FORECLOSURES ARE EXPLODING!

Added: 2026-05-07

[00:00:00]Hey, it's Dan. Welcome back to I Allegedly.

[00:00:03]I've got a good one for you today because foreclosures are shooting up.

[00:00:08]And this is just the beginning.

[00:00:10]I have all the dirt on this. Please like. Please subscribe.

[00:00:14]And let's get right into it.

[00:00:17]We have seen foreclosures shoot up over 28% in the first quarter of the year over last year. And the reason for that is that all the moratoriums, the forbearances, all the shenanigans shenanigans are done.

[00:00:31]Interest rates are very high right now, and people are completely hosed right now when it comes to these foreclosures.

[00:00:40]Now, I want you to think about this.

[00:00:43]I have two friends that own foreclosure companies, childhood friends. I've known since uh high school, and they both own two large foreclosure companies.

[00:00:53]Totally different markets, and the thing that we're seeing right now is we're seeing a tremendous amount of commercial foreclosures, and the residential foreclosures are just being lit up right now.

[00:01:06]Now, during the Biden administration in 2020 and 2021, you started to have forbearance. You started to have programs that would make it so that you didn't have to pay your mortgage. And a lot of people took advantage of this.

[00:01:21]Now, I've had people write me and say, "Oh, this is ridiculous. This is not true, Dan. Everybody has to pay their mortgage or they'll take your home."

[00:01:28]Nope. Two Wall Street Journal articles that were written days apart. The first one talking about how there are no more federal programs to put off your mortgage.

[00:01:39]The COVID era of shenanigans are done.

[00:01:42]Great article, and they're talking about one family that took five different forbearance programs to the tune of $96,000 in payments they didn't have to make on their $400,000 house. Now, guys, understand this. The payment was nothing. It was under $2,500 with everything. That's put it off, put it off, put it off. Now, what you're seeing is you have to pay that back.

[00:02:08]Smart people went out and they negotiated this with the bank in advance and said, "Listen, I know that I owe you $96,000.

[00:02:16]I want to stay in the home and we'll give you a 50. You can put it on as a lien. You can put it on as a mortgage, however you'd like to get that money back." Some of the banks accepted things like this, but not anymore.

[00:02:28]My friend would get let's say 2 years ago, 1 2 three different foreclosure notices that they would get to process. Now, these guys would process posting the houses, putting the notice on somebody's front door, and they would also do the sales, where they would take care of processing the sale where people would come out. Now, I've had a lot of people write me and say, "Oh, I want to be in the foreclosure business. I want to go out and buy one of these discounted houses." Well, get ready, get your cash ready cuz if you don't have the cash, you're not going to buy anything right now. The one thing that blew me away was we had players here in Southern California when I would go to these foreclosure auctions, you'd start to see the same people over and over again.

[00:03:21]And let's say that Doug or Jay were auctioning houses and you had six houses and the houses were selling for $700,000 to $900,000, people are going to build bid on multiple houses.

[00:03:36]You would see five and ten million dollars worth of checks being passed around because people would then take a $500,000 foreclosure, bid it up to 900 grand, and you have to pay for it right then. You can't sit there and go, "Hey, listen, call me, we'll work this out." No, mhm, no.

[00:03:54]No, no, no, no. You better have your money and these people had to be pre-qualified. But, that's just the beginning.

[00:04:01]Because there's 190,000 properties entered for closure in the first quarter.

[00:04:06]That's including the existing ones that were already in foreclosure. The two problems that you're seeing is that people that bought their houses between 2021 and 2025 are the most susceptible because once interest rates started to shoot up and people were not fiscally sound, they would go out and borrow money against that home and have a second and third mortgage. This is not the days of 2008 where you had people that would go out and you could say, "Listen, um I know I work at McDonald's, but uh I make $212,000 a year." Okay. "Or I'm the manager at Circuit City." Didn't they go bankrupt a few years ago? Yeah, but you know, I'm their CFO, we're bringing the company back. You know, they were lies.

[00:04:53]I mean, it's funny I that there's a great You want to go and look up a great story about reference scams and resume scams, look up Circuit City. Because the HR department buried and got rid of all the documents, I could sit there and say that I was the manager of the you know, I was the West Coast manager for Circuit City and I handled all their marketing and I made $380,000 a year. Really, Dan, that's amazing. No way to verify that, okay? Other than the fact that if somebody worked and they said, "Dan sucks. Dan never worked here."

[00:05:23]So, needless to say, this is getting more and more.

[00:05:29]We're at the highest point of foreclosures than prior to the pandemic.

[00:05:34]I'm walking on Lido Isle right now.

[00:05:39]That's where you see all those beautiful homes being sold.

[00:05:43]Now, I want to make this clear. This is not a subprime mortgage crisis. My friends, right now, think about this number.

[00:05:52]They would get one, two. Wow, you know what, Dan? We'd five new files sent over. Now, they're getting weeks where they have 50, 5-0.

[00:06:01]Four dozen get sent over at a time.

[00:06:05]Commercial, residential, everything.

[00:06:08]But, where they would sit there and not want to give the commercial buildings a hard time, they're going after these people.

[00:06:16]They're posting them. They're going to foreclose. How about this? How would you like to be standing at a hotel, and he's done this with Marriotts.

[00:06:23]He's done it with Westins. He's done all these different name brand hotels that they they're franchises, and he's posted them for foreclosure over the course of the last few months. That wild?

[00:06:36]They're going out of business. They can't afford the notes. You've got hotels and apartment complexes where they've got $26 million loans from selling these, and they just thought, "Okay, well, everybody's going to pay these higher rents, and we're going to raise the rent 18% to cover our note."

[00:06:50]And it doesn't happen.

[00:06:52]So, property tax problem. Property taxes are pushing monthly housing payments beyond what buyers originally budgeted for. And because most people that are budgeting, that live by a true budget, can't get through the fact that there's one question nobody ever says, "Well, honey, what happens if one of us loses our job? What happens if we make 20% next year?" "Oh, we're screwed." No one ever does that. The problem with it is that it's happening. People are making less.

[00:07:23]They're not getting no overtime. Police officers aren't getting overtime. City workers, people that got these deals time and again are not seeing it happen.

[00:07:33]The insurance crisis. You're seeing the average I want you to think about these numbers.

[00:07:39]Property taxes, on average, uh insurance, let me start with that one. $28 $2,948 is the average uh homeowner's insurance right now.

[00:07:49]Okay? That's up 40% from a year ago.

[00:07:52]Okay? Budget for that. Your property taxes on an average across the United States for a home $4,300.

[00:08:01]HOA fees, they're the dinner thieves.

[00:08:04]These people right now are jumping up through the flipping roof right now when it comes to these HOA fees.

[00:08:12]And I have friends that have told me, "Well, my HOA fee it keeps going up."

[00:08:20]And uh what's that mean? Where is it at right now? Well, Dan, it went from $340 when I bought this place to almost 800.

[00:08:30]For what?

[00:08:31]Did the guys have a at a guard gate? No.

[00:08:33]Just they say it's insurance and electricity costs and everything. Well, how do you budget for that? Listen.

[00:08:39]$340 a month, $800 a month. It's a huge, huge difference. And nobody wants to admit this.

[00:08:46]You know, once again during the Biden administration, I am telling you it was amazing. This the the absolute games that people could play when it comes to going out and not paying their mortgage is done. It is so finished.

[00:09:07]Ugh, it's just and it's sad because people think that they're going to be able to continue to do this. And now, if you didn't work out the deal, it's done.

[00:09:16]But what you're going to see is I have people that write me go, "Hey, I want to get in that foreclosure game. Half cash."

[00:09:21]Or here's the alternative. Here's the Here's the step two that you can do to get yourself in the foreclosure game.

[00:09:28]Go to the banks that hold the notes cuz I'm going to tell you the second part of this.

[00:09:33]The problem with it is that people had a tendency to overpay for mortgages and houses. I don't care if you bought a $420,000 house. If you overpaid by 80 grand for that thing, you know, you did.

[00:09:46]You just did. And they're dropping fast.

[00:09:49]Look at Las Vegas, Nevada. You're seeing houses that sold 5 years ago that the people can't get 50 and 60 thousand dollars less than what they paid for them right now. It's completely upside down. You have guys like Dre Knight who were flipping houses, you know, very talented, can't do it right now. You unless you get something that is totally, you know, destroyed and you're going to fix it up and try to bring it to market that the family wants to get rid of it. That's the only way.

[00:10:20]The other thing is you have to go to the banks directly. You have to go and have a relationship with the bank. And you better have the financing worked out.

[00:10:30]Hey, listen, I've got really good credit. I'd like to buy one of these That's They don't care about that. They want to know that you could put 50, 60% down in the house. Listen, I know that the place is half a million dollars. But I have 300,000 in cash that I can put down on the house. They will entertain that idea. But understand this, when you buy a foreclosure and this was the lesson that I learned. The last woman that I dated brought me to reality because she says, "Do you really want to buy one of these houses and spend the next 2 years of your life at your age and going out and fixing up the house?

[00:11:04]You know, dilapidated paint, you know, I looked at a lake house like a like a crackhead and um, you know, you have things like crocodiles and alligators and and snakes and and nonsense living in the middle of nowhere." And I said, "No. No." She was right. She was 100% right. And I bought a house that was completely decorated.

[00:11:26]Family just, you know, I mean, they had done everything to this house because they thought during COVID when they remodeled it that they were never going to be able to leave their house and go on vacation again, which we all know that that didn't happen.

[00:11:39]So, get yourself ready, learn to communicate, be patient, but this is the beginning of the end of uh the housing market. It's going to go down dramatically from this day forward.

[00:11:54]Read those articles below from the Wall Street Journal.

[00:12:00]My friends that do this are seeing action over and over and over again, and it is over the top what they're seeing right now. It's not onesies, twosies.

[00:12:10]Now, here's the final part that I wanted to give you guys.

[00:12:13]And the fact that they have auctions where they'll have They used to have three properties, and then miraculously somebody would file bankruptcy or they'd pull themselves out or they'd make a last-minute payment, and you'd do one auction. Now, you're starting to see 13, 14, 15 houses in a day get auctioned off at the auctions, but some of them are not selling because the people overpaid for that. How much in Anaheim, California? No way. I'm not going to bid 900,000 for that house. That house is worth about five.

[00:12:42]So, those houses have to go back to the bank, which re- brings up something called a short sale.

[00:12:50]More money is owed on the house than it is worth. So, the bank has to make the decision, do we take a loss on this house or do we make you pay the full price? Now, I have friends of mine that bought a condo during the last downturn in Carlsbad, California, and I stayed at that condo 2,000 times, probably. They lived in Canada. This was their second home. They made an offer to the bank. Think about this. An offer to the bank that was $205,000.

[00:13:24]And I'm like, "God, they're never going to accept that." They did. They did took took almost 5 and 1/2 months to get the offer accepted, but they bought a place.

[00:13:31]The place right now, I mean, if it sells, it's worth almost a million dollars today. So, their retirement is secure and they've got it going on.

[00:13:40]So, this is the beginning of this. This is going to get worse. Educate yourself.

[00:13:45]Go to an auction, guys. Go. It's they're great. I I've posted videos. We've done We've done classes on this. We've done everything on it. It's fantastic. But, it is really crazy because you haven't seen anything yet. It is only going to get worse right now before it gets better. Write me anytime [email protected], but this is the beginning of the end of the real estate market. It They just can't keep it going. The spinning plates on the Ed Sullivan Show are going to fall and hit the floor. Mark my words.

[00:14:18]Like, subscribe.

[00:14:20]I'll see you soon.

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