> NoDoes person A have life insurance?
No. It's doesn't matter if there is equity or not. It's secured debt. Assuming person B is not a spouse, the bank has priority in the estate.Thanks RedOnion, but that link was of no help with my specific question, which was ....
Does the bank have to go to court to gain posession of the property?
Exactly. The executor is liable to make sure the estates debtors are paid before any beneficiaryThe property will go into the estate and the executor will have to discharge the liabilities before distributing the assets.
So if a potential beneficiary wishes to retain the property they may have to get a loan to discharge the outstanding debt to secure the property.
In practicality it's not. The executor has legal duties to pay debts of the deceased before transferring any residual assets to any beneficiary (charity or otherwise).I'm a bit puzzled about how the ownership of the house is actually transferred to the bank.
The property will go into the estate
Not necessarily - if the property is left in the will to Mary, subject to the mortgage, then the debt is tied to the property and not to the estate.The executor is liable to make sure the estates debtors are paid before any beneficiary
Just trying to increase my understanding here, so I'm open to correction.Not necessarily - if the property is left in the will to Mary, subject to the mortgage, then the debt is tied to the property and not to the estate.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?