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What to expect from your failed bank

You must still pay off your bank loan
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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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