Monday, June 7, 2010

Why do people say they "own" a home if they have it mortgaged?Don't the banks and gov't own your land?

If you are mortgaged to a bank and have a 30 year loan, you will end up paying on average three times what you originally did for your home,

And while you're living in it, you don't really "own" it, because if you don't pay the bank each month, you'll be kicked out of it. The only time it actually pays off is if you can get some sucker to pay a lot more than you did for it and then you get to pocket the extra cash after you pay off the bank, then that guy gets to be in the trap.

Also, even if you have your home payed off, you still have to pay the gov't for the land you are using, if you don't pay your taxes, the IRS will forcibly remove you from "your" home at gun point and then you will see who actually owns the land your bank home was plotted on.

Well, they say that possession is 9/10ths of the law, as long as you make your payments on time then you are the one with property rights to it, and the only way you lose those rights is if you betray the public entity that entitled you to "ownership" of the home in the first place. It's similar to a car. Even if you are still making payments on an auto loan, you are still responsible for all care and ownership responsibilities, insurance, and your name goes on the title. Only if you breech your legal agreement do you lose those aspects of "ownership".

Thats just how it is now, instead of a King owning everything, the banks and government own everything.

yes you pay the bank but you can do what ever you want if you want to kick holes in the walls you can and nobody can say **** to you you can light the dam thing on fire if you want just don't try to collect the insurance try that in an apartment having a house is great nobody can say **** to you no landlord to worry about as long as you make your payments the bank doesn't care they don't even no who you are your a loan number and taxes are not for the land uses it to pay for all the crap the city does so you can have running water and don;t have to **** in a bucket it cost money to maintain this stuff

Well, by that logic, then anybody who doesn't immediately pay off their house doesn't own their home. That's a bit ridiculous, since just about nobody has the money for a home up front right now. The majority of people have to pay on it, and paying takes time.

I agree mortgages suck, though. My parents took a loan from my grandma at a lower interest rate and paid their house off fairly quickly.

Well in a way, you are right. You don't really own your home if you're paying a mortgage, but you can sell the home and profit from it. The IRS can only seize your home if you do not pay your taxes, but even if you were not to own a home they would seize your bank account and any other assets that you may have. The other thing that you forgot to mention is the almighty property taxes; if you don't pay them, the local/state government can seize them as well.

For the most part you are correct.

However, having a mortage gets you tax breaks, and many people could not afford to pay their taxes if they didn't have a mortgage.

Screwy but true.

You don't pay the govt for the land you use. You buy that land with the house from whoever owns it. We say we own our cars even when we are still paying for them. We oown the equity in our homes. That is the money we have paid into it. I still owe 25,000 dollars on my home but I have equity that I own worth 95,000 We own our homes bc we are the ones considered responsible for them. We are the ones that pay property tax on them. Making a profit on a sale of a home is not exploiting a sucker. It is called investing and selling after the market goes up. The IRS will seize your assets--not just your house-- if you do not pay your taxes.

I agree it is a misnomer to claim "I own a home" if you are still paying a mortgage.

Yes that is true but unlike renting you can actually SELL your home and pocket the profits.

No.....Goverment does not have the right to sieze your assets incl. home. In consitution.

You are absolutely 100% correct. Unless your house is completely paid off, then you don't own anything. Financing something until you pay it off at 3-4 times it's worth and actually OWNING something are two different things. Don't believe me? Stop making your house payment for 4-6 months and see what happens.

No, you do own the home. The mortgage is simply a loan secured on the home so if you default on the mortgage the lender will repossess your house to recover its money. I don't know about your country but I own the land my house stands on and I don't have to pay anybody to use it.

Actually, if you borrow money to purchase a home, you OWN THE HOME. The "bank" owns your money. A small difference.

1 comment:

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