What’s the real deal with the zero down programs?

What’s the deal with these zero-down programs? Wasn’t that the source of the recession? Doesn’t that get people in trouble? Am I going to get in over my head? What’s the deal here? Are the zero-down programs dangerous for you or for the economy?

They’re not, they’re not, they’re not.

They aren’t dangerous for the economy because they weren’t the source of the Great Recession. They didn’t have anything to do with it. Yes, there were zero-down loans and yes, people got in trouble, but it wasn’t because of the zero-down loans. It’s because there was no education involved. And people just got into these no job, no income loans and they were counting on the buildup of equity to cover the loan. then with balloon payments and insanity like that things blew up. None of this happens if people get educated.

The recession happened because, this will become as a shock to most of you, banks are greedy. And they not only sold these zero-down loans without education, getting people in trouble, but then they packaged them as grade A loans.

So, they took crappy loans and sold them as great loans. And then, before they defaulted, they took out insurance against those loans because they know they were full of crap. So they paid insurance companies to insure them. And when they defaulted, not only did everyone who owned the securities got screwed, but the insurance companies that sold them, they got screwed too. Who walked away with the money? Wall Street bankers. Unbelievable, right? Who knew that greedy bankers would trash the economy just to eat extra sushi on our back?

It wasn’t the zero-down loans that got us into trouble. They won’t get you into trouble. Why? Because the state of Washington has actually demonstrated that people who take the educational programs required to get the loans defaulted at a lower rate than people that put 20% down. What? People with their own money. Yes. Because people with their own money often don’t bother to get educated. They think they know what they’re doing. And that is super dangerous.

Buying a home is a big freaking deal. You don’t know what you’re doing. Stop it. Get educated. Get a professional. People aren’t like, “Oh, I’m going to do surgery on myself. I know what I’m doing.” No. That’s insanity. Get educated.

When I work with people, this whole website, everything I do, is because I educate, advocate, negotiate. Those are my three big value props. And you want to find a realtor that educates, advocates, and negotiates on your behalf.

If you want to get educated, even if you’re not a first-time buyer, but you want to get educated, I’ll give you a copy of my book. Why? Because I’m just committed that people get educated. I’m committed that they stop doing stupid stuff. This is a great book. You can buy it on Amazon or message me below and I’ll get you a copy of it for free, seriously you pay the shipping, I’ll ship this to you. If you’re in Seattle, I’ll deliver it to you.

If you’re looking at making the move from renting to owning, if you’re out to ditch your landlord, let me know. I’d love to help you. I’d love to help you get educated in what it’s going to take to do that.

                       

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