can banks foreclose on a property if the  minimum payments are being made ?

I heard banks can "call-in" loans at any time.  Is this true? If I have a contract how can they get away with this?

14 Answers

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  • 1 month ago

    In the event that you are paying the contracted installment sum, at that point there is no other option for them. Since you are talking about "least installments", I presume that there is something else entirely to the present circumstance than you say

  • 1 month ago

    They really can't foreclose as long as the loan is current. If there are back payments owed, however, even if you are making minimum payments, then they sometimes can. It really depends on WHO lends the money for the mortgage. Usually BANKS don't foreclose as long as arrangements have been made to pay or catch up the loan to current status--but mortgage lenders aren't always BANKS.  

  • garry
    Lv 6
    1 month ago

    depends if your paying the banks required amount and not yours . banks never lose they just sell the property again with a  new loan , but they make sure they bankrupt you . your trying to do what some ones did 50 years ago , there awake up to it ...lol

  • 1 month ago

    Have you read the contract?  If it's not against the law and the contract says that they can, then they can.

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  • Judy
    Lv 7
    1 month ago

    If you're behind in your payments, making SOM payment will not keep them from foreclosing.

  • 1 month ago

    'Calling in' a loan, demanding full and immediate payment of the remaining loan principal, is NOT foreclosure. Foreclosure is the legal taking of the property when the loan goes into default. Foreclosure will follow if the called-in note is not paid.

    Loans can indeed be called in when the loan contract specifies the conditions under which it can be called in, when the borrower has violated certain terms of the contract. Also known as 'acceleration clauses', these provisions are not often seen in residential mortgages except for when a mortgage specifically prohibits the property being used as a rental (and the owner violates the contract by renting out the property).  They are most often seen with business loans and commercial property mortgages.

  • 1 month ago

    Banks cannot just "call in" loans at anytime because they decided they want to. They can only call a loan if the borrower violates the loan contract in some way.

    Even then, there is usually a period of time allowed for the borrower to remedy the issue and get into compliance, or ways the bank can force compliance. For example if the borrower cancels the homeowner's insurance the bank will buy an insurance policy on the house and add the cost of the policy to the monthly payment.

    If the borrower falls too far behind on the increased payment which now includes the bank's insurance policy the bank could foreclose just as they could for any situation where the borrower falls too far behind on payments.

    If a bank does call a loan because of a contract violation it doesn't always mean foreclosure. The borrower can pay off the loan, refinance it, or sell the house. If the bank gets paid what they['re owed then that's the end of it (at least with that bank).

    If the borrower doesn't find a way to pay the loan, then the bank might foreclose but it would take some time.

  • Anonymous
    1 month ago

    Foreclosing and calling-in a loan are two completely different things.

    Yes a bank can call-in a loan even if the payments are being made.    They can't do this at their whim.   The borrower would generally have to be out of compliance with the contract.

    Some reasons a mortgage could be called-in:

    1)  Borrower failed to have homeowner's insurance;

    2)  Borrower failed to maintain the property;

    3)  Borrower agreed to owner-occupy the home but rented it out instead;

    4)  Borrower lied on loan application.

    Mortgage loans are conditional upon the borrower doing certain things.  If borrower doesn't do the things they are supposed to, the bank is within their right to demand their money back in full.

  • R P
    Lv 7
    1 month ago

    They can call in a loan if you try to do something that violates your contract.

  • 1 month ago

    No. As long as you’re making the minimum payments, the bank can’t foreclose on you. If the banks can do that then why not wait until you have 1 payment to make then foreclose on you. You basically paid for the house only to have the bank snatch it away from you. 

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