# if everyone cant pay their loans will the goverment sieze everyones assete (houses)



## dentorian (Dec 4, 2010)

seriously the banks cant actully sieze everyones houses in an economic collapse that couldent pay their bills so whats the point of paying down the debt ?:dunno:


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## Kenny78 (Jul 12, 2011)

What if you had a personal SHTF. I.E. you get seriously hurt, spouse dies, a major company that keeps your town afloat moves overseas, etc. If you were only concerned with an emp, super volcano, or a virus that kills 99% of the population then debt collectors probably wont be an issue.

I read somewhere on a similar topic that a poster had countless land records from during the depression that showed owners names scratched out and banks owning property

You just have to balnce your goals vs. risk, good luck


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## BillS (May 30, 2011)

It would make sense to pay off your mortgage if you're close to that point. Otherwise I don't see any point in paying down your mortgage faster. You need to keep up in your payments though so you don't end up with the bank owning your home and then charging you rent to live there.


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## SlobberToofTigger (Dec 27, 2011)

This is an old post but one worthy of revival due to the purported impending doom in the EU. Grin.

As Kenny pointed out there are some pretty good reasons to pay off your house if you do not believe that the world is going to end this year. The reality is that the chances of a disruption in the economy is significantly more likely than a true SHTF scenario so that is what you should spend most of your time planning for. With that in mind your house is an exceptional store of value for you (notice I did not say money) so you are very wise indeed if you can pay it off as quickly as you can. One of the most important reasons to pay it off is that it can free up from 1/4th to 1/2 of your income for both preparation needs and luxury. The other reason being that if you are one of the unlucky people would have gotten their house seized you are now free of that threat. So the short answer is pay it off as fast as you can. If you have more than 15 years on your loan and an interest rate that is 2 or 3 percentage points or more than the current rate you would be crazy not to refinance and shorten your loan to either 10 or 15 years. You will pay it off sooner and have a lower payment!


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## BillS (May 30, 2011)

We have a relatively small mortgage. The interest rate isn't bad. To me it's not worth the closing costs to refinance. I think it's going to hit the fan sometime in the next 12 months. Most likely in the fall. Long term investments hold little value to me right now. I'm more concerned about stocking up on my remaining prep items in the next few months.

One other thing: I expect the value of the dollar to plummet and hyperinflation to begin. If you expect extreme inflation you never pay off your debts early. When an ounce of silver costs $50,000 I can take what I have on hand and use it pay off my mortgage. It's far better to pay back your loans in cheap money than expensive money. Can you imagine if you had a ten million Zimbabwe dollar mortgage in Zimbabwe ten years ago? You could have paid it off using money they were using for toilet paper just before the currency totally collapsed.


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## SlobberToofTigger (Dec 27, 2011)

All of that only makes sense if you are on the edge of something really bad happening. Essentially the mess in the EU has to come to a head, get resolved, and then things sit for a while before the US dollar can even get close to losing its status as world trade currency. After all that we can reach the mythical hyper inflation land you speak of where your debt gets wiped out of existence.

A more likely thing to happen is that the US dollar will strengthen against the Euro, the EU region will shed some dead weight, and the entire global economy will tank for another few years. I will admit that if your payments on your loan are low now then you might as well sit tight and just pay more towards your loan. But most people are not in that situation and so the ability to take advantage of the really low rate to both shorten their loans and bring down their payments is the smart move.


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## Ration-AL (Apr 18, 2012)

SlobberToofTigger said:


> All of that only makes sense if you are on the edge of something really bad happening. Essentially the mess in the EU has to come to a head, get resolved, and then things sit for a while before the US dollar can even get close to losing its status as world trade currency. After all that we can reach the mythical hyper inflation land you speak of where your debt gets wiped out of existence.
> 
> A more likely thing to happen is that the US dollar will strengthen against the Euro, the EU region will shed some dead weight, and the entire global economy will tank for another few years. I will admit that if your payments on your loan are low now then you might as well sit tight and just pay more towards your loan. But most people are not in that situation and so the ability to take advantage of the really low rate to both shorten their loans and bring down their payments is the smart move.


i just bought a place, =-) low rates, good bo location in farming area, fruit and veg baring garden which covers 1/3 acre and another 2/3 of an acre to play with, on a lake with bass and trout ,a private stream running down the side of the property and about 10 miles from the base of the wilds/mountains....either i did very very well on my rates and home purchase price or the end of the world is coming and it won't matter what i paid for it or what my interest rate is everything is fubar'd.

that said though, i think prepping with a deadline is dangerous for various and hopefully obvious reasons, you're setting yourself up for a SHTF situation even if the rest of the world isn't there yet, i read the op as not paying mortgage payments because of fear of impending doom...sorry, i think that's crack pot talk, i do agree things are worse then ever right now, but banking on SHTF is not the way to go, if your wrong you'll be living in your own personal SHTF situation and have no one to blame except your own dumb ....
Prep and prep well, but as with anything being prepared isn't putting all of your eggs into one basket in any sense.


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## BillS (May 30, 2011)

To me, it's far more dangerous to prep like you have five more years to go before the collapse. I think the collapse is happening this year. Most likely in the fall. I'm prepping accordingly. If I'm wrong there's no harm done. If I'm right and you're wrong about the timing you or other people who believe the way you do could be in a lot of trouble.


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## SlobberToofTigger (Dec 27, 2011)

That is the same sort of belief that the Y2K folks, that religious freak Camping, the Nibiru'ists, and of course the 2012'ers held/hold. It is coming soon and we are all going to die and everyone who does not believe and prepare will be up the creek. Just for fun here is a list of some of the best known Doomsday dates throughout history:
http://en.wikipedia.org/wiki/List_of_dates_predicted_for_apocalyptic_events

With that said you are correct and at some unknown time in the future something bad is going to happen. It is a fact that will be easily verifiable when it happens... Grin. Enjoy your life. Live it to its fullest. And along the way set aside some things in case something bad does happen. But do not drive yourself or your loved ones under the yolk of impending doom.


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