15-yr fixed home mortage: can the bank call its loan in?

[giskard]

I have ~11 yrs left on my 15 yr fixed mortgage.

Is it possible for the bank to call in my loan and ask me to pay for the entire remaining balance, even if I never miss a payment?

[remaxjon]

I have ~11 yrs left on my 15 yr fixed mortgage.

Is it possible for the bank to call in my loan and ask me to pay for the entire remaining balance, even if I never miss a payment?

No

[JPFromTally]

You'd have to miss at least 3 payments for a bank to accelerate a loan.

[TheEvilDetector]

Is it possible that the president can authorise confiscation of all gold in the usa due to "national emergency in banking"? Yes.

http://www.the-privateer.com/1933-gold-confiscation.html

Is it possible that the president can authorise banks to call in loans due to "national emergency in banking"? Yes.

I promise you that when the US dollar collapses, and IT WILL within the next 5 to 10 years, the banks will call in all loans just to stay solvent.

US Middle class will be COMPLETELY and UTTERLY wiped out PERMANENTLY.

The hidden agenda of the globalists has been, amongst other things, the destruction of the middle class.

Moral of the story?

Get OUT of DEBT A.S.A.P!!

People need to understand what POWER is. Sure, there is the obvious power of the gun, ie. police force, military force e.t.c

What people do not realise is the POWER of money. When you are in DEBT, the person who has lent you money has POWER over you because while you are in DEBT, you are compelled to do certain things, eg. involuntarily give up portions of your income for a period of time. This in itself, is not necessarily such a bad thing, after all there are things you really need from time to time, which you simply do not have enough money for eg. basic clothing, food, roof over one's head and a personal vehicle perhaps.

However, most of the time, people buy things they do not need and could easily live without. Not only could they live without those things, but they could be just as happy or even happier without them, since they would not have the head ache of worrying about where the next loan repayment or credit card repayment will come from. It needs to be said, that it is only due to the constant bombardment of omnipresent effective advertising that convinces individuals that things they may want are actually things they need, and things they do not care about, are actually things they may want.

It doesnt stop there. The advertising is so effective, that people actually feel inferior to those who have certain items. It is in fact possession of certain items that seems to make people happy, which is very strange, because it implies that happiness comes from man-made artifacts, rather than a realisation that happiness is simply the awareness of one's own worth as a human being. It is not difficult to come to such awareness, for if you feel that your presence has made the world a better place in some way, that is enough to feel self-worth and if you feel self-worth that is enough to feel happy. In short, happiness is a direct result of doing good in this world and seeing positive feedback as a result of these actions.

This kind of thinking is completely lost in modern society, for the prevailing attitude is that happiness can only come if one accumulates things even if one has to fall into very heavy, even unrepayable debt. To sabotage one's economic well-being by falling into heavy debt in order to pursue happiness is an absurd notion imho. You won't find any school teaching this of course, for this would spell the end of the middle class economic rape of america.

Personally, even though the margin is small, I have more assets than liabilities and I cannot tell you how much of a good feeling it is to know that even if all my loans were called in tomorrow, they would be covered.

In other words, I am nobody's financial slave because overall I cannot lose anything physical in my possession due to loan repayments.
When noone can take away any of your possessions under any circumstances (except criminal activity) you reach economic freedom.

Freedom is just as much a state of mind as anything else. Are you free to independantly think of ways to maximise your own wealth or are you wondering how you going to pay back your current debt? This may seem like a trivial question, but it actually underscores the very important distinction between those that are economically free to do what they want and those that are at the mercy of their lenders.

Economic freedom for lack of a better term should be formally taught in every school as a number one goal of every responsible citizen along with real-world maths as per this article (which discusses many other important things) http://www.mysteriesofthemind.com/images/white%20paper%20crash%202005.pdf

[beermotor]

Yeah uh, you need to check your loan agreement contract. It will define what a default is, and I'm sure it will say that whenever you're in default, they have a right to call the loan.

However - they would never, ever want to do this. Banks are having to eat foreclosures left right and center in this country right now. Where are you at? I have a good buddy in Long Beach, CA who does workouts with a private firm. Unless your property is sitting on oil or gold or uranium, I don't see them pursuing this unless you are a total deadbeat (which doesn't appear to be the case.

[Bradley in DC]

I have ~11 yrs left on my 15 yr fixed mortgage.

Is it possible for the bank to call in my loan and ask me to pay for the entire remaining balance, even if I never miss a payment?

The entire answer rests on the exact wording of your particular contract.

[freelance]

Most contracts DO allow them to call in loans--for any little reason their heart might desire.


Is it possible that the president can authorise banks to call in loans due to "national emergency in banking"? Yes.

Two, two, two safe, safer than one. One for them and one for YOU!

[TheEvilDetector]

Most contracts DO allow them to call in loans--for any little reason their heart might desire.



Two, two, two safe, safer than one. One for them and one for YOU!

I haven't the faintest idea what your post meant.

[giskard]

I'm in San Jose. Bought a modest, below-median house in 2002.

Most of my investment is in this house, and in a 401k. Outside of those 2, I don't have much to buy gold and silver with.

The 401k is at risk if the dollar crashes big time. There is no option to buy metals. There is an option to buy mutual funds made of foreign companies, but the foreign currency based mutual funds are likely to crash along with the dollar and the US economy. The only way out I can think of, is to quit my job, then transfer the money in the 401k to a company that handles rollover IRA's that include GLD or similar, such as Fidelity.com .

If there is hyperinflation, then the 11-year-remaining fixed interest mortgage on the house is good, because I will be paying a fixed monthly amount with ever devaluing dollars; as long as (1) the house price doesn't crash deeper than the dollar, (2) as long as I can keep making payments, and (3) the bank doesn't call in the loan. If any of the latter 2 happen, I will have to sell the house, and hopefully I won't lose money or go upside down. That depends on whether or not a buyer will pay more than 2002 prices.

Comments?

[lucius]

Is it possible that the president can authorise confiscation of all gold in the usa due to "national emergency in banking"? Yes.

http://www.the-privateer.com/1933-gold-confiscation.html

Is it possible that the president can authorise banks to call in loans due to "national emergency in banking"? Yes.

I promise you that when the US dollar collapses, and IT WILL within the next 5 to 10 years, the banks will call in all loans just to stay solvent.

US Middle class will be COMPLETELY and UTTERLY wiped out PERMANENTLY.

The hidden agenda of the globalists has been, amongst other things, the destruction of the middle class.

Moral of the story?

Get OUT of DEBT A.S.A.P!!

People need to understand what POWER is. Sure, there is the obvious power of the gun, ie. police force, military force e.t.c

What people do not realise is the POWER of money. When you are in DEBT, the person who has lent you money has POWER over you because while you are in DEBT, you are compelled to do certain things, eg. involuntarily give up portions of your income for a period of time. This in itself, is not necessarily such a bad thing, after all there are things you really need from time to time, which you simply do not have enough money for eg. basic clothing, food, roof over one's head and a personal vehicle perhaps.

However, most of the time, people buy things they do not need and could easily live without. Not only could they live without those things, but they could be just as happy or even happier without them, since they would not have the head ache of worrying about where the next loan repayment or credit card repayment will come from. It needs to be said, that it is only due to the constant bombardment of omnipresent effective advertising that convinces individuals that things they may want are actually things they need, and things they do not care about, are actually things they may want.

It doesnt stop there. The advertising is so effective, that people actually feel inferior to those who have certain items. It is in fact possession of certain items that seems to make people happy, which is very strange, because it implies that happiness comes from man-made artifacts, rather than a realisation that happiness is simply the awareness of one's own worth as a human being. It is not difficult to come to such awareness, for if you feel that your presence has made the world a better place in some way, that is enough to feel self-worth and if you feel self-worth that is enough to feel happy. In short, happiness is a direct result of doing good in this world and seeing positive feedback as a result of these actions.

This kind of thinking is completely lost in modern society, for the prevailing attitude is that happiness can only come if one accumulates things even if one has to fall into very heavy, even unrepayable debt. To sabotage one's economic well-being by falling into heavy debt in order to pursue happiness is an absurd notion imho. You won't find any school teaching this of course, for this would spell the end of the middle class economic rape of america.

Personally, even though the margin is small, I have more assets than liabilities and I cannot tell you how much of a good feeling it is to know that even if all my loans were called in tomorrow, they would be covered.

In other words, I am nobody's financial slave because overall I cannot lose anything physical in my possession due to loan repayments.
When noone can take away any of your possessions under any circumstances (except criminal activity) you reach economic freedom.

Freedom is just as much a state of mind as anything else. Are you free to independantly think of ways to maximise your own wealth or are you wondering how you going to pay back your current debt? This may seem like a trivial question, but it actually underscores the very important distinction between those that are economically free to do what they want and those that are at the mercy of their lenders.

Economic freedom for lack of a better term should be formally taught in every school as a number one goal of every responsible citizen along with real-world maths as per this article (which discusses many other important things) http://www.mysteriesofthemind.com/images/white%20paper%20crash%202005.pdf

Well put. A new form of slavery was needed: Debt Slavery, a powerful control mechanism.

[Nefertiti]

Most people in this country owe more than they own-that makes them poorer than a homeless person on the street.

[TheEvilDetector]

Most people in this country owe more than they own-that makes them poorer than a homeless person on the street.

I think your comments reflects a manifestation of the greater collective lunacy, the idea that the borrowing class can borrow their way into wealth.

At some point someone, somewhere needs to repay the loan, but where does all the money needed to repay (principal+interest) ultimately come from? From the fed, which always LENDS it out at INTEREST.

Whenever someone borrows money with interest, they are ultimately giving the fed more power over the economy because even more of your money will have to be confiscated in order to cover the increasing interest repayment or you will get less in return for it which is confiscation just the same.

We all know that the fed makes money out of thin air, and in addition to principal charges interest on it. These moneys have to be obtained by regular folks with actual work.

The FED without doing any real work themselves make you work to make them richer. Its a beautiful system from the point of view of the banking industry.

Its interesting because essentially EVERYONE in the country is earning a DEBT rather than WEALTH because the papers you are given do not actually belong to you, the fed made them and lent them to you via the government and the government lets you keep 60% of it more or less for now. If those papers really belonged to you, you should be able to do anything you like with them, even paint on them if you wanted to.

The point is that your income is 100% debt owed to the fed.

This may seem strange but you are actually working to make yourself poorer because the more FED money is earned as a whole, the less it is worth and the more debt there is in existence. You are getting paid with DEBT ROFLMAO.

The harder you work, the poorer you will get.

That is the very genius of the FED. It is simply beautiful.

Its actually funny and tragic at the same time because the whole economy is just passing debt around whilst it grows rather than dealing with real money. LOL

Ask yourself, if the debt is growing and growing and growing, can you ever become wealthy? :)

The answer is yes you can, but only if you are the one who made the loan. Is it any wonder then, that the richer are getting richer, while the poorer are getting poorer?

Of course not, it is impossible for it to be otherwise in this system.

Another way of viewing society is as the co-existance of the lending and the borrowing class. Only the lenders have actual wealth and if there is wealth to be had in the borrowing class, they acquire it one way or another. They are the ones that become wealthy by the work of the borrowing class. They are truly our masters, because we work for them, whether we like it or not, whether we acknowledge it or not.

Who are the ultimate lenders you ask? The bankers.

They are masters of us all and for that I give them credit even though it is a very unfair system.

The power to issue money is the highest power of all.

So how does one regain the power? It is truly simple. Take away the power to issue money from the banks and give it to the people. Better still allow the free market to choose its own currency, which will never be a fiat currency and in fact there are likely to be multiple competing currencies with fluctuating exchange rates which the free market will set at the appropriate levels through market forces of supply and demand.

[kimosabi]

Unfortunately, we are on the verge of the second Fed engineered Great Depression.

Try to exit all of your Debts ASAP.

For the powers to be to truly destroy the USA, they had to destroy the Wealth(Power) of the Middle class and the US Dollar.

They did this by lowering Interest Rates to 1% and lowered lending standards to the point were a person with No Job and No Income could get a housing loan for $500,000.

Everyone needs to start using their Meetup Groups to set up an alternative community, support structure because things are going to get real bad....

[xita]

Try to exit all of your Debts ASAP.

Actually, if we are headed for a dollar collapse, it may behoove you to leverage to the hilt to buy property. If we have hyper-inflation, property should be a good hedge. Moreover, if you owe say $250,000 on a piece of property, and $250,000 becomes worth say $100,000 in todays dollars (due to inflation), then you stand to make out pretty well. Assuming you're in a fixed loan.

Gold / silver have also traditionally been good hedges against inflation, but the historical returns have been pretty bad (not counting the last 10 or so years).

There are many US companies that could probably weather any financial disaster that could arise. As long as they have enough international diversity (which many do), they'll probably be fine.

[kimosabi]

Actually, if we are headed for a dollar collapse, it may behoove you to leverage to the hilt to buy property. If we have hyper-inflation, property should be a good hedge. Moreover, if you owe say $250,000 on a piece of property, and $250,000 becomes worth say $100,000 in todays dollars (due to inflation), then you stand to make out pretty well. Assuming you're in a fixed loan.

Gold / silver have also traditionally been good hedges against inflation, but the historical returns have been pretty bad (not counting the last 10 or so years).

There are many US companies that could probably weather any financial disaster that could arise. As long as they have enough international diversity (which many do), they'll probably be fine.

This is wrong reasoning, as housing prices are now dropping as well.

You have a scenario of Dropping Dollar Value plus Dropping Asset Prices, this is/will be a complete disaster for America and possibly the rest of the world economy.

Graph below is US housing prices adjusted for inflation since 1890.

http://www.speculativebubble.com/images/homevalues1.gif

Go to http://ml-implode.com/ for latest news on all the mortgage lenders who have gone bust so far

[ghemminger]

Pulled this from a few message boards re RE Bust:


Anyways, charts don't lie. US dollar, Housing, now US banks, autos, all in or started bear market, and most important, US consumer and Government debt in massive never seen before bull market! Hey, when did you see 9 months+ house inventories or 20% plunge y/y GM sales or 550 TRILLIONS OF DERIVITATIVES (worthless) or Walmart negative sales (never seen since existing!) or INSIDER SELLING LIKE PIGS PIGS PIGS ? never. Even 1927 was not even 40% of this.

Let's just say the PPT are bitting their finger nails and will have to print US paper like you never seen in your lifetime to try to stem the fallout.

But at the end, like you see in any hosuing bear chart, once the freefall starts, only a small 3-6 month delay can happen from PPT. Fundamentals win always in medium-long term...always.


stay tuned



I love it...you are exactly the type of person Alan Greenspan targeted...and you have plenty of company. Millions who bought bubble-priced houses with insane mortgages and then used them for ATMs. "They will only go up in value".."The economy is doing great!" "Debt means nothing" Deficits don't matter"

...Now repeat after me, "Everything is just fine...my government will protect me..there is no risk..I should buy more stocks..!"

Six TRILLION $$'s in new debt can make everything LOOK fine...and it worked on the brain-deads like you, who are now happy debt-slaves watching 'The Simpsons' on those HDTV's with no payments till 2012! The SUV, ATV, boat and bike all bought with easy fed $$'s...Let's all party on. "Dow to 16,000 by August with big Fed rate cuts just ahead. A million dollars for an 800 sq ft condo using a 75-year loan..no problem, after all this is Greenspan's 'New economic miracle!' New rules!! Throw out those stupid Econ 101 books that said this debt mania can't work for long.

Lets keep it simple for you...the economy became 100% dependent on the housing bubble and cash-out refi mania. Good jobs were outsourced to Asia while illegal Mexicans provided cheap labor here. Hyper-inflation of everything was the plan..houses and stocks soared, but the dollar was made worthless. As the party ends, we go down...then China and Japan follow. They are nothing without Joe Sixpack and he is 70% of this great economy. So, if you believe any of your b.s. buy lots of stocks..C.NBC says you are really smarter than us bears!!


I predict: Huge Black Monday (2 Ratings) 27-Jul-07 12:26 pm
blood all over the street.

-ALL US stocks are overvalued like pigs.
-MOST are full up to their nostrils in debt
-Most huge high leverage tools (aka derivatives) which they will take massive losses

-US dollar getting clocked
-US consumer and Government up to their eyeballs in debt
-Money printing becoming money MASS market printing on daily basis

Bottom line: Huge market crash in both stocks and housing
Prices will collapse 50% instantly.
and you really believe these numbers ? Anyway, even if it's true, large companies like intel (based in US) take credit for that GDP....but outsources the REAL job to China or India.

people will get fleaced in this coming crash like always. Bad news is aplenty for many months and now US government is desperate. Hey, housing is responsible for 60% of all jobs created in past 5 years!!! IDIOT. The massive layoffs have started and will continue for 2-4 years.

US is allready in recession by the way. GM -20% sales, housing 9 months+ inventories, prices collapsing

Re: RYL up yesterday while market down!! (1 Rating) 29-Jul-07 12:44 am
no it isn't. It's just a sign that the big bears haven't moved in on RYL ....yet. But after HOV, BZH and KBH are dead, the little buys like RYL are next. I told longs in AHM over and over again to just get out. They kept holding for that $.70 dividend. Everyone told them that it wasn't coming. Stock price drops from $30 to $15....still holding. Stock price drops from $15 to $10, warehouse lines are pulled, and dividend is is pulled AFTER EX date. This is a sign of the times. It couldn't be worse environment for housing and builders. 2,000,000 new foreclosures (AT LEAST) in the next 2 years (based on Credit Suisse reset chart and other news / analyst sources). Why the hell would RYL's book value and earnings appreciate in that kind of environment? Who wants to build homes when there are too many already?

Think long and hard on this one people. I heard the same death rattle from NEW, AHM, FMT, lend, HOV, LEN etc.... total disbelief until the share holders have lost SO MUCH MONEY that they finally concede.

Put it like this, do you see a huge spike in earnings coming for builders in the next few years? Do you see institutions jumping in with their clients money in this kind of a risk environment. This is the worse lending / housing crisis we have ever had, and you want to buy a builder because of how well it did in a boom.....just plain stupid thinking.

[xita]

Well, i didn't say to buy property necessarily in the US :)

There are plenty of places in the world that are not insanely overpriced. And if you looked hard enough, you could probably find some in the US - but not somewhere like california or new york.

Anyway, real estate is a hedge against hyper inflation if you are leveraged - that's a fact.

[freelance]

Two safes with gold. Sorry about that. One safe for you and one safe for them--should they show up to confiscate gold.

[kimosabi]

Two safes with gold. Sorry about that. One safe for you and one safe for them--should they show up to confiscate gold.

If the government ever comes for you Gold, NEVER give it up.

I think having physical Gold is the best, easy to hide, doesn't rust etc, regardless of what anyone says about Gold, Gold is still the only true form of MONEY....

[Dan Klaus]

:p I am out of debt and never have taken their loans or credit cards...result: can't get a loan (mortgage) if I wanted..assuming if I declared bankrupcy they would beat my door down to get that loan to me...

[fsk]

I'm in San Jose. Bought a modest, below-median house in 2002.

Most of my investment is in this house, and in a 401k. Outside of those 2, I don't have much to buy gold and silver with.

The 401k is at risk if the dollar crashes big time. There is no option to buy metals. There is an option to buy mutual funds made of foreign companies, but the foreign currency based mutual funds are likely to crash along with the dollar and the US economy. The only way out I can think of, is to quit my job, then transfer the money in the 401k to a company that handles rollover IRA's that include GLD or similar, such as Fidelity.com .

If there is hyperinflation, then the 11-year-remaining fixed interest mortgage on the house is good, because I will be paying a fixed monthly amount with ever devaluing dollars; as long as (1) the house price doesn't crash deeper than the dollar, (2) as long as I can keep making payments, and (3) the bank doesn't call in the loan. If any of the latter 2 happen, I will have to sell the house, and hopefully I won't lose money or go upside down. That depends on whether or not a buyer will pay more than 2002 prices.

Comments?


If you really wanted sound financial advice, you could have just asked me directly.

I would not invest in the GLD or SLV ETFs. They lease out their gold or silver for short sales. That means that, in the event of an economic collapse, there would be defaults.

In an IRA, you can invest in physical gold or silver, but it must be through a trustee. Will the trustee honor his contract, if the US dollar collapses completely?

Personally, I'd leave my IRAs and 401(k)s in stocks. The only gold or silver investment I'd trust is physical metal in my possession. You could buy gold or silver mining companies in your IRAs, but that won't work because most gold and silver mining companies sell their future production short; they would be screwed if hyperinflation occurred.

You probably can afford to wait a few more years until you've paid off the mortgage some more. The final collapse is still at least 20 years away.

There are two ways the dollar can collapse: hyperinflation and hyperdeflation. In hyperinflation, it's as if you can repay the loan for free. In hyperdeflation, you would be screwed.

In the hyperinflation scenario, you're safe. By the time the banks would figure out to call in the loan, inflation would have eaten away most of it. Besides, most banks hedge with derivatives and swaps.

The Federal Reserve would never allow deflation over an extended period of time. That would benefit the average person, who is holding mostly cash. A period of deflation for 2-3 years is possible. That happens once in awhile, to squeeze the debtors. In hyperdeflation, you would be hard pressed to make your mortgage payments AND you wouldn't be able to resell your house. I would try to make sure you were able to make your mortgage payments through a 2-3 year deflation scenario.

You could argue that we're in the deflation phase of the business cycle right now. With the "subprime lending" crisis and the drop in the stock market, it looks like the money supply is contracting right now.

[Ira Aten]

Actually, you need to read both your Note, and your Deed of Trust which secures the Note itself.

If you look in your file of closing papers, you will see the Note, and the Deed of Trust. Also, if you can't find the Deed of Trust, it is on file at your County Clerk or Recorders office at the County Courthouse.

Any Riders to the Deed of Trust, (thus the note) such as adjustable rate calculations, or possible balloon or pre pay penalty info will be, or should be, attached to the Deed of Trust and on file at the Clerk's office.

There is in almost all Deed of Trust agreements, a provision that if you sell your home on a "Contract For Deed", and accept the new buyers payment intending to use it to make your Note payment, that allows for the Note Holder, or "Grantee" of the deed of trust, to call the Note IMMEDIATELY in most cases if they find out about it.

So the only thing that will get you foreclosed on, is being in arrears in excess of 90 days, or if you sold it to another party on a Contract for Deed, (meaning without a full repayment of the Note to the original Grantee of the Deed of Trust) and they found out about it in some fashion. (Such as checking for new liens against title on that real property, which a contract for deed often does.) So if you ain't late, don't worry about it. They will sell the Note before simply trying to call the note in shoudl a SHTF scenario occur. In other words, you would be making your Note payment to someone in China, since they are the only ones with any money after Bush managed to ship most the manufacturing to those guys. :D