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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?

Brandon Scott

in Student Loans

1 answer

1 answer

Alexa Spicer on November 7, 2018

If your father is the only one that signed the loan, and the title of the property resides in that both (mother and father) names "as joint tenants"...about meur the father's death, the title automatically belongs to your mother and she becomes the sole owner of the property. Since she did not co-sign (if in fact, she did not), the bank can run after the property as it automatically became your mother's property, however, if your mother co-signed as well...she have no way out, but are forced to pay your borther of the debt or charge for forcing his mother to sell the house, etc...

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