legal responsibilities of deceased cosigner on private stude

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Icon Mini Profile mtbm





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Post Posted: Tue Nov 11, 2008 11:28 am    Post subject: legal responsibilities of deceased cosigner on private stude
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legal responsibilities of deceased cosigner on private student loan...my father cosigned a private student loan with a granddaughter. he died in may and the loan will come due in dec. does his estate have any responsibility to repay this loan
Icon Mini Profile gmakerley
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Post Posted: Tue Nov 11, 2008 11:33 am    Post subject:
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i don't believe i have ever heard of an estate being held responsible for a debt cosigned before.

it would be rather absurd and perhaps even a heinous act for the lender to seek repayment from an estate in the event of default. not only that, but the obligation wouldn't even go into default until well after the death, to begin with (if ever).

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Post Posted: Wed Nov 12, 2008 3:30 am    Post subject:
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Hi mtbm!

It is the primary borrower's responsibility to pay off the loan. A co-signer's responsibility is pay off the debt only when the primary borrower is unable to do so. You have mentioned that the co-signer is dead. In that case, the primary borrower (grand-daughter) is liable to pay off the debt. In case, if she fails to pay it off, neither the deceased co-borrower's estate not his heirs will be responsible to pay it off.

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brenda

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Post Posted: Mon Jun 15, 2009 8:02 am    Post subject: borrower and coborrower
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If the borrower is deceased is it the the coborrowers responsibility to pay the loan. Loans in question, mortgage and home equity loan.
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Post Posted: Mon Jun 15, 2009 8:24 am    Post subject:
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yes, brenda. when a person cosigns a loan, that person becomes fully obligated to make payments. it is not simply a back-up plan for a primary borrower neglecting to make payments. that's how we as a society treat it, yes; but truly a cosigner is just as liable as a borrower. in the instance you cited, the only remedies are to sell the home or to have the cosigner make payment.
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Katrina

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Post Posted: Sun Jul 19, 2009 8:48 am    Post subject: same situation as mtbm
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I am in a similar situation as the person at the start of this thread. My grandfather cosigned private student loans for me. So as the answers to this thread state, I should be the sole person resposible for paying of these loans. Will anything happen in probate due to these debts? How should I tell my lenders if at all that he died?

My other question is on the promissory note it says, the loan will go into default and the whole amount of the loan will be due if I or the cosigner dies...does that mean I will have to pay the whole amount of the loan upfront because my cosigner died? Or is it when we are both dead (and just FYI I have plenty of life insurance for this reason!)?

Please help! Thank you
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Post Posted: Mon Jul 20, 2009 7:37 am    Post subject:
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katrina, you obviously won't have to worry about this debt at all when your time to meet your Maker comes, so don't worry about it now, either.

regardless of that payable on death clause in your note, don't concern yourself with that, either. if you maintain payments, they'll never demand payment in full all at once.

you asked, "how should i tell my lenders if at all that he died?" - again, nothing to concern yourself with. if they ask you, i suppose you could make mention, but they won't ask you. the probating of his estate ought not to be a concern either.

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Post Posted: Sun Oct 04, 2009 3:22 pm    Post subject: co signer
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I guess I just want to be sure, my husband cosigned on my sons house, and he is ill with cancer. If he passes away am I as his wife responsible if my son defaults on his house payments?
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Post Posted: Mon Oct 05, 2009 12:01 am    Post subject:
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Hi ccful!

Welcome to forums!

If your husband co-signed for the loan, then he would be responsible for the mortgage payments in case your son defaults the loan. However, after his death, you won't be liable for the loan payments as you did not co-signed the loan. Your son will have to pay off the dues or else the lender would foreclose the property.

Feel free to ask if you've further queries.

Sussane
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Post Posted: Mon Oct 05, 2009 8:10 am    Post subject:
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precisely.
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Post Posted: Mon Dec 06, 2010 2:50 pm    Post subject: cosigner death
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purchased a mobile home in a park had a cosigner 3 weeks later the cosigner passed away one rlitive said i will loose my home to the estate
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Post Posted: Mon Dec 06, 2010 10:00 pm    Post subject:
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Hi sandie!

Welcome to forums!

If you are the primary owner of the property and pay off the mortgage dues on time, then I don't think you will lose the property.

Sussane
John P

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Post Posted: Wed Dec 22, 2010 11:22 am    Post subject: Co-signer
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I co-signed on a loan for my dad a mobile home. He passeed away in May 2005 and now this is showing on my credit report as a "judgement". Am I responsible for this even though they came & got the trailer & he is deceased
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Post Posted: Wed Dec 22, 2010 9:09 pm    Post subject:
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Hi John!

Welcome to forums!

As you were the cosigner, you were equally liable for the mortgage. After your father passed away, the lender may have foreclosed the property and you're responsible for paying the deficient amount resulting from the property sale. You may not have paid the balance amount and thus, the lender may have filed a lawsuit and got a judgment against you.

Feel free to ask if you've further queries.

Sussane
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Post Posted: Wed Mar 09, 2011 3:07 pm    Post subject:
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I don't want to beat a dead horse, but I am looking for advice in a similar situation.

My father co-signed on a home mortgage for my brother. My father passed away about a year ago. My brother is now pursuing bankruptcy.

My mother is concerned that she will be liable for the mortgage because she’s responsible for dad’s “estate” and the bank will demand repayment from her or any assets still in dad’s name (her current home, his pension, etc.).

If it matters, this is specific to Indiana.

Should she be concerned?

Either way, how can I find any pertinent laws to have a concrete answer?
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