You have no idea what youâre talking about in regardâs to taking everything What about these banks fiduciary responsibilities? Misappropriation of funds. Why did banks choose to gamble away money they did not earn in the first place. Each state has different laws regarding seizure of assets, due to non payment of unsecured debt. Taking ones house may be a blessing for some.
I don't think anyone can take your house because of defaulting on unsecured debt. Can they sue you, get a judgement, and put a lien on your house ... yes, but that's a big difference from taking your house. I had a rental property in Phila that had liens on it for nearly a decade. When it came time to sell the property, I contacted the lienholders, negotiated a settlement with them (for a small % of the lien amount), paid them, and moved on. The liens were unrelated to unsecured debt, but they were just liens.
Not too hard to figure out why this is happening, at least relative to engineering. 'Too few engineers' everybody complains, then when people get the degree and start working, a fake "shortage" is trumpeted loudly every 3-5 years, H1Bs are approved in massive numbers, most engineers experience layoffs multiple times, pay stagnation, unpaid overtime, and maintenance roles involving legacy projects using inferior technology. The software industry is 'progressing' to the point where the roles are being de-skilled and nerdish methodologies such as Agile/Scrum/XP are employed which removes all professionalism from the role, and engineers are treated as expendable, interchangeable widgets. Skilled engineers are either retiring, enduring painfully, or pursuing more fulfilling careers. Everybody appears to be drinking the outsourcing Kool-Aid and quality appears to be the least important aspect. The companies that are hiring nowadays seem to be interested in paying about 70% of the going rate, and hiring Indiant/Chinese H1Bs, sometimes outsourcing whole projects. The software quality is shit in most cases when this is done - there seem to be very few people capable of any sort of real architecture skills. The prime skill that is valued these days is mindless compliance with management dictates (yes-men) and basically to give your skills away below market. Facing this probable future, why would anybody waste their time busting ass for an engineering degree so they can graduate with massive school loan debt and be basically a worthless commodity within 5 years of graduation?
You need to find out if the state you live in is a "no-recourse state" The truth is the threat of a lawsuit or other action from a collection company should pose very little concern. If your state is a no-recourse state.
Just make it obvious that the next generation will have to pay by forcing the descendants of defaulters to pay the debt. We don't need morality, we need consequence. Most people's success is based on the success of your ancestors, this would just make it more visible. More fair for families that did evolve enough to not take on more than they can handle.
Yes the lien stays until satisfied, but this is hugely different than having your house taken. #1, as years go by, inflation erodes the value of the lien. #2, the lienholder will most likely take a substantial haircut if offered immediate cash. I'm not saying its a pleasant thing to have a lien placed on property, but it's substantially different than having your house taken.