Banks Recalling Loans

[Justin W.]

I'm looking to buy my first couple of residential properties. I have zero issue getting financing on them. I have zero debt and strong cash flow. My question is about banks calling notes. If I were to lose a significant portion of my cash-flow at some point a few months out (but still have more than enough to pay mortgages) is there any chance the bank would call the note?

[Jerry W.]

@Justin W. my initial impulse is to say no. Even if your situation changes if you keep your end of the bargain by making all payments there is no breach for them to call your note, that being said I have seen some liquidity clauses that say for good cause they can call it even if you are not in default. I have only seen it happen once in a bankruptcy I worked on. Cattle prices dropped and bank used their option to call the note. Dumb move. I have never seen it happen with a mortgage on real property. I will notice @Bill Gulley as he will know for sure.