Your remaining principal and accrued interest on your loans is due in full within 30 days

Is it possible that banks would demand payment in full for any loans withstanding?

Who has ever read the fine print of thier credit cards, auto loans, personal loans, or mortages?

I'll bet you the banks have the right to call any loan due at anytime.


[edit on 15-9-2008 by In nothing we trust]

I've read the fine print. One of the two credit card companies I use can demand payment in full at any time, with no real reason. My home mortgage can not. The debt itself can be sold to another company, but the contract can not be altered without approval from both parties. And the contract gives me up to 30 years to pay interest and principal in fixed monthly amounts, with the option to pay down either the interest, the principal or both - without paying an extra fee; as long as I don't pay off the entire balance in the first three years of the mortgage.

BUT. I shopped around and read every scrap of paper before signing anything. Another thing to watch for is your debt contracts referring to another statement or contract that the lender doesn't show you. If your contract refers to article whatever, section something; tell them to go get article whatever, section something so that you know what you're agreeing to.

Be vigilant about anything you sign. For home mortgages, the lender is required to explain everything to you satisfaction. Never take "It's just legaleze" as a satisfactory explaination. :p

Ha! Just paid off the balance on my remaining Credit Card account debts ... debt free!

Now if I can sucker another bank into giving me a card that I can use to buy lots of real pure .9999 Gold with. snicker.

I can imagine banks doing this and the next day seeing piles of cars and other home goods stacked in the parking lots with FU painted all over them in big letters! Its already hapening in the trucking business. If you have the money you can buy used, less than year old trucks, for the balance due!!

Zindo

Sure, many revolving credit issuers have the right to recall the loan at any given time. Wouldn't be prudent to do so, however. They make much more money on you making your minimum monthly payments. Most people would default and the banks would have nothing.

Some credit cards and many Home Equity Lines of Credit are callable. As far as I know most car loans and fixed mortgages are not.

Although, if you are not paying per terms (fall behind on your payments), anything is callable, inlcuding a mortgage.

Don't stop paying your bills just yet unless you are intending on going bankrupt.