We reside in Illinois, my grandpa died last year my grandma died last month but what happens to the vehicles and house they have??? The lender says they are going to repo the car if we dont sell it and the house has a lien from a loan the home was paid off years ago. The company with the lien says if we dont pay off her debt they can foreclose on the house---i am hearing that cannot happen if the companies are served with a death certificate everything should be written off and balanced out and the family keeps the vehicle and home IS THIS TRUE?
2007-11-23 13:47:37 · 8 answers · asked by jenniferiswhoiam 2 in Business & Finance ➔ Renting & Real Estate
Not true..Unless the owners had a type if insurance that payed off money owed if they died i.e..Mortgage insurance, a policy on the car etc. unless the family pays off or assumes payments on these they will be repo-ed.Just because the house was payed off it can still have a lien, possibly from a refinance or as collateral for some other loan..Unless you find all paperwork you will not know how much is owed on the property ..Didn't they have a life insurance policy or anything? Check the paper work..Don't always trust what a company is saying to you ..you need the proof in your hands on what's what. If your family wants to keep the property you must assume responsibility for debts..They get ya coming in and they getcha going out.
2007-11-23 14:04:46 · answer #1 · answered by wintairi 3 · 0⤊ 0⤋
No, it is not true. If there are valid loans against the vehicles and the house, the lenders have the right to repossess the vehicle(s) and foreclose the house. Debts on secured property don't disappear when the person dies. If the house 'has a lien from a loan', the house is not paid off. There is an outstanding loan somewhere.
You may be able to delay actions on these situations, given what has occurred, but, if you don't handle the liens, the properties in question will be taken away.
2007-11-24 00:47:41 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
I'm sorry your grandparents both died so recently. It's hard to lose both grandparents.
You should see a lawyer just to get an explanation of all the things specific to your grandmother's situation. Everyone who dies has an estate: an accumulation of assets and debts. An executor is usually named in the will to handle these. Did your grandmother have a will? This is something that the lawyer will ask you and it will be important.
The creditors are paid first from the assets of the deceased person. Then whatever is left over is distributed to the people designated in the will, or whomever the law of the state specifies to be the legitimate heirs.
As far as I know, nothing is written off unless there are absolutely no assets and a creditor has to write off a debt just because there is no estate to collect from.
You shouldn't be operating in the dark. You really need to talk to a lawyer. He or she will tell you how you have to proceed.
2007-11-23 14:20:43 · answer #3 · answered by kathyw 7 · 0⤊ 0⤋
In most cases if there is some type of coverage for the death then the lender uses it as a write off. But if there was not coverage I'm positive that can take what matters are necessary to get the coverage for the debt. Even if that include foreclosure on the home and repossession of the automobiles. I know it may seem harsh but these people (the lenders) are only out for one thing and that is to get the money that is owed to them not matter what.
2007-11-23 14:05:05 · answer #4 · answered by shellyj2303 1 · 0⤊ 0⤋
If your grandparents owed creditcard debt then that MAY be writen off but if there is a loan against houses or cars then whoever is "settling the estate" MUST either sell the asset to payoff the loan OR pay off the loan and the split the funds according to the will or however the heirs decide.
2007-11-23 14:06:04 · answer #5 · answered by Jerrold J 3 · 0⤊ 0⤋
Not true. These loans are secured against the property. If payments aren't made the banks have the right to get their money back through the sale of the property.
The best thing to do is either continue to make the payments and, if you don't want the property, sell it to minimize the cost to the banks which maximizes your profit from the equity remaining.
2007-11-23 13:53:56 · answer #6 · answered by Charles C 1 · 0⤊ 0⤋
Nope. Any monies from their estate has to pay off their debts.
2007-11-23 14:21:29 · answer #7 · answered by wi_mbr 3 · 0⤊ 0⤋
Not true. There is no write off as long as there is property that they can re-possess.
2007-11-23 13:59:09 · answer #8 · answered by October 7 · 0⤊ 0⤋