Any Bankers on here?
Some of my Senior Single friends purchase RV's on the "Thousand dollars down and twelve years to pay it off" plan. My question is, "What happens when they expire three years into the twelve year co...
Forum Discussion
Tyler0215 wrote:
The voice of experience.
The estate sells the RV and pays off the loan or.
The bank will get the RV and sell it, the estate will be on the hook for any balance owed, including interest.
I'm an estate planning attorney in California and the the above post is basically correct. This situation involves a secured load, ie, the RV is the security for the loan and the the loan must be paid back by the estate, which is technically liable for the debt, not the heirs.
The situation is really no different when grandpa dies and leaves a $50K mortgage on a $200K home. The heirs inherit the home "subject" to the mortgage and typically sell the house, pay off the mortgage and pocket the difference.
