Loading ...In the Depression the Banksters were then able to convert Paper wealth Mortgages ,Loans,all sorts of debt intruments into REAL wealth via the process of FORECLOSURE .The Banks will kick you out of your house even if its 90%paid for because if you miss a payment the whole loan becomes DUE immediatly.
Thats why its best to have a paid for house OR a Mortgage with NO equity …Its the guy in the middle …thats who they want to foreclose on .Thats where the equity is.
Its a good time to put a second mortgage on the house ..then they don’t want it ! Take the money and run ! I know of familys who that happened to.50% equity is a bad place to be.With NO equity the Bank will pay you to stay in the house to avoid squatters and copper thieves.
Banker mentality is predatory.
My Dads business partner taught me a lot about debt.He was married 7 times.Every one of his wives had money and he went through it so fast they didn’t know what happened.He had two mortgages on his house,two on the car and all the inventory in the business was borrowed money .He often said if I die tomorrow I beat them all! Even when the business got into trouble because payments were coming in slow as Retail stores started taking 60 & 90 days to pay .On paper it was profitable ..cash flow dried up.Before we went into a creditors meeting in 1969 he told me “they don’t know it yet ,but they are going to give me more credit or they will never get back what I owe them. He was right ..the crediters gave him another $200,000 in credit with restrictions on accounts receivable !
He was a rascal he was. As soon as he married one wife
he would use her money to court the girlfriend ..rinse and repeat 7 times…He was always 1 ahead of them…
He was super salesman ! I could write a book about that guy ! No creditor will foreclose if there is no equity !
He always said “they have to keep me in business”! We have a debt based economy make it work for you !