The guest on today's show explains HECM in more detail he has experience in many different kinds of tax work.

Jim explains if the HECM mortgage interest is taxable and how to navigate that when leaving a HECM mortgage to your heirs.
 
Jim answers common questions such as what happens if you have not been making payments this year and what that means in the long run for your loan.

Jim explains to Martin what bunching is and how that can benefit you.

Martin and Jim discuss why you should consider converting to a Roth IRA because it would not be considered a taxable income.

Jim talks about what happens when you die what happens to all of your HECM mortgage interest and how to best prepare.
 
They talk about what it looks like to refinance your HECM and what the pros and cons of doing that are.     

Martin asks Jim how to tell if your tax advisor is knowledgeable in this subject and the right questions to ask them to get the answers that you are looking for.

Maritn is going to have articles about all of this in more detail on his website. You can look there to get more information about these topics. 

This applies to all federally approved mortgage loans through the end of this year.

What will happen as some 2 million-plus of loans in forbearance modification are coming to the end of their forbearance?

The easiest thing for servicers to do is apply for the payments at the end while the homeowner resumes the payments. This may be an option presented to borrowers, but it may not.

The last time this happened, we learned a lot about pooling and serving agreements. Will there be something like this for this time around?   Each private label servicer can come up with its own program. Each one is likely to be a little different. The benefit of the federally backed loans is that what they do has to be published online.

We discuss the importance of taking good notes when dealing with your mortgage servicer if you need to go to court or present that information in future conversations.

This issue can become very complex this time around, and we discuss what may happen in light of history and current trends.

One of the main challenges is that there are many loans and not a large number of trained technicians to help consumers get a good modification to their mortgage.

Learn more about Max Gardner and his Consumer Defence Academy.

This is the fundamental difference.

Immigration status has been a confusing and complex topic since the Obama administration. People would come into the country, assimilate, and never come to the migration hearing. This was often because their hearing would be where they entered the country, and the person may have moved to Michigan, and sometimes the hearing would be up to a year away.

In Mark's experience, they were prosecuting 350 souls per week in Tusan whose only crime was coming across the border illegally. 

We talk about kids in cages... The real problem is that it is difficult to determine if the child who came into the country belongs to those entering illegally.

Republicans love immigration because of undocumented, cheap labor, and the democrats look at undocumented aliens because they are likely to vote for their party.  In Mark's opinion, we don't have an immigration problem. We just don't want to have an honest conversation about the benefits of immigration.

We seem to lack to political will to propose a bill because we are better off doing what we are doing now "complaining about the problem and raising a lot of money." 

We discuss the levels of criminality. We have a system to rank the level of criminality based on the sentence length, and being in the country illegally is the lowest level. So the question is do we view people here illegally as criminals or trespassers, guilty of a crime similar to jaywalking. 

Is it true that Trump scared people who wanted to enter the country, and Biden is less scary? We discuss. Is the wall having an impact, or is it mostly political? Are the borders open? What is it like on the ground in the desert between the United States and Mexico?

In Mark's 20 years of experience has immigration changed? We discuss operation streamline where an individual would get arrested on day one. 48 hours later they meet with an attorney, are in front of a judge, and in about six, seven minutes, they have admitted guilt and been convicted, sentenced, and put on a plane back to their country.

The closest we have come to a meaningful immigration bill was the Amnesty Program in 1986, but there was no will to enforce and it became law with no teeth.

It seems like if we really wanted to do something about immigration we would have one of the parties propose a bill and pass it into law, but we don't seem to be willing to do that. 

Jay has specialized knowledge in these areas and has testified as an expert witness in a variety of jurisdictions, including state courts, federal courts, and legislative bodies.  He has developed methodologies used in the investigation, examination, and analyses of mortgage loan servicing transactions and processes.  He has extensive knowledge of the data that is available from the major mortgage servicing systems including Loansphere MSP, LSAMS, RealServicing, among others.  

He regularly teaches attorneys, attorneys general, county recorders, judges, and bankruptcy trustees and is viewed as one of the few people in the country, outside of the mortgage industry that is qualified to conduct these types of examinations and analyses.  He is also a faculty instructor for Max Gardner’s Bankruptcy Bootcamps as well as a guest speaker at various trade organizations including NCLC and bar associations.  He has also testified before the Arkansas Judiciary Committee regarding statutory foreclosure issues.  His clients include some of the most well-known consumer attorneys in the nation including Max Gardner, Tom Cox, Linda Tirelli, and Marc Dann to name a few.  He has worked for banks, mortgage-backed securities investors, attorney generals, bankruptcy trustees, county recording offices, hedge funds, and other governmental entities. Jay has also testified in several high-profile cases more recently Saccameno v. Ocwen in the US District Court for the Southern District of Illinois.  

Jay is currently working with the Ditech Holding Corporation Consumer Creditor Recovery Trust analyzing claims.  He also has a previously published study commissioned by the San Francisco Office of the Recorder for the City of San Francisco as well as several papers related to mortgage loan servicing issues.

Jay holds a Bachelor of Science degree in Accounting from the University of Arkansas.  He is a member of the Association of Certified Fraud Examiners, the American Institute of Certified Public Accountants, and the Arkansas Society of Certified Public Accountants.  He is a native of Texas and resides in Hot Springs National Park, Arkansas.  He is married for 34 years to attorney Annabelle Patterson and has 2 children and 1 grandson.  

In this episode, they talk about loan forbearances and loan modifications.  And the fact that there is predicted to be a new wave of foreclosures after the pandemic. Jay comes on to say that the protections put in place during the pandemic could end as early as June or as late as December.  

Jay talks about the differences between a government-backed loan and a non-government-backed loan. Jay also talks about what happens if you can't go back to paying your mortgage in the way you were before and what to do about that.      

And for more than seven years, he was the editor and publisher of the world policy journal. He was also editor executive editor at Forbes, he's been a domestic and foreign correspondent for the New York times in New York, Southeast Asia bureau, chief. He was based in Bangkok, Eastern Europe. Belgrade, he moved to CBS news.

He was seven years as a Paris correspondent. He has written for publications that include Harper's the Atlantic, the New Republic, the New York Times Magazine Reader's Digest Foreign  Policy, foreign affairs. He's a graduate of Harvard and the Columbia University graduate school of journalism.

He's a member of the century association, the council on foreign relations, the Harvard Club of New York, the national press club. He, if he's not qualified to talk about media bias, no one is all right. That's why he's here. 

The basic discussion is people believe news is left-wing or right-winged biased. We talk about how it works as a journalist today.

David believes the political spectrum has shrunk dramatically in the past few years because the moderate middle has shrunk dramatically. 

The role of a journalist is to show exactly what is happening on the ground today. Their obligation is to present the world the way it really is. 

Does CNN have a left-winged bias? David gives his insight. 

We talk about Rick Santorum being fired by CNN because his opinions were so extreme that he couldn't represent a news organization that purports to tell the real truth and present the world the way it really is.

What is the role of opinions in the news? How has it changed over the years?

If there is not a left-winged bias to CNN and NBC is there a bias toward conflict? Is the media driving the polarization of our country or is it simply reflecting the polarization. 

It looks like bias in the media but really it is the bias in our country. ~ David Andelman

What has the role of for-profit news and changes in the monetization of news programs played in the integrity of the news?   

There are two kinds of media: 
• Mediated Media
• Unmediated Media

Unmediated media isn't seen by anyone else before it is shipped. Professional news organizations are mediated media. They may have up to 8 people review, proof, revise, and verify each piece. 
 

The Assad family has ruled Syria for close to half a century now. It hasn't been a "wonderful" rule. They've been concerned about enriching their own family and securing power. 

When you talk about Obama and Trump in Syria, you come to a red line.  When Obama was asked by an NBC correspondent what would happen if Assad uses chemical weapons against his own people, Trump responded, "That's a red line, something we cannot tolerate. That is a firm, clear red line in the sand."   

A year later, he did use chemical weapons against his own people. A strong military response from Obama was reconsidered the response from Obama at the last moments before retaliation. 

When Assad used chemical weapons during Trump's presidency, he responded with a missile launch. It was a medium-sized strike that basically did nothing. 

Assad is continuing his campaign against the rebels in his country to those who oppose him.

David shares stories of interviews with many prominent middle easter leaders throughout the years. 

Is there still a civil war in Syria? According to David, It's difficult to say since Assad has been so successful in eradicating the opposition to his regime. 

We discuss the role of Israel's support in American politics. The largest supporter of Israel is evangelical Christians. Obama was criticized for being not pro-Israel enough, Trump was very pro-Israel, we talk about how Biden is handling our countries stance on Israel.   

There are many obstacles: people are fearful of the vaccine because it's a new technology and there is not much data on the long-term effects.  She believes that because people are fearful we will have a hard time getting vaccinations fast enough.

The doctor with his "black bag" has long been a powerful symbol of care and healing – but it's so last century!  Today, technology allows us to bring the best of modern healthcare to you and your family, right in your own home.

No other home healthcare provider offers the power of their TealTech diagnostic system. From blood panels to ultrasound, ECG to pathogen tests for flu, strep, and more – we get to the bottom of health issues quickly so you and your family can rest easy.

They also do COVID-19 rapid testing at your home, minimizing the risk for older patients.

TealHeal represents the next evolution of health care where they deliver a new kind of house call. Using next-generation technologies, we bring the urgent care clinic to you. We save you and your family from the stress, waiting and worry that are so common in healthcare today.

They can actually bring a mobile, hospital quality lab to a patient's home without ever having to leave their house. This is good to consider if you are elderly waiting to get vaccinated and would like to avoid the risks involved in leaving your home.

Find out more about TealHeal on their website and other in-home providers that are members of the American Academy of Home Care Medicine.

Jorge found his way out of massive debt by finding errors that his creditors made and exploiting those mistakes to get reduced payments or settlements. They are a conduit between consumers and creditors.

Jorge walks us through the process of using DebtCleanse™ as a consumer and the benefits and the process they will take you through to help decrease your debt.

DebtCleanse™ allows individuals who are struggling with debt to get free credit reports and put their case in front of a trained attorney. Most attorneys will only get paid if you get paid and so many clients only experience the monthly cost of the program which is $29. They also offer the first month for free to prove their value to customers. So you really have nothing to lose.

Martin said he was going to try DebtCleanse™ and report back on it at a future date.

Get access to a network of attorneys to help you through your debt and credit issues and uncover any violations to challenge your creditors. Debt concerns related to you, your spouse, and any dependents are all covered.

Users get three Bureau Credit Report with Updates – Easily generate your credit report and score through the DebtCleanse platform to get a full picture of your credit history. Plus, access an updated report whenever you or your attorney need it.
 
For more information, you can visit them online at https://debtcleanse.com or call  (800) 500-0908

The media’s coverage of reverse mortgages has been terribly slanted, but that’s not even the worst of it… it’s also been factually incorrect in most… if not all, cases.  And that certainly hasn’t helped anyone gain a better understand of anything.

Well, I’ve been writing about these and other issues related to reverse mortgages for some time now, but I wanted you to hear what others have concluded after researching the product.

David W. Johnson, Ph.D., is an associate professor of finance at the University of Wisconsin-Superior and holds a doctorate in finance from the University of Tennessee.  Zamira S. Simkins, Ph.D., is an assistant professor of economics at the University of Wisconsin-Superior and holds a doctorate in economics from American University.  Together they published a paper titled: “Retirement Trends, Current Monetary Policy, and the Reverse Mortgage Market” that appeared in the Journal of Financial Planning 2014 27 (3): 52–59… and was widely read and discussed all over the country, having been reviewed or reported on by numerous other publications, as well.

They are my guests on this Mandelman Matters Podcast… they are not selling anything… and they both have become experts when it comes to reverse mortgages.   In PART 1, Professor Johnson does an outstanding job presenting the facts about the product, commenting on the media’s awful coverage, and discussing the industry and the problems it faces.  (I LOVED doing this interview and I think it’s certainly worth listening to, no matter who you are.  It’s just that good.)

Professor Johnson was actually primarily motivated to study and write about reverse mortgages by the media’s horribly slanted and generally inaccurate coverage of reverse mortgages, and he shares some examples that will make you cringe.  He’s also one of those educators that is great at making things simple and getting right to the heart of the issue.

Not only should you listen to this podcast, but I hope you’ll pass it around to anyone that would benefit from knowing the facts about reverse mortgages, and the incredible and little-known ways they can be used.

So, he published his findings in professional journals and went on the lecture circuit speaking in front of financial planners, CPAs and other professionals from all over the country.

As he gained an in-depth understanding of the reverse mortgage he made monetary comparisons few if any had done before, and he found tax advantages that could be inherited by a borrower’s heirs, that wouldn’t be possible otherwise.  His conclusions showed that the conventional wisdom about reverse mortgages was wrong.

When a number of people read what I wrote about reverse mortgages,
they called and emailed me with the same message:

“You need to talk to Barry Sacks.”

So, I did.  And it didn’t take long before I realized why the others said I needed to talk to Barry.  You need to hear from Barry too, and you’ll find out why when you click PLAY below.

Barry earned his bachelor's in Electrical Engineering and Political Science from M.I.T. in 1961.  Then he went on to earn his Ph.D. in Physics from M.I.T., thus establishing that he’s got mad skills when it comes to math.  He worked as a professor for a number of years, teaching at U.C. Berkeley during the late 1960s.

In 1973, Barry earned his J.D. from Harvard Law School, he’s been a member of the California Bar since 1973, and since 1980, he’s also held the designation, Certified Specialist, Taxation Law, from the California Board of Legal Specialization.  In addition, he’s been…

• Selected by professional peers for listing in “Best Lawyers in America,” 2004 to present.
• Selected by professional peers for listing in “Super Lawyers of Northern California,” 2004 to present.

Okay, so enough of that, it’s time to get to the exciting part.  I’m not kidding about this… everyone I know should listen to this Mandelman Matters Podcast with my guest, Barry Sacks.  It’s just that important.

Marc points out that there is a lot you can do to avoid bankruptcy. If you visit a bankruptcy lawyer they are likely going to sell you on bankruptcy. That's why at his firm they've incorporated bankruptcy, foreclosure defense, and litigation against mortgage companies and servicers.

You have a lot of options but sitting on your hands and doing nothing is not a good plan of action.

After the last crisis in 2008, there were sufficient consumer protection lawyers trained to handle the cases that came up during that housing crisis. At the beginning of this current crisis, Marc set out with his team to build a literal army of consumer protection lawyers. They have now set up a nationwide network of lawyers to help consumers during this crisis and uphold the rulings for mortgage companies and servicers from the last housing crisis.

Martin realized that he didn't know how right he was when he predicted that people would miss Bank of America when they were gone. At least they hired people at $15 an hour and had the motivation to do the right thing so they protect their company image, but now servicers hire people from overseas and a much cheaper rate and don't care if their name is dragged through the mud in the press.     

We talk about how during the last housing crisis there was a feeling that people had overextended themselves and now had to pay the piper, but this time since you didn't cause the pandemic you cannot be accused of causing this housing crisis. We talk about the implication of this for today's homeowners.

Marc unpacks his firm's relationship to Debt Cleanse and what the service provides for consumers.

If you want to get in touch with Marc's firm they are https://advocateattorneys.com or https://www.dannlaw.com

A mortgage servicer is a company to which some borrowers pay their mortgage loan payments and which performs other services in connection with mortgages and mortgage-backed securities.

Nick looks at his job as trying to throw sand in the wheels of the mortgage services' bus. We talk about the history of mortgage servicers after the last housing crisis in 2009.

Maybe you got your loan from Quicken or Bank of America, then the serving of that loan was sent to mortgage servicers. Their names are often changing, but they are not household names. 

When you deal with a mortgage servicer you are usually talking with someone earning minimum wage, they can often be located offshore. They are not known for high customer service standards. 

What do you do if you're having a problem with your servicer?

• Document everything you can as extensively you can (write out everything you can remember)
• Keep a chronological timeline of everything that has happened

You can handle your own disputes, but watch out for online credit disputing where you may be agreeing to arbitration. You may get to a point where you don't feel like you can handle it on your own. The critical point is when you get that notice of default document. It comes in certified and regular mail. That's when you should look for a lawyer.

What do you look for when you're looking for a lawyer to help you with these issues?

• Experience with mortgage servicers. This has been going on for decades and getting someone with experience can make a big difference.
• Look for someone who specializes in foreclosures.
• Check reviews and case history and ask the lawyer, if they get upset it might be a sign it's not a good fit.
• If you are put off by how they talk or act, keep in mind that you are likely going to be in a professional relationship with this person for years. Trust your gut.

Bankruptcy is nothing to be ashamed of. It is a financial tool. 

Tim shares that bankruptcy is actually something that started in the Bible. In the Bible debts would be forgiven every seven years, called the year of jubilee. This principle was converted into bankruptcy law in the United States.

It gives individuals and entrepreneurs the opportunity for a fresh start. So many great things likely wouldn't have been created if those entrepreneurs weren't allowed to start over when ventures don't work out.  

We discuss the different types:

• Chapter 7 is the most common - liquidation of your debt
• Chapter 12 is for family farmers
• Chapter 11 subchapter 5 is for smaller business owners. This is a new policy that just passed  
• Chapter 13 is usually for when people can't do a chapter 7 because you have too much income

it is important to get legal advice from a qualified lawyer in your area before making a decision about bankruptcy.

What you should NOT do:

• Transfer my assets out of my name.  

You can get in contact with Tim at his website: https://www.mcfarlinlaw.com

David has covered presidents throughout the years, all the way back to 1960 as the news director of the Harvard news station. In 1964 he covered his first election event. So he has followed presidents since Kenedy and there has never been one quite like this.

"I'm willing to give any president the benefit of the doubt and was hopeful that he (Donal Trump) would rise to the occasion. And he hasn't."

He spoke about the most important function of any journalist is to report what happens and then unpack what it means and how it fits into the lives of the listeners. And Trump has "the attention span of a flea" and the reporters are obligated to report the news of the day. That's why it seems the media is reporting on trivial topics like his tweets, etc. when there are more substantial stories.

We discussed the topic of "fake news". It has polarized us to an amazing degree. There have been moments in our history, the 60s, the civil war where we were polarized but we look for ways to get out of the cycle.

Not only is our current environment a health crisis, but it is an economic crisis as well.

David shares advice he heard from a trusted economist: the motor of the American economy is the consumer. As long as the motor is working we will keep moving along.

Martin brings up his fear is that we are just spending stimulus money and what will happen when it runs out? We discussed how historically we got out of an economic crisis in the past, and hopefully, it won't take a world war this time...

They say there is a liberal bias in the mainstream media. David has been a journalist his whole life and he answers this question from an insider's viewpoint. You're going to find his answer informative.

"If we can't trust our press our whole democracy is in deep trouble."

We spoke about David's campaign he brought up on CNN recently called the $.55 campaign. By simply placing a $.55 cent stamp on your mail-in voting form you bypass the slower mail delivery times and will greatly relieve any issues with a COVID-19 era election.

The final question of the episode we discussed was "Is there such a thing as voter fraud?"

Check out David's books, they are amazing.

A Shattered Peace: Versailles 1919 and the Price We Pay Today

An Impossible Dream: Reagan, Gorbachev, and a World Without the Bomb

A Red Line in the Sand: Diplomacy, Strategy, and the History of Wars That Could Still Happen

Frankly, I thought everyone already knew that, but apparently not.  So, if you aren’t already familiar with what Tom has done and continues to do for homeowners, take a look below… click PLAY on a few videos… read what the New York Times, Huffington Post, the American Bar Association… and others have to say… and see for yourself.

Watch Tom testify in front of the House Judiciary Committee… see him awarded the $100,000 Purpose Prize… read what Boston University Law School has to say about his accomplishments… and much, much more.  It will make you want to stand up and salute him… and it will likely bring a tear to your eye too.

Today we talk about forbearance. If you are fortunate enough to have a federally related mortgage, a loan owned by Fammie Mae or Freddie Mac, then Tom will break down all the specific rules that are in place about what happens at the end of a forbearance. But even that is a complicated issue as we will learn throughout this episode.

Forbearance simply means that a homeowner supposedly has told his or her bank that the homeowner is being affected by the COVID-19 crisis and can't keep making his or her payments.

You can be on a forbearance plan for up to 12 months. That's the limit. There's no nothing on the table from any source right now, giving any option for a longer forbearance, period.

We go over the easy ways to find out whether or not you have a Fannie Mae or Freddie Mac loan. The Fannie Mae Freddie Mac servicing guide says they're supposed to contact you. They're not supposed to put the burden on you to contact them. We have history here saying that doesn't always work so well.

We will cover all the details that we know right now about forbearance, what happens at the end of the forbearance period, forclosure, and the steps taken after the end of the period of foreclosure and how they would proceed.

Forbearance is not supposed to affect your credit score. But in the words of Tom Cox, "You better check."

If you are currently in forbearance please make sure to document every phone call, the name of the person you talked to, and the items discussed, with the date of the conversation.

Nobody should have been put into a forbearance plan unless they asked for it. But Wells Fargo is in the news for opting people into a forbearance plan without their consent or knowledge. 

What do you do if you have a VA loan or a USDA loan? We unpack the details of this scenario when it comes to forbearance. FHI has a partial claim process that will likely require a lot of documentation to sort out.

We talk about certified forensic loan auditors and the scam that they ran on homeowners during the last housing crisis and speculate that there may be some opportunistic companies like this that spring up to take advantage of homeowners coming out of forbearance. 

"Anybody promising an easy conversion from forbearance through a loan modification is lying to you."

In March of this year they were forced to stop operation and close their offices. They've worked hard not to let anyone go and have not had to yet, but it took enlisting their savings and the PPP load to continue to make payroll and keep their staff. But now that it has run ou they don't have much left or many options.

They are struggling to keep their company going. Right now they expect no further help from the government. This makes it impossible to plan anything because there is no information on what is next.

He also talks about his mortgage. There are too many unknowns causing stress for Ali and his two kids in college.

If you turn on the news, you might hear something like "the recovery is slowing down" but business owners are in a similar boat as Ali. 

Servicers seem to be willing to give people a forbearance but not willing to share what will happen at the end of the forbearance.

I called Ali's servicer on his behalf, was put on hold for 45 minutes, and hung up on. Called back, the same thing. Finally, I had to ask not to be put on hold in order to even speak with them.

Share this podcast to let people know what others are going through. We need to hear that we are not alone and others are going through it with you as well.

From Nick's website:

Many homeowners get behind on their mortgage payments. This can lead to foreclosure and the loss of your home. In order to prevent foreclosure, many homeowners enter into a loan modification with the mortgage servicer. Mortgage servicers present this as a helpful option that can lower monthly mortgage payments and prevent foreclosure. 

Unfortunately, many mortgage servicers are not following the law. Problems can range from aggressive and illegal collections tactics to outright incompetence. Either scenario causes needless harm to homeowners. You can fight back against the illegal business practices of your mortgage servicer.

The attorneys at Nick Wooten, LLC represent homeowners who are victims of mortgage loan modification fraud and other mortgage servicer misconduct. If you feel that your mortgage modification was handled improperly, or that your mortgage servicer is mishandling your mortgage loan, then you may have a claim. 

Discussed in this episode:

• Why Ocwen has failed and what they've done to correct it.
• How they changed their platform and moving to Black Knight Inc.
• The data that was broken at the time of migration would have moved into the new system broken.
• We discuss forbearance programs.
• The CFPB.
• What will happen at the end of forbearances for mortgages?
• Our current political environment and lack of leadership have exasperated the economic problems we are facing.
• If you are a business owner it may be time to talk to a bankruptcy lawyer now, even if you are currently not facing bankruptcy.
• The system that makes up our current credit scoring system.

The pandemic has revealed how fragile the finances of the typical American family are.

That's not what you'd be hearing on CNN right now. They are talking about how the recovery is slowing. There is NO recovery. It's not just me talking about this, it's also some of the top economists in the country.

If you own your home and are over 62 years old you qualify for a HECM. Also known as a reverse mortgage. There are a lot of rumors and misinformation about reverse mortgages. I'll unpack the benefits of this product and how you can do a "pretend" reverse mortgage so you can see exactly what it could be for you. If you have over 50% equity in your house this is something you should look at today. You could set up a HECM line of credit. It's similar to a HELOC but it cannot be canceled. The HECM line of credit will go up every year, it compounds year after year. 

There is also a program called HECM for purchase. It works like this, you put 50% down and decide if you'd like to make payments or not. That means you can take the remaining money from the sale of your previous home and put it in your account. 

When we are in this kind of economic downturn it is not time to stick your head in the sand. Explore your options, get the facts, and make an informed decision.

Let's be honest. There has NOT been any recovery.  

We are dealing with a virus that is hitting the economy in ways we've never seen before. Estimates are that half of the businesses open now will be forced to close. It looks scary as can be. Let's stop being naive about this. It's a tsunami of problems that will be with us for a while to come in the future. I don't see any potential for home prices for not fall.

Home values fall slowly. They are a lagging indicator of the health of the economy.

Think about the way people list their homes. They set a price and if it doesn't sell in a month, they lower the price... wait a month, and lower it again. That's why it takes time for home values to fall. They are going to come down.

So what are you going to do if things go poorly? You need to have a plan. If you have a plan now and nothing goes wrong the worst thing is that you have a bit of extra money socked away.

Things to consider doing NOW

• Refinance your house
• For people over 62 consider a reverse mortgage or a HECM.
• If you're a business owner, see a bankruptcy lawyer today to consult with an experienced lawyer before the house is on fire.

The number of people continuing to file for unemployment is rising, 20.5 million Americans filed for unemployment in the first week of June alone.

What is going to happen at the end of people's forbearances on their mortgages? Right now, no one knows. 

Max comments on how the stock market doesn't make any sense to him right now. The only explanation he can think of is that the federal reserve bank of New York has put trillions of dollars into the system since September 17th of 2019.

Back in January of this year (before COVID-19), one of Max's top ten predictions for 202 was a major recession and he goes into detail about why he felt he saw this coming.

Max thinks it may take this economy 15 or 20 years to get back if we can get out of this. This is a major hit. This makes  2008 look like a minor problem.

Max and Martin discuss the Repo Market and why it was a leading indicator of the pending recession. They also discuss collateralized loan obligations and their impact on the current crisis.

Will this lead to the banks needing another bailout? Max believes that the FED has already given the banks another bailout. The kind of money that the FED has put into the system compared to the Cares Act, makes the Cares Act seem like pocket money.

So what can people do? What should a homeowner do? 

Max's suggestions: 1. Preserve as much money as you can in terms of cash. 2. Talk with an experienced bankruptcy lawyer. 

The worst thing you can do is go see a foreclosure or bankruptcy attorney at the last minute. Your options will be greatly limited.

Can small businesses use Chapter 11? Yes, talk to somebody now and start planning. If you don't need it, then terrific.

Throughout the crisis. We will never go anywhere. We'll stay here. We will keep being here and we'll keep letting you know the truth of what's going on before the mainstream media picks up on it.

I will have the guests that know what they're talking about, and I'll ask the questions whose answers will provide immense value to your financial strategy.