Can a bank recall a fixed mortgageloan if the mortgagee is doing all the right things, i.e., paying on time, etc. I've been told they can.
In loan agreements, there are "event of default" clauses. If a borrower engages in conduct that constitutes an event of default, the contract gives the lender the right to accelerate the debt and declare the entire balance of the loan immediately due and payable. The short answer to the question of whether a lender could "call" a loan (demand immediately payment of the full balance) even if the loan payments are current, is yes -- if there is an event of default.
For example, let's say the contract forbids the disposal of hazardous waste on the property and indicates that breach of that clause would constitute an event of default. The lender learns that you're manufacturing something in your shed out back that is a major pollutant, likely to bring the EPA running. They can call the loan. Misrepresentation is another example of an event of default. Read your loan agreement carefully, so that you understand the events of default to which you have agreed.
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In loan agreements, there are "event of default" clauses. If a borrower engages in conduct that constitutes an event of default, the contract gives the lender the right to accelerate the debt and declare the entire balance of the loan immediately due and payable. The short answer to the question of whether a lender could "call" a loan (demand immediately payment of the full balance) even if the loan payments are current, is yes -- if there is an event of default.