What happens to your mortgage. I am new to preparing and I am always confused by this. I keep seeing that you should have debts paid off and use cash. We do this but we still have a mortgage with no end in sight. So if the economy collapses and we can't pay our mortgage or taxes what happens? Does everyone lose their house?
NJcaro
I'm thinking if there was some sort of collapse that it would be pretty much impossible to foreclose on the huge pile of mortgages out there. If it came down to 50-75% of people had no way to pay mortgages, I doubt the local sheriff who would have to serve the papers would force half his community onto the streets with pretty much no place to go. Plus the fact the courts would be so clogged with such foreclosures it would take years to even finalize a foreclosure.
And I am thinking if there was some sort of economic collapse then most banks would pretty much be done to. If BofA goes bankrupt due to its huge exposure to derivatives, who would I send a check to anyways. Not that I would have any money to send, I get a VA check each month.
And I am thinking if there was some sort of economic collapse then most banks would pretty much be done to. If BofA goes bankrupt due to its huge exposure to derivatives, who would I send a check to anyways. Not that I would have any money to send, I get a VA check each month.
That question is still being answered from the real estate collapse of 2008. I think you can see the various approaches in play since than. If a larger economic collapse happens in the future what that will mean about mortgages and property values is rather hard to guess.
Well it bring back the landed aristocracy and peasantry? Or perhaps it will lead to the rise of city states with several different approaches depending on where you live now.
Well it bring back the landed aristocracy and peasantry? Or perhaps it will lead to the rise of city states with several different approaches depending on where you live now.
interesting thought and thread.
I have wondered this myself.
I think the answer is in the past...............depression and wall street collapse of 08.
I think they will foreclose, those still in business............I can also see them calling the total note to pay.........but I am no expert in this field .
I will just watch these post for clarification
I have wondered this myself.
I think the answer is in the past...............depression and wall street collapse of 08.
I think they will foreclose, those still in business............I can also see them calling the total note to pay.........but I am no expert in this field .
I will just watch these post for clarification
a lot of folks lost their homesteads during the Great Depression Sooo.....
don't put all your eggs in the Mad Max basket
well most are owned by freddy or fanny mac, or fha. and who owns them ?the us gov. the rest by the 6 big banks who owns the us gov
The Great Depression was a substantial collapse. Many land and home owners lost their places.
The best position to be in is one where you have low expenses/debt and savings. I keep cash at home and in a safety deposit box. Being able to pay your mortgage for a few months to a year could save your home.
If not for my wife, we would be living on rural land with a paid off house. Like many, I am not 100% immune to forclosure.
If there were a currency collapse, I would fight the bank for my % worth of the house. IMO, I own part of the house as a shareholder.
The best position to be in is one where you have low expenses/debt and savings. I keep cash at home and in a safety deposit box. Being able to pay your mortgage for a few months to a year could save your home.
If not for my wife, we would be living on rural land with a paid off house. Like many, I am not 100% immune to forclosure.
If there were a currency collapse, I would fight the bank for my % worth of the house. IMO, I own part of the house as a shareholder.
There's a reason its a fundamental prepper goal to be "debt-free" if possible..
Regardless of how many blades are getting defecated... there will always be a lien-holder... or someone willing to pay to become one..
Debt free in a PAW is a survival strategy..
Regardless of how many blades are getting defecated... there will always be a lien-holder... or someone willing to pay to become one..
Debt free in a PAW is a survival strategy..
There are a lot of threads with this question out there, use the search function and read up. I am not saying that to be a jerk, but there are varying opinions and you will find them interesting. As for my thoughts; a financial collapse is simply hyper inflation maybe to the point that our current dollar becomes worthless. In the current environment the banks control a good portion of the decision making in the Government, so I do not see a full blown debt forgiveness and they will not foreclose on everyone or they lose the profit base. If you look at some of the countries that have gone through a collapse, the Government let the banks index the dept (adjust it for inflation) Many will not be able to make their payments and lose their homes, but the banks will count on more that actually can do without other things to make the payments. That is just my theory and there are many good ones in this board to read. Now if it falls completely apart, and we go “mad max” all bets are off…..
What happened to us (the ranch) during the Depression is we could no longer afford the county tax on the entire ranch. We weathered the Fed and State tax but the county bit us. So we had to (forced) to auction off a piece of our place. So while Great Great Granddad was off trying to work up some money real fast, the local Sheriff had a auction, and before my Great Great got back with the scratch we lost 170 acres.
The county got their money.
I would imagine the bank could easily do a similar thing, since they basically own the morgage. They just get the Sheriff involved. I'm sure you've seen the shows with the "big bad banker" foreclosing on a widow's ranch, or house and the local community gets together and either saves the place for the down and out family or buys the place for a penny and the family buys it back. Sure it's the movies, but its possible and has happend before.. All they would be doing is simply collecting on whatever tiny amount of money they could get.
Now if the bank just vanished...which also happend during the big "D" who knows? My Great Great Great Auntie rode into town (she only came in from her ranch about twice a year) to put some money in her bank account and the bank was gone...as in closed down gone. And with it her savings. I think she lost about $10,000. After that like many Americans, all her money after that was hid on her property. I think..due to those events during the Depression the FDIC now covers us? But what if their broke also?
So its hard to say...I'm just telling ya some crap that happend to us. And its looking pretty darn good, five generations later, I may be buying back our lost piece of the ranch.-WW
The county got their money.
I would imagine the bank could easily do a similar thing, since they basically own the morgage. They just get the Sheriff involved. I'm sure you've seen the shows with the "big bad banker" foreclosing on a widow's ranch, or house and the local community gets together and either saves the place for the down and out family or buys the place for a penny and the family buys it back. Sure it's the movies, but its possible and has happend before.. All they would be doing is simply collecting on whatever tiny amount of money they could get.
Now if the bank just vanished...which also happend during the big "D" who knows? My Great Great Great Auntie rode into town (she only came in from her ranch about twice a year) to put some money in her bank account and the bank was gone...as in closed down gone. And with it her savings. I think she lost about $10,000. After that like many Americans, all her money after that was hid on her property. I think..due to those events during the Depression the FDIC now covers us? But what if their broke also?
So its hard to say...I'm just telling ya some crap that happend to us. And its looking pretty darn good, five generations later, I may be buying back our lost piece of the ranch.-WW
Probably doesn't matter how much debt you have. It's mainly a function of what sort of cash you have on hand. If you don't pony up to pay your bill, and your neighbor's, they'll take it out of your hide. That's how feudalistic societies work. The entitled class needs a certain percentage of everyone's yearly labour, and if they can't get it from the good-for-nothings, they'll take it from the middle-class. The rich, of course, simply collect.
It more than likly will be like it was in the Great Depression..Taxes still have to be paid and so dose a Morage the bigger banks will buy the smaller ones and the morage will go a long with it .
My Uncle told me this it was no sercet how he got rich back then. He had about 10,000 in Gold and Silver the banks were taking .10 on a dollar or less same with taxes. He bough 1000s of acres that way sold about 1/2 back to people when it was all over and they were back on their feet plus interest. A lot didnt want to buy it back so he sold it later when the price went up . He told me that they sold places on the court house steeps for taxes that he bught for 3.00 dollars.
So yes your taxes will still have to be paid and any loans would have to be paid some time down the road after they figg out who owned the note it may be 10 yr down the road before you would have to pay but I would say you will have to. On his 10,000 he had when the GD hit by 1962 he had made over 1.2 mill and he retired on it .
My Uncle told me this it was no sercet how he got rich back then. He had about 10,000 in Gold and Silver the banks were taking .10 on a dollar or less same with taxes. He bough 1000s of acres that way sold about 1/2 back to people when it was all over and they were back on their feet plus interest. A lot didnt want to buy it back so he sold it later when the price went up . He told me that they sold places on the court house steeps for taxes that he bught for 3.00 dollars.
So yes your taxes will still have to be paid and any loans would have to be paid some time down the road after they figg out who owned the note it may be 10 yr down the road before you would have to pay but I would say you will have to. On his 10,000 he had when the GD hit by 1962 he had made over 1.2 mill and he retired on it .
I think one of the best books ever written is the Grapes of Wrath. I have to admit that it is the only book i have ever read about the great depression. But the jist of the story line fits very well into modern America. The family that loses everything then gets false information of easy work else where, sells everything migrates to a new place with no connections, nowhere to stay, and losing family members on the way. Running into trouble with local law enforcement. Preachers that turn there back on God. And losing family member due to a lack of basic medicine. Male members leaving the group in order to make it easier on there own without having to provide for someone. There are many things that can be taken from this classic book and I recommend it for anyone who is interested in economic collapses.
I guarantee that after a collapse someone will show up looking to get paid for the mortgage. There are always scum that circle looking to buy up mortgages and tax liens on the cheap.
The collapse is going to be drawn out. It won't be a wake up in the morning and a hell has broken loose. Slowly but surely TPTB will milk what little is left until the sheriff serving papers is the last one being foreclosed on.
IF the current laws still have to be adhered to then, the bank will have to serve a foreclosure notice and the courts will have to be involved.
If it all goes to hellinahandbasket, then who knows how it will work? It may turn into a totally overwhelmed system with records lost so that nobody even knows who owes what, and couldn't prove it if they did owe it (bank burned, computers crashed etc)
I think it will go beyond saying that having C A $ H on hand will be essential, enough for your property taxes and a few months of mortgage.
Have you ever looked into paying a few more $$$'s direcly to the balance of your loan? even $50 or $100/month can cut YEARS off your mortgage.
Good luck!
If it all goes to hellinahandbasket, then who knows how it will work? It may turn into a totally overwhelmed system with records lost so that nobody even knows who owes what, and couldn't prove it if they did owe it (bank burned, computers crashed etc)
I think it will go beyond saying that having C A $ H on hand will be essential, enough for your property taxes and a few months of mortgage.
Have you ever looked into paying a few more $$$'s direcly to the balance of your loan? even $50 or $100/month can cut YEARS off your mortgage.
Good luck!
Paying a bit ahead is a great idea. For those that want to do some reading I would recommend reading about the reconstruction era after the civil war and carpet baggers. You will get a good idea of what to look forward to after a collapse.
Hard to say if it'll just be the local sheriff. We're going through massively transforming times. The local sheriff makes sense in a 1950's idyllic small town when your local bank was local, when most of the businesses were local mom&pops, when most things you owned were made in America, etc.
But given the sheer amount of off-shoring and privatising, the Chinese making most everything in the Big Box, reliance on Blackwater abroad, and globalized corporations+banks, I'd think that an economic collapse mass foreclosure scenario will eventually pan out differently. In the years ahead, I see private security companies and armies, traded on the global market, maybe alot of them Chinese, doing most of the evicting.
But given the sheer amount of off-shoring and privatising, the Chinese making most everything in the Big Box, reliance on Blackwater abroad, and globalized corporations+banks, I'd think that an economic collapse mass foreclosure scenario will eventually pan out differently. In the years ahead, I see private security companies and armies, traded on the global market, maybe alot of them Chinese, doing most of the evicting.
If we have another collapse like the depression which is already under way, then you will not have to worry about debts and the like. The government has plans for going door-to-door confiscating guns, how many people will willfully leave their homes under these conditions and not fight back, I'm guessing very few.
People still think there will be some semblance of society left after a collapse like that. Look at Katrina and then picture that across the entire country. Then picture no one coming to help you due to lack of resources. The only reason New Orleans is back on track is because it was one city, in one small regional area. We will have much bigger problems then paying your mortgage, like finding food or not getting shot by some pile of trash trying to steal that food from you.
My advice is not to take money out of your prepping budget by paying back loans and credit cards. Only do this if your preps are already set and financially you can afford it. Using getting out of debt as a prep tool should be the last step not the first, especially given what I believe is the accelerated path towards collapse we are into now.
People still think there will be some semblance of society left after a collapse like that. Look at Katrina and then picture that across the entire country. Then picture no one coming to help you due to lack of resources. The only reason New Orleans is back on track is because it was one city, in one small regional area. We will have much bigger problems then paying your mortgage, like finding food or not getting shot by some pile of trash trying to steal that food from you.
My advice is not to take money out of your prepping budget by paying back loans and credit cards. Only do this if your preps are already set and financially you can afford it. Using getting out of debt as a prep tool should be the last step not the first, especially given what I believe is the accelerated path towards collapse we are into now.
It will be outsourced. Probably some Chinese guy or Indian person will come to your house first. After you slap them around for a while, the Army will come in.
What about swiss banks? Does that offer any protection? Could I Put money in a swiss bank so if the economy collapses I can pay the bills. How does that work anyway. If you put it into swiss francs but the dollar is worth nothing converting it back to dollars to pay bills wouldn't work then right?
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