Can a bank automatically take a house payment out of your checking account?

Question

I am late on making the payment. The banker took it upon himself to wipe out my savings and overdraw my savings to make the house payment. When I went in to ask about it, he told me they do it all the time and he basically doesn't have to explain to me why they can. Is this a normal thing or does this guy really not know what he's talking about?

Answer 1

Yes. It's called the right of setoff. It should be in your contract. The problem is, most people do not read it before they sign it because it's usually 2 or 3 pages long

Answer 2

you should make your house payment 1st anyway...

Answer 3

yes they have the right to collect on the debt it does happen all the time