Preparedness for when

jk0

I think I told you guys about my uncle, didn't I?

Twenty years ago he was a partner in a successful hotel. The bank kept offering loans to build more rooms, and foolishly my uncle's partner accepted them.

Unfortunately, the hotel manager was put in charge of paying the mortgage. It was due to be paid by Friday one week, but he (presumably corruptly) did not pay it even though the money was in the account. The bank went in on Monday morning to repossess the hotel.

Although the mortgage was only based on about 40% of the value, the hotel was revalued by the bank at less than the value of the outstanding loan, and my uncle and his partners received nothing.

[Deleted User]

calicocat wrote: »

Right folks....


To lighten things a little.....

I need you all on your knees, praying that plumber leaves soon. I want to go for a pee....but toilet is next boiler, so need to wait until he has gone as only have one toilet......:eek: .

Use the sink, or a bucket, or (if male) an empty fabric softener bottle.

It, of course, has to be a fabric softener bottle, to allow for the large girth.

Karmacat

:rotfl: fabric softener bottle!

Fuddle, hope you're feeling okay this afternoon and Nuatha and Mrs LW, I love the life attitude summaries

Frugalsod

fuddle wrote: »

Yes I'm sensitive but when I read late last night I was a bit upset to read that someone who has worked hard to pay off their mortgage, are nearly there with only a small mortgage left, are told that they are at higher risk of repossesion because of that situation and even told to up their payments as a priority to make them safe... I just feel that it isn't in the spirit of what I, personally, come to OS for.

A few years ago I would also not have given it much thought. If you were doing well on the mortgage then there was not much to fear, but things have changed in the last few years. Loans are sold off to hedge funds who have no compunction about the mortgage holders.

The Royal Bank of Scotland had a division called Global Restructuring Group http://www.ianfraser.org/the-financial-terrorism-of-royal-bank-of-scotland/ and http://rbs-grgbusinessactiongroup.org which actively looked out for customer businesses with equity and loans that might be hard to repay. They would then asset strip the company concerned. This is happening with other banks customers as well. The case I know of was with Allied Irish Bank.

If they can get away with it with commercial loans it is only a matter of time before they try it with mortgages. That is why there may be problems ahead. Avoiding the issue does not make it go away.

OS preps are for me a way to cope with any possible changes as nautha mentioned. I am not an expert in OS techniques but I do find them useful to adapt to help me cope or give me a new idea which might work for me. They initially helped me cut my living costs substantially which allowed me to cope. I know that not everyone else is at that stage. We all have different priorities and we all have different start and end points. I look at any suggestion and see if it can be integrated into my prepping. Not everything works for me, but it might work for someone else. I anticipate expanding OS food techniques to more and more basics, most of which will hopefully save me money.

We all have different circumstances and issues to deal with along the way. It was only as I listened and learned did I realise that I had flaws in my original plans. I know that they are still not perfect but they do have more strengths than they used to. Though I looked into suggestions with an open mind and adapted what I could.

While the risks of a financial crisis might not be mentioned on the TV or in the papers it might still be happening and I do think having some modicum of awareness of the real risks out there, can save you losing what advantages you might have accumulated over many years. It will give you an understanding of what might come and how to get out of the way of the steam roller that could happen. While we have many bubbles right now they are easy to predict when they will finally burst is impossible, so just being aware of them is all we can do. That is all I was trying to do. If you are not open minded you will miss something which will either save you a lot of money or even make you a lot of money, both of which will help you generally. I am sorry if I upset you, it was not intended.

moneyistooshorttomention

There are plus sides FrugalSod - not a lot ...admitted.

But - if this deflation you anticipate occurs (and I think there is a fair possibility of that I have to admit...) then those whose income doesn't go down will be in a good position.

I tend to think "Better some - than none" in that position and that is one of the factors that will help to put things into reverse and improve them if it comes to it. That being those people with incomes that don't go down will have greater spending power and that spending power will probably get used (rather than stashed away somewhere - because just where could it be stashed?).

There are some silver linings...its not all "doom and gloom".

fuddle

I think we're just at cross purposes with what constitutes a SHTF scenario. A lot is spoken about the risks in the future being very real, very likely to happen etc. The reason we relocated was because DH faced redundancy. Thankfully he could transfer but there were a couple of weeks of desperation for our family. We just didn't know.

Having moved back North I see redundancies everywhere. DH has been able to employ two redundant people from the steel situation. We live no where near where they live but these people are willing to travel just to have a job. It's desperate for so many people already.

I do think that is why we clash. You're so focused on avoiding come what may and I'm trying to deal with the fallout of something that has already hit and sensitive to the fact that my family are lucky. Many families aren't.

I agree with you about changing preps as we experience more and gain more insight. I have a plan in my mind of how I need to tweak.

No need to apologise. I need to toughen up a bit. Normal service will resume and we'll be arguing over coffee pods again in the near future

Frugalsod

moneyistooshorttomention wrote: »

There are plus sides FrugalSod - not a lot ...admitted.

But - if this deflation you anticipate occurs (and I think there is a fair possibility of that I have to admit...) then those whose income doesn't go down will be in a good position.

I tend to think "Better some - than none" in that position and that is one of the factors that will help to put things into reverse and improve them if it comes to it. That being those people with incomes that don't go down will have greater spending power and that spending power will probably get used (rather than stashed away somewhere - because just where could it be stashed?).

There are some silver linings...its not all "doom and gloom".

Yes there could be benefits but even these are not guaranteed. Governments could reduce pensions in line with deflation, we just do not know. Also any benefits might be short-lived. I am preparing for a fall in income but hope that before that happens I have become debt free and so will not have that debt millstone when deflation strikes.

Deflation maybe short lived or not as it squeezes out excess capacity both nationally and globally. So my only plan is to be debt free as debts retain their nominal worth and actually become heavier to bear as time goes on. Just imagine £10 000 loan and a £25 000 income. Now income may fall to £22000 but that debt is still £10 000 which is why it will be harder to bear over time. When that happens eventually the person defaults. It does increase the real worth of any cash or bank savings you might have but will it make up for the years of negligible interest rates that you would have suffered as a saver? Probably not.

It might be very short lived or we could have stagnation like Japan for 25 years when wages do not rise appreciably but certain core things like food and energy do and so slowly sap any reserves you might have.

So my only solution is to be debt free, which gives me the greatest scope to cope with any changes of government policy that will impact me.

thriftwizard

Good friends of ours are in imminent danger of being repossessed despite having equity of about half in their property... this has been rumbling on for years, but it seems it can't be staved off any longer & they're now trying to sell & find somewhere to rent before the bank can pull the rug out from under them completely. They're well aware that although on paper they'd be due half the value of the property, in practice they'd be lucky to come out with a couple of thousand intact. They've fought for so many years (since 2008) and lived on breadcrumbs and promises; it's almost a relief to get to throwing-in-the-towel stage. They were hamstrung when one of them became unable to work due to previously-unsuspected mental & physical health issues - thyroid wobbles complicated by, or possibly causing, bipolar disorder. I'm very sad for them & aware how lucky we are, but it does go to show that it does happen in the domestic market.

Frugalsod

fuddle wrote: »

I do think that is why we clash. You're so focused on avoiding come what may and I'm trying to deal with the fallout of something that has already hit and sensitive to the fact that my family are lucky. Many families aren't.

I agree with you about changing preps as we experience more and gain more insight. I have a plan in my mind of how I need to tweak.

No need to apologise. I need to toughen up a bit. Normal service will resume and we'll be arguing over coffee pods again in the near future

If my comments upset you it really was not intentional. We all come from different places and ALL have some insight that will assist someone else here. I totally understand the plight millions are going through with job insecurity. This of course makes any planning very difficult if not impossible. If you are still able prep then you are probably doing better than me when that is factored in. My situation is very stable so I have time to think potential changes through and do not have to deal with some of the issues that others are dealing with on a daily basis. That is why I have been able to make such changes though I certainly do not denigrate anyone who has not done what I have achieved.

We all have different solutions to every problem just like coffee pods. While they are not a solution for me I can see who would benefit from them. No one solution suits us all.

In keeping with my concerns with the banks I decided to open a bank account with a small bank. Metrobank https://www.metrobankonline.co.uk if you were wondering. I have deposited some money and as soon as I think that there is trouble I will transfer the rest of my funds. Though I still have to clear my credit card. As they do not have an investment bank they should have less trouble than my existing bank.

VJsmum

Bedsit_Bob wrote: »

Use the sink, or a bucket, or (if male) an empty fabric softener bottle.

It, of course, has to be a fabric softener bottle, to allow for the large girth.

An empty fabric softener bottle is an essential part of my Glastonbury preps - it goes with my she wee :rotfl: I only buy one bottle of softener a year - purely for that purpose. No of course I don't re use the old one, I'm not minging... :rotfl: