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What happens when the cosigner dies and the loan is in default?

Samantha Barber

in Student Loans

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Deborah Edwards on August 18, 2018

If the account was secured by what ever was purchased, then it is likely to be repossessed, and regular collection procedures will begin to collect any remaining balance. If tthat account is not secure, collections will begin against the guarantor or main account. It is possible that the guarantor may be able to obtain all or part of the debt covered by any funds available from the assets of the guarantor, but this will probably require the assistance of a real estate attorney.

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