The American Nightmare: 10 Years After the Financial Crisis | Episode 1
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- Опубліковано 10 жов 2018
- On the 10th anniversary of the national housing crisis, four families told us about losing their homes and how they’re still struggling to recover. Long after the Great Recession ended, they’re still feeling the effects of the 2008 crisis, and they remain wary about possibly facing another one in the future.
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I remember people all around me who made minimum wage picking fruits from the fields were buying 2 story homes and I always wondered how they were able to afford a home like that. When the bubble bursts and the majority of them lost their homes then I came to understand. They weren't able to afford them.
Then they cry and blaming on the government or the economy after they do their dumb purchases
@@dopeboy_9687 governments greed and ignorance caused this, wasn't the people's fault
@@dopeboy_9687 you got your name right
@@psychocarry6916 partially. But at 2:20 the lady said the bank told her she did not qualify for any type of mortgage loan based on her income but the bank said they could “state” her income. The woman still signed for the loan. That’s her fault. This is a predatory practice on the banks. They should not give loans to people who clearly can’t afford them and people should not sign for loans they know they can’t afford.
@@dopeboy_9687 I agree, they bought something they knew they could not afford. And they weren't buying smaller homes that they could afford in the long run they got greedy and bought large homes.
I watched everyone around me losing their jobs, homes and families heading back to live with family. Older adult parents watched their kids move back into their home with their own kids. It was an awful time. I didn't agree to a predatory loan. I stayed renting, working on my education, building up experience, and waiting until I felt I could afford a home that within my means.
By 2011 I was able to buy a home with a fixed rate, and keeping in mind the lessons I learned from that financial crisis.
Amen to your testimony!!!
Well you be ready, we’re due for another even more severe collapse.
We never recovered from this and its gotten worse since this year's pandemic
I'm sorry to hear this. For what it's worth, keep your chin up high and push forward. If you keep moving, it will only make you stronger.
The look in her eyes brings me to tears, just imagine bringing your baby to court knowing you can’t provide a roof to keep him/her safe... I pray she has bounced back on her feet... I watch this documentary when I feel I’m growing materialistic... And it does ground
me, time after time. Be safe everyone, 2020 has proven to be such a difficult year...
My dad who should be in his own home- still, here in reno- I remember this... My dad now lives in the converted garage in this rental im renting. We should be in the home I remember him working his whole life and sank into owning a home generational wealth.. gone.
I CANT BEKLIEVE PEOPLE HAVING 10 kids these days
There is an internet article with the same title as this video. It is worth a read. It gives background information that is missing here. One of these families had a 900+ sq foot home before they bought (and lost) their larger home. Their plan was to get an even larger home on a lake (which did not happen). Good reminder for us all.
Really well done, Penny Hoarder. Thank you for always producing such excellent, and most importantly, educational content! I'm very happy to see this foray in to documentary making. Congratulations!
the amount of interest they make on mortgages should be illegal, it's insane. After my divorce, I tried to get the mortgage company to refinance and they wouldn't for two years. A friend recommended I miss a payment which I would never do. I finally did and they were on the phone in two weeks ready to deal. Shysters!
@Jarod Armstrong I wasn't passing the buck on anything. I paid all my payments. All I wanted to do was refinance and they wouldn't pay attention is what I was saying. When I said I didn't pay I meant I was late in paying one month which got their attention and they were willing to negotiate. In other words they didn't care about me when I was a good customer only when I caused them a blip in their system.
@Jarod Armstrong the insane jackals LIED and STOLED.
if you didn't get it in 2008, maybe you will this year.
10,000,000 People in 2008.
SUPERIMPERIALISM
An article version of The Penny Hoarder gives added background of these people's situations. A worthwhile read.
These interviews are heartbreaking. You can always make a small space work. When you go speak with a bank/lawyer about 1 thing, go in with YOUR agenda written down. NEVER allow another party to introduce something that you just "go for at the spur of the moment". Just stick to YOUR 1 agenda item, and say you'll think about it. Say that if you are interested, you'll get back to them, but you need to deal with YOUR agenda item. Bless all of the people in this documentary.
Many people rent or have been "forced into" renting. Landlords are lapping it up because they know tenants have little choice. We lost half our deposit at our last apartment because the LL wanted to replace a carpet we reported "ripped" when we filled out the moving in report three years prior. At the place before that, we had a decent apartment that was part of a big old house. The landlord refused to fix the furnace. This was in a very cold northern state. Oh, then he let druggies move in behind us. We suspected they were growing "something" or making something. No one wanted to know, even the night we were overcome with fumes from one of the tenants playing with gasoline. These are only a few details from a few apartments we've rented over the years.. Now we live with relatives but we don't want to be a burden but we can't afford the rent in this part of the USA, either. No one understands how this can devastate families and wear you down to the bone.
Watching this in March 2023 as the auto-loan business is collapsing and banks are closing due to overextending themselves....
I don't hear or see anyone shedding light on the fact that the interest rates were raised in a criminal malicious way so that there was no way for one to have a chance at all to pay it back. Also jobs were cut so it really would not matter if you had a good loan or not. They wanted everyone to fail.
I worked for Wells Fargo and it brought me to tears when they took homes away. This video brought me to tears because I witnessed this first hand with clients. Needless to say I no longer work for a company that doesn’t put their employees nor clients first.
Everyone forgets but man that was rough, being out of work, hope everyone recovers from it. I really think some of my friends play it down and that does a disservice to all the people that suffered.
It was suffering for sure. We lost our big income, dead flat. We saw that train coming but couldn't get out of the way. We hustled like we've never hustled before. The overwhelming stress of it was awful. We held onto our family home by our fingernails, pulling it out of foreclosure twice. It took 3 years to begin to pull out of it financially.
It's on its way now. People did the same things use the houses ATMs in this crash we hit the wall and 2008 hits us from behind
I remember having clients homes foreclosed by Wells Fargo needless to say I no longer work for Wells but it is terrible what banks do to profit off of individuals who may not be very educated on this topic. An adjustable mortgage or product in the end profits the bank and they have a low interest in the beginning to entice consumers but they are able to raise it to the max interest I’ve seen this too many times. It’s vital to budget and live very minimalist
Regulation should not try to protect people against the consequences of their own stupid choices.
AGRRED
so cute how you think that there is regulations.
THERE IS NO LONGER RULE OF LAW IN THE US WHEN THE BANKSTERS OWN THE GOVERNMENT
This was a great time for me. Sure my assets dropped temporarily, but I was not over leveraged and managed to buy 4 homes at fire sale prices. No one was buying then and I could take my time to pick out great properties at my leisure (unlike today). Now years later I have great rents coming in and millions in assets. I did lose 2 homes way back in the savings and loan crisis in 1990, but I did not give up and kept on investing. I learned that timing is very important and alway have savings and never OVER LEVERAGE !
I agree sold my home at the top then bought a two-family at the bottom
Tip- Make soup to save money. Once a week, we put the veggies and left over meat (in the fridge) and make soup. We eat 2 meals from it and put the left overs in a ziplock bag and freeze it in our fridge freezer. The ziplock bag will store in the door of the freezer easier than a container will- but, its whatever you have. Good luck to us all!
This happened to me almost where my family was in foreclosure. It took them 2 years to move forward cuz there were so many homes in foreclosure. Then if took another 3 years when we worked out a modification but it wasn’t easy. We thought we lost it at one point. We had an amazing lawyer.
That equity we had built in our home in 10 years of living there, that was supposed to get us into a home outright, back home where my parents lived. We were set to sell when our youngest graduated high school. One month before graduation, the bottom dropped out. We lost our home. We agreed to the cash for keys and they took that away from us, told us we had to be out two days before the agreed upon date. God found us a one bedroom home where we stayed for two years. My job, which I had for 8.5 years, was centralized to another state across the country. There were no jobs where lived. We had to borrow the money from my parents to move where they were. We're coming back slowly, in a rental, afraid to buy, afraid to get into much debt. Can't trust the banks, can't trust the government.
In this world everything depends on you. You cannot rely on others to give you direction. It’s not the government’s job to look after you, it’s not the bank’s job to look after you, it is up to you to make sure that you and your family are OK.
Did you end up getting the equity you had in the home?
@@pianocrisante90 you cannot make good decisions when you are being LIED to.
Victim blaming when the CRIMINALS walk
I love how to let you be behind for a whole year and then only give you two days to move out and then leave the house empty for another year! Man we live in a messed up system!
Looking back, it was a pretty rough time. Banks like Lehman Brothers to one risk too many by borrowing more and more than they were making and finally it caught up with them. Just like that, they filed for bankruptcy and as a result the whole economy got messed up. Most of the people unaware of the consequences of adjustable rate mortgages paying a little bit in the beginning suddenly found themselves unable to pay the new rates once everything reset. A lot of things went wrong with deregulation, subprime mortgages, and Wall Street taking too much risks with other people's money, and executives with those same banks still got bonuses and still walked away with huge sums of money. We recovered some, but it might happen again. You never know.
It was also the people's fault. If you make $30G a year, you cannot afford a house period. So many bought a house way too expensive for them. Just dumb!
That poor woman who's mother passed just screams paid parental leave/bereavement leave. She should have had a job when she returned from helping her mom. That's a shame
But we do have family leave.
These are people who took on mortgages their earnings didn't support, making themselves house poor. Lying about income should be punishable by jail time. Do not loan to risky people, they're risky because they're irresponsible.
champion mortgage try that with me and on the paper no sign and told to get lost fixed rate is the best
I learned a long time ago, NEVER TRUSTT ANYONE , not even so-called family , NEVER
Why do people need to have 9 kids? I don’t understand.
Exactly
They KNOW the state will feed them.
Up till now . . .
Lol only one type of person has 9 kids, the kind who can't afford 1.
they just being good christians.
Because they want to.
I bought a 55 thousand dollar fixer upper before the crash. Everyone I knew was laughing. After the crash they were losing homes, cars, boats, jobs. I was able to weather the storm band my family had a roof over the their heads.
it's not right . the bank will up and leave you high and dry while taking your money , then you get in the the Court and they embarrass you. there should be a safety net for responsible people who are actually spending responsibly. hard working people should have more of the opportunity to stay in their home rather then people who just neglect the loan. it's gross
Why do people buy such expensive houses on loan? I don't get it.
And these "tragedies" happened in the richest country of the world !!!
My question for the first white couple: if the husband was making SO much money and turning down work, why didn't they have anything saved?? Maybe I missed it but she said they not only lost the house but were living without electricity for a while. Didn't she have a job?
Hi Susan! Heather Little worked in the business with her husband and had several employees. Unfortunately, they cut the employees first when business slowed down. It became very unstable once the business was lost.
The Penny Hoarder but that doesn’t answer the question why they had no money since at one time they made so much.
@@Aaron-ir4he because people think that good luck is forever and is not
It was to easy to get the loans at one point
I know. fast food workers were buying 500K homes
The downturn was horrific. I think the fearmongering is a bit much though. At the end of the housing crisis, values were down 30% or more. The fact they have come back 18% is realistic and the people that did not foreclose, have almost got their heads back above water. Rates are increasing to avoid the situation again. It is a correction the fed is taking and the markets are healthy. I don't see a need for panic.
@@faithlilyj316 i hate it when people blame obama for the fincial downturn jt wasent his fault it was Bush's!
@@shoryacione5175 It wasn't either of their faults. Watch The Big Short. It explains in detail what happened.
@@secondact7151 I would disagree, Bush signed the American Dream Housing Act in 2003 which said that all Americans deserved to live in a house, and this fueled banks to get these predatory loans out to everyone and everything and rocketed construction of new homes across the nation only to have what we saw back then
These seem like relatively intelligent people. How could they not know that buying a house they could never possibly afford was going to not end badly. Some even doubling down and refinancing to dig further in the hole. Why not just stop paying the loans, save the money, short sale the property. Use the savings to pay for rent for a year at another place. Not saying all of these people didn't get the short end of the stick and it was a terrible situation. Simply saying some of these people need to take some responsibly for their actions and stop blaming the world.
Agree. The women who’s husband had the construction was probably making good money but were probably living above their means. Even the older lady said she and her husband came in a new vehicle to a new home. Like what? It’s either one or the other. Not both.
@@fernandovazquez7272 Or not either. Need to say, "We'll think about it and get back to you if we are interested." They'd have been ok with staying with what Mitch had.
I really surprised that it's not happening again in 2020
COMING TO A HOUSEHOLD NEAR YOU
Of course it is happening when the CRIMINALS are not punished out of society
Rent are high and buying house for millenials like me is difficult in 2023.
Yup. Not happening
2021 here we go. I'm in a similar boat only I make 5k a month. Still can't find anything and I gotta move in a couple months. Opposite land. Everything is expensive as hell. Life.
I'll make sure you buy an RV or some land or something so if you do get foreclosed on you own something!
Mate try finding job in other country like qatar or uea
Who TF can actually qualify for an adjustable mortgage? Lmao 😂 jajajajaja
They have 10 friggin kids ! Of course they are hurting. Geez. Have some control. Way to overpopulate!
All these people were living above their means.
Corona virus 2020
18:35
19:15
U called it
The fed raised rate by 75 bps On Wednesday
Today: June 16th 2022, Thursday , The Dow lost 2.41%
The beginning of the recession
Hello To Peter schiff 😉
Cheers from west Africa
🦅
What a joke. These people should have known what they agreed to. This is the new America where you are not responsible for your actions.
I bought 5 house from guys like this lady