Legal Question in Wills and Trusts in Utah
When a spouse dies and has a loan and is the only person listed as responsible, is the surviving spouse responsible or other members of the family? My mom passed away, had used the house as collateral, but when she died the house immediately went to my dad, removing her from the house.
1 Answer from Attorneys
When the house is used to secure a loan, the house is still security, even though the individual who took out the loan dies, and the title transfers to another individual. Your father can keep on paying down the loan, or sell the house, use the proceeds to pay off the loan, and the rest is his to keep. A third alternative is to let the lending company foreclose on the house, they take enough of the sale price to satisfy their loan, and the balance goes to your father. Please contact me if you have further questions.
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