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My parents put their house up as collateral on a business loan for my brother. The loan is in default. If my father dies how will the loan be satisfied?
Wiki User
∙ 14y ago
If your father is the only one who co-signed for the loan, and the title to the property is vested in both of their (your mother and father) names "as joint tenants"...upon your father's death, the title automatically belongs to your mother and she becomes the sole owner to the property. Since she did not co-sign (if in fact, she did not), the bank cannot run after the property as it automatically became your mother's property, however, if your mother co-signed as well...she will have no way out, but be forced to pay your borther's debt or collect by forcing your mother to sell the house, etc...
Wiki User
∙ 14y ago
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If I default on my personal loan agreement, can they repossess my collateral?
Your property can be subject to repossession if you default on a loan. This can be the case if you put up part of your collateral as a guarantee for your loan.
Can I Really Get A Small Business Loan If I Have No Collateral But Have Excellent Credit Rating?
It's very difficult to do. Banks want collateral, just in case you default on the loan.But...The Small Business Administration does underwrite low and no interest loans for new start up small businesses with no collateral.
What is the difference between security and collateral security?
Security is broader, including guarantees etc. Collateral is something specific that can be seized upon default, like a house, car, or shares.
What is collateral agreement?
A collateral is nothing but any asset (Bank deposits, your house, jewels, machinery etc) that the bank can convert to cash by selling it if you default on your loan repayment. The presence of a collateral enhances your credit profile and improves the chances of your getting the loan. An agreement wherein, the loan customer accepts to the conditions of the loan granting banks control over the collaterals is termed as a collateral agreement
Can you get a loan offering gold coins or CD as collateral in Canada?
Yes, many lenders in Canada offer loans backed by gold as collateral. The amount of the loan allowed as a percentage of the current market value of gold can vary based on the risk that a lender is willing to take. For example, if a lender allows a loan of $1,000 for gold currently worth $1,200 and the price of gold drops sharply causing the collateral to decline in value to less than the loan amount, the borrower would have an incentive to default on the loan. There are also risks involved for the borrower putting up gold as collateral. For example, the lender could go out of business and the borrower may be unable to redeem the collateral.
If I default on my personal loan agreement, can they repossess my collateral?
Your property can be subject to repossession if you default on a loan. This can be the case if you put up part of your collateral as a guarantee for your loan.
Can I Really Get A Small Business Loan If I Have No Collateral But Have Excellent Credit Rating?
It's very difficult to do. Banks want collateral, just in case you default on the loan.But...The Small Business Administration does underwrite low and no interest loans for new start up small businesses with no collateral.
What are a secured partys rights on a debtors default?
The secured party's right after default includes taking possession of the collateral of the debt. If the collateral does not cover the full amount of the debt than a judgment can be placed on the debtor to get the remaining money.
What circumstances other than overdue payment permit a creditor to repossess collateral?
The answer to this question depends on your contract terms. Usually, a contract will spell out what constitutes a default. The contract should also say that if you default, they can repossess the collateral.
What is collateral security?
PLACING SOMETHING OF VALUE DOWN AS A GUARANTEE OF PAYMENT ,WHICH YOU WILL LOSE IF YOU DEFAULT .
How long can a collector attempt to collect on a repo car?
As long as it is collateral for a loan in default.
Does collateral estoppel prevail and be upheld when default judgment is entered in a prior case of same issues?
Collateral estoppel may still apply in subsequent cases even if a default judgment was entered in a prior case on the same issues. However, the court will need to determine if the default judgment resulted from a deliberate decision not to contest the issues, which could impact the application of collateral estoppel.
What happens if a loan is in default and the co-signer who put up the collateral is deceased?
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
Can credit union hold title on car if car used as collateral and loan is default?
Yes. That's why the credit union has possession of the title. If you used the car as collateral for a loan and default on the loan the lender will take possession of the car and sell it to offset what you owe on the loan.
What is the difference between security and collateral security?
Security is broader, including guarantees etc. Collateral is something specific that can be seized upon default, like a house, car, or shares.
What is the different between security and collateral security?
Security is broader, including guarantees etc. Collateral is something specific that can be seized upon default, like a house, car, or shares.
Can they repossess your car the day after they receive a partial payment?
As long as you are in DEFAULT of the contract, the lender can repo the collateral.
