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legal responsibilities of deceased cosigner on private stude

Posted on: 11th Nov, 2008 10:28 am
legal responsibilities of deceased cosigner on private student 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
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).
Posted on: 11th Nov, 2008 10:33 am
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.


Posted on: 12th Nov, 2008 02:30 am
if the borrower is deceased is it the the coborrowers responsibility to pay the loan. loans in question, mortgage and home equity loan.
Posted on: 15th Jun, 2009 08:02 am
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.
Posted on: 15th Jun, 2009 08:24 am
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
Posted on: 19th Jul, 2009 08:48 am
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.
Posted on: 20th Jul, 2009 07:37 am
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?
Posted on: 04th Oct, 2009 03:22 pm
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.

Posted on: 05th Oct, 2009 12:01 am
Posted on: 05th Oct, 2009 08:10 am
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
Posted on: 06th Dec, 2010 01:50 pm
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.

Posted on: 06th Dec, 2010 09:00 pm
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
Posted on: 22nd Dec, 2010 10:22 am
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.

Posted on: 22nd Dec, 2010 08:09 pm
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 and the bank will demand repayment from her or any assets still in das 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?
Posted on: 09th Mar, 2011 02:07 pm
Hi Marp,

I don't think your mother should be concerned about it. Nevertheless, it is better to contact a real estate attorney and take his/her opinion in this matter.
Posted on: 09th Mar, 2011 09:41 pm
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