Econ. Collapse and Mortgages...

[K_W]

I was watching the prepper video another member posted and I saw they where mostly in a suburban setting, which got me thinking...

What happens to those of us with mortgages should the economy collapse and the dollar becomes worthless? How are mortgages paid? Would there be mass foreclosures, or would the bank just shutdown and forgive the loans?

Mass stockpiles of food self sufficient homes are no good if you loose the house...

 

[Darral27]

If the dollar was to become worthless how would you pay anyway? I would also think the banks would all go under. It seems doubtful that we would immediately have another means of paying anything to anybody. Plus I seriously doubt anybody would be up to the task of evicting millions of people from their homes all at once.

 

[churchmouse]

If that happens and they do want my house I have a piece of advice to those who would attempt that. "Bring help, a lot of help"................Just saying

 

[eldirector]

The banks would likely call the note due well before the "collapse". This has already happened to thousands of folks recently, and is exactly what has happened in past recessions/depressions.

Not sure who the dead goes to if your lender goes belly-up, but I assume someone else would buy the debt for pennies, and then seek to collect from you.

There is more to prepping than MRE's and toilet paper. Finances should be somewhere on the list.

 

[churchmouse]

Yes, finances are high up on the list. We have eliminated all credit card and revolving interest debt, paid off 2 of the vehicles with one to go. It will be done shortly. House is all that is left. We will stay as long as we can but if the S really HTF we will be bugging and they can have it if anything is left.

 

[nate1865]

Simple. The bank repossesses your home. If the bank fails, the bank that bought them repossesses your home. If the banks all fail, the .gov will repossess your home.

In short, anybody with the paperwork to convince a judge they have legal claim to your possessions is going to reclaim what is rightfully theirs, and you'll be held to what you agreed to.

Yes, the banks and .gov who guarantees them will come get theirs when it comes down to it. Just ask the repo industry.

 

[tk21k]

Most banks do not handle the notes. They sell them and most any more are sold to Fanny and Freddie. It will be the government who will be coming to get what is theirs.

 

[churchmouse]

Most banks do not handle the notes. They sell them and most any more are sold to Fanny and Freddie. It will be the government who will be coming to get what is theirs.

Has to be a standing Gov. before they can do any of that. Will not matter if things get real ugly. With out Tax revenue the Gov. stops. If Currency is worthless, the Gov. stops. Soldiers are going to go home and protect family if things fall apart. Who is going to come get your home, Ossama and Michelle. I doubt it. Just thinking on paper.
Again...Bring help and lots of it.

 

[VERT]

I suppose the banks could call the notes due. Not really sure how that works. If things get that bad then..........

The other way to look at this is that if the dollar becomes worthless and hyper inflation happens the result will be that your property will be worth less relative to the value of other things. In other words if you owe the bank $100K this will stay the same, but a $100K will not be worth as much. So as long as you can hold onto a job and make the payments once recovery occurs you will be making the mortgage payment with devalued dollars.

 

[irishfan]

My guess is that the banks will want their money before it all folds rather then waiting until after. Honestly, I just don't see it going down in one or two days like a lot predict but you really don't know.

 

[fireblade]

The one thing i would make sure that is good and paid for is Property Taxes .....alot of homes owner have there property taxes build in on there mortgage payment with the banks......with any rebuild of the economic system there may be homesteader acts .......or something like it ......food for thought

 

[mrjarrell]

If the currency inflates fast enough and you could get to the bank with your wheelbarrow of cash, you could pay it off in one lump sum.

 

[roisigns]

Having your property paid off is no guarantee. Just ask the Jews in Germany c. 1939.

 

[ocsdor]

If the currency inflates fast enough and you could get to the bank with your wheelbarrow of cash, you could pay it off in one lump sum.

...provided that wages inflate with currency devaluation, and the banks hadn't already foreclosed your house.

My wife and I scrounged every penny we could and payed off our mortgage a couple years ago. It is a huge worry off our shoulders.

We are now saving enough precious metals to (theoretically) pay the property taxes for the next several years.

 

[cobber]

If the SHTF, none of this is going to mean anything. Banks may see it 'coming', but what are they going to do, call in everyone's loans? To what end? If the banks own all the property, but the economy fails, what good will that do them? Who is going to buy up all these properties? Is there going to be any mechanism left in place to effect foreclosures and evictions?

Paying property taxes with precious metals?

SHTF means basically all present forms of currency and exchange are going to be largely worthless. Why would the government accept gold for property tax. Or chickens for that matter? (Actually chickens might make sense.) Why would the government even continue to exist as we know it?

We're talking about the system totally failing. Everything will be different.

If you really think the S will HTF in the near run, then paying off car loans or mortgages makes no sense. Laying in supplies of durable goods, better. Acquiring long-term survival skills and building communities will be the key. Not ante-collapse tokens of wealth.

Just my apocalyptic .

 

[24Carat]

Who serves the papers that puts one on notice legal action is being taken against me? THE COUNTY SHERIFF !! Even if they had the time in a SHTF do you actually think the Sheriff is gonna go around bothering with kicking his fellow citizens out of their homes??? They are his single most valuable resource.

 

[ocsdor]

...SHTF means basically all present forms of currency and exchange are going to be largely worthless...

There are many theories of the future SHTF, unless there is a crystal ball somewhere saying exactly what the future is. If so, someone put it on Youtube so the rest of us can view it.

 

[WC Deer Hunter]

If that happens and they do want my house I have a piece of advice to those who would attempt that. "Bring help, a lot of help"................Just saying

Exactly this right here^^^^

If SHTF as in TEOTWAWKI or even TEC nobody is gonna be paying anything to anybody and nobody is gonna be taking anything from anybody. It will be all out anarchy and a fight for survival. As Churchmouse reminds us so often, chance favors the prepared mind.

 

[cobber]

There are many theories of the future SHTF, unless there is a crystal ball somewhere saying exactly what the future is. If so, someone put it on Youtube so the rest of us can view it.

SHTF sounds like all the rules are out the window. Otherwise you're talking about recession, depression, etc., where the economy and society stagger along.
By SHTF I assume INGOers mean the breakdown of society, with folks bugging out to their retreats. Like Katrina.

IF the government and economy manage to limp along, then it must be a relatively small fan, or miniscule pile of sh*t. Hardly seems worth the title in that case...

 

[ATOMonkey]

If there is a "currency collapse" similar to what happened during the depression, both here and abroad, I expect the same thing to happen.

The government will re-value the currency, people without the means to pay will be foreclosed, and banks will be kept liquid through the Fed or other Government entity.

In short, you'll be boned.

There will also probably be LOTS of enforcers, as that will be a primary source of employment in a down time where there will be lots of need for enforcement.