Comments by "Twomix" (@twomix1822) on "Foreclosure Rates Increase 190x in Four Years, Sign of Imminent Mortgage Crisis" video.

Yes, China has no personal bankruptcy protection laws. For example: if you buy a new home in China for 1 million RMB, adding all the regulatory fees and interests you have to pay would add up to about $1.15 million. Let's say you paid 50% (500K RMB) before defaulting on your mortgage. The house is repossessed by the bank and then sold off in an auction. Usually the auction price is very low around 100,000 RMB. Let's say the house was then auction sold for 200,000 RMB. The original owner still owes the bank 650,000 RMB minus 200,000 RMB. In the end he still owes the bank 450,000 RMB and no home. That's how CCP China system works. It's messed up. Why are auction prices very low in China? Because Chinese people do not like to buy 2nd hand homes. They always try to buy brand new homes. A 2nd hand foreclosed home is considered bad luck (because it is believed the house absorbs the person's luck or unluckiness). Many Chinese would be reluctant to buy a home where the previous owner has foreclosed. What is why many Chinese would rather give away their houses than deal with the bank or go thru the process of foreclosure. At least if they gave away the house, they no longer have to deal with the banks or pay their remaining debt obligations (it would be the new owner's problem).
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It usually takes the life savings of 3 families (both parents of the bride and groom and the life savings of the couple) to buy a home.
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@gracefulcat68 You are right. There is no land ownership in China. Technically all land belongs to the state (under communist system). However since the 1990s China has embraced capitalism they sort of relaxed the rules a bit. They can't change the constitution but they allow long term lease instead --- the lease terms are 50 years (commercial) and 70 years (residential). However that does not mean a Chinese person cannot own property. They can own the building and structures (they can collect rent, ban trespassers, erect fences, erect structures, etc.) aka profit from the use of the land they have leased. However there is an addendum, any resources (water, oil, minerals, gold, etc.) found on the land belongs to the state. After the lease lapses the leaser can then reapply for a new lease or extension and the state can renew it or deny it after they pay a new set of fees. It does mean their offspring cannot automatically inherit the land however their offspring can apply to extend the lease as the new leaser. Their offspring can definitely inherit any structure or buildings the original leaser has erected. The system does have some serious caveat. If the state needs your land, they can take it with or without fair compensation. More often than not the government can simply just take your land and you have little to no recourse. It's similar to the "eminent domain" law in the US. However unlike "eminent domain" where the land owner can challenge the order in court. The Chinese people often have little to no recourse. The government will simply order the leaser to vacate and the bulldozers will come tear down everything. There are instances of bulldozer demolishing structures with people still inside it.
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It is. Many Chinese have decided to end their life than go thru foreclosure.
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@gracefulcat68 A majority of the fund for the land leases goes to developing the local infrastructure and funding the operation of the local Chinese government (including the high salaries of the local government bureaucracies). That is why when businesses and factories slowed down due to the COVID lockdowns as well as the central government's policy of 3 red lines (in order to curb out of control property price speculation) it affected the local government too. Suddenly many local government found out they had less income (as property developers slows down the development of new properties means less tax revenue for the government). They had to cut the salaries of the Chinese government workers. This is why the central government suggested an annual land tax which was met with fierce resistance (why tax land in which you don't own and are already leasing) with further slowdown and weakening land leases (many people decided to sell off their property leading to more property devaluation and market saturation). It's a massive catch-22 problem facing the central government (they won't allow further rampant speculation of property) at the same time that weakening land lease demands means lesser income for the government.
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@BolsakTBagger there are people filming their last will and testament, upload it to the internet before they suicide. Lots of them if you know where to look. Often they would say they have lost everything and owes huge amounts of debt and can no longer continue living.
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