Economic collapse and Mortgages

[seeya]

If there was Germany 2 type inflation no one would lose their home. The banks would try to foreclose but you all you would have to do is fight the foreclosure.. During this time the system would be so backed up you wouldn’t see the judge for years. Before this happen you would be able to pay off the bank in full. Of course people will be dying in the street from hunger and i don’t think anyone will care to much at this point.

On the other hand if there is only 10% inflation and zero jobs.... Banks are going to get everything.

[Jash]

Originally Posted by Survivalguy72

Hypothetical situation or not. You take out the loan you pay it back. If you don't you get foreclosed on. If you own your home and don't pay the property taxes it ends up on the block at the courthouse.

If the currency collapses and the banks no longer exist, who you gonna pay? How is a now defunct bank going to collect debt? I mean, look at how many people are living in their homes now without having made a payment in ages.

I find it humorous that people talk of paying property taxes after a financial collapse. The currency is dead, there's probably 10% of the law enforcement there once was, and keeping yourself safe, fed and secure will trump some debt you owed to a system that no longer exists.

[BareBones]

Well it's interesting to speculate what would be used for currency given a financial collapse, but I can only speculate whom you will pay and that will probably be the military or a government entity created similar to the IRS if not the IRS under military direction and control. If the dollar collapsed that would be the end of the FED as we know it.

You have to understand what happens by law if the economy/civil government collapses. The US military immediately takes control of the government (physically and litteraly runs the government), martial law is declaired at the same time and the highest ranking military officer is appointed military governor. This is where even I get confused about who that would be. It reads highest ranking military officer, but the president is commander in chief of the military, however he is an executive, not a commissioned officer. I'm not 100% sure how that plays out by law?

Immediately civilians loose any and all civil rights and you can be removed from your home for any reason without due process, because there is no due process under martial law. Although civil courts may continue to operate under martial law, so you can still be evicted civilly. Remember there are still a lot of privately backed mortgages out there and even if a currency were defunct that does not necessarily put a bank out of business. Remember currency is merely an instrument, a bank could continue to exist with its holdings alone, IE tangeable assets like mortgages. So no one is getting off the hook or a free ride if the economy collapses and someone holds a note on your property.

Civilians can be tried via court martial, however the UCMJ generally only applies to soldiers.

Now the real question becomes what would the military or your mortgage holder want in exchange for taxes or your mortgage payment? That could be anything from PM's to food, but in reality I suspect that everything would be frozen until a new form of currency was adopted PDQ.

And yes, currently in most states unless you are tax exempt, even if you own your home 100% free and clear, if you don't pay your property taxes, the local governing authority will sell your home on the courthouse steps. However at least you will receive the difference between what you owed in taxes and the sale amount minus fees if there is a cash surplus after the sale. This includes both advoloreum and non-advoloreum taxes.

Those of us who own our homes free and clear call property taxes, "paying rent to the government", and I know plenty of people who are paying more in property taxes now then what their mortgage was when they had one.

[pthor]

Ive said for years that they are intentionally destroying the dollar !

Looking at the debt & deficits that they refuse to fix . They are doing the exact OPPOSITE of what they should be doing to save the dollar...

If they are able to collapse our currency they will be able to default on our debts & in an attempt to "Save us" they will implement another currency in it's place! (Does the Euro ring a bell?)

Once we have our new money (Some think it might be called the "Amero") we can merge our currency with Europe & have 1 global currency !

If that sounds too conspiracy theory to you, then you're thinking like they want you to to get this through !!! I've heard too many Elites speak of this very thing as their "Goal" for the US & the world.

* This destructive spending spree will continue until it all folds & we are offered a new kind of bailout ...........

[speedrrracer]

Originally Posted by JonoUNC89

Suppose there is an economic collapse in the United States. And let's say most people lose their jobs and inflation sky rockets.

What would happen to all us folks with mortgages? How would that play out? Would the banks/government allow us to remain in our homes? Or would they repossess the property and force us out?

AS ALWAYS it depends. A total economic collapse? As in, even the soldiers in the army aren't getting paid? As in there are no banks anymore because there is no financial system? If so, you have no worries. Stop paying your mortgage, because there's no bank on the other end to take your money.

Even if some computer sends an automated message to evict you many months down the road, no sheriff will come to kick you out because the government isn't paying the sheriff's dept anymore, so the sheriffs all went home to protect their families, too. Same with the National Guard and the military. Nobody is going to leave their wives and children at home to fend for themselves against gangs and chaos while they do some menial job.

Oh -- in CA, you are required to be sent written notice of any eviction proceedings. If the mail service has been shut down, then you have not been notified, and no court will allow your eviction to proceed. So once the mail service shuts down, you're cleared to stop paying your mortgage here in CA.

OK, what about non-total economic collapse. Well, there are an infinite number of ways to slice this pie. How non-total is non-total? Enough to cause panic in the streets? Enough to shut down the markets and banks? More specifics are needed.

Some people claim there might be a government conspiracy to tank the economy, force people out of their mortgaged homes and into government housing (e.g. - we'd become full dependents of the state).

Any thoughts?

Yes, my thoughts are that people who believe such crap are morons and / or mentally disturbed. Avoid them at all costs, although trolling them on the net could be amusing, so consider that when you're bored. Keep in mind few people are actually that stupid / deranged, so they're probably trying to troll you just by posting that garbage...

[2wheelslave]

aramchek:
For some, this is like a big infected cyst that needs to be lanced. It'll be painful, but best in the long run. The slowly declining rat-race is not sustainable personally, and we suspect that it is not sustainable nationally or economically either. So the end of that age may offer a mixed blessing.

2Wheelslave:
I agree and also...Do you really want this to keep going on...?
Look at how we have killed so much of the ecosystem in just the last 50 years.
And does anyone really think we have to keep drilling, polluting, killing, tormenting, and strip mining to maintain our 'high' standard of living?

Originally Posted by Sigma

Considering that we are a constantly growing population, living on a planet that has oil as its main energy solution...yes.

If you want to bring back Mother Nature and continents covered in verdant old growth forest, we need to trim about three billion people off this rock.

I am just trying to point out that solar, wind, tidal, and geo-thermal energies could be used. Enough solar E hits the earth every minute to power the world for a year, and there is enough geothermal E to sustain us, at this current rate, for 4000 years so we do at least have options although there may not be much money to be made from it.
As far as population, every boom is followed by a bust. That seems to be a natural law of Biology according to history.

[Sacajawea]

Its not a gov. conspiracy its an world elite corporate banking cartel conspiracy, which own/control our gov.

It looks more chicken/egg than this to me. The gov't needs the economy and the banks... to keep floating more treasury bonds and keep writing checks. The banks weren't happy at all in '08, as I recall -- with how the gov't wanted to deal with things. A lot of 'em were pretty PO'd at what they were forced to do.

I've been thinking about the OP for awhile, since the same question came up elsewhere. And just this morning, we were talking... and what most folks don't see yet, is that "real inflation" is not what the gov't is reporting. Prices go up, because of transportation (fuel) costs, personnel costs (Obamacare), or an increase in the cost of materials from their suppliers. Those things are happening. Now.

Now, IF at the same time, the actual purchasing power of the dollar drops (devaluation, tariffs on imports, trade wars, availability)... well you've got a huge amount of inflation that isn't accounted for. Raising wages would make it easier for us to cope and pretend it doesn't exist -- but it still does and the damage done to the system from being squeezed from both ends of the economic "stick", if you will -- is insidious, and just as lethal. This is also happening now.

You know how a wheel going downhill speeds up, when it's closer to the bottom? That momentum? I think the financial system has already been pushed off the top. There's been some deflection, some attempts to stop the wheel... but... well, you know where we are.

In the event of a total financial system meltdown - many, many businesses will cease to exist. Including banks. As was pointed out, it would be some time before anyone came knocking... "possession is 9/10ths of the law" would come back as the practical law of the day. Not having a mortgage, and having the deed in your possession - would cover "old system" legalities -- which might not exist at that point in time, but every little bit helps, right?

It's going to be more than a little difficult for the gov't system to keep operating in a hyperinflation economy (whether it's admitted or not). After all - THEY need the cash, too - just in case the foreign bond holders insist on cashing in. But it's harder to predict - unless you've seen those risk management plans - how they think they'll keep going after some serious financial SHTF. Throw in limited power, limited transportation... perhaps food shortages... and I think the gov't will be just a little too busy to worry about whether you've paid your property taxes this year.

And just how many IRS agents will the gov't be able to feed, house in a SHTF situation?
There might be some silver-linings.... after all.