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Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 118688
Experience:  Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
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I have a business loan with a building attached to the loan.

Customer Question

Hi, I have a business loan with a building attached to the loan. I previously contacted my bank because they were taking payments out monthly for awhile then all of a sudden they started taking payments out of my personal account, plus my kids account. In June I was on the phone with the back for over an hour trying to speak to someone in the right department. They also had trouble trying to locate my loan information because they have a tax ID that is either incorrect or old. Plus the invoice I receive with the account information on it has large gaps in the account number that actually represent zeros. Since I couldn't get the proper person to help with this someone finally contacted me from PNC collections department.
JA: Has any paperwork been filed?
Customer: Not that I know of. I just received this email.As to the refinance. This is the 2nd time your loan has ended up my collections department. Due to that the loan can’t be transferred back to the branch level and will need to be paid in full per a refinance. The bank can give you until 11/30/17. Your balance is $38,000. The property value is around $200,000 but will know a better value once the appraisal is completed. You should have no issues with a refinance due to the property value and the business.
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: Pennsylvania
JA: Anything else you want the lawyer to know before I connect you?
Customer: no
Submitted: 1 month ago.
Category: Real Estate Law
Customer: replied 1 month ago.
I also wanted add that payment were made 3 days after email because I explain to the collections department that we were locked out of our online banking account. So the loan status right now is current. I have not contacted the appraiser.
Expert:  Law Educator, Esq. replied 1 month ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

Customer: replied 1 month ago.
You're welcome
Expert:  Law Educator, Esq. replied 1 month ago.

If you were current on your loan at all times and were making automatic payments, then the bank caused those payments to cease from some banking error, the bank is liable for breach of contract. The bank also had no legal right to touch your personal accounts as long as payments were being made automatically and there were sufficient funds in the business account.

So this would be a breach of contract issue and the cause of you ending up in collections was the bank's own error, which means you would have grounds to sue the bank for damages and need to first try to use a bank VP or supervisor to try to straighten out this issue, but if that fails you would need to sue them for breaching the contract with you, since their negligence caused this to occur and it was not because you did not have money in the business account and were not paying, it was the bank's own error.

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