What happens to your debt if the dollar fails

a reply to: nugget1

If we truly see hyper inflation, your property will explode in value as well. Then you'll get the letter in the mail that the city is doing a reassessment.

I don't think you're too far off base here.

originally posted by: nugget1

originally posted by: Edumakated

originally posted by: litterbaux
a reply to: Edumakated

This is what the two videos say too. It makes logical sense.

Just my crazy brain thoughts, I wonder if there is some loophole in the fixed rate mortgage contract that can somehow nullify the fixed rate in case of a bank failure. I know if your bank fails the loan will get sold to another bank and the fixed rate is supposed to be held fixed but does anyone read all of the fine print? It's probably air tight but I don't trust the banks, at all.

If they can somehow sell the loan and force you into a higher rate, a lot of people would be screwed.

I've been a mortgage banker for 20 plus years. Im not aware of any way the terms of a mortgage can change. Mortgages can be modified with both bank and consumer consent. This most often happens in preforeclosure situations.

A loan being bought or sold doesnt nullfiy the original terms.

I wonder if a Biden EO would rewrite the rules? Or, maybe raise property/land taxes so high nobody can afford to own. Then our benevolent leaders could do a 'reverse mortgage' type thing to save people from loosing their homes and within a generation there would be no privately owned homes.

More and more private homes are now in the hands of corporations. I won't sell the gubment short; I'm sure they've got a plan to cover all the bases.

That is already an issue in many areas. Property taxes are so high that many people, especially the elderly can no longer afford their homes even though the mortgage has been long paid off.

Mortgages are legal contracts and publicly recorded. If things go so bad that all mortgages had to rewritten then the SHTF and I don't think it will matter one way or another if you pay a mortgage.

There is nothing inherently wrong with debt. The problem is that if it isn't properly managed it can certainly weigh you down.

originally posted by: AOx6179
When this does happen all Property and possessions go bye bye. They own whoever "owes them." This will give them the right to come and "seize by force" and take families from their homes and "relocate" us. We all owe. One way or another.
Trapped.

All part of the plan.

This^^^^

Do Americans really own anything???

Honestly, if the country defaults then any outstanding loans would default as well and assets would be seized and liquidated to cover the outstanding balances.

What a week that would be. 😬

Yikes.

Well, if hyper inflation does happen and you have a mortgage at a fixed rate, it will not go up as is stated. But everything else is going up leaving less money to pay the mortgage....so you might lose your home because your income is probably not going to increase and you still need to eat and pay for necessities. Wages do not go up nearly as much as inflation does when this happens.

My house is paid off, we have no credit card debt because we pay it off every month with no interest. We owe around six grand on our car but we have money to pay that off in the bank if we need to.

face it, our stocks will crash and that money will be gone....but the company will still be in business and it does pay a dividend and people do need phones so that dividend may still be there if things crash....remember, these companies have lots of debt though and if their interest rates go way up, it could cause them to die...so I do not count on the stock being worth much if anything.

We can grow our own stuff to eat and can get some chickens to get eggs from, planting foods for them for the winter on our land. We have canning supplies and we have the tools to garden but only about five acres of land. There is wood on the land for burning for part of our heat, but it will only supplement things for about five years.

I predict a lot of houses will burn if things go sour, most people have them insured...so the insurance companies may go bust too. It will suck if the economy gets all messed up here in America.

Nothing in particular. It could be a good thing. If the dollar falls, your debt can now be paid back in cheaper dollars.

a reply to: schuyler

Exactly.

Just ask Zimbabwe.