My dad passed away 6 months ago and he had previously taken out a loan/line of credit from MBNA. He was paying it back right up until his death but now MBNA wants my mom to pay it back. My dad had no estate and we dont have the money to pay it back for him.Can they hold my mom accountable for that? My mom never signed her name on anything to do with that and now they are saying that we have to find out a way to pay $8,000. They are even saying that we should either take out a loan, ask our friends to help or sell our house to pay it back. I'm scared that they'll take our house away and we aren't even done paying for it! The mortgage we have is from Bank of America and they have actually merged with MBNA. But the bank says they have nothing to do with MBNA. MBNA sent us letters from their lawyers saying that we need to pay them and so we are thinking about getting a lawyer too but can anyone out there help?
2006-12-13 15:05:29 · 6 answers · asked by colombianfuego 2 in Business & Finance ➔ Credit
By the way before my dad passed away the house was transferred from my dad's name to my mom's name so now the house is hers.
2006-12-13 16:16:29 · update #1
Best of luck to you and your mom. contact Lonnie at l.burgen@rmcninc.com
2006-12-13 15:13:53 · answer #1 · answered by D 2 · 0⤊ 0⤋
First MBNA are DIRT BAGS and I am SORRY about you dad's passing.
Generally a person's debt is disolved with their passing, but being married is a PROBLEM! The community property thing works both ways unfortunately.
The FIRST thing that you have to do is to get the estate through probate so that your mom has complete control of the assets (including the house). If you dad did not have a will it might be UGLY but NOT over the edge.
Keep in mind that the collections people are on COMMISSION ONLY and may get 10% of what they collect. A commission of $800 might pay a single mom's rent for the month.
The first thing that you need to do is get a death certificate because EVERYONE is going to ask for it.
Next find a CPA that is familiar with PROBATE TAX. A good one will cost you between $100-$200 an hour but may do it for free if your situation warrants it. I know a GREAT one that might take it on if you strike out locally.
Once that you resolve the probate issues and get ALL assets in your mom's name then you can start to DEAL with MBNA.
BofA won't give you an equity loan until you get clear title on the house. When you do you should be able to get a loan on the house without much problem.
Get your CPA, sorry I just do NOT trust most attornies and tell MBNA that you are resolving "PROBATE" and that will take some time. Tel them that you understand your obligation and ask for the MBNA guys direct line. They will give it to you because they want to get the call when you make payment arrangements, commission.
Now, they are NOT going to take the house as long as you maintain the payments because they are two separate contracts. To take the house they have to file a judgement and if they win it ONLY applies to your mom's income! If she is on social security that is exempt, I think.
You are also CLEAN if you are an adult. The ONLY way that you will get in BIG trouble is if you file BK. DO NOT without GOOD advise.
DO NOT transferr the house to you because it will be EXPENSIVE and could be considered FRAUD to avoid debt; that is NOT GOOD.
When Probate is clear call MBNA and ask for a TOTAL statement, add the net value of the purchases while you dad was alive and add a flat 10%and offer a single payment of that amount via cashiers check. The BIGGEST part of the $8,000 is INTEREST and late payments since your dad passed and it will be a BIG AMOUNT; MBNA has a HEART of STONE!
If the agent won't agree ask to speak to a MANAGER and be FORCEFUL!
Present the plan and see what happens.
If they don't budge write a personal check for the purchases plus 10% and mail it in their payment envelope. Write of the FRONT and BACK of the check "PAID in FULL" where it is evident but not like a pimple on your nose if you get my drift. If they cash the check and it clears you bank YOU are GOLDEN and done with them.
I hope that this helps relieves a little stress in your difficult time. You just have to be STRONG and NOT let them BULLY you; you are ALL that your mom has so step up.
BTW, I am NOT an attorney or CPA, just been down the road with low branches.
Have a HAPPY HOLIDAY
J
2006-12-13 15:59:04 · answer #2 · answered by jacquesstcroix 3 · 0⤊ 0⤋
Once the estate is exhausted, debts shouldn't ordinarily transfer to surviving family.
HOWEVER, if you inherit property that was collateral against a loan (e.g. a House), they have a right to call the loan or take their rightful share of that collateral. Depending on which state you reside in, the marriage may cause debts to be pooled, no matter who signed the documents.
If you can't resolve it with MBNA, consult a lawyer or financial advisor to find out your legal rights, it may seem like it costs a lot, but in the long run it's worth it.
2006-12-13 15:15:12 · answer #3 · answered by Jamie 3 · 0⤊ 0⤋
It is dependent upon the state you live in. Even though your mom's name was not on the card, she may automatically be responsible to pay. I do not think they can take your house away.
2006-12-14 02:13:00 · answer #4 · answered by Anonymous · 0⤊ 0⤋
unless there was another name on the loan/line of credit then no one, but your father, is responsible for it. but because he is no longer with us, then they can't take it out of your mom's pocket. if i am remembering correctly that is. I'm sorry that he passed away, i know the feeling. things will get better:) good luck and merry christmas
2006-12-13 16:51:02 · answer #5 · answered by Starry Eyes 5 · 0⤊ 0⤋
was the loan secured by the house? then yes, they can forclose on your home.
2006-12-15 18:56:22 · answer #6 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋