What happens when a co-signer on a mortgage dies?

Answer by  patti (29325)

It depends on how the mortgage is written and what kind of insurance it has on it. Very often, insurance provides that if one party dies, the mortgage is paid off and the property is then owned solely by the other signer. If the insurance is not in place, the remaining signer is responsible for the debt.

Answer by  patti (29325)

It depends. Very often, mortgages have insurance that covers the debt if one of the signers dies. If this is not the case, the remaining party/parties would be responsible for the debt. The deceased may have assets that could help satisfy part of the remaining debt. Check the mortgage paperwork.

Answer by  flamiss22 (5081)

The party that did not die will assume responsiblity for the debt The mortgage holder can also get a judgement against the estate of the deceased.

Answer by  noblequest (64)

THe mortgage remains enforceable even when a co-signer dies but the debt is now due by those who will inherit the estate or property of the deceased to fulfill the terms or else the collateral on which the mortgage is inscribed will have to be realized at the request of creditors before being redistributed to those who have rights thereto.

Answer by  gary23 (130)

The primary borrower remains liable for the mortgage. If the co-signer was included on a mortgage insurance policy the mortgage may get paY IN FULL.

Answer by  cammieo (169)

When a co-signer on a loan dies, the remainder of the loan balance and time is now the sole responsibility of the first signer. If they cannot afford the loan, then they need to go to the loan holder and return the security or make other arrangements.

Answer by  Liz59 (10966)

When a cosigner on a mortgage dies, then the property is reassessed and evaluated. A cosigner usually makes sure that the debt is paid off when the property is defaulted.

Answer by  DeMarcusMyles (42)

Very often, insurance provides that if one party dies, the mortgage is paid off and the property is then owned solely by the other signer

Answer by  PGR (74)

The mortgage holder (lender) can make a claim against the deceased co-signer's estate, althugh may states prohibit this if there is no default in the loan.