You must still pay off your bank loan6 of 7Bank loans held by a failing institutions are typically sold to the takeover bank or another entity, but borrowers are still responsible for fulfilling their loan agreements. "A lot of people think, 'The bank was sold, so I don't have to pay my loan,'" Alverson says. "But that's not true."As the bank's business is transferred to the systems of the new owner, you may not receive a bank loan statement for a while. "But it will get caught up eventually, so you definitely need to keep paying," Alverson says. "You may get a payment holiday for a short time. But that's the exception, not the rule." Related Articles:Guard against bank failureMoney market account time?2010 list of failed banksChecking account do's and don'tsRelated Links:137 banks failed in '09FDIC handles bank crashes3 tips for personal bank loansIs your money market fund safe? advertisement
Bank loans held by a failing institutions are typically sold to the takeover bank or another entity, but borrowers are still responsible for fulfilling their loan agreements. "A lot of people think, 'The bank was sold, so I don't have to pay my loan,'" Alverson says. "But that's not true."
As the bank's business is transferred to the systems of the new owner, you may not receive a bank loan statement for a while. "But it will get caught up eventually, so you definitely need to keep paying," Alverson says. "You may get a payment holiday for a short time. But that's the exception, not the rule."
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