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If spouse dies is the surviving spouse obligated to pay the loan?
Wiki User
∙ 9y ago
The estate must repay the loan before assets are inherited. Otherwise, only if they cosigned.
Wiki User
∙ 9y ago
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Can a surviving spouse negotiate final payment on a home equity loan that they were not a borrower for?
Yes, however, the answer depends on specific situations associated with the partnership/marriage and the state in which they live in. If the state is a communal property state and the surviving spouse that is not a borrower had ANY benefit from the loan, that spouse owes the money as a borrower (despite not being a borrowing party on the loan). In this case, if the surviving spouse is not in a position to pay for the loan, a negotiation would be warranted soon after the (within a month or two of) deceased spouses death. If the state is a non-communal property state, the estate of the deceased spouse will first be looked to in order to provide the funds to pay off all debts. If there are enough assets to cover the debt, the loan will be paid in full, regardless of the surviving spouse's wishes as the lender's rights come before those that may be beneficiaries to any estate proceeds. If there are not enough assets to cover the loan, the lender may look to liquidate the asset (the surviving spouse's home) in order to satisfy the debt. If the home is NOT in the surviving spouse's name (either through joint tennancy or named ownership), the surviving spouse may not be able to intervene.
Is a cosigner's spouse responsible for the loan if he dies?
No you are not responsible but if your step daughter does not pay the loan they can still repossess the vehicle.
Is a surviving spouse who did not sign responsible for a loan the deceased cosigned?
The spouse would only be responsible if they lived in a community property state. Even then it is doubtful the contract would be valid if there were an attempt to collect the debt.
Is the surviving spouse responsible for deceased spouses real estate loan in the state of Illinois?
It depends on whether they were listed on the deed. Most courts would rule that the spouse benefited from the debt and can be held responsible. The estate has to sell the property or settle the loan before she can inherit anything.
What if the spouse dies and there is still a lien on the house but both parties signed the mortgage?
Most lenders will allow you to continue to make the payments as the loan is. Some may modify the loan. As long as you can continue the payments, you will be ok.
If a spouse dies and has a loan out with the bank is the surviving partner responsible for the debt?
Only if the couple reside in a community property state and that is where the financial transaction took place.
Will the surviving spouse's credit rating be affected by the repossession of the deceased spouse's car?
AnswerIf the surviving spouse was not a joint borrower on the vehicle loan the repossession affect/appear on their credit report.
Does a spouse have to pay back a loan of a deceased spouse if they are not a joint holder of the loan?
Depends on the state you live in. * If the married couple resided in a community property state the surviving spouse might be held accountable for the debt even though the loan was only in the name of the deceased spouse. In all other states the surviving spouse is not responsible for debt that is incurred solely by a living or deceased spouse.
Is surviving spouse liable for foreclosure in Pennsylvania after death of spouse?
If the loan was in both of your names, yes. That is your foreclosure also.
Does the surviving spouse have to repay a home equity loan if they are not listed as a borrower on the loan?
Yes in community property states and maybe in non-community property states. If the state is a communal property state and the surviving spouse that is not a borrower had ANY benefit from the loan, that spouse is responsible for repayment (despite not being a borrowing party on the loan). If the state is a non-communal property state, the estate of the deceased spouse will first be looked to in order to provide the funds to pay off all debts. If there are enough assets to cover the debt, the loan will be paid in full, regardless of the surviving spouse's wishes as the lender's rights come before those that may be beneficiaries to any estate proceeds. If there are not enough assets to cover the loan, the lender may look to liquidate the asset (the surviving spouse's home) in order to satisfy the debt. If the home is NOT in the surviving spouse's name (either through joint tennancy or named ownership), the surviving spouse may not be able to intervene.
What is the responsibilty of a surviving spouse regarding repayment of bank loan taken out by deceased spouse without her knowledge?
You should talk to a lawyer because laws are different, but in general the spouse shares liability for the loan.
Is a surviving spouse liable for payment of debt on a loan cosigned only by the deceased spouse in Kentucky?
No, Kentucky is not a community property state.
What happens if you are a borrower and the co-signer dies?
If the co-signer dies the surviving borrower is responsible for paying the loan.
Can a surviving spouse negotiate final payment on a home equity loan that they were not a borrower for?
Yes, however, the answer depends on specific situations associated with the partnership/marriage and the state in which they live in. If the state is a communal property state and the surviving spouse that is not a borrower had ANY benefit from the loan, that spouse owes the money as a borrower (despite not being a borrowing party on the loan). In this case, if the surviving spouse is not in a position to pay for the loan, a negotiation would be warranted soon after the (within a month or two of) deceased spouses death. If the state is a non-communal property state, the estate of the deceased spouse will first be looked to in order to provide the funds to pay off all debts. If there are enough assets to cover the debt, the loan will be paid in full, regardless of the surviving spouse's wishes as the lender's rights come before those that may be beneficiaries to any estate proceeds. If there are not enough assets to cover the loan, the lender may look to liquidate the asset (the surviving spouse's home) in order to satisfy the debt. If the home is NOT in the surviving spouse's name (either through joint tennancy or named ownership), the surviving spouse may not be able to intervene.
In California is the surviving spouse responsible for deceased husbands auto loan?
The estate is responsible for the loan. If the spouse wants to keep the car, they may have to assume the loan, if the bank allows them to. Otherwise the vehicle may have to be sold.
Does a spouse have to repay student loans after the person with the loans dies?
The student loan should be paid out of the estate of the deceased before it is distributed to the spouse. If there isn't enough to cover the debt, the spouse should not be held responsible for the balance, unless both people signed the loan. Many people misunderstand who pays the outstanding debt. The surviving spouse does not pay the debt, but it comes out of the estate before distribution.
Is a cosigner's spouse responsible for the loan if he dies?
No you are not responsible but if your step daughter does not pay the loan they can still repossess the vehicle.
