This might be an odd questions but

[I have WHAT in my yard?]

Rosalind is right. The bank really does not want your house. But your debt is its only asset if it is bankrupt so it will sell that debt to someone else. Worse thing about it? They'll sell it for pennies on the dollar but you will still owe the full amount.

My mortgage on my first house was sold seven times during the ten years I owned the house.

The biggest problem most of us have in understanding the current problems is that most people do not realize that the Federal Reserve which prints our money is NOT a government agency. It is a collection of privately held banks who control our currency supply. Wilson created it under pressure form the banks and said after his presidency that this was the greatest mistake of his life and he regretted it deeply.

 

[Rhett&SarahsMom]

thank you Rosalind and "What"

I was curious as to the "what ifs" of this mess.
Being a pessimist myself, I dont see anything good coming down the road. The new administration may be able to weaken the blow some. But I think the slide has picked up enough momentum that stopping it is impossible. Hence the chickens, the even lower thermostat and an even further tightening of the proverbial belt here

 

[mom'sfolly]

I think more people bought there homes outright in the pre-WWII era, but I'm not sure. I believe that the mortgage rules changed after the instant foreclosures of the Great Depression, but I haven't looked it up to confirm it. I seem to remember something about that in a history class......a very loooonnng time ago.

 

[Scoop]

I'm glad to hear others are preparing to be self-sufficient as I have been for a long time now. I also think our chickens will be a real liability to our family. I am glad we have a passive water supply, passive heat (woodstoves), and the ability to plant a big garden. And all those canning jars that people gave me for free are a big bonus. We can't depend on the government to do anything for us!

 

[curliet]

We bought the home we're living in now in 1976. There were strict rules in place when we bought it, such as the percentage of your monthly debt that your monthly mortgage could be. I believe that it was 25%. No other options. If you had money for a down payment you had to prove that it was not borrowed money, if it was, it had to be factored into the monthly debt. There was no 'preapproved' factor.
But for the last decade, the money lenders were more concerned about getting that instant payoff when a big expensive home was sold, than in getting the affordable home paid for and earning the interest. Pre-approving for a $250, 000 loan is lying to a person who can really only afford a $100,000 home . It makes them think that they can really do it, and then the realtor, and the bank take advantage of the windfall from this disaster. I know that I am missing a lot of the factors here, but I just watched one of my own children lose a home that they couldn't afford in the first place. The bank, and the realtor spent lots of time convincing her that she could, and when she couldn't, they spent hardly anytime taking it back from her. It was a terrible thing for her to come to some terms to get out of the entire 30 yr mortgage.
How so many people were able to be 'preapproved' for a mortgage that was way beyond their capabilities to pay is beyond me. Somewhere there should have been some kind of system of checks and balances that would have caught and stopped those preapprovals, and sales. And then, the continueing failure of the economy just kept adding to it. And no one wants to take any responsibility.
Anyway, now we have homes, empty and deteriorating all over the place, because they can't sell, the banks aren't equipped to deal with them all, and the owners can't pay off the huge payment that the bank was demanding to redeem the mortgage. The solution, who knows? What will happen to all these homes? Think ghetto.

 

[Rhett&SarahsMom]

Even those of us that bought well within our means are having a tough time though.

We bought back in 2000, before the market went nuts. Our mortgage is under 88k. But then there was the loss of my husbands job(s) twice within a year. The surprise birth of our now 6 yo dd. etc etc

Then with the rising cost of natural gas(heat) food, fuel, etc etc etc Making the monthly payment is getting tougher. And that is with me working. And I am darn lucky to have even this part time job where we live, in this economy.
*However the salvage yard I work for has seen a slight uptick in sales. Both in house and online. People are looking to repair those cars now. Now that they cant just trade em in for something new. I am hoping it continues so that I can get another few hours of work in.

except for today. it's a snow day and I have the kid in here with me. really not fun. The movie on the laptop didnt even last the movie.

so I am heading home shortly. Before I go completely insane

 

[I have WHAT in my yard?]

The "housing" crisis is really only the symptom.

Mortgages are only part of a ponzi scheme that has been building since the 80s. The entire system of fiat money is damaged at this point. Yes, there were laws put in place during the depression to prevent future occurrences but most have been dismantled over the last 30 years and others became liabilities - ie business bankruptcy laws which were abused in the last two decades.

We too were very careful, but other people's bankruptcies really hurt us.....

The entire economy relied on constant growth and any attempts to tighten were papered over so that no one would feel the pinch. That isn't one administration - that is several, of both parties, so no political blame being thrown here.

I worry about what comes next, but whatever it is is bigger than this administration can stop.

 

[rufus]

The problem is ACORN forced the banks to loan money to unqualified borrowers under the cover of the 1977 Neighborhood Investment Act.

And yet, ACORN the very organization that caused the real estate bubble and crash is set to receive 5.2 billion dollars from the so called bailout. It is really the biggest rip off in history.

The future is pretty gloomy. We are in for a terrible inflation and high unemployment. The government is printing money without any restraint. I suggest putting funds abroad in stable currencies, real estate or gold. Avoid any investment that is dollar denominated.

Keep your personal wealth abroad where it cannot be confiscated, but can easily be accessed by you if you need it.

Certain segments of our society feel they are entitled to live the good life even though they don't contribute to the economic well being of our society.

Capital and talent always flee from nations that practice wealth redistrubution.

Rufus

 

[Jena]

I have read this thread with interest,

I am in the UK so it is not exactly the same here, but we are suffering from the same mentality as far as I am concerned in fact I think it is worse here.

The government has sold off everything of worth in this country, fllooded us with immigrant labour from eastern europe, and one newspaper was showing a pic of a foreign worker giving a single finger sign to all of us suckers in the UK that have allowed this to happen.

Near where I live, we have two major Toll bridges that were feats of engineering (British Engineering) They were sold to the French who now make a packet every time we visit England and want to come home.

Our power is owned by the French, the Spanish and despite what the Govt says we are also subject to the Russian Gas supply.

On top of all that the entire world hates the Brits it seems. So for us, who are at risk of losing everything, we feel like there is nowhere to run.

our govt has undermined our education system, our health system, and our work situation. Today there are protest going on all over about foreign workers being brought in and carrying out work here that we are capable of doing.

I am older, and I have my home, my mortgage is not big, so I am ok on a very small income, but it is not living, it is survival. I worked all my life, even when studying in university in my 40s, and I feel there is little hope for a future for my sons in this mess.

To me my chickens are a godsend. They pay for themselves with eggs that I sell, and I am considering ways to expand my little enterprise in the coming year and to lead a more fulfilling life for as long as I can, but what is left behind for the children.

I think this whole mess needs some serious and intellectual brainstorming, the govt is talking about returning to the situation of 3 years ago ( heading towards a rapid disaster!!!!!) don;t think that will work somehow.

The fat cats are still robbing us and we are sitting and taking it, because we have no option, apart from protest, and I have been working in an area that has drawn attention to sneaky new laws coming through that I believe we will find work right against us if we try to change things.

I really hope for us and also for you over there that somehow we find a new way forward soon. Haven't we all worked for it? Don't the powers that be have a responsibility to us too?

Just thought I would chip in and say I agree with many things you have said and share my own thoughts about the whole mess.

As for finding a safe place overseas or abroad, for me as a british woman I can not think of anywhere where I am confident, I could live in peace and safety or invest my small monies, and be assured that it would be safe.

I want to live in my own little country, and do my investing in my own patch of earth, and live in safety and peace. I am sure you all feel the same. So against all the new thinking I am going back to the land and the wonderful creatures and gifts that we have here, and live small until the whole mess ( if ever) is turned around.

Best wishes to all of you, I hope things improve for all of us soon.


Jena.

 

[Rhett&SarahsMom]

wow Jena
That sounds so much like what is happening here and how a lot of Americans feel. I didnt know what was going on "across the pond"

It's sad really. That we have all allowed this to happen. And now I dont think that "we" have the power to make it stop, go away or even get better. The way of life that SO many were accustomed to is now gone. Will it come around again? Yes. It always does. But with any luck some more will have learned