Absa Bank

[DarkDemon]

I received a phone call today, saying that Absa Bank is in trouble??? does anyone know of anything?

 

[Kosmik]

I received a phone call today, saying that Absa Bank is in trouble??? does anyone know of anything?

Not that I'd be surprised in this current climate but I would think that they were one of the more stabler banks. Implemented stricter policies with regards to loans and loan extensions, Barclay's in england also rather sold certain assets than take out loans against themselves. Can't see anything on the net though. Maybe one of the share price watchers on the forum can give us the day's movement?

 

[ZA.Schmidt]

They are in trouble. All of them are.

 

[supersunbird]

They are in trouble. All of them are.

Even with all those cash reserves from ripping us a new one?

 

[syntax]

yes its about to close down and they decided to notify you first....

 

[sox63]

I would bet Barcleys would be, but not ABSA.

The reason SA banks have not been subjected to global trends is that they have been SO profitable (and we all know why) that it did not make sense to engage in riskier lending practices.

 

[TheShogun]

The SA Banks are by no means in trouble.
Over the last financial year they've all grown and made money.
FNB even made a good profit despite the Dealstream loss.

All the banks are busy going through cost cutting exercises in an effort to streamline their profit but none of them are going to go bankrupt.

 

[daveza]

They are in trouble because the MBB evildoers revealed their money-grabbing secrets.

I could care less if they died before the sun went down.

 

[LazyLion]

All of you ABSA clients should go and draw all your money out immediately!

 

[supersunbird]

All of you ABSA clients should go and draw all your money out immediately!

Thanks for causing a run on the bank...

 

[LazyLion]

Thanks for causing a run on the bank...

I didn't start it... the phone call started it!

 

[Fuma]

Say you have a bond with ABSA, and they go bankrupt. What will happen to your house? Free house

 

[daveza]

They already took ours.

 

[LazyLion]

Say you have a bond with ABSA, and they go bankrupt. What will happen to your house? Free house

um, no it is not that simple... if a bank goes bankrupt, it is because it could not pay its investors or creditors. The money that you owed on your house would then be owed to them.... and since they have no agreement with you, they have no obligation to honour any arrangements you might have with your bank.

 

[supersunbird]

um, no it is not that simple... if a bank goes bankrupt, it is because it could not pay its investors or creditors. The money that you owed on your house would then be owed to them.... and since they have no agreement with you, they have no obligation to honour any arrangements you might have with your bank.

And you have no reason to honour any arrangement they might have had with the bank...

 

[sox63]

um, no it is not that simple... if a bank goes bankrupt, it is because it could not pay its investors or creditors. The money that you owed on your house would then be owed to them.... and since they have no agreement with you, they have no obligation to honour any arrangements you might have with your bank.

I dont think so, as your relationship is governed by a contract. If you made an arrangement to pay back some instalments you missed yes, but not the loan agreement itself.

 

[Fuma]

um, no it is not that simple... if a bank goes bankrupt, it is because it could not pay its investors or creditors. The money that you owed on your house would then be owed to them.... and since they have no agreement with you, they have no obligation to honour any arrangements you might have with your bank.

So will these investors or creditors let me continue paying my 20 year loan?
Surely they can't take "my" house if I have been regularly paying the bank?

 

[LazyLion]

And you have no reason to honour any arrangement they might have had with the bank...

other than paying off the loan... no. Remember, when a creditor buys or inherits the debt from the bank, they inherit all the terms along with the whole contract. You are still obligated, but they are not bound to continue honoring the terms of the contract. If you want out of the contract you can... just pay off the loan.

Try and default on the payments and find out what kind of terms they will impose on you.

When this recently happened in the USA, people's payment terms actually went up.... many did lose their homes.

 

[LazyLion]

I dont think so, as your relationship is governed by a contract. If you made an arrangement to pay back some instalments you missed yes, but not the loan agreement itself.

ja, sorry... you are right... the contract still stands. They buy or inherit the contract as a whole. If they default though, you will still be liable for the value of the loan. They will probably then re-negotiate new payment terms with you.

 

[supersunbird]

other than paying off the loan... no. Remember, when a creditor buys or inherits the debt from the bank, they inherit all the terms along with the whole contract. You are still obligated, but they are not bound to continue honoring the terms of the contract. If you want out of the contract you can... just pay off the loan.

Try and default on the payments and find out what kind of terms they will impose on you.

When this recently happened in the USA, people's payment terms actually went up.... many did lose their homes.

Theire payment went up due to the structure of the loans. Anyway, I'm sure the credit act will kick any such BS.

Of course you have to pay the new owner but they cannot just change all the terms.