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What is a bank loan?

What would happen if you got a car loan from a bank, and in the middle of the note, the bank went under?

  • like if you were to get approved for a car loan, and you bought a car, but a few months into the loan, the bank you used went under. and no other bank bought your bank.

  • Answer:

    Bank loans get bought and sold all the time. I have had car loans get sold to another bank and then I have to send the payment to the new bank. If the bank goes under, the loans it has out will be bought by another bank, just like a repo home will be sold on the courthouse steps. You will be notified of the change and make payments as usual.

mizzholl... at Yahoo! Answers Visit the source

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Another bank would buy the loan. Its the best idea to pay electronically on the loan if that happens. The reason is because the money will go to the correct bank.

scottiep

You can check with the FDIC to see who is taking over the assets of your old bank www.fdic.gov

D J

you would still have to pay the note.

Star

Banks that go under have assets (like your loan) that are purchased by other financial institutions, even though the whole bank isn't sold.

Rottie Mom

The loan won't disappear, some other entity will acquire the assets of the failed bank.

Scott H

If you are hoping to end up with a free car, you are out of luck. The assets of your bank will be liquidated and you would end up paying another lender the remainder of your loan.

Otto

you would still be responsible for your loan because some one would pick up where the bank left off and closed there doors

harold gardner1946

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