Posted on: 20th Oct, 2010 05:51 pm
My father has passed away leaving his estate in Ohio to 4 children.
He had cosigned on my sisters mortgage on her house in Ohio and she has missed payments.
Is my fathers estate liable for her payments and what happens if she goes into forclosure??
He had cosigned on my sisters mortgage on her house in Ohio and she has missed payments.
Is my fathers estate liable for her payments and what happens if she goes into forclosure??
Hi j4m1e!
Welcome to forums!
As your father was the cosigner to the loan, the estate will be liable for the loan payments if your sister is unable to do so. After a foreclosure, your sister will be liable for paying the balance amount resulting from the property sale. She will have to pay off the deficient balance or ask her lender to forgive the dues.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As your father was the cosigner to the loan, the estate will be liable for the loan payments if your sister is unable to do so. After a foreclosure, your sister will be liable for paying the balance amount resulting from the property sale. She will have to pay off the deficient balance or ask her lender to forgive the dues.
Feel free to ask if you've further queries.
Sussane
Hi Sussane,
thankyou for you reply, could you please clarify for me , is it only the previous missed payments prior to death that the estate is liable for or if my sister continues to miss payments will the estate be liable for those too?
thankyou for you reply, could you please clarify for me , is it only the previous missed payments prior to death that the estate is liable for or if my sister continues to miss payments will the estate be liable for those too?
Hi Guest,
As far as I can understand, the estate will be liable for paying the loan as a whole if your sister misses the payments.
As far as I can understand, the estate will be liable for paying the loan as a whole if your sister misses the payments.
wow im finding this difficult to grasp, effectively what you are saying adonis is that my father will be liable for a missed payment that happens after he has passed away?
so my sister could effectively continue to miss her payments on her house and my fathers estate would have to pay until there was nothing left???
so my sister could effectively continue to miss her payments on her house and my fathers estate would have to pay until there was nothing left???
I suggest you consult with an attorney who would have knowledge of estates as well as real estate, to get clarity on this issue. I agree that the missing of a payment by your sister after the death of her co-signer - your father - is a ridiculous thing to hold against the estate. But legal advice isn't what you came here for, I hope. Please check in with your lawyer and see what kind of answer you get.
I don't think the lender is likely to get anywhere if it decides to take action against the estate of a cosigner, particularly after the date of the death.
That's just my opinion, and it's got no legal basis, so take my first advice, please - go get a lawyer.
I don't think the lender is likely to get anywhere if it decides to take action against the estate of a cosigner, particularly after the date of the death.
That's just my opinion, and it's got no legal basis, so take my first advice, please - go get a lawyer.
thanks for the advice :)
Indeed, you're welcome.