Posted on: 19th Nov, 2008 03:53 pm
how is a loan obligation removed from a property when one of the lenders has passed away?...i have a loan from a private party, which was given by a married couple. since that time, one spouse has passed away, and the surviving spouse would like to remove that loan from property and create different arrangements with me. does the surving spouse simply need to sign a quit claim deed and have that recorded in the appropriate county? will a death certificate need to be referenced or are there any other issues which need to be taken into consideration prior to my agreeing to restructure the loan?
Welcome 411mesquite,
A death certificate may be required when the loan will be restructured. But as it is a private loan transaction, I would advise you to read through the new documents that may be offered to you. It's important that the surviving spouse take help of an attorney in drafting the new agreement for restructuring of the loan.
"Does the surviving spouse simply need to sign a quit claim deed and have that recorded in the appropriate county?"
This is required for transfer of property. But when it's about loan transfer, quit claim deed does not work.
A death certificate may be required when the loan will be restructured. But as it is a private loan transaction, I would advise you to read through the new documents that may be offered to you. It's important that the surviving spouse take help of an attorney in drafting the new agreement for restructuring of the loan.
"Does the surviving spouse simply need to sign a quit claim deed and have that recorded in the appropriate county?"
This is required for transfer of property. But when it's about loan transfer, quit claim deed does not work.