8 yrs ... similar to Rochelle.
7:59 okay, now I can see how she ended up in that situation. Anybody who isn't prepared would be in that situation. Put your taxes in with your mortgage❤
The whole system of so-called homeownership needs to revised on every level. The way they have it set up will always be in debt. Property taxes is forever.
I think the part of the issue is you have to know what you’re getting into read the fine print. Learn what an arm loan is before you sign. She said she wanted to get in the house by any means necessary that’s the issue. Have to do your homework.
I always research the matter before I make a “conscience decision” about financial matters. I reach out to professionals, and also to those who have experience in the particular area of concern. There’s no shame in asking for help from people outside your circle of friends and family members. ❤
I went back to school to learn how to build houses because I had a bankruptcy. Took 5 years to build myself with cash and never needed a mortgage. Now building my 3rd house here in NC. Can build your own home as long as you live in it for 12 months. When I am finished at Christmas,, will have 300,000 in equity
You must be Caucasian
@nesq4104 nope! 💯 negro! Lol! Me and my wife lived off one income and I use my income to buy materials and build the house. Hope to be in the house by end of year. Waiting on trusses to be delivered and will pay someone to put it on. I will do all the rest! It's not that difficult to learn. Most of the information is on TH-cam. I will start the next build asap after we settle in. This house will go on the market as we get closer to finishing the next one.
@@nesq4104not named Maurice Evans 😂
Can you build mines too
@@briesharnellern6905 I will be glad to show you how to build your own home
I’m confused. I had my home built. Initially your taxes are based on just the land. The following year payment goes up because taxes will be based on home and land(they should have told her this). As the value of your property increases so does your taxes, which increases your monthly payments. She had an adjustable rate mortgage…that’s why she experienced this. This happened a lot during the recession, many people lost their homes. A house is one of the most expensive purchases that most people ever make in their lives. You have to do research before buying and get a good understanding. I bought when I was 25 and went to many classes. They told me how much money I could get from the bank, but I crunched numbers and took way less than they offered me. If you live in a good area, your taxes will go up. I’m sorry this happened to her.
I'm sorry this happened to her to as well. However, I would like to see receipts of property tax increase or the address of the property in question. That's a huge increase. I'm guessing it was her ARM that increased, but I could be incorrect. Hopefully she becomes more knowledgeable of homeownership. She got hustle in her, but she has to do her research first. Even if someone tells you what to do, research it. You can't take the word of what everyone one says. Also, our eyes are bigger than our pockets. Get what you can afford. Know about the area and the tax property prices along with the increases in prior years.
Why did you say you were confused if you explained exactly what happened?!
initially I was confused because of the way she explained everything. It’s like she still doesn’t understand what happened, so she didn’t articulate it properly. I had to sit and think about what she was saying. I’m assuming that’s what happened to her because I had a similar experience.
Adjustable rate mortgage, I'm Not a fan.
@@vedamichele1295She stated that she was in Orange County NY. I am not familiar with New York but while watching this, I googled a city in that county called Newburg.
I said eenie meenie miney moe and stopped on the real estate listing of a house randomly.
The house is old (historic)built in 1890, very beautiful and renovated. The last 10 years of property tax history was shown.
In 2016, the taxes were 4K per year. Today the taxes are at 12,500 per year so she probably is talking about just her taxes. Thats currently over 1K per month in taxes. Disgusting.
Learning from other people's mistakes is priceless 🎉🎉🎉
So is learning from your own...
@AlexsMom826
You are so correct
Learning from other’s mistakes helps protect you from making those same mistakes yourself
Actually I believe the good book says the wise learns from the mistakes of others
💯
I learn from my mistakes and others
No wonder they always say " If your the smarter one of your friends YOU need NEW friends " surround yourself with people you can continually learn from. Blessings 💜
My mortgage went up $283 and I’m livid!
Property taxes and insurance are going up every year.
You can always seek out a lower rate for homeowners insurance and depending on your state, you can challenge the assessment of your property taxes with the assessors office.
I HEARD THAT
Why ? We're you not aware taxes and insurance jump EVERY year ? Home purchased 2001 p.i.t.i cost was 979.00 a month...same house PAID OFF ( NO principle or intrest) 2023...t.i ( taxes and insurance) only 2100.00 per month...yes over 2 times original payment just for taxes and insurance.
The 1st problem was a no income verification loan!
That Part!
shocking that the loan officer didn't know what a ARM is
@@emilystevens6335bNY
No no no no . The issue is ARM🤦🏾♂️🤦🏾♂️🤦🏾♂️ NIV does not mean you can't afford the house or you don't qualify. It simply means as a business owner or contractor, you take all your allowable deductions to lower your taxable income. Which of course affects how much loan you can get approved for. Thus making NIV or Stated Income loans attractive to such buyers.
As per escrow, taxes n insurance is always changing. So monthly payment is always changing. You can either pay the shortage upfront to keep your payments the same or you can spread it over 12 months. I'm not familiar with a tax liability being carried over several years by the bank like this lady is saying. They typically want it paid within the yr before the new tax assessment hits. The situation I just explained is how it works for everyone with escrow accounts. I'm a fan of fixed rate loans. Will never consider ARM. The loan amount is too big to account for all the possible variables. Everyone's risk tolerance is different!✊🏾
@TheIkeman74 There is no problem with an ARM if you can prove you can pay for it if it goes up. Stated income is also called a liar loan because folks can just lie. Lol, I know what stated income means, and yes, when used properly, it works. By the way, those business owners and contractors you use as an example still need to be able to afford it. It's math. Oh, and the loan is not too large for some people. There are levels to everything.
Back in 2005 my now exhusband and I lost our dream home. I had a heart attack and stroke after we signed the closing papers. At that time he had a good civil service job with the Army. He lost his job in 2015and never recovered from this. We got behind in our mortgage and was scammed not once but twice from law firm out of New York and California. I told him to research them and found out they couldn't practice in the state of Georgia.
He was a 21 veteran of the U. S. Army and lost everything because of a well known Bank along with the scammers. We had nothing and our marriage of 43 years didn't survive 😢.
I’m so sorry 💐
I'm so sorry, that sounds so terrible. I hope you're OK now!
I am so sorry 😢
😢
Very sorry you guys went through that. And 43 yrs of marriage…..done? Sobering thoughts. I hope your health is ok.
Oooh this brings back my trauma Rochelle thank you for your transparency. In 2007 As a single Mom wanting to move from the Bronx to Jersey with my son for a better life. I bought a condo with what I later learned was a predatory lending 2 lenders a ARM $1500 mortgage $375 in HOA exhausted all my savings..... lasted to years lost my home to a short sale. I had to file bankruptcy after having perfect credit to avoid the second loaner coming after me for the debt😮😮An expensive lesson.
I will FOREVER stan for NACA NACA NACA....NACA!! I'm so grateful my mortgage came through them. It may be a grueling process, but they truly prepared me for homeownership and what comes with it. Now two years later I'm still at peace with my decision. If you are reading this message, I beg you to look into a NACA mortgage you will be well informed and in a home you can truly afford.
Yep...bought mine thru naca in 2019. Still here comfortably. Have a successful day.
NACA is for people who can’t manage money. You will have to do 3x as much paperwork. They will qualify you for a lower amount because you are high risk. Also raise your interest rate 1 to 1.25% because you are going through this program. Use as a last resort!
Took me 4 months to find mine and my credit score is over 800. The smart ones know. It was a few of us in there working out the same strategy.
@@jaypesos6788 Lmaoooo you are misinformed. NACA is for anyone who wants to save money. You have to do so much paperwork because they’re going to make sure you can afford your home not just buy your home. Numerous people buy a house and they’re “house poor” because other lenders only care about their cut. In my situation I had over a 700 credit score, 100k in savings and I make over six figures I could’ve gotten a loan anywhere. But with NACA I had no down payment, no closing costs, 1% lower than national average interest rate and no PMI, and my house was 355k but I could have went as high as 500k so I’m not sure what you’re referring to. Issa first choice for me, and I’ll tell anyone who will listen about NACA!
@@tishr9670 Listennnn!! When you know you know!
Before I bought my first property I researched the process of buying a house, I knew about mortgage rates, arm, conventional and fha’s.. pmi ‘s , I studied the game before I entered the game.. when I was at the closing, I read everything before I signed it , if i didn’t understand something i asked the lawyer to explain it .. I even had to check my inspector at the inspection for missing obvious things that were wrong with house , I wasn’t an expert, but at least I had an idea of wtf was going on
Agreed, well said!
Same. I was rough with the loan offices I had too. To the point that I switched loan offices a couple times bc I felt like they thought I was unintelligent on what I knew. And low key tried to screw me bc I was a first time home buyer.
When I didn’t understand something I had some older friends in finance, banking & insurance so I questioned them on something’s for a clearer understanding. So that was helpful too.
The entire ordeal was exciting and stressful. I don’t understand how ppl go through the buying process of getting a house multiple times in a lifetime.😅
That Part. You gotta do your own research and double check things
It's true alot of people don't understand loan math.
@@p.gizzle90 any transactions that the person gets commission pay they will try to rip you off with word play
So that’s $5000 increase per month. So that’s 60,000$ in taxes. The real question is why is the government getting away with that. It has nothing to do with the assessment. That’s criminal.
The laws are different now. Not saying it won't increase but there are more rules and regulations in place
Keep voting blue 💙 if you love these new high taxes! 🥂
She had an ARM…this happened during the recession 2007-2008 time. Companies were giving loans out at low interest rates 1.9% …super low. When the economy tanked, the mortgage rates skyrocketed, which ballooned people’s payments.
She didn’t pay her taxes for years..so they kept tacking it to her escrow account which had a shortage and the interest rate adjusted up with an ARM..she was clueless because she wanted to be..just to be a homeowner..this wasn’t the banks fault..or the governments fault..
How is it a $5,000 per month when it went from $2,500 to $7,500 in 7 month?
The mortgage went up to $7500 because she became behind on the taxes over the years. I can’t imagine being in a home where the taxes are $12,000 a year (and eventually $18,000 a year). On top of being behind on taxes that adjustable rate mortgage caused the monthly payment to increase even more. Awful experience for this lady but a hard lesson learned. ARM loans should be illegal. I blame the lender that gave her a “no income verification” loan for the hardships she faced. What she got was a “setup for failure” loan.
She said she was never behind, It just kept going up with market value, Not to mention the adjustable rate after 2 years
Don’t get a loan ever that say ARM Loan .they almost got me with that when I was 22
arms might not be so bad now with interest rates at 7%. Probably on there way down
They aren’t bad. You just have to time it right and be lucky.
Don’t buy a home you can’t afford, get a fixed MTG rate, have taxes/insurance included in your mtg, if you have a PMI make extra payments towards your principal, NEVER EVER take out a loan against your home unless it’s a reverse mtg for end of life care.
If you can’t afford to pay, sell now. DO NOT exhaust your savings trying to save face!
Agreed….❤❤❤❤
Reverse mortgages are a scam
@@koolkitties8552 I read an article regarding that reverse mortgage are scam too.
@@koolkitties8552 no.
@@koolkitties8552- Reread what WHY I said what I said about reverse mortgages. Comprehension IS KEY!
Better to own a home overseas than to own one in the USA because, in many countries overseas, people don't pay property taxes on their homes.
In the USA, you never really own your home because it's tied to property taxes and sometimes HOA fees. If those alone are not paid, you lose your home even if your mortgage is paid in full.
What countries don't require you to pay taxes? I definitely would like to know 🙂
Which countries?
@@sbostic08UAE, Malaysia, other Asian countries and most of African countries if not all. I believe some European countries too don’t have property taxes.
@@sbostic08Also the cost of living is quite low in most countries compared to the U.S
@@aliayussuf9267 Thank you, I will look into this 😊
This should be criminal 🤬🤯 Thank you for sharing your story it really helps us pay more attention.
Her own fault. The info is out there. Due diligence is mandatory when buying property
12k per year in taxes with no warning is unacceptable
Lack of education and tools were part of the problem. If she had the right information and guidance when purchasing the home, things would have been easier.
Yea and the heloc is a motha
I was thinking the same thing.
She bought a house for 650k 😂😂😂 she is a dummy, this is how most BW think. The independent mindset 😂😂 what a dummy
Totally agree. People just jump into things with no research. Seems though she is still a little confused on home financing by the way she answered some of his questions and could see that he saw that and did not press her.
@DRventura333 first time with no mentor , you will have problems with just reading because it's a business that has many different elements for investors you need experience. ....they hustled her. With the 100 deal😊 on taxes. She didn't think to research what ny taxes are. She didn't know to research arm???? She just saw a new house 😊
She figure it would just be a reasonable increase... more so if she has no finance education 😊
First year $1200 a year for the taxes then $12k a year then 18k a year. Frightening.
I have a 2% morgtage! I’m happy!
2.25%
@@GApeech08 nice!
So important to get people to start thinking about building their own homes and not using mortgages. When you understand what the word actually means, then it will become more clear. Mort= root word for death( mortician, immortality, mortality)
Gage= means measurement ( fuel gage, oil gage, etc)
Mortgage= measurement of death!
Oh wow! So basically purchase land and build
I learned that from Elder Apostle Tahar from GMS
Thank you so much for this!
Ok ...Im all for 100% down....but how does that stop increases in taxes and insurance each year ?
@@nolongeranurse3369 having no mortgage, prepares your finances for those things. They are inevitable, but having no debt helps determine when one can retire.
I would rather rent month to month that way if an issue arises I can just leave
Should have sold the house and get the fuck outta there
Hard to sell 21k property tax house 😊
Our mortgage went up $1100/mo in 2 years and our home is NOT new construction!
damn my mortgage is $900 including insurance & taxes 😮😮😮😮😮
THAT'S A CURSE. IT'S SURE NOT NO BLESSING FROM THE LORD. I WOULDN'T WANT NO PART OF THAT DEMONIC EVIL IN JESUS NAME. GOING UP AND UP..I THOUGHT A MORTGAGE WAS SET PRICE.
@@pearlperlitavenegas2023 THANK JESUS. THAT'S A CURSE THEY INTO. THAT SURE AIN'T THE LORD.
@@user-lw8pk6fx6fIf you have a fixed rate mortgage then ONLY the mortgage payment itself doesn’t increase. However, because most mortgages combine the property taxes and homeowners insurance if/when those increase your overall monthly payment increases. If your mortgage itself is not fixed and an “arm” aka adjustable rate mortgage it will fluctuate to whatever interest rate the market is. Most people who should consider an arm are short term homeowners. A mortgage person recommended an arm to longterm owners is suspect. Likely trying to lock in more clients in a good market but too the clients detriment when the market goes bad. The people in this moment complaining their mortgage payment increased are actually experiencing steep increasing in their property taxes, insurances, and/or HOA fees. Too many people took advantage of the fixed low interest rates a couple of years ago so I doubt thats problem for many that their mortgage payment itself increased because interest rates are high at the moment.
@@user-lw8pk6fx6fONE HUNDRED PERCENT AGREE‼️
The ARM info finally made the numbers make sense to me
We have to educate ourselves and children about mortgages, rates, credit worthiness, economy, etc.
Wow, this information was fire. I know Rochelle’s pain. I purchased my first property at 23yo, not knowing a thing about what I was doing. I lived some of that. I was able buy my way into real estate seminars where I learned so much. Information is power.
Yup. Her lack of due diligence is her fault.
I love stories like this. I learn so much from
Listening
AMEN
This interview was rough/tough to hear, from beginning to end! I am glad she acknowledged her lack of education….I cannot imagine being in this situation because I didn’t do my part; EDUCATE myself, trust but verify, fact check, etc.
yes yes yes
This makes no sense. I live in NY and taxes are outrageous, but it is not assessed that frequently, that quickly. Clearly an ARM. Shady loan product to begin with, where they ask for no income verification.
it was a new developement so as all the people moved in slowly it went up because the school taxes had to be paid for all those people's kids. Plus it was not a fixed mortgage. It was adjustable. Interest rate was going up
You are not ready to buy a home until you are educated and know all about what is included in your mortgage payment. Be sure you are not purchasing an adjustable mortgage. Second, check out the homeowners insurance prices before you close. Next, visit the tax assessors office to be educated as to what you will most likely be charged the following year. Understanding property taxes is so important. There are places that are not affordable because of the property taxes. Also, some areas charge an exorbitant rate for water. The buyer must understand all of this, or should they rent until they do.
The problem was she never paid her taxes from year to year so the taxes built up. Also, you can contest the property taxes to have them reduced if the assessment is above market value.
Is that in any state?!
Thanks I didn't know you can so that.
Yep. My mom contested hers last year. They built several new builds 2 blocks from her and of course, that raised the value of her home; therefore increasing taxes. She contested because she was turning 65 and is now exempt.
She did pay her taxes. The taxes keep raising every year. 1st year $100/mth was added to her mortgage but the area was not assign a land tax amount because it was a new construction. After the land tax amount was assigned they raised the tax amount every year. But she didn’t really understand the process. She had two kids and probably just wanted a house. So she rushed the process and the leader/bank got her good. It was a learning process for her.
No, She paid her taxes, They just kept going up every year then came the ARM
This was before the GFC of 2008. This type of loan is illegal now days. ATR has to be met prior to approval in today’s lending environment. She is a typical consumer. Most will go with something especially if they like it if others say they can have it. This is the aftermath of that. Moral to the story is buy what you can afford people! She didn’t even know what type loan she had! Not being educated is no one else’s fault but that person! In her defense she did admit that she and the realtor didn’t care how it went in real life. They both just wanted what they wanted! 🤦🏿♂️
It’s messed up they don’t tell you this… all this shit should be told to you when purchasing a house…
You do know the internet had information on home buying back then and now. Why can’t people take the initiative to learn on their own?
@@SSS-wo2hn I feel you… but regardless, this sht should be told to you regardless…
Her agent should have said something but, the agent just want their percentage for selling the home, smh
Why? She should inform herself. It’s her job to know what happens. Not the bank, not the seller or the agent. HERS. This is her own fault. No sympathy
@@thesilverfoxxshow3137nope. It’s Her job to be informed not the agent. Everyone always trying to blame someone else for their failure.
Young lady very brave upbeat attitude after what she has been through. God bless.
Wow….. great session. You pay on the front-end or the back-end--- more $$$$ on the back to learn from your mistakes or lack of knowledge. Kudos to Rochelle for sharing her experience.
I used to be a real estate agent and I always warned my clients who were buying new construction that their taxes would go up, especially when the entire area was new and they would have a lot of new development around them.
@23:17 "You don't have to pay full price for nothing that I already paid for" 🔥🔥🔥
She had an adjustable rate mortgage and she also had property taxes increasing when her income wasn’t verified which isn’t even allowed anymore to qualify for a mortgage. They also calculate DTI using the type of mortgage and if it’s new construction taxes of land + improvements beforehand so that this cannot occur anymore.
The tax issue happens a lot in Texas too, very high property tax here
initially I was confused because of the way she explained everything. It’s like she still doesn’t understand what happened, so she didn’t articulate it properly. I had to sit and think about what she was saying.
me too.
Thought it was just me.
Real Estate is a chasm so many different doors into it. I think she still doesn’t have the full understanding of what happened. But love her transparency to help others. I wish her the best.💜
She definitely was a sitting duck, Her lender got paid and left her hanging
She should've refinanced her mortgage for a fixed rate.
Mortgage lenders were incentivized to sign customers up for ARM loans. I wanted a conventional loan in 2006. The lender sent the paperwork, and it was actually an ARM loan. I was OUTRAGED and made her redo the paperwork for a conventional loan. Thank God my Mama taught me to read the fine print before signing my name. Many people were tricked 2006-2008, which resulted in them losing their homes. It was criminal in my opinion.
Oh my god!! I really enjoyed listening to you guys. So informative.
Great info... Salute to Rochelle she has a relevant story to tell. Salute to MG as well for allowing her to add on to his platform
Glad she admitted all this Cz you shame to talk about the mistakes that we make due to lack of education
One good thing about California, our taxes are capped at 2% increases per year.
In Florida as well.
I didn’t know this
There is no benefit in CA . The houses cost 1.2 million dollars. So that’s nothing to celebrate.
@@eliot5220You have to play the equity game in Cali. Start off with a small new build (350-450K) in cities like Sacramento, Bakersfield & trade up to a bigger home in a better city after five years.
California taxes are based on the sale price. Even if the prices go up. Florida DOES not have that. Taxes are based upon appreciation@@Msleft1
I blame her agent. They should have told her exactly what was coming. The Agen neglected to inform her just so that they could get that commission.
Haha. This lady is 100% responsible. She signed the documents and had no idea what she was doing. She also bought a house she couldn't afford
I commented on this a few weeks ago. I'm like she's not telling the whole story. OMG! I stand corrected. Yes, she is. One of my friends moved from that area because of the property tax increased abundantly. I just saw a video of a lady in Florida, where her property tax increased to over 100%. It's getting real out here people. Property tax is going up all over. However, my county proposed 6.9% tax increase. They agreed on 4.9%. People check your county tax rebates and homestead acts for reductions. Also, you have to keep a stash of cushion money for just in case.
Her story was definitely an eye-opening education
THAT'S HORRIBLE. I DIDN'T EVEN KNOW MORTGAGES CAN GO UP. THAT'S THE DEVIL
No. Adjustable rate mortgage. Been around for decades. Best to stay away from them.
@@sharonda8485 she would get a notice regardless. Most of the huge increase in her case was the arm
@@plynn136 I didn't get a notice when my taxes and insurance increased. I received my statement in Nov and saw the increase in taxes but I had to call and question about my insurance
The only way I would get an Adjustable Rate Mortgage is if I were a disabled veteran with benefits. They don’t have to pay property taxes, some are reduced.
Even with a fixed rate mortgage, your payment will go up....taxes increase. Insurance costs go up... my taxes and insurance alone are triple now what my original payment was the first year I bought my house.
Dang, they really are trying to make us all renters.
For sure
In 20052006, they had free classes/programs that taught about ARMs and anything pertaining to homeownership.
you should buy a home with fixed payments that are low enough to pay during your ups and down
I believe her because I was paying extra on my mortgage and they still ask for 1000 at the end of the year .they where hoping she couldn’t keep up .to take the house back.but god had your back
Are you in an area being gentrfied? Prices soaring? That can cause ur taxes to increaae. Insurance is also going up too. They request extra to make sure those things are covered. You can also contest ur assessment. Chk if you have a homestead exemption. But I think certain things she said were true but there was a lot she isn't saying. Bcse after the 2yrs and the increases why didn't she refinance? It's likely she was told to refinance after the 2 yrs into a fixed. There was a reason she did a no income proof in the beginning. She either didn't make enuf to buy the house she wanted or I don't think she keeps meticulous business records either and that could be purposeful. So she can get her house and get other programs too. That's why I think she allowed her pmt to go so high. Why did she not contact the bank for options? Wouldn't be surprise if the loan she took out for the other was an arm too. Maybe to pay the mortgage on this NY home. I don't think she is as clueless as she let's on. It's just way to much info out here. She could easily research what an arm is.
@@TWLogik I think at the time during 2006-2008 after Obama got in the government opened up programs to help people who were underwater with their mortgages because of the housing bubble (remember he helped out the banks). In 2009 I had finished building a new house and the appraisal (Wells Fargo) appraised less that what I had built on a new house in a gentrifying neighborhood. At that time Wells had a 2n1 construction to permanent loan program. When I finished building they said we did not appraise at the value of the home and in order for us to get a permanent loan they forced us to do an ARMs which I did not want to do. I wanted the traditional. To make a long story short, we did the ARMs for one year, kept up the payments, then refinanced to an FHA for the 30 year mortgage. We even went to NACA and they told us to walk away from the house, but we couldn't because we had built this house ourselves from the ground up. This was one of the most stressful times in my life because I knew what happened to alot of people who had ARMs. I did a lot of praying but God pulled us through! All praises go to him.
Hello, I plan on buying this year. 1st time home buyer in California. Love your videos learned a lot.
Where in CA are you? Are you in need of a realtor? I’m a realtor in Los Angeles. ☺️
They gave people house then even knowing she could not afford it
This betrays the knowledge gap in our community when it comes to real estate...some of us are new to this and we have a lot blind spots
If her mortgage was originally $2500 and she had to pay $21,000 in taxes, she would add $1750 per month to the mortgage so $4250 per month? Where does the $7500 come from. She just must have not paid any of her taxes and it caught up to her? Otherwise, doesn’t make sense.
They pay the previous years property tax and then add it to your escrow in addition to your new property tax. In a year her mortgage would have dropped to maybe 4250 as u calculated
That’s exactly what happened…..I’m confused that she’s STILL confused.
That doggone ARM and lack of paying her full taxes caught up with her.
This is simple stuff…..and I hate the fact that she’s further confusing people on this matter.
She paid $2500 on the land before the house was built, Once the house came up, Now she owe 2500 for the land and the rest was for the taxes on the new home which total 21,000
The only way this happened is because she didn’t set aside any taxes for years and this amount was due to an escrow shortage..the bank will add this to the payment until the escrow shortage is resolved. This isn’t the new long term payment..these types of things need to be explained so the youth or people who are not educated on home ownership don’t get the wrong idea of what happens when you buy a home. This lady bought a home during subprime days..no income verification..and no money set aside for Taxes..this is not a banks issue..this is all the homeowners issue..this is why so many people lost homes back in the day..she couldn’t afford the home from day 1..
FACTs! My coworker played this stupid game and had to take a line it credit with our Credit Union AND a 401K loan to catch up 🤪
Not necessarily that she couldn't afford it; pre-planning and information being relayed properly by the realtor and mortgage lender. This is still happening today!
@@jacquelinepinkett-smith4004 this isn’t shade..this is facts..over feelings..education on home ownership helps people and so it’s important that false narratives are checked and corrected because her clip went viral..this is why a lot of people don’t own anything..they hear someone else’s half truth story and they never take a risk out of fear..I currently own multiple properties across the country and I purchased two of them as a single parent right after a divorce with no settlement, making under 60k, because of the USDA loan and because I worked hard and saved my money. Back in the day to get a ARM of a first time
Homebuyer loan you had to have a first time home buyers class in most markets..I attended one in 2001. People bought houses with these loans anyway regardless of what they were told even after those classes..this comment will save you time, fear and money spending it on a course. Your local state will help you buy a house if you qualify and most Americans do if they are flexible with location and willing to see past outdated things that don’t matter at the end of the day. I don’t mean to sound arrogant, but to whoever this comment helps, your welcome.
@@jacquelinepinkett-smith4004Exactly. She had money. She pulled 150k from her income property and she had a job making good money. Her ignorance did her in. She should’ve bought a smaller more inexpensive house to begin with. A 5 bedroom for herself and two kids…and a single parent! Too much house. Had she gotten a fixed rate or refinanced for a fixed rate. She would have a paid off house today and an income property on top. True her lessons were expensive.
There is so much free information available to provide knowledge about the home buying process but people don’t take the time to learn about the biggest purchase they will most likely make in their lifetime.
If you cannot get approved for conventional 30 year loan. You need to wait until you can. This is what happens when people can’t qualify. They get in the arm loans and end up like this.
This is a Barbados to what I went through, I paid someone to help me refinance my house and they ripped me off. My mortgage went up every month on taxes and I had a harm loan on the house and I call the bank to let them take the house and I left. It was a sad situation for us at the time but I learned my lesson the hard way.
Meanwhile some other smart people will take less than a 100k and invest in cheaper homes to live like a King. If we as a people fail to wake up to understand the trickery we will continue making this mistake. You all know this is not what life is about- living to pay bills and mortgage.
I love this! I know plenty stylists who make all kinds of money but yes…putting it under the mattress. No LLC, no S-Corp. she is so right… it’s time to structure.
Her 1st mistake No income verification loan, 2nd mistake got into ARM loan😲, 3rd mistake not doing her due diligence find out the breakdown of your mortgage payment P&I. She didn't consider property taxes and homeowners insurance.
She's right, she wasn't thinking. Don't bite off more than you can chew.
Great episode! Very educational. 💯
Everyone please read books and learn the terminology of the Real Estate words before you buy a home💫💫 Especially know and understand the mortgage product you are buying before you choose a mortgage product👍
So true to seek knowledge. I was going to get credit repair until I started watching you tube videos and did it myself. And so many people been scammed with that.
Thank you for sharing your story Ms. Rochelle. Thank you for having her MG.
thanks for listening
20:00 A lot of us are first generation home and business owners and we dont realize what we dont know
My mortgage is $1,550 for a 2 bed, 2 bath townhome. I hope I don't run into this issue. I have an FHA loan.
Where do you live? That’s a really good price.
You didnt get an ARM (Adjustable Rate Mortgage) rate so you are good.
The importance of Speaking with a Certified HUD Housing Counselor; Advocacy for Homeowners while providing education!
Work and pay cash for a foreclosure. Say No to mortgage payments. It’s possible if you work and make enough money and pick up side jobs and save for some years.
This lady is brave with great character. God bless her & her family.
WOW!!!…. She got scammed from all sides. I am so sorry that happened to you. I hope you were able to rebuild back stronger.
No one scammed her. She did not attend the classes for first time home buyers. They were free and all realtors offered them at that time. I bought my homse at the smae time and attended the classes. She also bought too much house.Her pay check could not afford the house. Home owneres property taxes will always goe up until you turn 65. In NJ you will pay half at age 65
Amen
God carried you thru!!!!
yes mam !! ty❤
Wow!!! Salute to her. Strong 💪🏾 woman!
People “Gate Keep” because they see you as an Opp, competition, a threat and NOT an ally or asset
This was so good!! Good idea y'all.
She was involved in a Scam from the very beginning and she should have know better I have NO sympathy for her.
I used to explain increased monthly payments when I worked as a certified escrow rep. Tax, Insurance increases, escrow spreads ECT can hit hard.
Thanks for Sharing Rochelle reality message about mortages things are changes quickly. First time watching.
Im in Rochester NY, the average house price is $375k. For a 1500 sq ft house. Im 26 and i have a trucking company and i really want to get into real estate.
Wait a little longer for prices to adjust and interest rates to come down a little
@@ruthreddick8369 my husband and I are also looking into getting into real estate, but I'm hoping in 2 years the market is sweet timing.
Wait longer for prices to keep increasing. Because I was waiting since 2015 for this magical correction that was happening every year and now everything doubled
@@nesq4104 2015 You missed the mark more than once sir! Are you waiting for free homes?
@@ruthreddick8369 I was waiting for cheaper prices in the boroughs of NYC and it never happened. All these "experts" and regular people said wait next year because the market is going to correct. They said this every year since 2015 literally and prices never correct down only upwards. 😂. Now I could never buy a house in NYC region unless I'm probably making 500k annually. Average small house is about 800k . But anyway I games the system by moving far away and getting a house for low 100k..
Alot of people get taken advantage of in real estate because they don't know about financing, taxes, or the law.
True. You broke this all the way down. My head was hurting trying to figure out exactly how. I clicked off in the middle because I was getting annoyed 😂. It was like the perfect storm of events.
Principle, Interest, Home Owner's Insurance and Property Taxes, when you can no longer afford your mortgage they can all increase depending on the circumstances. I was a product of the beginning Mortgage Crisis in 2005 by losing my home due to an ARM which was just another name for the old Balloon Mortgage. Interest rate ballooned every year the index rate increased. I was sold on the fact of being told I'd be able to refinance after a couple years. Being a single parent household the payment got out of reach after 8 yrs ... similar to Rochelle.
Loved This Great show she is speaking and talking Truth People Listen
Respect sis. Thanks for being so open and honest. We all make mistakes but you have grown and are wiser.
This is soooo true. I use to be a licensed realtor and was nearly a million dollars in debt. A bought lesson is a taught lesson.
7:59 okay, now I can see how she ended up in that situation. Anybody who isn't prepared would be in that situation. Put your taxes in with your mortgage❤
She probably would have, But the only gave her land estimation the first year, I would have estimated by dividing 650,000 by her land value
So taxes should be about 1-2% of the value. So a $60,000 taxes means the house should be worth 6 million.
This is a very good podcast. Thank you for sharing with us ❤
It's theft to tax you on an estimated and arbitrary value of a home after taxes were already paid to purchase /sell.
I'm there!! Lunch & Learn! So needed.
The whole system of so-called homeownership needs to revised on every level. The way they have it set up will always be in debt. Property taxes is forever.
I think the part of the issue is you have to know what you’re getting into read the fine print. Learn what an arm loan is before you sign. She said she wanted to get in the house by any means necessary that’s the issue. Have to do your homework.
That's it, she wanted a home and admitted she said she didn't care how. Dangerous.
She dropped a lot of gems. I really needed to hear this❤
This can be easily solved. Sell The House!
Well it seems like she bought at the market highs, then the market dipped.
@@LynxStarAuto- That’s the real estate market though. FOMO is what did it!
It seems like that would work but if not enough equity; that won’t work 🤷🏾♀️
It was her dream home, It's a setup and they should warn her to set aside money because her house wasn't included yet
Thank you for this.
I always research the matter before I make a “conscience decision” about financial matters.
I reach out to professionals, and also to those who have experience in the particular area of concern. There’s no shame in asking for help from people outside your circle of friends and family members. ❤
U SAID IT!!! THEY DIDN'T SHARE. STILL UNFORTUNATELY. I THANK GOD FOR Y'ALL.
Yesssssss NOT FULL PRICE WITH EDUCATION!!!
GEMSSSSSSS💯