Updated about 6 years ago on . Most recent reply
Can a Bank call the loan?
A question came to my mind.
If I get 30yr fixed mortagage for an investment property (rental), and in this very turbulent economy, say for example the bank is going through tough times, is it possible (in theory at least) that the bank call my loan for no reason??
And if so what is the standard procedure they go through? They ask me to pay every last penny or they foreclose the property??
Most Popular Reply
No they can not call it due for no reason. That is what happened in the late '20's. The banks all started calling their loans due and there was nothing in place to prevent them from doing that. The lending laws have changed since then.
That's the reason many baby-boomer's have a mindset of get your loan paid off as fast as possible because their parents went through the Depression and knew what it was like to have a loan called for no reason. So they ingrained it into their children's head that it is bad to have a mortgage.
-Michael