Hi Fernando,I read your book about 1.5 years ago and am begining to read it a second time.One thing that I don't believe you cover is exactly what happens to mortgages and taxes during a collapse. If a large majority of people are unemployed do they let you remain in the home if you cannot pay your mortgage and property taxes?I have been aquiring supplies for two years, but one thing I will not be able to do in the event of a collapse is to pay off my mortgage. Many of my supplies will not do much good if I am forced to become a nomad.ThanksJim
Hi Jim, this question often comes up and I can see how it is a concern these days for most people. Regarding taxes, like death, they are unavoidable, and if there’s one thing I’ve learned from Argentina and researching various other crisis around the globe is that taxes do go up, and they are almost entirely aimed at the middle class socioeconomic group.
Regarding mortgages in Argentina, certain laws were implemented to stop people from losing their homes, but it just worked in a smaller percentages of the cases.
|Poverty in USA|
A law was passed, Ley 25.798, which gave you a year before you had to continue making your mortgage payments. The mortgage was updated to the current price of the property and monthly payments could not be greater than 25% of the family’s income. This only benefited those that had bought the property between January 2001 and September 2003, the property had to cost less than 100.000 USD or the equal amount converted to pesos and it had to be your only property, the one you live in. This of course meant that the law only benefited the lower income buyer, and only those that bought during that period of time. As for those not covered by this law, a thousand homes went under the hammer per month.
Here’s the link explaining all this but its in Spanish:
What happens if you cant make the payments, mortgages or taxes? Accounts get frozen, and any money coming into your account is immediately taken to pay for those debts. You lose everything little by little and become poor or even fall below the poverty bracket into extreme poverty and indigence, losing it all and becoming homeless. That happened to hundreds of thousands. I know of several people that had to move back with their parents, other relatives of friends to live in their kitchens or living rooms for long periods of time, and those are the lucky ones. Those that didn’t have family to take them in, they ended up living on the streets.