Sounds like she may not have worry about the loan. Then again if they are going under they may start trying to take their money before they eventually fade to black. The way things are now though who knows what they could do, it seems like Big Companies have more rights than the people they feed off of.

If there was no breach of contract by the recipient of the loan, how can they change the terms of what I am assuming was a legal, documented loan?

I don't think they can unless it is somehow written into the loan. Your mom/aunt should tell them to stuff it. (hopefully she isn't abiding by ATS T&C and can be a little more colorful.)

There is a contract - it has to be broken by one side or the other. Your outrage is based on not knowing the story at all. That is just the way it is.

I remember reading the "terms and conditions" of a credit card I had one time, and it did say that, at the bank's discretion, they could ask for the full amount at any time, for any reason, and I would be required to pay it or be in default.

Was the loan gotten with collateral (such as a house or car), or it is one based on no collateral other than the good credit of the borrower?

Your mom better read the fine print. If it was a mortgage loan where the equity of her house was put up as collateral, there may be a clause where they can call the loan or she loses the house.

Making a deal with a financial institution is like making a deal with the devil himself. I despise and loathe them, and deal with them as little as possible.

I am thinking without reading the loan contract I do not know whether there was an early collections clause or not. If in deed it does, they have every right to do so. Does it make it morally right? No Morally, I feel it sick that in one moment of greed for what ever reason a persons life can be destroyed legally.

I saw a bumper sticker one time that said "My Lawyer Can Beat Up Your Lawyer". After the elites maybe the BAR should be next.

One only has to realize that this is what preceded the Great Depression of the 1930's which was when the banks began "Calling in Their Loans"....which does signal an imminent collapse of the system..

Not a good sign....it could signal exactly what Gerald Celente was referring to with the beginning of 2012 and the collapse of the banks.


Peace

The ability of the financial institution to “Call the loan” is spelled out in the contract.

Most large financial institutional contracts do included an option for “Calling the Loan”.

The “Call” is not dependent on if the account is current or not.

Over the past years these options are rarely used, however the borrower is on the “hook” when they enter in to an agreement like this.

This is why it is so very important to READ the contract before signing.

I had an incident similar to this three years ago when I was purchasing a large piece of equipment. The first loan offer came from Wells Fargo and did included a “Call” clause.

I refused this offer, the equipment salesmen tried his best to talk me in to the agreement. No way was I going to place my business on the hook like that.

It took another month before I received a financing offer that did not included a “Call”.

I must agree with the other posters that if Fannie Mae is “calling loans” this is very serious, and is a real indication that bankruptcy is just around the bend.

She needs to call a decent lawyer asap.. I remember a bank doing this to a friend a long time ago.. In that case, the bank had records recorded wrong about the payments being made and in fact the person was in good standing with all payment receipts...

But because the bank erroneously demanded the full balance, he got a lawyer and they sued the bank and the end result was the bank had to forfeit the balance and send him the deed paid in full... This was for breach of contract against the bank..

The only for sure way of protecting one self from junk like this is having a lawyer...if you don't get a lawyer, the bank will attempt to rip you off in a no holds barred fashion...