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  1. In Memory of LAJ_FETT: Please share your remembrances and condolences HERE

JCC How much debt do you have to your name?

Discussion in 'Community' started by Only-One Cannoli, Jul 8, 2014.

?

The amount sir

  1. Less than 5k

    21 vote(s)
    51.2%
  2. 5-15k

    3 vote(s)
    7.3%
  3. 15.1-50k

    5 vote(s)
    12.2%
  4. 50.1-100k

    3 vote(s)
    7.3%
  5. 100-199.9k

    2 vote(s)
    4.9%
  6. 200-299.9k

    2 vote(s)
    4.9%
  7. 300k+

    5 vote(s)
    12.2%
  1. dp4m

    dp4m Chosen One star 10

    Registered:
    Nov 8, 2001
    lien: "a right to keep possession of property belonging to another person until a debt owed by that person is discharged."

    Yep, totally not debt.
     
    Souderwan likes this.
  2. Diggy

    Diggy Chosen One star 8

    Registered:
    Feb 27, 2013
    I'm glad you got some sleep!
     
  3. Diggy

    Diggy Chosen One star 8

    Registered:
    Feb 27, 2013
    Technically not. Yankee got all lawyerly up in my arse.
     
  4. yankee8255

    yankee8255 Force Ghost star 6

    Registered:
    May 31, 2005
    No, technically speaking, it is not the debt. It's a right of the bank. Your definition lays it out pretty clearly. Considering it a debt would essentially be double-counting.
     
  5. dp4m

    dp4m Chosen One star 10

    Registered:
    Nov 8, 2001
    It's a secured loan. That doesn't make it not-debt.
     
  6. yankee8255

    yankee8255 Force Ghost star 6

    Registered:
    May 31, 2005
    It's not the loan, they're two things. The bank gives you a loan -- that's the debt. In exchange, you give them what is essentially* an ownership interest in your home -- that's the mortgage.

    That the term "mortgage loan" has been abbreviated to the term "mortgage" over the years doesn't change the underlying legal concept.

    *It would be more accurate to say "akin to" an ownership interest, it's a security interest. Historically, it was an ownership interest (the bank was the nominal owner of your home until you paid off the loan) though the law has changed in most US jurisdictions so that a security interest a a separate type of legal interest.
     
    Diggy likes this.
  7. Diggy

    Diggy Chosen One star 8

    Registered:
    Feb 27, 2013
    Merciless.
     
  8. dp4m

    dp4m Chosen One star 10

    Registered:
    Nov 8, 2001

    Right. It's a secured loan. It's debt secured with capital. You still owe that money.
     
  9. yankee8255

    yankee8255 Force Ghost star 6

    Registered:
    May 31, 2005
    Yes, I owe the money, But the "mortgage" per se is not the loan, it's the legal interest of the bank that secures the loan. I would still owe the bank the money even if there wasn't a mortgage, it would just be an unsecured loan.
     
  10. Diggy

    Diggy Chosen One star 8

    Registered:
    Feb 27, 2013
    I'm about to use my extra $1,200 a month to hire hitmen to take both of you out.
     
  11. dp4m

    dp4m Chosen One star 10

    Registered:
    Nov 8, 2001
    That's not debt, that's a one-time transaction.
     
    Souderwan and Diggy like this.
  12. yankee8255

    yankee8255 Force Ghost star 6

    Registered:
    May 31, 2005
    Unless you give the hitmen an IOU in lieu of payment, which may or may not be secured with an interest in assets you own. If those assets are real property, then the security interest would be called a mortgage.
     
  13. Jabbadabbado

    Jabbadabbado Manager Emeritus star 7 VIP - Former Mod/RSA

    Registered:
    Mar 19, 1999
    This was the heart of the mortgage/foreclosure crisis. In general no one disputed the idea that lots of people owed lots of money in home loans that they were fundamentally unable to pay, but during the run up of the real estate bubble, secured home loans were piling up so quickly that the industry began to cut corners on the regulated legal requirements to properly secure the loans. Part of the problem with trying to foreclose on homes was that in thousands and thousand of cases the banks had never properly created a legally binding mortgage in the first place, and then tried to hide that fact as they pushed through foreclosures.
     
  14. EBSaints

    EBSaints Jedi Grand Master star 6

    Registered:
    May 29, 2002
    My only debt is my house mortgage
     
  15. yankee8255

    yankee8255 Force Ghost star 6

    Registered:
    May 31, 2005