what happens to my mortgage if hyperinflation hits?

[Klark Cent]

Having a fixed mortgage during high inflation would generally help the debtor. However, if the currency completely collapsed the government would likely declare that all mortgage be expressed in "new dollars" which would likely be worth 100 old dollars each. This might be a breach of contract, but good luck taking the government/bank to court.

Does anyone know how mortgages were handled after currency collapses throughout modern history? Like Zimbabwe, etc.

Thanks

[InfleXion]

Fixed mortgages should be fine in most circumstances. I don't anticipate a forced loan restructuring unless we get a new currency.

I don't think a hyperinflation will help home values. In that case as people go broke just trying to afford basic necessities very few will be in a position to buy a house. Those that are will probably get great deals. The housing market would have to be completely propped up by the Fed, but that may very well continue.

However assuming there is a hyperinflation we will probably be losing our ability to prop up markets and the dollar's world reserve currency status so at that point anything goes.

[InfleXion]

Having a fixed mortgage during high inflation would generally help the debtor. However, if the currency completely collapsed the government would likely declare that all mortgage be expressed in "new dollars" which would likely be worth 100 old dollars each. This might be a breach of contract, but good luck taking the government/bank to court.

Does anyone know how mortgages were handled after currency collapses throughout modern history? Like Zimbabwe, etc.

Thanks

Good question. I hope it's OK to link to another site... I'm not hanging my hat on these responses but they sound alright.
https://www.kitcomm.com/archive/index.php?t-103249.html

There are many people from Argentina who know exactly what happens with mortgages in this situation. The mortgage contract is not negated by the currency fail unless there is a stipulation written into the mortgage. (Ever wonder why the Making Homes affordable act is so busily convincing people to Refinance ) If the dollar becomes devalued and you have something other than Fiat to convert to dollars you could pay off your mortgage with it easily.

1) if property is near the edge of the city, then as taxes diminish, your utilities may get cutoff. The city might then force you to move out.
See Flint, Michigan.

2) on the flip side, if you live near the city center then property value may actually go up as more people move to center city for services, and fiat currency value goes down. The property has value so will take more fiat to purchase it.

3) if bank goes bankrupt before you, then the government may own your home and deal with them. Heck, whole streets, neighborhoods, and towns may become 'state owned'.

4) all your surrounding houses may become 1) or 3) of the above and make it difficult to live around or sell your home.

I found the reference to the Making Homes Affordable Act interesting. I'm glad I didn't opt for this, and it makes me wonder now how those loans specifically differ from the norm. That Act's verbiage might very well go a long way in answering the OP.