The Real Estate Show

Radio Show Notes 02/10/25 Monday:

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Foreclosure Alert: 9 Costly Mistakes Homeowners Make (And How to Fix Them!)

By Eric Willner, Investor and Host of The Real Estate Show, America’s longest running daily radio show about real estate.

Welcome to The Real Estate Show, hosted by me, Eric Willner, known as the Voice of Real Estate and founder of America’s longest-running daily radio show about real estate.

Did you know that the lack of financial literacy is one of the biggest contributors to foreclosure?

Did you know that according to recent studies, nearly 40% of Americans don’t know their credit score, and over 50% don’t understand how interest rates impact their mortgage payments?

Did you know that nearly 7 out of 10 Americans live paycheck to paycheck, making them highly vulnerable to foreclosure in the event of a financial emergency?

These "Did you know?" questions serve as a wake-up call, highlighting the real and pressing challenges Americans face with debt. They open the door for deeper discussions about effective debt management strategies, financial planning, and solutions to help individuals break free from the burden of debt.

Welcome to The Real Estate Show! I am Eric Willner, the Voice of Real Estate, and the founder of America’s longest-running daily radio show about real estate. I am also the creator of The Automatic Landlord System for Owning Cash Flowing Real Estate Profitably and Hassle-Free. It’s a virtual real estate seminar in every episode.

Today is the “Monday On A Mission” Edition of The Real Estate Show, and it’s where we continue to talk about why NOW is the time to buy real estate using the theme of: Lack of Financial Literacy Increases Vulnerability to Foreclosure.

It's tricky to give you completely up-to-the-minute foreclosure statistics as this kind of data is usually compiled and released with a bit of a delay. However, based on recent reports from ATTOM Data Solutions and other sources, here are 5 key statistics about foreclosure trends:

1. Foreclosure filings are down overall: In 2024, foreclosure filings in the US decreased by about 10% compared to 2023. This suggests a stabilizing housing market and fewer homeowners facing immediate foreclosure risk.  
2. Foreclosure starts are rebounding (but still below pre-pandemic levels): While overall filings are down, foreclosure starts (the initial step in the foreclosure process) saw a significant increase from pandemic lows. However, they remain below pre-pandemic levels, indicating a gradual return to more typical foreclosure activity.
3. Geographic disparities exist: Some states have much higher foreclosure rates than others. Florida, New Jersey, and Nevada have been identified as having some of the highest rates in recent reports. This highlights how local economic conditions and housing market dynamics can influence foreclosure activity.  
4. Completed foreclosures (REOs) are significantly down: The number of properties that lenders repossessed through completed foreclosures (REOs) has drastically decreased compared to the peak in 2010. This suggests that homeowners are finding alternatives to foreclosure, and lenders may be more willing to work with borrowers.  

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Today’s show is about why you need to know that. This week, we'll discuss strategies to optimize your finances, including tax management techniques, debt reduction methods, investment strategies, and leveraging your home as a business asset.

Before we get into the meat of the show, let me remind you of this week’s special FREE Workshops:

1. Tuesday 8pm – Path To Home Ownership Introduction – Online by Invitation, text “Path”
2. Wednesday night 8:30pm – Financial Edge Academy Live Session – Online by Invitation, text “Edge”
3. Thursday night at 8:30pm – Our Financial Edge Master Class on A Strategy, if you attend the Wednesday Session

You want to attend these free online workshops because real estate requires skill, strategy, adaptability, and an unwavering determination to cross the finish line successfully.

Also, Everyone is in Real Estate! Either you own real estate, meaning you searched, negotiated, closed, and benefit from homeownership. Or you are on real estate, meaning you pay rent directly or indirectly to those who own real estate.

The road to financial victory may not be a straight path, but it's certainly an exhilarating one! Take that journey with us!

9 Reasons Why Lack of Financial Literacy Increases Vulnerability to Foreclosure:

1. Poor Budgeting Skills – Many homeowners fail to track their expenses effectively, leading to financial mismanagement and an inability to cover mortgage payments.
2. High Debt-to-Income Ratio – Without understanding how to balance income with debt, homeowners become burdened with loans, making them more susceptible to foreclosure.
3. Failure to Save for Emergencies – A lack of financial literacy means people are not prepared for unexpected financial challenges, such as medical bills or job loss.
4. Misunderstanding Mortgage Terms – Many homeowners do not fully comprehend their mortgage agreements, leading to missed payments and financial penalties.
5. Inability to Recognize Financial Red Flags – Without financial education, homeowners miss warning signs of financial trouble, leading to preventable foreclosures.
6. Lack of Credit Management – Poor credit management results in higher interest rates, making it difficult to keep up with mortgage payments.
7. Over-reliance on Credit Cards – Many homeowners use credit to pay for everyday expenses, leading to mounting debt and financial instability.
8. Not Seeking Financial Guidance – Many people are unaware of the financial resources available to help them navigate financial hardships and avoid foreclosure.
9. Not Diversifying Income – A single source of income can be risky, and without financial literacy, homeowners don’t take advantage of additional income opportunities.

The Four Major Roadblocks to Financial Independence:

1. Government and Taxes – Taxes take a significant portion of your income. Without a proper tax strategy, homeowners can end up paying more than they should, reducing the amount of money available for mortgage payments and investments.
2. Interest and Finance Charges – Interest rates on loans and credit cards can accumulate quickly. Homeowners who do not understand how interest works may find themselves buried in unmanageable debt, increasing their risk of foreclosure.
3. Uncontrolled Monthly Bills – Many homeowners fail to manage their monthly expenses effectively. Cable, subscriptions, and discretionary spending add up, making it difficult to meet mortgage obligations.
4. Inflation, the Silent Killer of Wealth – As inflation rises, the cost of living increases. Without a financial literacy plan to offset inflation, homeowners may struggle to afford their mortgages, leading to foreclosure risks.

You can turn debt into wealth in Real Estate. Change your financial picture! Start by texting the word CREDIT to 561-861-2366.

Sponsor Break:

Today’s Show is Brought to You By: TimeToFixMyCredit.com – Your Partner in Achieving Financial Freedom!

Summary:

Today’s show highlighted how lack of financial literacy increases vulnerability to foreclosure. We discussed the importance of budgeting, credit management, financial planning, and understanding mortgage terms. Additionally, we covered the four major financial roadblocks homeowners face and how financial education can help you overcome them.

Closing:

Tomorrow is our Tuesday Tools, Tips, and Techniques Edition of The Real Estate Show, where we’ll provide valuable resources and insights to help you profit and succeed in the real estate world.

Thank you for tuning in! But don’t just listen—take action! Use our show to get started in real estate investing and change your financial future. Tune in every weekday for a seminar in every episode of The Real Estate Show!

Also, don’t forget to attend our free online workshops. Text the word “Path” or “Edge” to 561-861-2366 to get started!