Can a bank call in the loans if they find out the co-signor has dies even though the loans are current?

UPDATED: Apr 23, 2015

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Apr 23, 2015Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can a bank call in the loans if they find out the co-signor has dies even though the loans are current?

My grandfather co-signed my students loans for me and recently passed away. The estate wants him released as a co-signor. I have been paying on these loans for 18 months and they are current.

Asked on April 23, 2015 under Estate Planning, Massachusetts


M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

I am so sorry for your loss.  Your question is very intuitive and frankly, you could be in default now and not know it.  Lenders can place you in default even if you are current when a co-signatory passes on.  Please get a hold of your loan documents and read them. And if they can call it in then find a new co-signor NOW.  It is unlikely that with only 18 months of payment history the lender will let you take the debt on yourself.  Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption