Q: Can a third party collector foreclose on a home that was used for collateral on a loan, person is deceased that got loan
House was used for collateral when divorce agreement specifically said that person could not take out a loan using the house, he is also deceased now. Collectors threatening foreclosure
A: Any interested party needs to get in front of a lawyer with all the documentation asap.
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A:
In California, if a person dies and they have a mortgage on their home, the mortgage company has the right to foreclose on the property if the mortgage is not paid. However, if the loan was taken out by someone other than the deceased person and the deceased person was not a co-signer on the loan, then the lender may not have the right to foreclose on the property.
If the deceased person used the home as collateral for a loan, and the loan was not paid, the lender may have the right to foreclose on the property. However, if the divorce agreement specifically stated that the person could not take out a loan using the house as collateral, then the lender may not have the right to foreclose on the property.
It's important to review the divorce agreement and any loan documents to determine the rights and obligations of the parties involved. If the lender is threatening foreclosure, you may want to consult with an attorney who specializes in real estate law to determine your legal options and to protect your rights.
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