Hoarding is exactly what the government is doing right now by filling the SPR, and frankly it's the best thing that could happen. It drives prices up. High prices encourage demand destruction. They also finance new well development. The hoarded oil gives us a buffer to fall back on once shortages become more prevalent. High prices are what we need in order to adapt to what's coming, and the sooner they happen, the better.
Joined: Sep 19, 2007 Posts: 914 Location: Land of the Tongva tribe
Posted: Wed May 21, 2008 4:25 pm Post subject: [Shelter] Mortgages
{I split ths off from the 5 Rules thread for discussion.
Pops}
ThePostman wrote:
The lender can't call you on the loan. EVER. They can only require your monthly mortgage.
_________________ ENERGY is the basis of our industrial civilization and sustains our standard of living. It is the foundation stone of our national wealth. A nation starved of energy.....will be a nation of starving people.
Joined: Apr 03, 2004 Posts: 6345 Location: My Grandkids' Farm
Posted: Wed May 21, 2008 4:46 pm Post subject: Re: [Opinion] 5 Rules for PO Prep.
ThePostman wrote:
The lender can't call you on the loan. EVER. They can only require your monthly mortgage.
I don't really want this to be a debate thread and lots of people say to go into debt to the hilt.
But we should at least be factual, most contracts I've signed say I am in default when I miss one payment and subject to acceleration or foreclosure after a certain number of missed payments.
As a non-current borrower, you can't stay in the home as long as a delinquent renter in lots of jurisdictions.
Posted: Wed May 21, 2008 11:37 pm Post subject: Re: [Opinion] 5 Rules for PO Prep.
Agreed Pops. For the most part, it makes good financial sense to get out of debt, but not in the case of one's house. This holds true in either a Pre or Post PO scenario.
It is against the law for any financial institution, lender or otherwise lienholder to require you to make full payment on your loan. Far too many people view a house as an asset when it is technically a liability. It can be a great financial instrument if used properly, but it is still a liability. Basic accounting, outgoing money (cash outflow) is a liabiltiy, cash inflow is an asset. A mortgage is always a cash outflow until paid off.
Many people didn't get this fact until now with the housing crunch, many people still don't get it. There is no guarentee that a property will rise in value, and certainly not in now. Ask the people who have been foreclosed on which would have been better: Trying to pay off their mortgage early or carrying a high liquidity portfolio? I intentionally carry a long term 30 year mortgage knowing that I can make at least two years of payments given my savings without a job.
The banks do not lend you money based on your equity, they base it on your ability to pay (with interest) on your job. Lose your job without savings and you will not get a loan based on your equity. Ever. _________________ "I invoke law 7 of the laws of 8..."
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