The global financial crisis began with a banking crisis in the US. The latter is less than ten years old, when the next banking crisis is already starting. Not in the US, but in Europe. Most recently, several European banks made headlines, including financial institutions from Germany.
Especially the Deutsche Bank has come under attack. The Institute is fighting on several fronts against serious threats. But other financial institutions have seen better times. Recently, the Commerzbank announced that it wanted to reduce its number of jobs. There are also several banks in Italy that are facing serious difficulties.
Although the banking world embodies its own cosmos, some citizens are insecure. Among them are mainly property owners, especially those who repay loans. Many owners are worried that the banking crisis could take over and ultimately lead to the sale or even the termination of existing real estate loans.
In today’s blog post we answer the most common and important questions about this topic. Already at this point it should be said that borrowers need not fear.
How likely is a loan sale by the bank?
The risk of banks going so far and reselling their existing mortgages is extremely low. In addition, we currently have only a small banking crisis, if there is any talk of a crisis. Furthermore, the banks – at least the institutions from Germany – currently do not seem to have any financial difficulties. So you are not under pressure to move and do not have to strike assets. Incidentally, private mortgage lending is more of an ancillary area. For example, if Deutsche Bank wanted to improve its liquidity, it would have completely different options.
Can the bank simply sell or cancel my loan?
There is a huge difference between the termination and sale of an existing loan. A termination would mean that the contractual relationship between the borrower and the lender is dissolved. In a sale, however, the contractual relationship remains, only the contracting party of the borrower would change.
In view of the fact that private real estate financing is contractually regulated down to the smallest detail, termination is extremely difficult for the bank. It can not simply dissolve the contractual relationship and insist, for example, on an immediate repayment of the remaining debt. In order to do so, the borrower would have to seriously violate the contractual arrangements. Therefore, termination is almost impossible.
The situation is different with the possible sale of loan packages. The banks usually sell their loans in bundles, ie usually thousands of customers are suddenly affected. Of course, such a sale can not be excluded, especially since it is not prohibited. However, it should be said that he is very unlikely. For a bank, this would not be without consequences, her reputation would then heavily scratched.
Moreover, nothing would happen to the borrower in a sale. The contractual conditions continue to apply. Basically, only one thing changes: the loan payments are now to be paid to another financial institution. But do not worry, as has already been clarified several times, such a case is extremely unlikely. Especially since there are now banks that promise their customers in the contract that a sale is excluded.