Auto repossessions going up ! Almost 18% higher .

[Dave Hess]

It is sad that many folks are financially irresponsible. However, my checking acct is currently $0 and I don't get paid till the 1st. My income has not increased in over a decade, and my expenses do not include a mortgage, any loans or CC balances. I simply no longer earn enough to cover my monthly expenses. I do have significant non-reimubursed business expenses. I have no tax deductions so I file the short form.

Sure, I can cut out DirecTV, the Disney account and turn off the AC in South FL. But there is not much wiggle room for cutbacks there. I certainly could NOT afford a new car loan. At this point, I've been inflated out to pasture... and I'm having to dip into retirement funds.

My point: If this is happening to me, others who do not plan as well are not going to fare well at all.

Yes, there’s people like you tight on money…. but if your boss didn’t give you a raise in over a decade you should have left a long time ago.

You have to put yourself first and your employer second.

I might be mistaken, but didn’t you once mentioned you have another home outside of Florida ?

 

[demarpaint]

Like I was telling you today they opened up a repo yard not far from me, the thing is full with near new vehicles inc Tesla's.

When a bank lends money to people who aren't credit worthy, that's what happens. I saw it happen when I was selling cars. Today I heard something about redistributing high risk loan coasts on mortgages to people with good credit. The story goes like people with good credit will pay more to subsidize loans for people with bad credit. LOL I have to read up on it because it made no sense, but it certainly wouldn't surprise me. I'm sure foreclosures will be on the rise too, if they aren't already.

 

[brianl703]

Today I heard something about redistributing high risk loan coasts on mortgages to people with good credit.

2008 wasn't so long ago that they've forgotten about it?

 

[Cujet]

Yes, there’s people like you tight on money…. but if your boss didn’t give you a raise in over a decade you should have left a long time ago.

You have to put yourself first and your employer second.

I might be mistaken, but didn’t you once mentioned you have another home outside of Florida ?

I used to have a place in PA. No more. Cut that out 2 years ago. Hotels are cheaper than a home.

I do own an airplane. Can't fly all that much for fun when I can't afford Avgas. Believe it or not, the airplane is not a big expense. I used to budget about $5K per year for fuel and use it instead of the F150. But I don't fly much anymore, my total fuel expense is now under $1K and the plane is kept in the company hangar. Most flights are for business and they pay fuel.

There are benefits to the job. Being able to own a plane has been one of them. What that's actually worth is another question entirely, as I don't need a plane if I'm not working this job...

 

[RhondaHonda]

I used to have a place in PA. No more. Cut that out 2 years ago. Hotels are cheaper than a home.

I do own an airplane. Can't fly for fun when I can't afford Avgas. Believe it or not, the airplane is not a big expense. I used to budget about $5K per year for fuel. But I don't fly much anymore, my total fuel expense is nil and the plane is kept in the company hangar. When I fly, it's for business and they pay fuel.

There are benefits to the job. Being able to own a plane is one of them.

I’ve seen you mention in multiple posts that you pay your own expenses and don’t get any raises. You sound like an independent contractor and not an employee. It’s time to either charge more for your services, request a raise or find new employment. That is no way to go through life and knowing who your employer is, seems unfair to you.

 

[Oillover]

I do own an airplane. Can't fly all that much for fun when I can't afford Avgas. Believe it or not, the airplane is not a big expense. I used to budget about $5K per year for fuel and use it instead of the F150. But I don't fly much anymore, my total fuel expense is now under $1K and the plane is kept in the company hangar. Most flights are for business and they pay fuel.

There are benefits to the job. Being able to own a plane has been one of them. What that's actually worth is another question entirely, as I don't need a plane if I'm not working this job...

Growing up on the Canadian prairies in the 80s, we knew a few farmers who also owned planes.
These farmers certainly weren't wealthy by any stretch of the imagination.
I just figured farming was more lucrative back then.

 

[Ursatdx]

Fico scores going the way of SAT scores.
What a terrible policy by any Administration.
Meritocracy seems to be a bad word, lately.
Careful. America is in a downward spiral.

 

[NormanBuntz]

It's no wonder with $700-800 a month car payments.

 

[I<3oil]

Whaaaaaaaaaaaaaaaat??!!??! That’s crazy. No one, and I mean literally NO ONE, could foresee this happening. None.

 

[Dave Hess]

When a bank lends money to people who aren't credit worthy, that's what happens. I saw it happen when I was selling cars. Today I heard something about redistributing high risk loan coasts on mortgages to people with good credit. The story goes like people with good credit will pay more to subsidize loans for people with bad credit. LOL I have to read up on it because it made no sense, but it certainly wouldn't surprise me. I'm sure foreclosures will be on the rise too, if they aren't already.

They might try to hold off on the millions of foreclosures until after the election.


slo town,
I think this is the calm before the storm and many people are refusing to accept what will happen in the next ‘official’ recession.


My advice is to all folks of any income level is to plan for a downturn. 3 months of cash saved goes very quickly when you are out of work for an extended period of time. Now that the economy is slowing down….. no doubt we will see many industries affected by cost cutting and downsizing of staff / payroll.

 

[Vern_in_IL]

^my general rule is my essential expenditures weekly do not exceed what unemployment pays out weekly.

 

[samven]

Subsidize bad behavior and punish the responsible and this is exactly what you get. Tax savings at higher rates and forgive contractual debt and people stop saving and start defaulting.

 

[samven]

If your house doesn't sell for enough to satisfy the judgment the bank can still pursue you for the unpaid balance.

A first Mort is only covered by the home, no judgement, now a 2nd is actionable and you still owe the money which is why 2nds are such a bad idea.

 

[CKN]

You know, the weird thing is that in years past situations like this resulted in rapid distress for the entire financial system. We're even seeing more and more jobs losses too, especially high paying jobs. For some reason today it seems like bad news makes no difference. Why do you think that is? Is everyone receiving some kind of secret guaranteed income that I'm unaware of and missing out on?

Scott

There are no programs that pay you (an able bodied person) indefinitely (a living wage) for sitting in your parents basement playing video games. Every time this is inferred to on here I have asked for proof and NO ONE has been able to provide it.

 

[blufeb95]

A first Mort is only covered by the home, no judgement, now a 2nd is actionable and you still owe the money which is why 2nds are such a bad idea.

I guess it really depends on the state, In Indiana it's all handled judicially, the court grants the lender a judgement that's then is attempted to be satisfied by a sheriff's sale of the property, now some times the foreclosing lender may wave the right to a deficiency judgement in attempt to hasten the foreclosure process or as a term to entice the delinquent borrower to hand the deed over in lieu of foreclosure.

 

[Blueshound]

2008 wasn't so long ago that they've forgotten about it?

Today's 30 year olds were only 16 in 2008. They haven't forgotten, they just haven't experienced anything like it. The rebound from the 2021 shutdowns happened super fast. I think they believe all economic crashes and recoveries will happen quick like that.

 

[demarpaint]

They might try to hold off on the millions of foreclosures until after the election.

I agree 100%. Then the 'you know what' will really hit the fan right after the election. Like clockwork in fact.

 

[Legal Eagles]

I guess it really depends on the state, In Indiana it's all handled judicially, the court grants the lender a judgement that's then is attempted to be satisfied by a sheriff's sale of the property, now some times the foreclosing lender may wave the right to a deficiency judgement in attempt to hasten the foreclosure process or as a term to entice the delinquent borrower to hand the deed over in lieu of foreclosure.

This is the way it works in Maine, even if the mortgage is foreclosed, you still owe any deficiency remaining on the promissory note after the sale of the house at public auction. The bank does not just "forgive" the note balance automatically.

 

[Lubener]

When a good portion of one's paycheck go towards a car payment, the increase in repossessions does not surpise me. I expect the figure to increase over time.

​

 

[Blueshound]

I agree 100%. Then the 'you know what' will really hit the fan right after the election. Like clockwork in fact.

Let's think this through. Say I'm CEO of a big, publicly held bank, and in fall 2023 we have (per the hypothesis of this thread) a whole bunch of borrowers delinquent on their car loans and mortgages due to a recession. But (in conspiracy with the board of directors?) I've decided to recommend that the bank disregard standard business practices and defer any repossessions or foreclosures until December 2024. Why, exactly, would we do that when quarterly profits, share price, and executive salaries are literally all I care about?