What Happens When a Bank “Cuts Ties” With a Customer That Owes Money?

[Rexedgar]

Do the loans get forgiven? How do the terms of the loan get changed by one party, (call in the debt?) Are the loans sold to anothe financial institution? I have had bank loans, (mortgage, auto, personal, etc,) nothing at this level...

Trump’s Deutsche Bank Loans Appear To Be In Trouble

The president owes an estimated $340 million to Deutsche Bank—all of which is mortgaged against struggling properties.

www.forbes.com

 

[noonereal]

Do the loans get forgiven? How do the terms of the loan get changed by one party, (call in the debt?) Are the loans sold to anothe financial institution? I have had bank loans, (mortgage, auto, personal, etc,) nothing at this level...

Trump’s Deutsche Bank Loans Appear To Be In Trouble

The president owes an estimated $340 million to Deutsche Bank—all of which is mortgaged against struggling properties.

www.forbes.com

define cuts ties

 

[Rexedgar]

define cuts ties

That’s what I am asking.....

Deutsche Bank cuts ties with Trump after Capitol attack

Trump owes the bank more than $300 million.

www.politico.com

 

[noonereal]

That’s what I am asking.....

Deutsche Bank cuts ties with Trump after Capitol attack

Trump owes the bank more than $300 million.

www.politico.com

lol, good question

 

[Felis Leo]

Do the loans get forgiven? How do the terms of the loan get changed by one party, (call in the debt?) Are the loans sold to anothe financial institution? I have had bank loans, (mortgage, auto, personal, etc,) nothing at this level...

Trump’s Deutsche Bank Loans Appear To Be In Trouble

The president owes an estimated $340 million to Deutsche Bank—all of which is mortgaged against struggling properties.

www.forbes.com

I presume it means the same thing as when a credit card company cancels your line of credit when you still have a balance left owing. That does not mean you do not owe them for the borrowed money. The note still stands. They will just not lend you any more, and will expect you to pay what you owe them.

 

[Checkerboard Strangler]

The debts get sold! Are you guys really unaware of debt being sold?

 

[Rexedgar]

I presume it means the same thing as when a credit card company cancels your line of credit when you still have a balance left owing. That does not mean you do not owe them for the borrowed money. The note still stands. They will just not lend you any more, and will expect you to pay what you owe them.

Trump and Deutsche bank seem to be well acquainted ......

 

[Rexedgar]

The debts get sold! Are you guys really unaware of debt being sold?

Reread the OP.......

 

[Mr Person]

Man, that sounds just like Trump:

A Deutsche Bank representative declined to comment on the record for this story. The bank has been in a similar situation with Trump previously. In 2005, the lender agreed to extend him $640 million so that he could build a 92-story skyscraper in Chicago. Trump opened the building in 2009, while the world was still reeling from the Great Recession. One day before the Deutsche Bank loan matured, Trump sued the bank for $3 billion in damages, claiming it had helped cause the financial crisis. Eventually, the two parties made up, and the bank agreed to loan Trump more money against the property.


Take the loan before the recession, and then sue the bank for the recession the day before the loan is due for all-over business losses. What an utter shit. Still, I will allow myself some shadenfreude. His properties have been cratering since he showed the rest of America what he was in his quest for the presidency. The epidemic is wiping them (and many others out). It will be delicious if his hubris-soaked quest for office is his downfall in every way possible.

Financial, criminal, etc. He is such a rotten bastard.

 

[Felis Leo]

Reread the OP.......

I am pretty sure that it will be a cold day in Hell before the loans are "forgiven".

 

[Mr Person]

Reread the OP.......

His and Felil's post answers the OP.

No, the loans do not get forgiven. The loans must still be paid. I have to assume like checker that when a bank says it is severing ties, it isn't the one who is going to collect on the loans, but rather the entity to which that loan debt is sold will have to do the collecting. Otherwise it doesn't make sense to say "sever ties"; the bank could just refuse to loan anymore and try to collect itself.

 

[Felis Leo]

Man, that sounds just like Trump:

A Deutsche Bank representative declined to comment on the record for this story. The bank has been in a similar situation with Trump previously. In 2005, the lender agreed to extend him $640 million so that he could build a 92-story skyscraper in Chicago. Trump opened the building in 2009, while the world was still reeling from the Great Recession. One day before the Deutsche Bank loan matured, Trump sued the bank for $3 billion in damages, claiming it had helped cause the financial crisis. Eventually, the two parties made up, and the bank agreed to loan Trump more money against the property.

I know a few damn good and ruthless collection agencies here in California who I am sure would be more than happy to take that debt of Deutsche Bank's hands.

 

[Rexedgar]

I am pretty sure that it will be a cold day in Hell before the loans are "forgiven".

His and Felil's post answers the OP.

No, the loans do not get forgiven. The loans must still be paid. I have to assume like checker that when a bank says it is severing ties, it isn't the one who is going to collect on the loans, but rather the entity to which that loan debt is sold will have to do the collecting. Otherwise it doesn't make sense to say "sever ties"; the bank could just refuse to loan anymore and try to collect itself.

“All I know is what I read in the papers”-Will Rogers

Lenders forgave $287 million in unpaid debt by Trump: report

Since 2010, lenders have forgiven President Donald Trump about $287 million in debt that he did failed to repay, the New York Times reported Tuesday.

www.marketwatch.com

 

[Checkerboard Strangler]

His and Felil's post answers the OP.

No, the loans do not get forgiven. The loans must still be paid. I have to assume like checker that when a bank says it is severing ties, it isn't the one who is going to collect on the loans, but rather the entity to which that loan debt is sold will have to do the collecting. Otherwise it doesn't make sense to say "sever ties"; the bank could just refuse to loan anymore and try to collect itself.

One of the reasons I wound up owning the rights to the Leon Russell show that I sell on DVD is because the custody and ownership of the original videotapes (seen in the picture below) was awarded to the plaintiff in the lawsuit, and the debtor could not pay.



Thus if the bank cannot collect, another option might be to sue in order to take ownership of Trump's assets.
It's not common but it does happen.

 

[Mr Person]

“All I know is what I read in the papers”-Will Rogers

Lenders forgave $287 million in unpaid debt by Trump: report

Since 2010, lenders have forgiven President Donald Trump about $287 million in debt that he did failed to repay, the New York Times reported Tuesday.

www.marketwatch.com

Banks may sometimes forgive loans, but that does not mean that when Deutsche Bank says it is severing ties, it intends to forgive the loans. It certainly doesn't have to, at least.

 

[Rexedgar]

One of the reasons I wound up owning the rights to the Leon Russell show that I sell on DVD is because the custody and ownership of the original videotapes (seen in the picture below) was awarded to the plaintiff in the lawsuit, and the debtor could not pay.

View attachment 67313130

Thus if the bank cannot collect, another option might be to sue in order to take ownership of Trump's assets.
It's not common but it does happen.

My buddy never lets an opportunity to post his mug go to waste......

 

[Chagos]

The debts get sold! Are you guys really unaware of debt being sold?

Unloading that stuff onto other entities may be the most desired path of Deutsche to extract itself from any brouhaha that would get it more public scrutiny (especially by its shareholders), the question nevertheless remains of who would want to touch this kind of toxicity.

Toxicity not only in the sense of what such debt is actually worth on merit of existing collateral or its bleak economic outlook in actually coughing up enough to settle the debt, but also on the by now totally negative public image of who signed it in the first place (which Trump did personally).

Also there may still be, once the loans become due in two years time, a reluctance by many to get into the crapfest of seizing assets from DJT (personally) by any company primarily based in the US.

OTH DJT no longer being sitting president as of next week may dissipate any related forebodings in that respect that Deutsche has always held while he was "sitting".

One thing that won't happen (to underline points that you and Person already made) is the debt being forgiven.

P.S. An additional shadow for Deutsche will probably lie in a Democrat led majority in all three locations (WH, House and Senate) rejuvenating investigation into the whole money laundering suspicions arising from the Trump-Deutsche relationship. If, as one may expect, Trump gets dragged thru any court on that issue (not to mention the never totally refuted Russian financial angle), getting as far away from him asap may be of urgency for Deutsche. That probably won't eradicate any heat of scrutiny but may lessen it (they hope),

 

[Luce]

They will sell the marker to some guy named Dmitri in Pskov.

 

[Peter]

If average Americans can't escape student loan debts even through bankruptcy then we should expect a President to be forced to pay back every penny they owe.

 

[Kushinator]

I know a few damn good and ruthless collection agencies here in California who I am sure would be more than happy to take that debt of Deutsche Bank's hands.

Not if the last lender has to settle for 50 cents on the dollar.

 

[Felis Leo]

Not if the last lender has to settle for 50 cents on the dollar.

The collections firms I know who have gone after my clients and chased them to my door do not settle. These darlings collect money like their children’s cancer treatment depends on it. You give them their money. All of their money. Period. Otherwise they sue and go for execution of wage garnishments, bank levies and judgment liens which chase you for decades. And heaven help you if you signed a promissory note against actual real estate pledging it as collateral like Trump did. You have doomed yourself. They would eat Trump’s lunch.

 

[Court Jester]

One of the reasons I wound up owning the rights to the Leon Russell show that I sell on DVD is because the custody and ownership of the original videotapes (seen in the picture below) was awarded to the plaintiff in the lawsuit, and the debtor could not pay.

Thus if the bank cannot collect, another option might be to sue in order to take ownership of Trump's assets.
It's not common but it does happen.

Those are some pretty old analog 2 inch Quad tapes.. I hope you were able to successfully get them dumped off to a safe digital format before they shredded and fell apart?

I once had a client who owned rights to some content from a popular TV variety show from the '60s that was on Qaudruplex masters---and they were the only masters. But when he contracted a post production facility and asked them to provide him some reference tapes with a timecode window burn in across the middle for security (at the time 3/4 inch U-matic cassettes), as it turned out that is all he ended up with as those old Qaud tapes only had "one pass" left in them after the machine pretty much shredded most of the remaining oxide off of those old masters.

Those 2 inch tapes are pretty heavy. Anyone who has ever dropped one on their toe knows.

 

[Checkerboard Strangler]

Those are some pretty old analog 2 inch Quad tapes.. I hope you were able to successfully get them dumped off to a safe digital format before they shredded and fell apart?

I once had a client who owned rights to some content from a popular TV variety show from the '60s that was on Qaudruplex masters---and they were the only masters. But when he contracted a post production facility and asked them to provide him some reference tapes with a timecode window burn in across the middle for security (at the time 3/4 inch U-matic cassettes), as it turned out that is all he ended up with as those old Qaud tapes only had "one pass" left in them after the machine pretty much shredded most of the remaining oxide off of those old masters.

Those 2 inch tapes are pretty heavy. Anyone who has ever dropped one on their toe knows.

The Deep Freeze Story

The above doesn't even include my later adventures at DC Video in Burbank in 2016.
But yes, exactly as you said, and we baked and baked and baked to coax one more pass out of the 45 year old tapes.

 

[Chomsky]

Man, that sounds just like Trump:

A Deutsche Bank representative declined to comment on the record for this story. The bank has been in a similar situation with Trump previously. In 2005, the lender agreed to extend him $640 million so that he could build a 92-story skyscraper in Chicago. Trump opened the building in 2009, while the world was still reeling from the Great Recession. One day before the Deutsche Bank loan matured, Trump sued the bank for $3 billion in damages, claiming it had helped cause the financial crisis. Eventually, the two parties made up, and the bank agreed to loan Trump more money against the property.


Take the loan before the recession, and then sue the bank for the recession the day before the loan is due for all-over business losses. What an utter shit. Still, I will allow myself some shadenfreude. His properties have been cratering since he showed the rest of America what he was in his quest for the presidency. The epidemic is wiping them (and many others out). It will be delicious if his hubris-soaked quest for office is his downfall in every way possible.

Financial, criminal, etc. He is such a rotten bastard.

Yeah, it's kinda' hard to not want to see him get screwed - I must admit.

 

[upsideguy]

Do the loans get forgiven? How do the terms of the loan get changed by one party, (call in the debt?) Are the loans sold to anothe financial institution? I have had bank loans, (mortgage, auto, personal, etc,) nothing at this level...

Trump’s Deutsche Bank Loans Appear To Be In Trouble

The president owes an estimated $340 million to Deutsche Bank—all of which is mortgaged against struggling properties.

www.forbes.com

Cutting ties does not mean the loans are forgiven, its only there will be no new loans and likely no other banking relationships.

Depending on the terms of the loan, the bank may call it (its due immediately) or it just continues to service the loan (collect payments). If the terms of the agreement give the bank the right to sell the note, they may do so, but it would be at a discount, but if the bank wants out, it wants out. Normally, however, the debtor just continues to pay and the creditor continues to collect. Commercial loans often contain a material adverse change clause which gives the bank the right to call the note if they become uncomfortable with the debtors ability to pay. What constitutes a material adverse change is defined in the note, but sometimes it includes the bank just being nervous about the debtors ability to pay.