Mortgage - Can it be canceled at any time? Who has experience with banks?

Hey guys!

I hope you won't lynch me! I'm still just at the beginning when it comes to construction projects and nothing is concrete yet. I'm researching blindly and asking around for experiences.

A friend of mine told me today that his parents almost lost their house because the bank had sold the mortgage.

He said a mortgage can be terminated at any time and then you have to pay the whole amount at once, and if the bank sells the mortgage you could end up with a hedge fund.

What is that about and how can you protect yourself from it?

Loans can be resold by banks if this is not contractually excluded, which is associated with an interest surcharge if the bank accepts it.

Even after the sale, the following applies: contracts must be adhered to by both the lender and the borrower. If the borrower complies with the contract, the lender cannot terminate it so easily. Follow-up financing and contract modifications, however, could become more difficult.

A hedge fund also has a strong interest in loans being properly serviced. It only has limited interest in realization...

So you don't see a big risk in reselling the loan?

No, no big risk.

Hello!

That is common practice. Loans are also packaged and sold as securities. As long as you service your loan, everything is fine. A bank never has an interest, even though many believe in acting as brokers and selling real estate if the loan is not serviced.

I don’t see any problem with that either, it is absolutely common and the interest surcharge for the exclusion can be saved.