If someone uses land as collateral on their house can the parents still will it to their children or sell it to them.
2007-07-05 20:43:36 · 3 answers · asked by ravenscloud00 2 in Business & Finance ➔ Renting & Real Estate
Check out law sites. They should have some information.
2007-07-05 20:59:27 · answer #1 · answered by Sage 3 · 0⤊ 0⤋
The property can be left to the children in a will, but cannot be sold to anyone without the permission of the lender involved, since the property is their collateral on the loan. If the parent(s) die, then the lender has the right to collect the funds due to it from the parents from the estate of the parents. If this requires that the property be sold to pay off the loan amount, then the property is sold to whomever wishes to purchase it.
2007-07-06 08:21:59 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
YES,
The encumbrance or dept will always retain its position ahead of the will or sell of the property until the debt is paid and the lien removed.
2007-07-06 04:00:52 · answer #3 · answered by Willems_grandpa 3 · 1⤊ 0⤋