Discuss Finances Here. *Note, this is not a replacement for Professional advice and should not be used for such.
This is something that has been on my mind. We are prepping for when the fhtf (funk hits the fan is what I like to call it) so we have accumulated lots of goods. But once the dollar finally collapses and is no longer used....how will we pay our mortgage or rent? I know people say gold or silver, but I'm sure we all know that the gov't will try to seize that from us like they did around the time they created/implemented the federal reserve. So, technically, wont we all be pretty much homeless once the collapse happens? What are your thoughts on this?
Personal safety and self-defense items
I still owe about $20,000.00 on my home and it's not at all defensible so if the neighorborhood gets to dangerous I'll have to stay somewhere else. We were looking for something out of town but the time is getting way late for that now. So I guess if I'm not there to protect it, if the zombies want it, it wont be mine anymore, even if I could keep up the mortage payments.
Where will you turn to for help when the Red Cross, Salvation Army and your Insurance is worn out? A.N.T.S.
We don't have anywhere that we could necessarily bug out at...although we do own a family sized tent so if we have to we will live in that. But with all the preparations we are making....it looks like we'll probably end up having to leave most of it behind anyway. Water, food, bartering items, etc....most of it would get left behind.
That sux Rod cuz $20,000 is not a whole lotta money (at least not when you look at how much you've already paid towards your house). To lose it would really be a waste....seems like there will probably be a lot of that going on. The banks get your money AND your home.
Personal safety and self-defense items
kogs, I've thought about that too.
Without computers, how will the banks bill? Or if some computers go down, but not all, will their requests bounce, generating 'auto' reactions, late fees, etc?
I always thought there should be a 'time out' or 'freeze' rule in the event of a major electronic catastrophy (but it will never happen). Basically, my idea is this, "Stop the clocks across the world until the situation resolves itself." All transactions freeze.
Then on an agreed upon signal (when things are better) everything starts up again.
Of course there are drawbacks. If there are no bills, there are also no checks. What you got at the time of the freeze, is what you work with. If all business stops, then the jobs also freeze in time.
Since that isn't going to happen, we are trying really hard to get our mortgage paid off in the next 12 months.
Fear allows or makes people do stupid things. They don’t make good decisions. Well, if there’s a crisis that they have not prepared you for, you will be fearful. Glen Beck, 11/8/2010
Good for you Y2KNOWAY!!!! I hope you are able to reach that goal!! We still owe a lil over $100,000 on our mortgage so I know we wont be paying that off anytime soon!! LOL...We just purchased our home in 2006...had I known then what I do now, well, things would be a lil different!!
But even with those who flat out own there homes.....what happens when its time to pay the property taxes? We know they would LOVE for someone to fully pay off their home but not pay their taxes on it so they could snatch it right out from under them. It does make sense that there should be a freeze, unfortunately I dont trust our gov't to do whats right. I guess one way or another, we shall soon find out.
Personal safety and self-defense items
Not sure if this will work but this is what I am planning on. Sense I bought the house and agreed to pay off the loan in dollars that is what I am going to send them if the dollar is a dollar or tolit paper that is what we agreed to. Now who knows who will be there to collect it, if anyone. Thats not my problem it theirs. But we all may have our hands full just trying to stay alive at that point. Who thinks that things will hold together for another 10 year so I can pay off my house?
Enjoy life now-it has an expiration date!
Methinks the bankers would be among the first to go when things collapse, so there probably won`t be too many of them to survive to send you a bill. And if some do make it...the post office probably won`t be delivering anyhow....
"People love chopping wood. In this activity one immediately sees results." - Albert Einstein
Zombie Apocalypse due to Economic Collapse
Think about it, if the economy completely fell apart and the dollar was worth nothing, who's going to care about collecting your mort payment? You MIGHT get it in the mail, if the mail carrier still has a job and his rout. Your bank will have bigger fish to fry. Will the collection agency come for you? Maybe but they also know people will be entrenched and loss of life on their part is likely.
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IMHO ~ If there's a total national or global economic collapse...
my (relatively) little mortgage may be the least of their (a.k.a. bankers and mortgage companies) concerns.
We may have millions of squatters in their own homes.
"I hate rude behavior in a man. I won't tolerate it!" - Cap't. Woodrow Call, Lonesome Dove
If (or when) the collapse hapens? How are you to get to work, bank to make that payment.
Being on disibaly from the GOV. I might be in a bad spot. Money thats no good and no way to get to the bank any to get the bad money.
When it goes, do you think will be on the news. Really I wonder some times what it would be like? Some religious nut case wants to start the ends times. Suicidal one takes out the United Nations building with every one in it. Or does it start in one country and just roll to the next.
That is a good question, I had to read my contract for the loan. No where does it addresses this in the loan paper work. So I figure that if the melt down does happen, and they change our currency. All those loans now have to be renegotiated to the new currency, or I go out to the street corner and give X for $100 (say .05 on the dollar) and see how much paper I can get, and walk in the bank to pay it off. The paperwork all says dollars and that is contract law 101. They can not tell me that they won't accept it because that is what the contract states.
What did we learn about the current housing mess? that the big banks really don't keep good tabs on the loans and if you stand your ground and make them prove that the bank owns the note, they can't prove it. A neighbor whose note was sold 8 times in 3 years couldn't make a payment because she didn't know where to send it, the last bank tried to foreclose on her and she went in to court with her lawyer and asked the judge to have the bank prove they did indeed own the note. They forged all the paperwork and when this was all pointed out she left with her house still. She hasn't been able to make the payments because she doesn't know where to send them. When the current mess gets cleaned up then we will know how it all will work. In the mean time, we might have people who fall between the cracks.
Your failure to prepare, does not make it an emergency for me!!
Keep in mind under the terms of mortgage contracts, the bank has the option to call in, ask for, demand full and complete payment of your note at any time for any reason they feel is appropriate...
As in days gone by, representatives of the banks will go door to door collecting funds...
I think it really depends on how the collapse happens. IF it's quick and widespread I would think that paying or receiving the mortgage payment would be the least of everyone's worries. Quick being a super volcano or large asteriod impact kind of scenario. A slower scenario concerns me worse in regards to paying the mortgage versus being evicted out onto the street as the Governments would likely hold some semblance of control during the whole slow flush down the toilet. A scenario of that type would be modern society slowly grinding to a halt due to inability to acquire scarce resources such as gas, oil , water, food etc...or perhaps America choking to death on it's debt and the world's governments descend like vultures to take our assets as payback. ( Hawaii, Alaska, Puerto Rico etc. sold off first ) Maybe we would become wards of the World Government and we would have no rights or representation. Food and water shortages would mean widespread war and those who can't pay their bills have to fight in some foriegn land as payment of debts...or end up in homeless debtor concentration camps living on beans, rice, and water...until that ran out...
As preppers, I think we all would stand better chances in the fast collapse scenario. It's easier to defend against hungry invaders and looters than a whole government that could starve you out by it's ever changing, noose tightening rules, laws, and regulations...or flat out suspension of the Constitution and declaration of martial law. Mortgage or not, bills or not, doesn't mean you're safe either way in my book. Unless you are in the 1% of the population that controls 40+% of the countries wealth and assets all bets are off...
"The era of procrastination, of half-measures, of soothing and baffling expedients, of delays, is coming to its close. In its place we are entering a period of consequences."
-Winston Churchill's oft-quoted warning on the eve of World War II
Ok, Let's look at the most recent examples available. I live in Florida (Bad), Hillsborough County (double bad). Our housing market was one of the first to fall and to some of the lowest levels in the country. We currently have people who have not paid on their mortgage for 2-3 years and are basically squatting in their homes RIGHT NOW! If the American economy fell to historic lows exactly WHO will be around, employed, and able to come throw you out? I already have seen multiple occasions were mortgage holders have told the home owner "no harm, no foul" We'll take the amount you are behind, add it to the end of the mortgage and reduce your payments this much. That is with the current national issues. The banks spend more trying to maintain a property right now than they loose letting a sleeping dog lie rather than paying to maintain a property indefinately untill it sells.
Be a Floridian myself who handles forclosures, Hillsborough County, Like most counties in Florida got a triple whammy.. The Plaintiffs Attorneys who handle Foreclosure cases in Florida illegally pushed through so many files. Florida is now known is now known as the rocket docket state. Attorneys were filing incomplete Lis Pendins packs to the courts, incomplete mortgages docs., not carrying out due diligence in serving homeowners(includingthose still on property), many people were faxing their 20 day respons notices to the Plaintifs Attorney not knowing they needed to deliver a copy to the courts as well. These attorneys were pushing for Final Summary Judgment on the 21st day after filing the LP (notice of intent to Foreclosure). The plaintiffs attorneys were able to recieve Final Summary Judgment to foreclose and get the house to auction in record time because of the mortgage company and their attorneys failure to legal protocol.
As for Squatters, many of them are NOT the owner / mortgage holder of record. Most cases the squatters are renters who never left or they are paying rent to the mortgage company or the HOA which is based on the rental agreement with owner of record / mortgage holder.
I have dealt with people who randomly picked out a house they liked, established utilities, moved in, established residency which now forces the mortgage companies to file eviction which can take up to 120 days to complete. I have seen realtors approach squatters offering the up to 6k to vacate the premises....
It is a vicious cycle...
It is not just the homeowner who is at fault...
Hillsborough County holds the record for Mortgage Broker Fraud, Real Estate Fraud, fraudulent loans, self interest loans / Fraudulent home inspections / fraudulent home appraisals and other issues.
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