What Happens to Our Mortgages When the Banks Collapse?

[izzyscout21]

On a lighter note if it gets to this point there isn't enough LEO's or jail cell's to enforce the eviction papers. Hey my glass is still half full

LUNCHBOX, i want a room with a view..... and select pickings from the chef.

[sidewinder]

It depends on how it happens.


Some history....before I ever made my first mortgage payment my mortgage was sold. Within a year it was sold again.

So who actually holds your mortgage?

If it's not paid off and you and the rest of the country have no income like happened in the great depression...you'll lose your house and everything else you owe money on.

This is why I say if you have a 401k that could soon be worthless.....do a reality check NOW....and you still have a mortgage....would it be better to save your house or your 401K?

I would use my 401k to save my house....because a worthless 401k and no house is a bigger problem.

[mollypup]

So if this type of collapse does happen (hypothetically speaking), will it affect people that are paid by the federal gov't (military, congress, veterans admin, veteran disability, social security ect..)? What about people who bank with small local banks and not those large banks? If the big banks go under is that going to affect our community banks and credit unions?

Don't really know but it's likely that depending upon the severity of the collapse, and it will be ungodly severe, the people of this country (and others I'm sure) will simply lose complete confidence in our government. Law officials and military personnel, etc... will also lose complete confidence and will no longer carry out the wishes of the elite bureaucracy leaving the TPTB impotent, and even in fear for their very lives. If the people no longer support the government there is no government, so I would imagine all those governmental agencies such as the veteran's admin, social security, etc...will no longer exist. We will be totally responsible for ourselves once again.

[sidewinder]

To cash any type of paycheck...one needs to have a bank to do it...

If all the banks close and the bigger worry is if a dollar bill still has any value....

I have a paper bill with Sadams picture on it from the former Iraq. it's not worth the paper it's printed on..

remember the one certainty throughout history...

Death & taxes....they always want their money...