Michael Bordenaro
25 Mar 202419:56

TLDRThe video discusses the increasing trend of property owners defaulting on property taxes, as observed in various properties for sale in South Florida. The speaker highlights the staggering number of delinquent properties and suggests a potential wave of homes coming to the market due to financial difficulties. The video also touches on the rising insurance costs and the impact of these financial burdens on homeowners, as well as the broader economic implications of job losses and the effect of illegal immigration on GDP and local services. The speaker warns about the risks of reverse mortgages without a non-recourse clause and the potential for other commission-based jobs to face cuts in the future.


  • 🏠 **Property Tax Delinquency**: The speaker has noticed an increase in homes for sale that are not paying their property taxes, a trend not common a year ago.
  • πŸ’° **Financial Struggles**: Delinquent property taxes may indicate broader financial issues, as it's assumed that those who can't afford property taxes may also struggle with mortgage payments.
  • πŸ“ˆ **Real Estate Insights**: The speaker shares specific examples of properties with significant tax delinquencies, highlighting the severity of the issue.
  • πŸ” **Property Tax Database**: A search in South Florida's property tax database reveals a staggering number of delinquent properties, suggesting a potential wave of homes coming to the market.
  • πŸ“Š **Economic Concerns**: The speaker connects property tax issues to the broader economic situation, noting that high insurance costs and regular maintenance expenses add to homeowners' burdens.
  • 🏦 **Mortgage and Tax Link**: Many property owners have their property taxes escrowed with their mortgage payments, which could lead to a higher percentage of delinquencies.
  • πŸ“ˆ **Property Tax Increases**: Property tax assessments are increasing significantly in some areas, like Cook County, Illinois, leading to potential forced sales and loss of family inheritances.
  • πŸš— **Auto Insurance Factors**: Credit scores have a significant impact on auto insurance rates, sometimes more than driving records, indicating a shift in how insurance companies assess risk.
  • πŸ’Ό **Commission-Based Jobs**: The speaker warns that commission-based jobs may face challenges due to legal precedents set by changes in the real estate industry.
  • 🌐 **Global Job Shift**: Technological advancements and economic strategies, like those of Stellantis, are leading to job offshoring, affecting American workers and benefiting those in lower-cost countries.
  • πŸ”„ **Reverse Mortgages**: The importance of a non-recourse clause in reverse mortgages is emphasized to protect the borrower's estate from being liable for the loan balance after their death.

Q & A

  • What is the main issue the speaker is noticing with houses in their videos?

    -The speaker is noticing that a growing number of houses in their videos are not paying their property taxes, with some being significantly delinquent.

  • What is the assumption made by the speaker regarding property tax delinquency and mortgage payments?

    -The speaker assumes that if a homeowner is not paying their property taxes, they are likely also not paying their mortgage, although they acknowledge this is an assumption and not a confirmed fact.

  • How much property tax was one house behind on that the speaker mentioned?

    -One house mentioned by the speaker had not paid property taxes since 2020 and was behind by $60,000.

  • What is the speaker's concern about the large number of properties not paying property taxes?

    -The speaker is concerned that this could lead to waves of homes being put up for sale by owners facing financial difficulties, potentially affecting the real estate market.

  • What was the increase in assessed values for a property in Cook County, Illinois, as shown in the video?

    -The assessed value of a property in Cook County, Illinois, increased from $322,000 in 2022 to $878,000 in 2023.

  • How does the speaker describe the impact of high property taxes on homeowners?

    -The speaker describes that high property taxes can lead to homeowners having to sell their properties, potentially wiping out planned inheritances and causing significant financial strain.

  • What does the speaker suggest is a factor in the increase in GDP despite a lack of private sector job creation?

    -The speaker suggests that the increase in GDP is partly due to government spending on services for illegal immigrants, which is included in GDP calculations.

  • What is the speaker's view on the role of credit scores in determining auto insurance rates?

    -The speaker believes that credit scores are given too much weight in determining auto insurance rates, even more so than driving history, which they consider unfair.

  • What advice does the speaker give to those facing high insurance rates?

    -The speaker advises maintaining a good credit score and being debt-free to improve one's financial situation and potentially receive better rates on insurance and other financial products.

  • What is the potential impact of the National Association of Realtors settlement on commission-based jobs, according to the speaker?

    -The speaker suggests that the settlement could set a precedent for commission-based jobs across various industries, potentially leading to reduced or eliminated commissions for many workers.

  • What warning does the speaker give about reverse mortgages and non-recourse clauses?

    -The speaker warns that without a non-recourse clause, a reverse mortgage could put a person's other assets at risk if the value of the property is not enough to cover the loan balance upon their death.



🏠 Property Tax Delinquency on the Rise

The speaker discusses a noticeable increase in property tax delinquency in the houses they've been observing in their neighborhood. They mention that a year ago, it was rare to see a property for sale not paying property taxes, but now it's a common occurrence. The speaker also highlights a correlation between not paying property taxes and possibly not paying mortgages, leading to financial difficulties for homeowners. They share specific examples of houses that haven't paid property taxes since 2020, with one house being $60,000 in arrears. The speaker also mentions meeting a neighbor, Michael, and discusses the broader implications of these financial issues on the real estate market and the potential for more homes to be put up for sale due to these challenges.


πŸ“ˆ Property Tax Increases and Economic Concerns

The speaker expands on the issue of property tax increases, noting that it's not just a problem in Florida but also happening in other states like Illinois. They discuss a video they watched about property tax assessments increasing dramatically, leading to potential forced sales of family homes. The speaker criticizes the county's handling of appeals against these tax increases and suggests that the increases may be intentional. They also discuss the impact of illegal immigration on GDP and local city spending, questioning the sustainability of the economic growth being reported. Additionally, the speaker touches on the challenges people are facing with increasing insurance costs, tying these issues to the broader economic downturn.


πŸš— Auto Insurance Rates and Credit Scores

The speaker delves into the factors that influence auto insurance rates, emphasizing the significant impact of credit scores on premiums. They reveal that a high credit score can lead to lower insurance rates, even for individuals with a poor driving record like a DUI. The speaker criticizes the insurance industry for this practice, viewing it as a scam based on the likelihood of claims rather than driving behavior. They share their personal experience of a 25% increase in auto insurance rates despite having a high credit score. The speaker advises on the importance of maintaining a good credit score and being debt-free, especially in anticipation of an economic downturn, as these factors will become crucial for securing loans and favorable rates.


πŸ’Ό Job Market Shifts and Reverse Mortgages

The speaker discusses recent layoffs in the tech industry, specifically mentioning stellantis' decision to let go of 400 high-paid tech workers and outsource jobs to lower-cost countries. They express concern about the broader implications for commission-based jobs across various industries, fearing that the changes in the real estate market could set a precedent for other sectors. The speaker also warns about the risks associated with reverse mortgages, especially the absence of a non-recourse clause, which could expose a person's estate to the risk of covering the balance of the mortgage if the house's sale value is insufficient. They recommend consulting a real estate attorney to review reverse mortgage documents carefully.



πŸ’‘Property Taxes

Property taxes are recurring taxes that property owners are required to pay to local governments, based on the assessed value of their property. In the video, the speaker discusses the increasing number of properties that are delinquent on their property taxes, indicating financial difficulties among homeowners.

πŸ’‘Escrow Mortgage Payments

Escrow mortgage payments refer to a process where a third party, or escrow agent, holds funds and documents for both the borrower and the lender until the transaction is complete. This term is used in the context of the video to suggest that if homeowners are not paying their property taxes, they might also be defaulting on their mortgage payments.

πŸ’‘Delinquent Properties

Delinquent properties are those where the owner has failed to meet their financial obligations, such as paying property taxes or mortgages. In the video, the speaker notes an increase in the number of properties for sale that are delinquent, indicating a potential wave of foreclosures or sales due to financial distress.

πŸ’‘Real Estate Market

The real estate market refers to the economic sector involving the buying, selling, and development of land and housing. The video discusses the impact of property tax delinquencies on the real estate market, suggesting that the current high home values and low inventory might be affected by the number of financially distressed properties.

πŸ’‘Insurance Increases

Insurance increases refer to the rising costs of insurance premiums that homeowners and property owners must pay. In the video, the speaker talks about significant increases in insurance costs, which, along with property tax increases, are contributing to the financial burden on homeowners.

πŸ’‘Homeownership Expenses

Homeownership expenses encompass all the costs associated with maintaining and owning a home, including property taxes, insurance, maintenance, and repairs. The video emphasizes the financial challenges faced by homeowners due to rising expenses that go beyond the mortgage payment.

πŸ’‘Property Tax Database

A property tax database is a collection of records detailing the property tax status of individual properties, including whether they are current on their taxes or delinquent. The speaker in the video uses the property tax database to research the extent of property tax delinquencies in South Florida.

πŸ’‘Economic Downturn

An economic downturn refers to a period of negative growth in an economy, often characterized by reduced consumer spending, lower investment, and increased unemployment. The video suggests that the increasing number of delinquent properties and financial struggles among homeowners could be indicative of an impending economic downturn.

πŸ’‘Reverse Mortgages

Reverse mortgages are a type of loan that allows homeowners aged 62 or older to convert part of the equity in their homes into cash. The video discusses the importance of the non-recourse clause in reverse mortgages, which protects the borrower's other assets from being used to pay the loan balance if the property's sale does not cover it.

πŸ’‘Commission-Based Jobs

Commission-based jobs are those where the employee's primary compensation comes from a percentage of the sales or revenue they generate. The video discusses the potential threat to commission-based jobs due to changes in the real estate industry and the rise of AI, which could lead to job losses or reduced commissions in various sectors.


The speaker observes an increase in houses not paying property taxes, a change from just a year ago.

A point is raised that those not paying property taxes might also be defaulting on mortgage payments.

The speaker discovered three houses in one video not paying property taxes, one owing $60,000 since 2020.

Investment properties are struggling with unpaid property taxes and insurance increases, reducing profitability.

A search in South Florida reveals at least 5,000 properties delinquent on property taxes.

The potential for a wave of homes coming for sale due to unpaid property taxes is discussed.

The speaker discusses a rare quick sale of a luxury property that was not a flip and had paid property taxes.

The issue of unpaid property taxes is not exclusive to Florida, with Illinois also experiencing significant increases.

A dramatic example from Illinois shows a property tax assessment increase from $322,000 to $878,000.

The speaker criticizes the belief that home costs never increase, highlighting the rise in property taxes.

The impact of illegal immigration on GDP and local city spending is discussed.

The speaker mentions the layoffs of high-paid tech workers due to the costs of producing electric vehicles.

The potential impact of the National Association of Realtors settlement on commission-based jobs is explored.

The importance of maintaining a good credit score and being debt-free is emphasized for financial stability.

The risks of reverse mortgages without a non-recourse clause are discussed, warning of potential impacts on estates.

The speaker suggests hiring a real estate attorney to review reverse mortgage documents for non-recourse clauses.

The video concludes with a call to subscribe for more content and a teaser for the next video.