If my deceased father had 3 loans out at a bank, are we responsible for all of them?

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If my deceased father had 3 loans out at a bank, are we responsible for all of them?

One of the loans is secured with our family land, and we accepted responsibility for that loan so we didn’t lose the land. Now the bank is saying we have to pay all 3 loans even though the other 2 were unsecured. Can they do that? Our debt went from $6K to $19K.

Asked on November 21, 2011 under Bankruptcy Law, Louisiana

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Good question. You need to carefully read the loan agreements and the mortgages (trust deeds) securing all promissory notes that your father may have signed as to the three separate loans.

If only one loan is secured by the family land, and the other two are unsecured, your father's estate is technically responsible for paying all three loans where one asset of his estate would be the family land securing one of the loans.

The bank is most likely correct in saying that all three loans need to be paid off. The key is that only one of the loans is secured whole the other two are not. I suggest that you consult with a real estate attorney who is experienced in Wills and trusts to assist you further concerning your question.


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