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What happens if a loan is in default and the co-signer who put up the collateral is deceased?
Wiki User
∙ 19y ago
The person who was "cosigned for" is still liable and the collateral is still collateral, it's just owned by the estate now. Same laws still apply
Wiki User
∙ 19y ago
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What happens if a loan is in default and is deceased but has a co signer?
The cosigner now owes for the loan.
What happens to the cosigner if you are in chp 7 bankruptcy and you default on your car loan?
If you default on your loan, the cosigner is stuck with paying it off. If your credit had been any good in the first place, you would not have needed a cosigner.
What happens when a loan is cosigned and the borrowers file bankruptcy but the cosigner is deceased?
The loan would be part of the bankruptcy filing. I can't see how the death of the cosigner is significant. (In financial terms, that is.)
If you are a cosigner for someone and they default on the payments and the cosigner pays the debt off can you have the past due amount removed from your credit report?
No, you signed, you are equally responsible for the payments, you are also equally responsible for what happens with regard to default. This is why the lender permitted you to sign as a co-securer of the original loan.
What happens if cosigner stops making payments?
The other signer must make the payments or the loan will go into default, the property will be taken and your credit will be ruined.
What happens to a bank loan when a person dies?
If the loan is secured, then the collateral is returned to the bank. If the loan is unsecured, like a credit card, then the bank submits the balance to the estate of the deceased.
What happens to your cosigner if the borrower defaults on private loans?
The creditor wil try to get the debt from the cosigner as well.
What happens to a cosigner of a car loan when the primary loan holder files bankruptcy and the loan is discharged and they do a voluntary repossession?
They can still come after the cosigner, and it will still reflect poorly on your cosigner's credit history. You have been absolved of the debt, not your cosigner.
What happens if you default on IRS payment plan?
If you default on an IRS payment plan, you will be subject to liens (the selling of your mortgaged or collateral property, such as your house or car) or levys (seizure of your property or financial assets). For this reason, it is important to notify the IRS as soon as you find out you will not be able to make a payment, so that they can explain your options to you.
If the cosigner of a auto loan files bankruptcy and the borrower can't make payments what happens to the auto and the balance of the loan?
Really simple: The loan goes into default and the car gets reposessed. In many car loans, the language in the contract ensures that in the event of default, the lender doesn't need to provide any more consideration and can take the car without worrying about the money left when default occured.
What happens if my cosigner doesn't want to be my cosigner anymore?
It depends on whether they've already co-signed or not. If so, too bad for them. If not, too bad for you.
What happens when a car is repossessed and you are the cosigner?
You will also be liable for any deficiency balance
