The loan, including ancillary claims, is due for repayment immediately and without notice. In particular, the Lender is entitled to terminate the loan for good cause without notice. automatically at the statutory notice period of three months. The loan agreement should also include a notice period.
Cancel and get out of expensive term loans?
Expensive home loans can be terminated or canceled with the so-called cancellation joker: Forward Loans and Forward Interest Rate Agreements – what is important? 1.2
The prospects are good (see part 2). There are two types of forward arrangements: pure forward interest rate agreements (for short-term loans) – reproduced here in Part 1. First, the forward interest agreement or forward condition agreement is discussed here. Example: In 2001, the Fam. Mustermann bought a home and completed a mortgage in a branch office. The loan has a remaining term of 35 years, the interest is initially fixed until 31.12.2011 (fixed interest period 10 years).
Instead of a renegotiation of the conditions with the house bank at the end of 2011, the Fam. Mustermann has already set the interest rates at the end of 2009 for 5 years from 01.01.2012 to 31.12.2016. Since this agreement was geared towards future development in 2009, it is referred to as a forward interest rate transaction.
Now the question arises as to whether the entrepreneurial family of Mustermann could possibly attack this forward interest agreement with the withdrawal joker, since interest rates have fallen since 2009. Some consumer and lawyer attorneys felt that redefining the terms earlier than agreed in the contract (here, in 2009 rather than shortly before the 2011 fixed interest rate expires) would lead to a separate statutory right of termination – which would have led to the revocation of the loan would have been possible with the cancellation jury, solely because in the Forward Conditions Agreement, if any contradictory instruction was missing or an erroneous declaration of revocation would have been issued.
Pure forward interest rate agreement
A pure forward interest rate agreement or a pure forward condition agreement can therefore generally not be challenged by the revocation of a loan. Be sure to make a distinction: Real Forward Loan (the ways of withdrawing Joker are usually particularly good there, see Part 2 of this post). The cancellation wild card can not be used by the Fam. Mustermann in the example case: Compared to the Forward Conditions Agreement 2009 there is no statutory right of revocation (see the aforementioned applicable case law).
And what can the entrepreneurial family Mustermann do today? Either the entrepreneurial family Mustermann can wait until the end of 2016 and then reset the interest rate. Even today, the entrepreneurial family Mustermann concludes a forward contract, which already sets the conditions on 01.01.2017. Incidentally, even with contracts from mid-2010, the credit often be revoked today – this concerns especially the distance contracts (ie – where, for example, everything is sent by letter, fax or e-mail), but also the forwarding of loans.